5 Smart Ways to Partner in Assisted Living

Transcript

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All right. Hey friend, it's Brandon Gustafson. Welcome into our live today. Today we're going to be talking about some of the the five ways actually uh that you can partner in assisted living. We're going to talk about joint ventures, syndications, and a few other options that are out there. This is something that I was seeing quite a bit of feedback in the community about uh what you all needed help with uh you know on LinkedIn on on uh YouTube over on Facebook um all the different platforms. I was actually getting quite

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a few questions around how to do partnerships, what those look like. And so I wanted to answer that for you all here in today's video. So, super excited to to be chatting with you uh as we get into this and helping you make uh some good decisions on your path to to figuring out if hey if partnering is going to be the best fit for you or not. So, if you're interested in that, this video is going to be a great one for you. Uh so, make sure you stick around. And um also, hey, my name is Brandon

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Gustafson and I help first-time assisted living entrepreneurs launch profitable purpose-driven businesses creating prosperity, purpose, and peace in their lives. Super excited to dive into this. If you're interested in learning about how I can help you out and give you some guidance so you know, hey, is a partnership going to be good for me? Is assisted living actually work for me, just type in roadmap down below. We'll talk about a little bit more here at the end of the video. But, uh, would love to

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see if I can give you some extra help and some guidance on that. Just type in roadmap and we'll make sure you get you the the correct link for that. All right, with that, let's get into it. Today, we're going to be talking about specifically the top ways to get started in assisted living with a partner. So, we're going to go through five methods, five of the top methods to getting into assisted living with a partner, and we're also going to talk specifically about, you know, joint ventures,

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syndications, and some of these other smart structures and go a little bit in depth on each of them. So, as we're going through this, I want you to think which of these is maybe the best fit for me. Uh, type in that one uh down below. Uh I I think it's also helpful for you like here at the top of the video to be like, "Okay, this is the one I think I'm going to do." And type that in and then at the end of the video reflect and be like, "Hey, you know what? Um I changed

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my mind or uh I actually think this different way would work or I was right. This is the right right way for me to uh to get into uh into assisted living and and do my investing and and do my partnership here." I also want to um just kind of do a quick disclaimer. Um, partnering is not always the answer. Um, you can definitely do this by yourself. Um, when you do partnerships, make sure that you do it the right way. Um, there are a few musthaves before you get into partnering. I have partnered on a couple different

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deals myself. U for my assisted living businesses, I partnered with my dad. I went to him uh before we got started uh in in as we're getting into uh getting into doing this. And hey uh CS deliveries, thanks for being on here. Um appreciate you being here. Uh let's see. Uh anyways, I partnered with my dad to do my assisted living facilities and that came about through me just like I didn't have the money to get started. So I went to him and was like, "Hey, I want to do this. I I've got this background

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in healthcare. I have a masters in healthcare administration for those who don't know." Um, and I was super interested in real estate, getting into that and and kind of moving things forward there. And I I just didn't have the money. So, I went and talked to him, partnered with him, created my business plan, presented that to him. He's like, "Yeah, let's do this. Let's I think this will make a lot of sense." So, I partnered with him on that one. Uh, I had a separate business. It was a

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franchise business that I partnered with my brother on and uh kind of a similar situation. We ran the numbers. We felt good about it. We wanted to work together. That business, unfortunately, did not go well. um it failed. Uh had to sell my personal residence. Um he had to file for bankruptcy. Uh it was this was a few years ago and um as rough of a situation as that was, it was still uh I I still learned so much and I don't know that I would trade it. Um and and that's something I like to coach you through as

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as you get into this uh building the foundation first. I speak as that that is the thing that you need to do first and I speak from experience. like I know how important it is to have um to to build a good solid foundation and know what you're getting into before you jump into it. So, I have done partnerships in the in the past largely with family. Um partnerships aren't for everybody. When you do a partnership, make sure that you have a solid operating agreement upfront. I was just talking with

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somebody in one of my coaching programs about this. Um they were looking to partner with family actually. Uh this was in a recent roadmap challenge. And uh the advice I gave him, again, I'm not an attorney, but the advice I gave him, and this comes from attorneys I've worked with, is while people are still happy and still, you know, working well together, that's when it's time to build a solid operating agreement to go through all of the horrible worst case scenarios. Somebody dies, somebody

