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Updated over 5 years ago,
Residential Assisted Living - Preliminary Due Diligence
Hey everyone! I briefly looked into RAL a little over a year ago, but am getting more serious about jumping on board with it. I know Gene Guarino is THE AUTHORITY when it comes to RAL, but before committing to the hands-on workshop in Arizona, I'd like to dive deeper into the numbers and address a few questions I have. Does anyone have an excel cash-flow analysis of a RAL facility they can share? Also, here are some of the various questions I have:
1. How many bedrooms are typically needed to maximize income?
2. What is the typical ratio of caregivers to residents? Do these caregivers need any special designation such as RN?
3. How many total employees are needed per RAL Facility? How many hours are expected in total (i.e. man hours) and of each worker?
4. What is the typical pay for each worker type?
5. Is it feasible to outsource the whole operation, including staff, and still earning on the business side? If so, what do margins look like?
6. If more of these facilities are going to appear in the future due to demand, is there concern that competition will drive monthly bed rent down?
7. I see 'Private' and 'Semi-Private' bedrooms for rent with the price spread somewhere around $5k/$4k, respectively. Would it make more sense to focus on Semi-Private placement as you earn more per room?
8. What are the distinguishing factors that will set a GREAT RAL Facility from a Decent one?
9. How much is typically needed to get started on a single RAL Facility?
10. How quickly do RAL Facility bedrooms fill up after initial launch?