Starting a successful residential assisted living business has a lot to do with understanding the systems. Justin effectively gained the real estate investment and senior care training needed to start his elderly care home from the Residential Assisted Living Academy. After spending years attending countless real estate education programs, he was drawn to the RAL model after attending the 1-day training in Kansas City, Missouri. He initially heard about Gene Guarino and the RAL Academy while listening to The Real Estate Guys. Shortly after attending the 1-day training, Justin registered for the 3-day fast track course in Phoenix, Arizona. According to Justin, the family-like support that he received from the RAL Academy helped him to overcome many obstacles.
The difference between the investment training he received from RAL Academy as opposed to others is learning how the systems should be put in place.
“It’s all about the systems,” he said. Now, his high-end 12 resident home is up and running with a 20-25% profitability margin. That is just amazing! When Justin met Gene, he had experience with fix-and-flip homes and some rental properties. He was impressed with Gene’s passion, investment knowledge and the model that he developed for residential assisted living. Justin was in search of a more profitable investment. Despite his previous experience with other real estate assets, the profit margins were not what he expected, and it wasn’t worth the time, energy and investment. Justin decided to take a different route after attending the 3-day training course in Phoenix. “I’ve never really seen the level of help that comes with working together. It’s more of a family, working together,” he said. “You have problems, but at every turn, there’s an overcoming of problems together.”
The Reason Why Location Is Everything
Justin understood the importance of finding the right location. The RAL Academy suggests that students find a big box facility and set up right down the street. If you’re right near a big box assisted living facility, then chances are, you’re in the right place. Large assisted living facilities require vast amounts of capital and investors, and if they are at all competent, market research has a lot to do with their location. Why reinvent the wheel when RAL Academy has a proven strategy that works? Location is critical in our industry. Even if you own the property already, that doesn’t mean you should necessarily use it for assisted living. While we place a lot of emphasis on location, there are actually 5 keys to success for owning and operating a profitable residential assisted living home. Each key is taught during the RAL Academy 3-day training course.
Three Reasons Why Location Is Important:
The location of your RAL home can make or break your business. Location plays a factor in increasing or decreasing your monthly net income. The location also plays a factor when it comes to hiring and retaining employees. Location is key. The relationship between the business and the location is all about finding that sweet spot. In addition to finding the right location, Justin gained an understanding of market feasibility.
When you get started looking for investors or capital, people are going to ask you if you have a market feasibility study. Again, use the resources of the big-box facility. Market feasibility studies for these types of real estate developments usually cost thousands of dollars. Inquire about the big-box market feasibility and use it for your RAL home. Justin’s gross revenue for his RAL homes is projected at around $950,000 with a 20-25% profitability.
5 Key Components of a Market Research Feasibility Study
- Stakeholder In-Depth Interviews (IDIs): These stakeholders can range from key personnel in the organization, outside the organization, those involved in the local economy or any other stakeholders who may offer credible feedback and play a role in your business plans.
- Demographic Assessment and Trend Analysis: This involves secondary research and analyzing the market. Information is collected for the market with regards to population trends, age, consumer expenditures, education and any other relevant demographic statistics that would impact the feasibility of the project.
- Quantitative Survey: This is the portion of the market research project where primary data is collected among end-users. The questions are focused on current usage, predicted usage, and understanding of the impact the new business idea will have on the market.
- Competitive Assessment – The competitive assessment takes a look at like-competitors in the market area that will impact your new business. Analyzing competitors also helps our clients understand service or product gaps in which they can market themselves.
- Demand Model/Estimates with Recommendations – Use the findings from the first four components to create a demand model. The demand model will estimate/predict the likelihood and habits of end-users for the new business you are testing. The demand estimates use predictive modeling to offer a rough figure based on the combination of known factors and assumptions.
Why Residential Assisted Living Will Benefit Businesses For The Next 20 Years
Accelerate your vision by reading our blogs that describe why fast track training is helping RAL business owners succeed.
There are three good reasons why RAL business owners, operators, and investors will benefit from senior assisted living:
- Smaller homes are safer for the residents because they have less exposure to others than they would have in a “Big Box” Community. It’s safer for the caregivers also.
- Interest rates are low, which makes it easier to buy a property and to fund your project.
- The demographic shift that is happening is unstoppable. The Silver Tsunami of Seniors is coming. So the demand will be there.
We know exactly what’s coming and when it will arrive. We truly are at the “Right Place At The Right Time”. Visit www.RALAcademy.com and learn how you can get ready for the next big investment opportunity of a lifetime.