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doesn't want to be a part of the business anymore, somebody wants to sell it. How are you going to handle those situations when they come up? Put those in your operating agreement. It's so much easier, so much better for you if you do that in the beginning while everybody's still happy and and you can have hard conversations but good conversations compared to, you know, months, years down the line when something bad has happened and now you're trying to scramble on how you're

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going to have those conversations, how you're going to work through it and people don't want to talk about it. Have those conversations early on in the process. It will save you so much time. So regardless of if it's family, friends, somebody you met on a Facebook group, whatever it is, have a solid operating agreement. And you will find that real people who really want to do a partnership are open to this. I've had experiences in the past where people have wanted to partner with me and I'm

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like, "Yeah, sure. Let's let's have let's talk about Whether it's here this coaching business and creating partnerships there uh to expand uh my reach or uh with other businesses I've started assisted living facilities and things like that. I always start with yeah let's do it but let's have our let's create an operating agreement. Let's come to an agreement on what that looks like. And the people who um bulk at that and don't want to do it and they just want something simple so they can

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move forward. I don't work with them. like it it's just not worth it for me to spend my time there. Because as much as I would like to think and hope that everything will go well, I also know from experience that not everything is going to go well. And luckily for me, the experience with my brother, we still have an incredible relationship. Um, and a lot of that is our personalities, but also like um we spent time upfront figuring out exactly what that was going to look like for us if something bad

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went uh came came about. And it's allowed us to save our relationship even in the the horrible circumstances we had to go through a few years ago. And excuse me, I cannot recommend highly enough or or coach you highly enough strongly enough um that you need to treat every partnership that you go through like it's a business. So you need to to treat it like this. This is a professional relationship. Um, it can make family, if you're doing this with family, it can make family gatherings a

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little bit uh rough, especially for spouses because you end up talking about business all the time. But it is so important for you to do that. And that's what's going to allow you to um just kind of move forward with confidence in this. Okay. So, those are just some disclaimers that I wanted to get out of the way that you need to treat this like a business. Make sure you have a solid operating agreement. Um and and when you do those things, it's going to give you a lot more confidence moving forward,

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regardless of the type of of uh way that you're going to um be doing a partnership. Okay. Now, let's get into our the five different partnership methods that I'm going to talk to you about. There's certainly more uh than this is not meant to be a comprehensive view. This is to give you an idea of the different types of partnership options that you have available to you as you're working to get started in assisted living to see if it's going to be a good fit for you or not. And it's not for

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everybody, but I do want to make sure that you understand these are the different types of uh of partnerships that you could potentially look at. So, first one is just a simple equity partnership. This can be with family or friends. Um, basically, it's two or more owners. You share equity. Uh, oftent times it's kind of like a 50/50 split or you share it based off of the amount of work, who's going to do, what type of work, and how much work they're going to do. But it is a simple, hey, we're going

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to do an equity partnership. uh we're going to figure out who owns however much of of the business and we keep it simple. Um it if you're going to raise money, it's a pretty simple and fast capital raise as well. U maybe you're partnering for funds. We'll talk about that here in a second. Um on the the the bad side, the cons for for this option is um it can put your personal relationships at risk. And uh that's why I prefaced everything that I say here today was doing the operating agreement

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and uh just making sure you know exactly what you're getting into because it can put those personal relationships at risk. One of the people in my coaching programs, they did this with um they started their own facility with uh their with some of their best friends. Um and they were able to get it up and running and everything. And I had a conversation recently with with one of those partners and it has kind of ruined their friendship and uh now one of them is looking to buy the other one out so they

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can just shift over and and kind of focus on on their own thing and and get out of that relationship. And it has probably soured the relationship maybe permanently uh if not permanently certainly for at least a few years. And and it's it's hard to see when that happens. uh to to be a coach and to hear about that. Like that's that's just really hard for me because um it's one of those things that had they gone through the process upfront about the creating an operating agreement,

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they would have not they probably wouldn't have run into these situations because um something you're going to find is equal effort effort. Um when you're starting this up, it's rarely going to really be equal. uh somebody says, "Yep, I will do I'll do the marketing stuff and you take care of uh maybe the care piece of it and hiring the the the staff and going and finding the residents and and you're like, you know, in the beginning you're like, "Oh, yeah, this will be great cuz you have

