9 Trends Reshaping Assisted Living in 2025 (And What to Do About Them)

Transcript

00:00:01
Hey friend, it is Brandon Gustafson. Welcome to Assisted Living Investing. I help beginners like you launch their assisted living business in the next 12 months. Excited to have you here on the channel with me today for our live. Uh today we're going to be talking about some of the the trends, the future of assisted living trends and some of the innovations that are coming on the horizon. I want you to kind of have what you need prepared so you know what to expect as as we are in this kind of ever

00:00:27
evolving uh world of regulations and and providing care to people and what people want to see um as as they are trying to receive the care that they want. Uh so you don't get left behind um and also so you know what to expect as you are trying to really dive into the world of assisted living. Uh so excited to have you on here with me today as we get into this. I'm in a different location than is normal. So that's why we have a different background back there. Um and also uh if I am like a little bit off uh

00:01:01
that is that that's why. So with that want to remind those of you who uh are watching to go and grab your free business plan checklist. Uh it's a free resource that I have that gives you uh all of the tools and the resources that you need to help you be successful to to launch your uh to build a foundation to to get your business plan ready to go so that you have that foundation as you're trying to get funding and trying to progress and um and reach your goals, creating more time and financial freedom

00:01:30
for you and uh and your loved ones as you try to give back through working with assisted living. So really excited to to get into this with you today. Um and I'm going to shift over here. I'm going to pop this up. All righty. So uh yeah, future of assisted living, some of the trends and innovations that uh you'd like to see. Uh if you are new here, uh I love it when the the people that are new go in and they type in newbie down below. Uh just so I can see it's it's fun to see all the new people that find

00:02:01
the channel. Uh, and tell me like what's what's some of the the biggest things that you're worried about um as as you get into looking at the future of assisted living? Like is there a specific thing that you're just like, "Oh, I don't know. I don't know about this. How's this going to play out? And what's this going to look like for me as as I work on getting things started and and start moving down this road of getting into assisted living?" Um, and for those of you that are here live,

00:02:26
make sure you type in in your questions. If you can't make it live, that's fine. type in your questions and we will get to those in a future video for you here as well. So, with that, um, I want to introduce myself. My name is Brandon Gustafson. I own and operate two assisted living facilities. I've been doing that since 2020. I've secured over $1.5 million in SBA funding. So, I know that process and what it takes to get there. I operate my facilities out of state. I live in Utah and I operate in Idaho and

00:02:53
in Colorado. So, for those that are interested in doing this out of state, I I have that experience. I also have a master's in healthcare administration. So I've worked in the healthcare industry since 2011. I have a lot of experience working in the industry in a lot of different capacities. Uh just healthcare in general um specific to assisted living and elderly care since 2020. So I kind of have an idea of of how the world of healthcare works and how you can navigate uh everything that

00:03:20
you're trying to do uh to get into the world of assisted living. So, um that's that's me in a nutshell. So, let's talk um here. Let's let's jump into it. Uh and and start talking about some of the things that I can see on the horizon um just some of those the trends uh and the new innovations that I think are going to happen to assisted living um and and what you need to be aware of so that you can be out ahead of the curve as you get into this. So, first is digital health

00:03:49
and AI integration. So, this is uh some of the things I could see here are remote monitoring with wearable sensors. Um, and you know, think smartwatches. um they're going to only improve and the more that people have this my my grandpa who has Parkinson's and lives he's 85 years old at this point uh we'll be 86 here in a in a few weeks he um he has wearables that allow his doctors to see how things are progressing and having that type of information out there um it's only going to improve and the more

00:04:23
data that you have allows you to have more personalized healthcare for your situation and can really allow you to just know what needs to happen uh for a specific person. Do they need more exercise? Do they need to adjust their diet? Are they getting enough sleep? Those types of things allow for more personalized care. And when we have the ability to get and and offer more personalized care, it makes a better experience for for the resident, but also allows them to be happier and healthier and get all of the

00:04:57
things that they need. And so technology is only going to improve. They're going to have more of these wearables and with sensors that will go back and feed apps there. I think there's a lot in the technology space that's going to happen with that and it's going to allow you to provide a lot better care which is really exciting. Um predictive fall detection algorithms. So uh as we get more data like historically there there we know that falls have happened but we haven't had a lot of data on that. uh as

