How do you keep showings confidential?
We act as if we are placement agents giving a tour of the home. We prepare potential buyers beforehand telling them what not to say while in the home. We avoid discussing any business on the property, and either have the potential buyers meet with you in your office, backyard or at the nearest coffee shop wherever you are most comfortable.
What financial information will I need to provide to potential buyers?
You will need to have financials that can provide reasoning behind the evaluation. We recommend 2 years minimum of profit and losses, as well as rent rolls for the previous 3 months minimum. As we move forward with the process and get into contract, you will need to provide 3 years of tax returns and profit and losses. If you do not have this information it will severely hinder you getting the most money possible for your home.
How long will it take to sell my assisted living?
It will all depend on your particular situation. Unlike in home sales where there are hundreds of buyers, with assisted living homes we are dealing with a handful of buyers. Since the sale is a commercial real estate transaction we usually let our sellers know that 3-5 months is relatively standard. However, every situation is different and when we meet and go over your business we can discuss how long we believe it will take to sell the home.
What can I do to get the most for my business?
A number of factors will decide the value of your business. A few of those factors are the vacancy rate, the area, the staff involved, etc. It is not a one method fits all evaluation. The most important things you can do as a seller is be ready with your proof of profitability so potential buyers are able to secure lending, and keep the home as full as possible. To discuss the process of getting the most for your home contact us and we can have an in person conversation.
How do you calculate the value of my assisted living home?
Finding a value for these homes is a science and an art. There is no one formula fits all method to answer the question of valuation on these homes. We evaluate on a case by case basis and will factor in things like location, number of residents, rates per resident, vacancy, length of business being operational, etc. We never give values over the phone because it is very important for us to see the home first and really get a feel for the neighborhood and your residents. At the end of the day, your business and home are worth exactly as much as someone is willing to pay for it and receiving financing for.
Are there many cash buyers out there for assisted living homes?
A lot of times sellers will ask us "what about cash buyers?". Cash buyers are extremely rare for this industry. A cash buyer will usually want a significant discount. If someone has enough money to buy your home and business, they are probably going to prefer leveraging their money in order to invest in multiple homes/investments. The number one reason we've seen for someone looking to pay all cash for an assisted living is that there is a discount.