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that experience and we can tap into this and and work all those things out." But when you start actually working on it, um you need to not get offended when effort is not equal. Um if you go in at this as equal partners, um that means it's going to be equal regardless of the amount of work. And unless you're going to put in something in your operating agreement about specific tasks and how much money you're getting paid for performing those tasks, you're you're going to kind of fall into this

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trap is a strong word, but uh fall into this this trap of of who's getting paid what for for what thing and is it equal. Um you just got to have to be careful with it. So I excuse me. I think friends and family are great to partner with, but you do have to just be careful with that because it can ruin those relationships. So, just be aware of that before you get into it. Um, and if you're okay with it, then I I think it's a great way to go. Obviously, that's how I've done a lot of

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my partnerships. Um, and I think you can be successful that way. But just know going in that, you know, there's potential for this to go downhill. And are you okay with what that could potentially lead to? Um, sorry. This is the bad thing about doing live stuff. If I've got a cough, then you all have to hear it. We can't edit that out. Um, and I'm doing a lot of recordings today. For those of you who uh let's let's see. I I went live earlier today on accident. I was recording a video. I

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did an entire video um on a live and I I know there were like nine views on it. So, if you were one of those people, like this video. Um, I took that video down. But if you are subscribed and you like the videos and you ring the bell, you may catch me from time to time accidentally going live and teaching you a bunch of stuff and seeing kind of how the sausage is made as I as I do some of these videos. Um, cuz when I do uh normal long form videos, sometimes I just like stare in the camera for a long

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period of time uh until I'm ready to talk uh knowing that I can edit stuff out and uh I don't get that luxury when I do lives here. If you if you are one of those people that watch that, make sure you like this video or comment something in the in the comments uh down below so I can see that. Uh anyways, second second way of doing a partnership here is joint ventures. So a joint venture um each party is going to have equity and each party is going to be a decision maker. It's kind of similar to the simple

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equity split that we're just talking about, but um can be slightly different. A simple equity split is is oftentimes going to be something like a 50/50 if you have two partners or 33 333 if you have three partners or whatever. It's generally going to be an equal equity split. In a joint venture, it's going to be slightly different. Um, your profits for the business are going to be share based on ownership percentage. So, um, basically what that means is if I if I'm doing a joint venture with somebody and

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I'm the person that has the operations and the other person has the money and we've negotiated. So, uh, I do the operations and I get, I don't know, 30 40% of of the income. I'm doing a lot of the work, but I'm not fronting the money up front. And my plan is to earn enough money that I can, you know, pay that person off and and and take over everything on my own. I'm going to take a lower percentage. I would get 30 to 40% of profit. Um, they would get the other 60 to 70%. Like you can negotiate

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these things. That's what's cool about a joint venture um is you can do this, but your profit distribution will be based off of the percentage of ownership that a person has in it. Um, something that's really cool about joint ventures is it does have shared responsibility, shared risk, shared upside. So, um, everything is is kind of brought together and you get this with a lot of partnerships where things are shared and that can make you feel a little bit more comfortable, reduces some of the risk,

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uh, from your side. But again, have a good solid operating agreement just in case something does go south because I don't want you to get a bad legal situation. It's it will save you so much money and legal fees and uh, and battles and and friendships. Um, so just do that. but can really create that shared responsibility risk and and upside on the bad on the con side of things. Um you may have like the thing with partnerships in general is vision may be different. So if you are doing a joint

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venture with somebody, an equity partnerships split, um your view of what you want to do, maybe you only want one facility, but your money partner, the person you're doing your joint venture with wants to scale, it wants 10, 20 facilities. And if you're not there and that that misalignment um and maybe you're just like in the beginning, ah we can we'll just work through it. It'll be fine. And then you get it going and everything's fine. and and all of a sudden they're like, "Well, let's look

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at expanding." And you're just like, "I I didn't want to do that." You need to make sure you have alignment in your vision. Um or you may get um you know, put yourself in a bad situation. Conflicts can also come up um when you're doing this. And if you have somebody that has a a larger ownership percentage, um they are going to hold more voting um stock in the company and and where to steer that. And so that's something you also may want to negotiate if you are somebody that doesn't have

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the money and you're going to partner with somebody that does and maybe you're giving them a higher ownership percentage for um you know what what they're going to uh get from a profit standpoint, you may want to write into your operating agreement that you still retain the uh the ability to make decisions on how to run the business because that's your expertise um regardless of the ownership percentage. So, you need to make sure you're planning those types of things in here.