00:05:27
you get more wearable data data from those wearables and you see who's falling, what uh what type of health issues do they maybe have, what are their ages, um what what's their profile of health, you can start making assumptions based off of that and helping out with people that are going to be more prone to falls. Not just based off of age or something else, but like real hard data. Falls are oftentimes the things that really um cause a person's health to start significantly declining because as they

00:06:00
fall um their whole body weight will fall on something. It can squish organs. It can uh create bruising. Um and that stuff can just as your body ages, you're not able to heal yourself quite as much as as you could when you were younger. and uh and helping prevent those falls can help out with quality of life and longevity of life. So, being able to do that, I think, is really going to uh be improved again by the wearable technology so you can start doing these things to provide other uh things in

00:06:32
inside of the community for your residents. Uh maybe you're giving them a walker earlier than you would have or a cane or something like that to help prevent falls or um making sure that where there are locations in your facility that are more um there's more opportunity to have a fall that you are creating more safety measures there especially when residents hit a certain threshold. Uh so you want to be aware of that. Um, next one, AIdriven care plan optimization. And AI is here. Like, it's not going away. So,

00:07:07
you got to learn how to embrace it. And as AI improves and we understand um what residents need, what the needs are, the care needs of of our residents, uh we're going to be able to feed that in. And it's not just like, hey, here's a profile. It is again specific to their um you know using the wearable data specific to them and using AI to help create improved care plans. Um diet, exercise, sleep patterns, all of those things, the type and and amount of care that is happening. Um you're going to

00:07:42
want to have a lot of that data and AI it's it's really hard for the human brain to take all of this stuff. This is something that AI is incredible at. You can take all of that data, throw it in there, and the care plan is going to be optimized to be very specific to an individual to help them get improved care and quality of care, which is what we all want out of this business. I'm really excited for this one. I think it has a lot of uh benefits there, and it's going to increase um quality and

00:08:13
longevity of life, and I think it has a ton of potential for that. I'm really excited for it. Uh next, and this one is I don't know. I don't know. This one I don't know how I feel about, but um as I was doing some research on it and and gave some thought, it it makes sense. Um I think there's there's good and bad about it. It's ambient listening documentation tools. So basically um you would have, you know, microphones um throughout and they can listen to the conversations that are going on and it

00:08:39
will document it for you. And so when you are talking to a resident and you say, "Hey, um the resident tells you, I don't want to eat the food today." um or I I I I feel like I need more medication for for this thing. Today, what happens is a staff member has to remember that conversation, have to go back in, they have to document that information. Um because if you don't document it, it didn't happen. Or uh if you are talking to a resident and and they say, "I need Tylenol." And you say, "Okay, here are

00:09:10
two tablets or whatever it is that you're giving them." Um you have to go and you have to document all those things. and we're human and so we make mistakes. And so if you have ambient listening devices, microphones that are throughout the facility, um you could have something in there where it hears that it knows the voices of the people and it goes and documents and says Sally the staffer um has gone to um Rhonda the resident trying to do some ititeration there. Um, and they had this

00:09:40
conversation about medication and Rhonda needed some Tylenol and Sally gave it to her and and it documents all of that in there. Uh, and and then it puts it in there. So, where I think this is really cool is it avoids human error um because it's documenting exactly what was said um and who the conversation was between them and it's automatic. And so really what the staff member and the administrators have to do then at that point is just go in and review it and confirm that it was correct and possibly

00:10:09
make some some edits there. But for the most part it's there where I'm not super crazy about this and I don't I would imagine that you as a as well as an owner it's good because then I know what's going on, right? But as as a person that's working in a facility, I'm I'm not super excited about that. nor frankly as a resident or as a resident family am I super excited about that because um it does lead to some privacy concerns. And so that's something that I I think there I can see the benefits of

00:10:40
it, but I can also see a lot of regulatory things going on around that. Um and that's something that I think needs to um be played out a little bit. It's a really cool technology. I think there's a lot of benefits for it. I just can see there being a lot of push back there. So that's one that that I thought was really interesting as I was doing this research. Next is uh our next section is going to be on wellness first and wellness first and holistic care. And I've talked to the talked about this

00:11:08
just a little bit already. Um, but this is getting into kind of very specific care for a resident and things that I could see and I actually am starting to see a lot of some of this going out in conversations and and things out there is um on-site fitness and yoga studios. And this doesn't have to be, you know, like a huge studio. This isn't this isn't anything big. You can do this in a garage or out on the patio uh in the yard or something like that. It doesn't need to be like a a specific, you know,

