Assisted Living Facility
A seller calls me off one of my bandit signs today. She has a 2100 sq ft house with main rood frontage that she needs to sell. Thing is it's been converted into an assisted living facility. It's got 5 beds and she and one other person run the place. The other half of the place is her own residence.
She wants 210k for the place which is about what the place would retail for as a 2100 sq ft residential home in that area. She also came up with that number because that's what she's got in the house after converting into an assisted living facility (ASL).
She converted it 1 year ago and her husband got a job transfer they must take so they need to sell. The price includes all equipment and business contacts. She states it is a "turnkey" operation.
She and two other employees run the place. She is willing to train the new owner and stay on board until they get the licsencing req'd which can be done within a few months. Her 2nd in command is willing to take charge of the main day day managment (she states that she cannot purchase the home/business).
She states the gross income is 6600 per month with 5 beds. With her and her family moving out she states you could easily add 4 more beds and stay well within code. The net is 3600 after all mortgages/taxes/ins/wages.
Whew... now that I have that out of the way - what the HECK can I do with this. IF this place makes 3600 x 12 = 43,200 per year, based on what I know about income producing properties, the value would appear higher.
Also, she states that the houses in her area on that street are being
re-zoned light commercial for lawyers/cpa's/dentists...
I have yet to verify everything she has told me 'cause as we know how sellers fib sometimes but still... I really don't what all this info means to the layman, but I'm looking for someone have might have some idea about how to take advantage of this situation. I wouldn't mind getting it under contract and flipping it to someone who knows what they're doing.
If anyone has any ideas or contacts please let me know.
-Chris
Tampa **Please See My Profile**
The numbers are VERY suspect in my opinon.
Basically she is telling you that employing 3 people PLUS the mortg PLUS food etc etc etc. Is 3K a month
3 full time employees would be OVER 5K in one month.[ Edited by MrMike on Date 12/07/2003 ]
keep in mind this is a assisted living not a nursing home, they don't really bathe/feed/medicate these people, they're semi independent
but who knows, I'm prolly just going to pass on this deal-eo
Don't just pass on it that easily. Even if the numbers are off, there may still be some profit there. Make a few calls to owners of other Assisted Living Facilities and see if they want to expand or manage it while you keep a little piece of the action. It may be too good but you can always investigate and and make an offer based on fact. Good Luck.
An Assisted Living is a " business " regulated by the state. It can be profitable if you want to run it, but doesn't sound like a real estate investment . Unless youl can lease the building to a business owner.
this is what I'll think I'll do
I know that there are people who own these. And people who own them that do well prolly will wan to own more at a good price.
What' I'll do is get it under contract and call all the owners of assisted living facilities in my area or my state if I have to.
Sounds like a good flip to me.
First of all, these small family-type assisted living facilities are potential goldmines. I recently started to develop this concept, and its really a wonderful thing.
Theres a LOT to do with these places, and the staff is what can make or break you. Insurance can also be high, so check that out, this is likely not covered in your homeowners policy.
Nevertheless, if you can get good staff, and a HANDS ON manager, you will make a ton of money. 9 beds, at 1500 per bed, substantially raises your income. Also, understand patient to staff ratios and make sure you have enough staff. PM me for some more info.