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What do you want to do? And if you're the person that, hey, I've got the money. I want to get into this and I need an operations person. You may need to give up something like that. And just realize that, hey, I'm not the expert here when it comes to running things. And as much as I want to to have input, and you should you should treat each other as as like board members and and talk about things and try to become aligned, but ultimately um you've got to figure out how you're going to make

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those decision who has final say and how the business is going to be run. Um and you need to plan those things up front. Uh it's going to make your life a lot easier. you need to be really good, strong communicators because if you're not um this it's not going to work very well. So, anybody that is going to be an active participant in a deal in a business, you need to make sure you have clear constant communication. Those could be meetings, maybe it's a Slack channel, maybe it's, you know, text,

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whatever it is. And make sure you just are constantly talking to people um so that uh everybody's on the same page. Now, the third one that I want to talk about is kind of like that joint venture, but we're going to change it up just a little bit. It's a real estate/operations split. So, in this you have one partner that owns the real estate, and you have another partner that just does the the operations of the business. They run the business. Okay? That operating business is renting from the real estate owner.

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They rent um they rent from that person. there there's some kind of a contract in place. Uh, and I've seen this actually be very successful with people. Um, and sometimes it's somebody that oftentimes it's somebody that already owns the property and they are looking for somebody that uh wants to operate. So, if that's you and you're a landlord, type in landlord down below. And if you're the person that's the operations, type in operator down below. And, you know, maybe you guys can meet in the

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comments and and have conversations. Those are not endorsed. Um but uh you know having those conversations I think is going to help you out a lot. Uh but basically that's what what happens. You have landlords who own a property or will buy a property. They will hold that and then the the operators going to lease it from them. They're going to set up the operations. They're going to become licensed. They are probably the ones that are holding the insurance at least the liability insurance. Maybe

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they're doing property insurance and putting the landlord as an additional insured. Like there's a few ways to get around all of this, but the benefits here um is obviously you've got two separate entities um that are now working together. There's going to be some kind of a contract in place and and please put a contract in place. It's very similar to an operating agreement, but this is more of like a lease agreement uh type of a of a situation. Um, but it does keep thing things a lot

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more clean. Um, and the way that things are separated um, and can help protect those assets even more fully um, because you're able to do this. In fact, if if you are doing this on your own, you're doing an equity split or joint venture or something like that, you're going to own the real estate and you're going to own the business, I would still have multiple entities. Um, one for the real estate and one for the the operating business. I'm not an attorney, so this is not um this is not uh legal advice.

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Uh please talk to one. But by doing that, it's going to give you some added protection there um in the way that you run your business. Okay? So, make sure you're doing those things, it creates better asset protection uh when you do this. Now, on the struggle side, on the cons for this real estate and operations split, um, if the operations are struggling, they may not be able to pay the rent. Actually, one of my students, this is what they did. They leased their building. They renovated it from a

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landlord. And it was great. It it was it was really good. But for a period of time, especially in the beginning, the operations were struggling. And uh so they had to work with the landlord to um negotiate better rates, lower rates, maybe it was deferred payments, uh something along those lines. And so as an operator, that's something that you need to pay attention to. Am I going to be able to um make these payments? And if not, can I have conversation to to I don't know, adjust those payments to make it work

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for me or not? Um, and from a landlord's side, you need to make sure this lease is solid. Um, that uh, and really both sides need to be looking at this. Um, because what you don't want as an operator is is somebody saying, "Well, you didn't make the payments, so we're going to do it." They have some kind of a non-compete clause in there, uh, that they can't just like pull it out from underneath you and and run the business. And I don't think a lot of landlords are

