Bergenfield, NJ 路 Member since 2018 路 38 posts 路 8 votes
Hi, I came across RAL (Residential Assisted Living). I am wondering who invest on this arm of Real Estate, what area would you recommend and financing approach?
Rental Property Investor 路 St. Paul, MN 路 Member since 2016 路 3k+ posts 路 3k+ votes
5y
We own 2 group homes. This is a great field, but is highly hands on, with a lot of regulations. I would suggest buying existing buildings that already have the staff in place. Two big factors in your profitability: First, keeping your residents alive and the bedrooms full, 2nd is keeping good staff.
Developer 路 Salem, OR 路 Member since 2014 路 193 posts 路 110 votes
5y
@Lyndon Timbang In Oregon it requires a significant learning curve. Covid has hit them pretty hard. It is (and should be) tightly regulated. The need is there.
Rental Property Investor 路 Austin, TX 路 Member since 2015 路 36 posts 路 20 votes
5y
I too am very interested in this field since I have both healthcare and real estate experience, and there's one here in Austin for sale that I've been eyeing. To my knowledge, you are NOT taking any Medicare patients, these are ALL private pay. It does require a license here in Texas but I've been through many state surveys for my current company and the process isn't too rigorous, but you definitely must meet standards with policies and safety in the workplace for your employees and clients etc. My biggest hiccup right now is financing. I need to email my commercial lender to see if it will require 25% down or not because I'm unfamiliar with that. I've looked at the seminars in Arizona, the RAL Academy, but haven't taken one yet. Will you be getting into this field? I also own some small/medium sized apartment complexes which are GREAT, but it's been quite hard to find good deals in that field lately.
Bergenfield, NJ 路 Member since 2018 路 38 posts 路 8 votes
5y
@Taylor Philley
Thanks Taylor.
Yes, we actually signed up at RAL and planning to attend the 3-day seminar 馃.
I too am in healthcare biz and doing flips in NJ that鈥檚 why it motivated me to pursue this and I know it can be done, obviously at a smaller scale first.
I have business partners and we鈥檙e considering out of state due to lower price points compared to my area and hopefully to find a turnkey 1.
So, here鈥檚 the dilemma:
-we are looking for a company or a website where they lists these type of properties.
-we are still trying to find out the financing aspect of it. Residential vs Commercial.
- we are still looking for a better location or state to start this biz although i heard that Texas is good.
Rental Property Investor 路 Austin, TX 路 Member since 2015 路 36 posts 路 20 votes
5y
@Lyndon Timbang when are you signed up to take the RAL academy class? I would really like to hear your feedback on it. I've found it very difficult to find these opportunities to buy. Arizona has many listings on loopnet but I haven't found any other markets that list RALs online, so I don't know. Maybe you'll learn that in the seminar! Texas is a great market for real estate in general (though I may be biased bc I've lived here my whole life and own a decent portfolio here). Though I live in Austin and it's very expensive. Keep in touch with your RAL endeavors, I'm always open to hearing what others are doing in this space!
Rental Property Investor 路 St. Paul, MN 路 Member since 2016 路 3k+ posts 路 3k+ votes
5y
We own 2 group homes. This is a great field, but is highly hands on, with a lot of regulations. I would suggest buying existing buildings that already have the staff in place. Two big factors in your profitability: First, keeping your residents alive and the bedrooms full, 2nd is keeping good staff.
Bergenfield, NJ 路 Member since 2018 路 38 posts 路 8 votes
5y
@Al Boettger
Just an fyi: we signed up for the inner circle. Currently working on our marketing strategy: sending mailers and then follow up with a call from our VA.
Real Estate 路 Southern New Jersey 路 Member since 2014 路 78 posts 路 31 votes
5y
Congrats, perhaps we can speak via phone sometime. Also there is a meetup group out of Colorado that meets the last Wednesday of each month, I attended-via meetup-last month, it is Denver time, tomorrow night (5/26/2021) is someone speaking on her experiences in running an ALF if you want to listen in (run by Vern Harris, also here on BP).