00:11:38
nice studio or anything like that, but a dedicated spot where you can do these types of exercises because uh there are certain exercises, especially yoga, that are great for aging populations and allows them to uh get out and be active, be physically active, but it's not taxing on the body. It's stretching the body. It's it's really good for the body. And those are the types of things you want to be having. And as people age, and I think as as a population uh like the baby boomer population ages and

00:12:11
it continues to age, these types of wellness things are only going to become more popular. Um I think the the the generation, and I I'm bad at remembering generations beyond the baby boomers, but as that generation is is where it's at, they're not as receptive to um these wellness techniques. They're just not. Some of them are, but for there's a lot of them that they just don't like it. Um, and that's fine. Uh, and so you're going to have a hard time getting it in

00:12:40
to that elderly population now. But as the baby boomer population ages into assisted living, I can really see there being a lot of um, uh, need and also desire to use uh, something like a yoga studio inside of a facility. So, uh, as you're looking at opportunities to buy facilities or things like that, keep that in mind. Like, it doesn't need to be a separate room in the house, I I probably would recommend that you don't do that. Um, but if you have an extra space in the house that maybe is too

00:13:11
small for a room or or just like it doesn't work for a bedroom for whatever reason, doesn't have a closet or something like that, um, or you can't do it because you don't have enough bathrooms and so you have this extra room, u consider doing something like a fitness or a yoga studio in there. knowing that all of your residents probably aren't going to do it, but offering it to those that want it is is going to just uh give an extra amenity that you can offer to your residents,

00:13:38
which is really exciting. Uh, next is nutrition and mindfulness coaching. And so this is uh getting a nutritionist um maybe that consults with your residents and and offers them recommended advice and then works with your staff to make sure that you're able to plan meals around that which I think is a really cool uh thing to be looking at. Mindfulness coaching is uh more medit meditation and and just understanding uh how to process some of the things that come with aging and how to handle the

00:14:10
the anxiety, the depression, the uh just the the mental states that that you have as your world is starting to change. Uh it's just kind of the reality of being in assisted living that stuff like that's going to change for you. um having those types of people and this doesn't necessarily need to be somebody on your staff. If you're a bigger facility, I think it could make sense. Uh smaller facilities, I don't think you need to have it on your staff, but having somebody that is trained that

00:14:36
maybe consults or or comes in or it's an offer uh a service that you do offer as a tertiary business um and residents can pay them directly. Like there's a lot of ways around that, but to build those types of partnerships, I think can really benefit you as well in the in the space. Next is allocart wellness services. And so this is personalized individual care which we're going to talk about here in just a little bit. But uh the types of things that a person might need um offering those as

00:15:04
amenities. These could be massage massages. Uh it could be um extra counseling uh options. Uh could be red light therapy could be I've talked about this in previous videos um PEMF which is a pulsated electromagnetic frequency which helps out with blood flow. um which is something I've done in in the past as well. There's a lot of extra things out there and some of these things if you're able to implement them in your facility can actually add become extra um sources of income for you. Uh

00:15:35
if you if you want to offer those and have access to those types of things in the facility, you can offer that to your residents and they pay uh maybe you give them a base like hey, you get one to two uses of this um per month. anytime that you want to use it more than that, it's going to cost an extra $50 or something like that. Um, and you can do that and offer it to families. There's a lot of ways that you can get a you can create an extra income stream for yourself while also adding extra benefits to your

00:16:02
residence. So, not only is this something that I think is going to be something that people want to have in their facilities, um, but it's a potential to add more income in there, which is something that's really cool. So, that's something I want you to be aware of. Um, next and this one is so this is aging um the aging in place uh population and blending models. And these are things that I really want you to be aware of because I think of all of the things out there that could um disrupt the assisted living industry as

00:16:34
we know it. These are the things that I I think are are really important for you to be aware of because they could have a detrimental effect on what you're what you're seeing inside of the industry uh for assisted living. Um number one is inh home personal care services. So this is this is like home health. Um it's it's a level of that. It's going into the homes, letting residents age in place, letting them be there and going in and offering the services to them in their home. Um this works really well. A