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going to do that because they look at it and they're like, "That's actually a lot of work. I don't want to do it. um I'd rather have somebody just pay me and I get the money on the back end. But from a landlord perspective, you need to put in protections for yourself as well for uh the amount of insurance that's going to be on the property and um making sure that there's very strict policies around things like drugs and alcohol. Um just so that residents go and I would worry

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more about residents and staff honestly um with that. um we've had more issues with our residents bringing in those types of things into the home rather than our staff. Um so you want to just pay attention to that. You want to make sure uh you have uh strong strong things in place um to protect you if if payments aren't being made uh so you can lack of a better phrase kick that person out that's not making the payments. You have to to make sure that you are protecting yourself. Lease agreements

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need to be strong on both sides. Use an attorney. make sure it benefits both of you equally, but protects both of you equally as well. Um, I I cannot I cannot um emphasize that enough. As as expensive as attorneys are and as hard as it is to work with them and to justify it, um it is so much better to spend a few thousand upfront to get these things done and in place than to wait and on the back end, uh you put yourself in a bad situation. Okay. Um but I love the real estate operator split option. Um my friend Serge Leescu,

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you may know him from YouTube as well. Um this is how he got started was leasing from somebody and he had a lot of success with it and it has catapulted him catapulted him into what he is today. Uh he does a lot of his stuff in Arizona uh and has groups down there uh that he helps people out down in Arizona and I think it's great. Uh but had he not gone this route, he would not be where he's at today. And so I it's it's a way that people can get in and be very very successful. All right, let's talk about the fourth

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one. This is strategic capital partner. Okay, so this is this is where somebody um one partner puts in most or all of the money, right? They're the person they don't want to run the business. They they just have the money. They can see the return. It is much more passive. And I know there's a lot of people out there that that's what they want to do. they they don't want to be active in these businesses at all, but they do have the money. They see the potential for returns and they're willing to to front

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money for it um in certain situations. Doesn't mean that, you know, you're like, "Oh, cool. I want to do that." It's it's kind of the same principle as grants. Like, for those of you who are interested in grants, just type in grants down below because I'm interested in seeing that. And I have a free resource for you I can I can get if you type in grants um on my website. But um grants are one of those things where it's like, "Oh, cool. I can get free money. it's going to be great. Um, and

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and then you get into it and you realize it's really really hard to find a grant and it's really hard to actually manage a grant and it's not sunshine and rainbows. Um, when it comes to to the world of grants, capital partners are kind of the same way. It's like, oh, I would love to find me a strategic capital partner, somebody that can just like give me all the money and and we'll be good. Um, finding that person is going to take time, going to take developing relationships, going to

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take you building a track record as somebody that that can work through things. And when you do that, it opens up a lot of doors, but it can take some time to find those people. But basically, these are people that are going to front money for you and uh not going to have much of a say. They're going to be more silent partners um in the business. And as long as you are paying them the promised return that has been negotiated, everything's going to everybody's going to be happy. Um, and

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you're going to be in a much better spot. So, you're going to have one partner in this situation that is the operator and they do to the the day-to-day. One person is the money partner. They are not involved and they're just passive. The capital partner is going to get preferred returns. So they they're going to be getting um they're going to get the majority of profit because they oftentimes are going to to earn they're going to have a larger uh share of the ownership percentage. They are going to

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have a majority if not all of the equity in the home. Um not necessarily the business but in the the physical property uh the real estate itself. they're going to have a larger percentage of of that equity. Um, and and the person it's it's kind of a little bit of a split between the one we were just talking about where you're you have kind of the landlord person and you have the ops person, but you're in more of a like a true partnership and you have uh businesses and entities

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together. So, this is a little bit of a split there uh for you to to understand, but when you do this, you're going to be able to get in and enter the deal with less capital uh leveraging other people's money. So, this is somewhat what I did with my dad where uh he had the money and I didn't. I had the experience of operating um and and we put that together. Now, he's a lot more active than I think most people would be with a strategic capital partner, but it's kind of the same principle where

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you find somebody that has the funds that can help out um and and purchasing things and then you outline who's going to do what work and then you just kind of make it happen. On the downside though is from an operator standpoint, you are going to be giving up some control because in in this strategic capital partnership, there's going to be voting rights and they do have a bit of a stay that a say there and how that's going to work. You're going to be giving up some of the profit. Um and you really

