Accelerating the Buyer's Process
So you are looking to buy a residential assisted living home?
When we first meet with buyers, we like to ask them how soon they'd like to be up and running. This will dictate the best strategy for their getting into this industry.
Options for getting into the residential assisted living industry:
-Purchase an existing business
-Buy a regular home and convert it
-Build a custom home from the ground up
If purchasing an existing business, the timeline is going to depend on what type of financing you choose to use. If you have the cash or private investors lined up, you can close very quickly after your due diligence period. If planning to get an SBA loan the timeline will be closer to 3-6 months. The strength of the financials for the business will affect your ability to receive financing.
When looking at the market for homes to buy and convert, it can take time to find the right opportunity. You are factoring in location, distance requirements of the city, demographics, average rates in the area, etc. The timeline is often going to be around 6 months to 1 year. The first step is having an offer accepted when you find a great home for conversion. If you make the terms undesirable for the seller such as 90 day close, 30 day inspection, etc. there is quite the chance you will be turned down multiple times before having an offer accepted. Most sellers are going to expect a 10 day inspection with a 30 day close so if you find an ideal opportunity you may need to be willing to look into a hard money loan to close at the desired time. You need to be open to doing what it takes when a great opportunity appears.
If you are looking to find a plot of land and build a custom home, your timeline will be closer to 1 year +. Again, here you are looking into distance requirements, and demographics to determine what areas would be ideal for you to build a new home. Once you have found the lot, you will be double checking set backs and rules and regulations of the specific city, working with a contractor and architect to start planning for your new residential assisted living home.
Additionally, whenever starting a new business it is important to factor in carrying costs and anticipate at least a few months from door opens to beds full. You'll be needing to market this new home to the community, neighbors and placement agents to get the word out that you have availability. The speed at which you fill your home is going to depend on marketing, need in the area and your ability to get the word out!