00:17:08
lot of people really like this type of a service. The problem is it can be very very expenses expensive which is why a lot of people will move away from that that type of care to go to assisted living so they can have it there. But um as things progress in this world I I think there's a a space for um there to be a less than home health uh level of care that happens and it happens inside of the home and people are willing to pay a premium for that so they can age in place. Uh, so that's something that I

00:17:41
I think you need to be aware of. That could be competition. Not only are you going to have assisted living, other assisted living facilities as it as it continues to boom, but you could also be having people that just go and offer care directly inside of a resident's home and u be able to provide that care there. Next is the adult day or PACE program. And PACE stands for the program of all-inclusive care for for the elderly. I know it's not, you know, the ex that's what it is. Um those aren't

00:18:10
all of the the letters for that acronym, but that's that's exactly what it is. Um and basically, it's for those that need um care but prefer to stay in their homes. Again, this is kind of um in home care, personal care services. But it's uh PACE program. I I've seen it a lot in like Washington and California uh on some of the coastal um states over here in the western United States. Um I'm sure it is something that exists in other places as well, but it basically is um they want to receive that health

00:18:41
care service, the the services that they they receive in assisted living. They just don't want to have it out somewhere else and so they'll do it in inside of their homes. Now, what I see um when I when I say I'm looking at this in Washington and California specifically is and what this is Washington state is um those are oftentimes supplemented by government funding. And so as a business owner is something to consider looking into. Maybe it's a secondary business there or maybe you don't want to do

00:19:09
assisted living but you're interested in doing this instead. That you know that's great. uh if you do follow a lot of the processes that I teach you uh throughout assisted living investing because a lot of that is applicable to what you're going to do as you get into into that world just slightly different licenses and things like that. Um regardless um these types of programs are allowing residents to stay in their homes and allowing them to um you know have have that opportunity to age a place in a

00:19:39
place that is more comfortable for them. Um, and if the government is supplementing it, um, that's something that you need to be aware of because business owners may be more willing to look at doing something like that and and growing that type of a a business because of the extra supplemental income that they receive from it. Um, now whether or not it's going to work, I don't know. Um I I don't know if those supplemental payments are going to um be able to be sustained um as a population

00:20:09
increases that wants these types of services, but it's something that I do want you to be aware of because um it's it's competition. Uh it's out there and so you got to be aware of that. Another one is telealth and virtual visits. And so this could be somebody that is uh they they stay at home. They don't need a ton of care uh but they do need to to have some touch points with um medical professionals. And so tellahalth and virtual visits is something that's on there. I don't know that this one's as

00:20:37
big a threat to um to the world of assisted living. I think it actually can go hand inand make it a little bit easier for you to have access to doctors and nurses inside of your facilities uh without having a physical presence there. uh they're able to do this virtually. So, that one not so much of a threat uh but something that I want you to be aware of because it is going to impact things as we progress in technology and the ability to have interactions with people, you know, like I'm doing with you here in this video.

00:21:06
Um there's going to be more opportunities for kind of one-on-one type of interactions and that's going to to just make it a better experience overall for people. So tellahalth and virtual visits uh something that is already starting to disrupt the industry has been for a few years and I think it's only going to progress and improve as technology also improves. Next is flexible resident centric designs. Um and so this is uh this is how they live. Um and so I think modular and reconfigurable living spaces

00:21:38
is going to be important. the ability to to just move things around, move your your rooms around, adjust things a little bit so it's not so set because like I'm I'm going to talk about my brother here for a second. He's not an old person, but um when we were younger, he loved to change his bedroom around like all the time. He did it, I swear, like once a month he would change it around. And so there's a lot of people that want that just kind of like change of scenery inside of their room, right?

00:22:10
And um so having the ability to have something that's a little more modular or reconfigurable um that you can move things around is going to benefit those residents that want that that don't want it to be the exact same. Um and if you're able to do that with the size of the rooms and and things like that, I think it can really benefit you as well. U same with multi-purpose communal spaces. as um people want to do this residential assisted living style and they want to live in these types of

00:22:38
homes, you're going to find and I I teach you as well as you're getting into this from an underwriting perspective, make sure the numbers work. Small homes, it can be really hard to make the numbers work. So, as you're getting into that and you're looking at this and you find a small home, uh it could mean that there's limited communal spaces. And so, you're going to have to make these spaces work for different things. Maybe it's a yoga studio. Uh could be a dining, could be, uh, you know, a