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are kind of tied into delivering the results, the profit of the business. You need to do that. or um this person could uh because they own the equity just be like, you know what, never mind. We're going to sell it. We're going to cut our losses and we're going to move on and not working with you anymore. So, you do have to be very careful there when you do these types of of partnerships. But, they can be great uh when when you get into them, you structure them correctly, and you have uh really solid business um

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chops as as you're getting into this and running the business. And I see your your comment there, uh CS, Mr. CS Deliveries, aspiring operator and landlord. love it. That was great. Uh thanks for the comments on there. Uh let's see. And then number five, this is the one that I think a lot of people um I've I've heard from a lot of people in here uh is syndications. Um this is something you're you're all interested in. This is a much more advanced strategy, but it can be very very

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powerful. So a a real estate syndication, um I'm going to give you a high level of how it how it works. And if somebody has ever done a syndication, please in the comments kind of correct me where I'm wrong. Um I would appreciate that so people get the full uh story of what happens here. But in a real estate syndication, basically what happens is uh you have um general partners and you have limited partners. So a group of general partners they come together um you know two to five people

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uh some some number um and they are the ones that are going to they they typically will own a smaller percentage um of of the business 20 to 30% um oftent times is is a number um but they they are also the people that can control how everything is going to to work. they raise funds from limited partners who are going to own as a group they're going to own 80% um of really the equity and and the profit distributions of the business. So that could be made up of two to hundreds of of people um depending on on how this is

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going to be set up. Uh they come in, they throw their money into a pot. They're they have limited ownership. So they have that equity, they have that profit distribution ownership, but they have no voting rights. They have no control over what's going to to happen. They are just investors in a deal. Um, and they have passive ownership. There's some tax benefits to it. Um, and and things I'm not going to get into. Um, so excuse me, that the general group of general partners, they're going to run

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the business. They make all the decisions. They figure out who they're going to hire, how operations is going to be handled. They're making sure that the the facility is fully staffed and and everything. Um, and then on a regular cadence, monthly, quarterly, semiannually, whatever it is, they're going to do profit distributions out to the limited partner uh limited partners that are in that group. Um, oftent times a syndication like this is going to last for anywhere from like 1 to 5 years.

00:29:15 - 00:30:00
Typically, it's like three, um, but it can can last for a period of time, but is not indefinite. there's oftentimes something at the end and that's going to be those preferred returns that come back to those limited partners uh that have been participating in the syndication. Okay? And then they get their money back and then if you have another deal then they'll reinvest as long as they got their returns. They're typically like, "Oh yeah, this has been a good deal for me. Let's reinvest and

00:29:38 - 00:30:34
and go into it." And and that's how you can kind of snowball this into something that that's really good. when you are going through the process of a syndication um you need to there's some of the cool things about it is you have access to larger deals like much larger deals you could be um raising funds for millions of dollars um and buying large portfolios um using other people's money you're leveraging other people's money which is great right so it's it's one of

00:30:06 - 00:31:01
the big reasons why you would do this um and it's also going to help you build credibility for future deals because if you have never done this for you kind of want to see if you can um get in with somebody as a limited partner to work on doing the syndication so you have the experience, so you know how they run, so you have credibility for when you want to do this on your own. Um, this is a lot of relationship building. It's very hard for somebody to break in and do a syndication by themselves on the first

00:30:34 - 00:31:35
time without any experience because you have no track record and people may not be all that interested in working with you. So once you do one successfully, it's going to open up a lot more doors for for future deals. Um, which which is awesome. On the downside, um there are when you go through a syndication, if you're going to do this the correct way, uh there's a few different ways that you can um raise that money. And oftent times uh well it's going to require um that you follow

00:31:04 - 00:31:54
securities regulations which uh can be costly costs thousands of dollars uh if you do this correctly and you need to do it correctly or else um you can put yourself in a really bad legal um situation. So you need to apply for that uh work with an attorney uh to do that. There's just a lot that goes into it. And so please don't just be like oh cool syndication that's cool idea. I'm going to figure out how to raise a million dollars and and we're just going to do it that way and we're going to say it's

