Hello everyone

[Blake Van Ness]

Hello my name is Blake Van Ness and I have been listening to bigger pockets for a while now and finally decided to join the community. My goals are to open residential health care facilities in California. This is a golden opportunity to start with the baby boomers aging. Cant wait to discuss with you all more.

[Dustin Heiner]

@Blake Van Ness,

Hi Blake!
Oh man I know what you mean. There are so many more baby boomers coming that will need assisted living and senior care. I have actually been toying with the idea of doing the same thing.

What you are actually talking about is starting a business and not necessarily just real estate. Bigger pockets is all about real estate which part of your question relates to, but the business aspect of a senior living facility has much more to do with starting and running a business.

I personally believe that all types of passive income are fantastic ways to help you quit your job and starting a business is definitely one of them as long as you get employees to run the business. I have a close friend whose dad owns an assisted living business here in Fresno California.

So basically what he did was by a large house, about five or six rooms, added more rooms to it by splitting up the living room, adding a section in the back, etc. Then he proceeded to hire employees that would live there 24 hours a day and manage the assisted living facility for him.

So he bought the property and then retrofitted it to be an assisted living facility. The hard part is all the regulations and hoops you have to jump through in order to create the assisted living business. It's not terribly hard to do so but there are many steps.

Your question about raising money may not be necessary depending on how much working capital you have to start with. You can probably find a 4- bedroom house with the ability to add more rooms to it for $250,000 or less and you can get a FHA mortgage on it where you would put 3.5% down.

So you have the property and now you need to make the property pass inspections for the assisted living permit/license that you need in order to operate the business. Depending on how much there is needing for repairs.

For the business aspect of the property, you need to make sure that you have enough operating capital to make sure that your business stays afloat until it becomes profitable by getting more tenants in the.re.

So I would say start looking into what it takes to make a property into senior living facility and once you have a good understanding of what it takes to make a property a senior living facility, you can then run the numbers on any property that you find to see if it would actually make you money. I do know that there is a lot of money in facilities like this. Tenants pay anywhere from $2000-$8000 a month to live in a place like this.

If you want to raise money, being that you are new and have no track record, I believe it would be very hard to find somebody that would lend you money on a business you have never done. I do think you can go it alone and do it all yourself.

I hope it goes well for you!
Dustin