00:23:06
communal spot where you can go and watch TVs and movies and things like that. But uh in limited space, you're going to have to utilize those more communal spaces in a way that allows you to still meet the desires and the needs of the residents and and get them excited to be there. So, um I do think that residential assisted living is going to be something that people pay a premium for. I think big box facilities are going to exist. I think they're going to expand. I think there's going to be tons

00:23:32
of them. And that is only going to make residential style homes um more desirable. And so the more that you're able to hone in on this model and offer something that is still meeting all of the needs that somebody might get um from a big box facility, I I think is going to benefit you. But that is going to require a little bit of modularity um and and how you're using the rooms and the spaces that you have inside of your home. Um and then universal designs for accessibility. This is something you

00:24:03
know wheelchair accessibility. um people as they get into uh memory care, dementia, Alzheimer's. Um those are the types of things you need to be aware uh that this is this is going to increase and I honestly feel like healthcare is heavily regulated. Accessibility is one of those things that is going to be probably become more prominent um if anything. And so you want to make sure that you have the ability to have a home that is designed well to add accessibility features when and if they become um required inside of a home. So

00:24:36
it's something that kind of foreshadowing. I don't have any insight into that, but I can see it being something that you want to have there. So you want to make sure that things are flexible and you can really work on on this with your residents. Um next is workforce and regulatory shifts. And so I've mentioned regulatory quite a bit already. Uh regulatory it it's just going to expand. Um and in the healthcare world it it's going to only become more regulated. I I don't think there will ever be a time

00:25:07
where they take regulation away. I would be just dumbfounded if they did. Um, I don't know that's a horrible idea because it would make your ability the the uh work that you have to do to start running a business a lot easier, but something to for you to be aware of. So, uh, in here uh, from a workforce perspective, I think you've got to create better career ladders and retention programs. And that doesn't just mean pay them more money. It means create opportunities for people to grow

00:25:37
in their career. Create opportunities for people to expand uh and learn new things and learn new skills and value them. Uh because when you do that, it makes people a lot more uh excited to to be working in the space where where you're working in. So, you want to be hitting on that. Um, I could see as as things change in this industry as well, uh, I've had to do this in the past, but, uh, staffing can be really hard and as as we get to a spot where, um, you know, potentially I don't want to get

00:26:07
too deep into politics, but, uh, as as AI improves um, and people and potentially other jobs are are lost and you could see like universal basic income coming into play, um, you could be seeing people that figure, hey, I could make more money by just staying at home uh and getting this universal basic income type of a of an income and not have to to work. And so, they'll stop doing that. And a lot of those people are probably going to be the level of care uh the level of of of person that uh could be uh working in your facility.

00:26:43
So, that's something that you want to be aware of that you may have to use interim and contract staff to make sure that you are meeting staffing requirements. Um, so that's something for you to be aware of. Um, I could see AI assisted recruiting tools here as well. I think, uh, tools like, um, you know, LinkedIn and, uh, Indeed and those types of things, they are, I would imagine, um, I've seen some of the stuff rolled out, but they're going to only increase their, uh, usage and

00:27:09
utilization of AI, and that is going to improve the ability to find the staff that are qualified and want to work. uh but it's going to become very competitive. Um so that's something that can help you out, but also I think it's it's only going to be become more competitive. So you got to be uh up to date on that and know how to leverage those tools so that you don't get left behind. Um I think it's important for you to do that. Um next is advocacy for funding and regulatory regulation changes. So, I

00:27:42
think um there's going to be a lot more uh people that want those because where there's regulations, there's money to be made and um people like money and so they're going to push for more regulations and that is only I believe going to increase as well. So, that that's why we see a lot of regulations. Um I don't see that going away. I see it getting more and bigger um more uh involved. And so that's something that I I want you to be aware of that um there will be more of that. So you you have to

00:28:16
stay up to date on what's going on. And the last one is robotics. And this one is scary, especially if you've seen in current events. Um you know, there was a robot in I think it was in China that just kind of flipped out at at some people and or presumably at some people allegedly. And uh that can scare people. But I I do believe at some point that robotics is going to be the future of of a lot of healthcare going back to um you know if we have this universal basic income and and people are able to make

00:28:52
more money by not working and so they stop doing the stop stop working and that really dries up your ability to find and hire good quality staff at your facilities. that robotics that provide care or that are maybe doing med pass or um those types of things. I can honestly see that becoming a thing. I don't know how excited people will be to to deal with that, especially residents and and their families. Um there's a level of uh personality uh and and personal interaction that comes with having a