00:31:29 - 00:32:23
a syndication. Like there's a an actual structured process for this with securities law. So, you do have to do it. There's different types of funding rounds. Um and I can't remember. It's like 506b and a 506c, I think. Um if I'm remembering the numbers and and letters correct, I might be off a little bit, but um like you have to follow like specific rules. So, involve an attorney. I have looked at doing them in the past a few times. um for me at this point has not made sense for me to move forward

00:31:56 - 00:32:49
with the syndication. May do it in the future. Uh just doesn't make sense for where I've been at um right now and it will oftentimes require a good track record for how you're operating the business. You can't it's very rare to do this like from the gun and and just kind of move forward with it. So certainly possible. I think there's a ton of benefits in it, but uh you do have to make sure that you're kind of going through this process the right way um so that um you don't run into into any

00:32:23 - 00:33:21
issues. Okay, so we went through a bunch of of partnerships and today and what I want you to realize is a lot of these are pretty similar, right? We went from like the simple equity split to the joint venture to the the landlord and operator uh split to um the the raising private capital over to syndications. And the thing that ties them all together is there are legal components to this and it is going to benefit you when you get into a partnership of any kind to be working with an attorney. And

00:32:52 - 00:33:44
so make sure that you do that. Um find find a good attorney. There's there's two that I would recommend just off the top of my head. One is KKOS. Um they are based out of I think their headquarters are in Cedar City, Utah, which is in southern Utah, but they work uh more on the west coast. They have offices in several states. They work nationwide. Um they're great. Uh you can go actually watch Mark J. Kohler on on YouTube. Uh he's an accountant and an attorney and he has some incredible videos, funny

00:33:18 - 00:34:14
guy. Uh very engaging. So that he's one that um that's who we use for ours. Uh we don't work directly with Mark. We work with somebody in his office, but have had a lot of success there. So KKOS. Um and the other one that I have not had experience with, but I know they work in the world of assisted living is um Clint Coons. And I that's that's the guy's name. I can't remember the the name of uh of of his office, but if you look him up, you can find him on YouTube and that will take you to his office. Uh

00:33:46 - 00:34:36
Clint Coons uh is the other one I would look at them. He's he's based, I think, in Tennessee. Um so he's a little more on the East Coast. So those are some options that I would look at with people that I know have done assisted living in the past, uh that are familiar with small businesses and can help you do this the right way. So I I recommend that you go reach out to those types of people when you're doing this. Don't just do it on Legal Zoom. You could and save yourself a little bit of money. Um

00:34:11 - 00:35:10
I mean you could do some of this stuff through AI and chat GPT, but uh to make sure that you are sound and everything is good, um I would highly suggest using an attorney. Um I think you're going to be much much better off if you go that route. Okay. Now, um I do want to remind you, we talked about this at the start of the video. Um oh, let's see. Got a question here. Um what happens if the syndication deal fails? That's a good question. uh having not gone through a syndication, I don't know that I can

00:34:40 - 00:35:41
give you like a real answer. Um but my understanding is the the people who put in the money, those limited partners that put in, you know, 80% that have ownership of 80% but they put in pretty much all the money, they lose their money. And um that's part of the risk of doing this is why it is so heavily regulated when you do this. There are no guarantees um in these types of deals. Um they know that going into it. there are uh projected returns on what's going to be what what they're going to get,

00:35:10 - 00:36:04
but on the back end um there is no guarantee. Now, as a general partner, you want to do everything you can to salvage those relationships. And if that means that you are selling personal assets or things like that to give some kind of return and get the money back to people so you don't ruin relationships so you can have deals in the future. Um it may be worth it. You have to that's like a personal decision on how you want to handle that. But if you have a bad experience with somebody, a syndication

00:35:38 - 00:36:31
falls through and those people lose all their money, they will never work with you again and they will tell all their friends and you will be very hardressed for getting money and raising money in the future. So you need to be very aware that that could happen. This is where having a solid foundation is going to really uh help you out um just making sure that you are confident in what you're doing so you can be successful. So work with an attorney from a legal aspect, but make sure you work with

00:36:04 - 00:36:59
somebody like me to help you build the the strong foundation so that you are confident in your numbers before you really move forward with something. Uh if you're going to be doing something like a syndication, uh because you just don't want to get in a bad situation. But ultimately, it's just like any other business that fails. Uh it goes it fails, uh people lose money. Um that that's what's going to happen. Business shuts down. Um investments go klop. And that's what happens. It's it's really

