Residential Assisted Living - PRO’s CON’s?

Question

This seems like a solid area of growth but wasn’t sure of the main con’s for this area of investing / business. I’m in Florida which should be a good location for this type of investing.

Gene Guarino · Answer

Ive been an owner and operator for over 7 years.

I invest in RAL homes and businesses and we have taught thousands of people across the country how they can do it too.

Gene

Chris Allen · Answer

Genes stuff is awesome, go check it out!

Gene Guarino · Answer

There aren't many companies that you can call to lease your home for use as a RAL.

The few that exist are local and smaller operators.

If you want to own the property and lease it to an operator, they key is to find the operator 1st.

Work with them to choose the right location and then the right property.  If you do that you will have much better success.  If you start with the property and then look for the operator, you may be sitting empty longer than you anticipate.  To be successful in Residential Assisted Living the location is the 1st criteria that is critical to understand.

Gene

John Beasley · Answer

@Gene Guarino thanks for the response. Have you seen it where a person would lease the property to a company that sells its services? I don’t think being a RAL provider would be something I would want to take on.

John Beasley · Answer

@Chris Allen

Thanks for the info Chris

Chris Allen · Answer

Honestly, the best I got is to just do a Google search. You should also reach out to other AL companies and maybe even reach out to the city and see what programs they have available and find contacts through that.

John Beasley · Answer

@Chris Allen

Chris,

That’s a lot of good information. My goal would be to just do the real estate part and look to lease out to a company that provides those services. Do you have any suggestions on how to find those types of companies in my market to understand their requirements and lease agreements?

Chris Allen · Answer

While I am not in the RAL business, I am in healthcare and am interested in that area of investing. Just my two cents that could be very wrong are as follows.

Pro: 1) Ability to provide premium care to people. 2) Can be make a lot of money. 3) Potential for growth in the asset class and business. 4) Multiple business exit options.. i.e- Own just the business, own just the real estate, sell one or both, sell portfolio of RAL to large institutions.

Con: 1) Very "Niche" area, learning curve and barrier to entry (potential pro as well). 2) As with any business, finding quality employees can be difficult. 3) Lot's of regulations/licensing. 4) Depending on your model, can be difficult/expensive to find residents who can self pay, then you have to deal with insurance. 5) Then there is always the risk that the government will change regulations as RAL's become more popular. Potential law suits from families, etc..

Residential Assisted Living - PRO’s CON’s?

Most Popular Reply