00:29:26
real person. And so if you are able to keep that in your facility, I think it benefits it. But if you're looking for a way to get into this at a less costly basis, I think that um robotics are going to um I can see it on the horizon. And I can really see that that's combined with AI could have an impact on this industry. Uh that could reduce the costs because you aren't going to have to pay for workers comp and you're not going to have to pay an annual salary. you just buy a robot and they can work

00:29:58
24/7 and and you program it and and it's a lot easier, but then there's just the the interactions with staff. So, I I'm not saying that that's something that you should do. I'm just saying that it's something that you probably should be aware of because I think it's on the horizon for where this could go. Pros and cons to it, right? Uh so, that's something I want you to be aware of. So, we went through a ton in this video. Um, I feel like almost too much, but I hope

00:30:24
that was helpful for you. If it was, make sure you like the video, subscribe, and ring the bell. And if you have questions or you need some help with this, I'd love to invite you to join our ALI basics community. And here we have monthly member onlyly Q&A calls, which we have one this week. So, if you get in in the next couple of days, uh, within the recording of this video, then you can hop on that um, member onlyly community call. And it's it's a really awesome deal. So, make sure you go check

00:30:50
it out at assistedlivinginvesting.net/basics and get signed up so you can join us while we're there. Um, there are uh you get priority answers to our YouTube live and Facebook lives uh like these. Uh so, if you have a question and you ask it there, then uh I will get back to you um in the group, but also we'll we'll talk about that here inside of our lives. Um, there's extra resources, webinar recordings, library of Q&A recordings, and there's an active community with weekly tips and tricks, um, and get your

00:31:20
questions answered and do some peer-to-peer networking. So, uh, go check that out, assisted livinginvesting.net/basics. Would love to see you in there and help you along on your path to launching your assisted living business. So, with that, I want to remind you to like the video, subscribe, and ring the bell as well so you get notified every time we put out content like this. you have questions and you're here live, please type those in uh so I can get to those. Um and while we're doing that, I'm going to

00:31:45
actually hop over to our um community because I feel like I had a question in there this week and it's going to take me just a second to get in there because it logged me out. Um so yeah, type in your questions if you have them and I will get to them. I got a few minutes before I've got to go to the next thing because this day has been uh been a been a day. Um let's see. Alrighty. And um okay, here we go. Um so there was a question on here. Um, it was specifically about um, do the CPA

00:32:37
and attorney fees go into the business plan? So, this is going back to business plans and how to pay for them and what you need to do to take care of that? Um, CPAs and attorneys, uh, do you pay for them upfront or do they go in the business plan? So, with a business plan, you want to have that in your finances. You want to be accounting for it. Typically, you're going to be talking with CPAs and um, attorneys before you own the business. And so you're going to have to pay for them upfront. So oftent

00:33:04
times these are upfront expenses. If you work this correctly, you can actually get reimbursed for it. Um you just have to put into your business plan your quest for money when you're talking to a lender that um you're you need extra operating capital. And let's say that it's going to cost you $3,000 to work with an attorney uh to get your entities set up and everything correct. Um you could you want to document all that as business expenses. And then once you get to a point where you have that money,

00:33:30
it's come in to you from the lender. That extra operating capital, you can reimburse yourself for it. So there are ways around that, talk to an accountant on it. I'm not an accountant. I'm not an attorney. You're going to probably you I highly recommend you work with one. Um but working through that is going to make sure you get the answers that you need there. Um and and that's how you can kind of handle those um those expenses. Um, next question over here was, uh, do you need an LLC to get a

00:34:00
loan? Um, you know, I've mentioned LLC's uh, for getting a contract. My my opinion on this is you don't need the LLC when you first go through and you're making an offer on something. You don't need that. Uh, you can do that in your personal name. Totally fine. You can have an LLC, whatever. It's fine. What you want to do is have an LLC when you close on on the business. But even then, it's not absolutely necessary. you can do a a title transfer. Um, and this isn't this really should not trigger

00:34:30
like a do on sale clause because it is you as an individual transferring it to your entity which represents you. And that's that's something that is very easy to do. Um, talk with an accountant on exactly or an attorney on exactly how to do that and make sure it's not going to impact you. But you don't have to have the LLC set up at all um until you get to that point. I highly recommend you do have an LLC. I I think it's easier to have the LLC before you close on the facility, but the timing of when