00:36:31 - 00:37:20
unfortunate. Um but that's the risk of investing. Like there is there's nothing guaranteed when you're doing investments. And as much as we like to think that um you know it's assisted living, I could be successful. I can make hundreds of thousands of dollars per year and and those types of things, uh you still need to just be aware that this is a risk. If I don't run this business correctly, um nobody's coming to save me. This is up to me. I've got to figure out how to do this and make

00:36:56 - 00:37:44
this business run and be profitable. have to continue running the business and um that's it's just part of of running businesses. So um great question though. Thank you. I appreciate that. Um while and if people have other questions, go ahead and type them in. While while you're doing that, I just want to remind you all uh to go check out the roadmap challenge. If you are interested in it, just type in roadmap down in the comments below. We'll make sure get get you a link. Um but this is

00:37:20 - 00:38:10
a live challenge. It's something I teach on a regular basis. I love doing it. Uh would love to have you in there. If you get a VIP ticket, you can ask me whatever questions you want. Um, go to roadmapchallenge.com, just type in roadmap in the in the chat below and uh, and we'll get you an answer there. Um, but yeah, I I I'd love to have you in there and help you out as you're trying to just kind of figure out how to how to move forward. Um, and and and get your your questions answered because I know

00:37:45 - 00:38:40
how hard it is to move forward. And I I know a lot of you feel stuck and you're like, I don't know how to begin. I I don't even know where to start. Um, the entire purpose of the challenge is to help you know how to start, to give you that road map, and help you know what you should be doing so you take the right steps to make progress and ultimately uh reach your goal and give you clarity and confidence on the path to to getting there. So, that that's what I want to do is help you out with

00:38:12 - 00:39:12
that. I also wanted to share with you all um I finally have the audiobook version of the book done. So, if you go to the alibook.com, this is what the book looks like. There we go. We're in focus. Um, the alibook.com, links will be below on YouTube. Um, you can go there and it has a link for the physical copy of the book, what I just held up, the the workbook, which honestly it's gold, man. If you get the the workbook, and just kind of follow the process, you're going to be in such a good spot.

00:38:42 - 00:39:32
So, go grab that. Like, it's it's super affordable. Go grab it. Uh, and you can get the audio book as well. Um, all those things are on Amazon. Uh, audiobook is on Audible, on Apple Books. Um, it was like the hardest thing I have ever done was recording that book. I hope you all enjoy it. It was me recording it. Um, so you get to listen to my voice even more. Uh, but hopefully, uh, you enjoy that. So, go check those things out. Um, and I'll be sending out a few emails. If you're on,

00:39:07 - 00:39:57
uh, if you've gone to assisted livinginvesting.net net and grabbed one of my uh tools and freebies there. Uh you you'll get some emails here in the next few days that take you over to to get the audio book. But would love to have you do that cuz I put a bunch of time in it. It's got my entire brain has so much good in it. So make sure you go get those things to help you out as you're trying to launch your assisted living business. So all right with that. Are you curious about assisted living?

00:39:32 - 00:40:14
Oh, actually you know what? Like the video if you like this video. So, you know, like it, thumbs up, subscribe, ring the bell so you get notified every time we put out content like this. Uh, I love doing this. This is so much fun for me. I love having people here in the chat with me, uh, asking questions and things like that. It's super fun. That's why I love the challenges. They're they're just incredible. I get to see everybody's faces and and help you out along the path. Uh, are you curious

00:39:53 - 00:40:36
about assisted living, but you're not sure how to get started? At Assisted Living Investing, I help first-time assisted living entrepreneurs launch profitable, purpose-driven businesses, creating prosperity, purpose, and peace in their lives. I love doing this. I'd love to help you out and coach you on on your path to help you reach your goals, give you some clarity and confidence as you're trying to get there and help you get into what I call the focus zone. So, if you're in the challenge, you know

00:40:14 - 00:40:49
what that's all about and would love to see you there. Again, type in road map if if you're interested. And remember, it doesn't take a lot, just a little bit. Just keep going step by step by step. And I promise you, if you do and you're consistent and persistent, you're going to be successful. Thanks for watching and have a great day.