Residential Assisted Living Homes

[Michael Porche]

Investment Info:

Other commercial investment investment.

Purchase price: $250,000
Cash invested: $30,000

Bought Residential Assisted Living Facilities with putting in a new business operations. 18 doors (beds) total.

What made you interested in investing in this type of deal?

The amount of Cash flow originally. Then I found I love providing a service in this fashion

How did you find this deal and how did you negotiate it?

I called all residential assisted living facilities that were 15+ yrs old and asked if they were interested in selling.

How did you finance this deal?

Seller Financing

How did you add value to the deal?

Putting in a new business operations and better marketing to get quality residents

What was the outcome?

A business that was breaking even to producing 10,000 cash flow thus far

Lessons learned? Challenges?

This deal is nothing like tradition real estate. I had a hard time understanding the business. We ended up hiring a consultant who has been in the business a long time. There is a lot more liabilities when dealing with the elderly and care for them. Also hiring quality employees.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No