Add Assisted Living Facilities to your Investment Portfolio
According to the Census Bureau, baby boomers are at an estimated 73 million and are the second-largest age group after their children, the millennials, born from 1982 to 2000.
“As boomers age through their 60s, 70s, 80s and increasingly beyond, the ‘big bulge’ of the boomer generation will contribute to the overall aging of the U.S. population in coming decades,” said Stella Ogunwole, a demographic statistician with the Census Bureau.
“The older population is becoming even more significant,” she said. The number of people age 65 and older in the United States has grown rapidly over most of the 20th century, from 3.1 million in 1900 to 35 million in 2000.
In 2018, there were 52 million people age 65 and older, according to the Census Bureau’s Vintage Population Estimates. Their share of the population grew as well, from 12.4% in 2000 to 16.0% in 2018.
But aging boomers are not the only reason the nation’s population is getting older overall. Longer lives — in part due to better health care — and record low birth rates among young women are also major factors, according to Haaga.
The total fertility rate of U.S. women is now 1.7 children per woman, below the 2.1 children needed to replace the population.
Life expectancy at age 65 went from 11.9 years (1900-1902) to 19.1 years in 2010, according to An Aging World, a Census Bureau report co-authored by Wan He.
Older adults are projected to outnumber children under age 18 for the first time in U.S. history by 2034, according to Census Bureau projections.
“The mismatch between old and young will have implications across the coming years,” said Dr. Grace Whiting, president and CEO of the National Alliance of Caregivers.
“We aren’t having enough children to take care of us in our old age,” she said. “Look at my family: my in-law was one of six children, my husband and I were one of two, and we don’t have kids. Extrapolate that out, and that’s what’s happening nationwide.”
Whiting’s concern points to the increasing need for caregiver and health services for people over age 65, many of whom use services whose funding depends on decisions made based on census data.
Why its important to add Assisted Living Facilities to your portfolio?
As an investor, it’s important to stay on top of these trends and identify opportunities to capitalize on them. One such immediate opportunity is that the market will be in dire need of assisted living facilities throughout the United States in the coming years.
Despite this opportunity, owning an assisted living facility is not an easy task. Caring for seniors is completely different than owning an apartment building. It is important to have your business structured where it is running as optimal as possible, with competent staff, great food services, activities, and fluid management structure.
Owning an Assisted Living Facility
Residents in assisted living facilities pay between $2000-$20,000 per month to live in these facilities (depending on location and level of care).
Just think of each bed being a unit. For example, one of my assisted living facilities in Baltimore is licensed for 16 beds, each bed I consider a unit in the building, and each bed averages $3300 per month.
Now let’s do a quick breakdown of the numbers in this facility:
The property was $300,000 to build with another $50,00 in furniture and expenses. If you’d like to see it, here is the link to the property: Phoenix Rising Assisted Living Facility
Pricing per Unit (bed):
- $3000 for level 1
- $3500 for level 2
- $3800 for level 3
Monthly expenses for this 16 bed Assisted Living Facility
- Staff: $7,920
- Gas and Electric: $375
- Cable/phone/internet: $187
- Food: $1300
- MSC: $950
- Mortgage/Business Loan: $2750
Total: $13,482
Profit:
- 16 clients at $3300 per month = $52,800
- $52,800 – $13,482 = $39,318 Monthly profit (If all beds are full)
Assisted living facilities can be extremely profitable if you manage them correctly, offer stellar care, and a safe environment. In this industry your reputation is everything.
What We Offer
We offer a course along with consulting and management services where we help your company add assisted living facilities to your portfolio. This is a full service consulting package.
Services we offer with 1:1 consulting:
- Develop a business plan to build/renovate property(s) for the purpose of converting them into an ALF
- Assisted living policies and procedure manual
- Assisted living staffing manual
- Assisted living resident manual
- Assisted living medication manual
- Assisted living Emergency Disaster plan
- Assisted living Business Plan
- Review and assistance of your licensure application
- Uniform Disclosure Statement
- Assistance with location layout and site survey. This will assure your assisted living facility is ready for clients and state surveyors.
- Site visit and survey
- Cost analysist report for each location
- Consulting in remodeling with the purpose of licensing a home for assisted living.
- Advertising and client placement
- Hiring qualified staff to run and manage the ALF
- Setting systems in place so that the ALF can run as efficient as possible.
- Overall management of the facility day to day operations.
- Provide a monthly financial report to investors and payout all profits to Investors
- Advertise facility and fill empty beds as needed.
We offer these services until the investment firm/owner is ready to manage the facility on their own, or they can keep us on indefinitely as property and asset managers.
If you are interested in our services, please fill out the form below and we look forward to supporting you in your investment.