00:35:02
you create that is um not super important. So, I know there's a lot of you out there in in my community that that that work with me on a lot of things and you say, you know, I've created my my my LLC and I think it's great. It's it's good action to take, but it's I would I would argue it is not the best action for you to take up front. you should be working on your business plan. That's the best spot for you to be spending your time. So, make sure you're doing that. The L the LLC

00:35:30
can come later in the process. That's that's my opinion. Um, but I've talked to a lot of people about it. I I really think that's a good way for you to go. Uh, third one here, um, is, you know, which is best when having an investor with a small percentage of ownership, limited partnership or an LLC? Um, I'm not an attorney. I I don't know that I can answer that question. Well, um I think it's best suited for talking to an attorney to figure out exactly what that is. The relationship is going to depend

00:36:00
on um the equity that that investor has uh and what that's going to look like. And so you want to have those conversations with attorneys. Um I I don't from a like a tax perspective and all of those things that it's not really going to matter. What you have to be aware of and what you are creating the LLC's for is to limit your liability and you want to be looking out for yourself when you do this. And regardless of the entity structure that you create, you excuse me, you want to

00:36:29
make sure that you have a very solid operating agreement that you spend a lot of time in that um outlining things like and it's better to do this when you're on good terms and everybody's happy and things like that rather than when somebody's trying to get out of the business or somebody dies or or something like that. You know, you don't want those things to happen, but it's better to have a conversation up front on how things will work if that does happen. Is ownership of that person's

00:36:55
stake going to go to a loved one? Does it transfer to you? Um what does that look like? Do you have to buy it out? Um do you uh if if your if your partner wants to get out, um how are they going to do it? Can you add new people into your group and who has to approve that and how much can be sold to them? These are all things that an attorney can really help you out in in trying to game plan what that's going to look like for you. So you want to figure you want to plan for those things and create a solid

00:37:24
operating agreement. The type of entity that you have, my opinion as a non- attorney is that it doesn't matter. Um but talk with an attorney, but make sure you have a solid operating agreement in place. That's going to be um more important than anything else. Okay. Um let's see here. Lawn. Um how many months of expenses or working capital should you request to the SBA loan? Um, I would say you want two to six months um is is what you should be asking for um when it comes to the the working capital that

00:37:58
you're asking for out of a out of an SBA loan. Uh I would So if you go more than that, I think a lender is going to probably not give it to you. And even asking for six months, they might be like, "No, you can't do that, but we could give you three." Um I've had success in doing like one to three months. um in and asking for it. But you have to be very thorough in your underwriting and make sure you're explaining exactly how you're going to use those funds, what it's going to be used for. Outline all

00:38:28
of those things because they want to see that. You can't just say, "Oh, I well, I think that it's going to cost me $50,000 to run this for the next two months." You have to be very specific and your underwriting needs to show um how much you're going to pay be paying in wages and food and and all of those things. you want to hone in really uh tight on those numbers and then you give that um with your justification. I need x amount of money to have the funds available for me as we are launching the business to

00:39:00
make sure that we can make payroll and and run the business so we can then bring more residents in and and become profitable. um your level of how many months you want to do is probably going to be dependent on how many residents you're going to have in the facility and how many are are already there. So, if you have a facility that already has residents in it, um you're going to you don't need six months of operating expenses. Um it's something one to two months is probably going to be fine.

00:39:29
It's it's not going to it's not going to kill you. Um, but if you are brand new facility or building from the ground up and you need um you need a a long runway, then asking for something like six months can makes a lot more sense. So, you just kind of have to play that by ear and and figure out how that works. So, hopefully that helps you along. I actually need to drop off because my computer battery is going to die. Um, and I don't want to do that in the middle of a video. So, um, for those

00:39:58
of you that are watching live, thank you so much for being here. Um, I appreciate it. Make sure you go grab your your free business plan checklist. Uh, assisted livinginvesting.net/bp checklist. I love helping and coaching people like you. Uh, and and I love to give back to you. So, does residential assisted living sound interesting to you, but you don't know how to get started? At assisted living investing, I'm here to help beginners like you launch their assisted living business in the next 12 months.

00:40:21
Like I said, I love helping and coaching people. It's one of my favorite things to do. I would love to help you and coach you. And remember that 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.