Best Places for Assisted Living: Top Locations for Quality Care

Transcript

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all right hey friend it's Brandon Gustafson I help beginners like you launch their Assisted Living business in the next 12 months so excited to have you here on the topic for our our live today sorry for being late as well had a bunch of technical difficulties I'll get into that here in just a second but today's video we're going to be talking about the top markets for assisted living in 2024 so really excited to go through this uh we actually upgraded our uh market research guide uh that's in the

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business planning guide course for you and want to give you kind of a sneak peek of what that looks like and help you really move things along on your journey to uh launching your Assisted Living business so uh while I get the link here to get on to um Facebook uh I'll give you a little background so I've been recording all day today uh getting a bunch of videos ready for for later on uh in the coming weeks and months and as I was getting that done I shifted over to my computer and uh was

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getting that logged on was about to hit live and uh computer crashed and started over so that was great so I had to get everything set up again so thank you for those that are are watching that are here live um and appreciate your patience there um for for doing that all right now let's get into again the topic for today's video um we'll go ahead and add this and uh today again we're going to be talking about the top markets for assisted living in 2024 I want to remind you to run over to the website Assisted

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Living investing. netb checklist to get access to that free business plan checklist we'll be having that scroll down along the bottom here as well just to remind you so go make sure you grab that free resource to help you build a solid business plan uh for those of you who don't know me wonder why I'm the one telling you about the top markets in Assisted Living uh my name is Brandon Guston I own and operate two assisted living facilities and have been doing that since since 2020 I operate them out

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of state as well so I live in Utah operate in Colorado and Idaho so have experienced doing that have secured over one and a half million in SBA funding so I've gone through that process a few times and um have a masters in healthcare administration so I've got a lot of background in the healthcare industry that helped me has helped me really navigate things but also I want to let you know that for those of you that are look watching this you're like oh man I can't do it because I don't

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have the background in healthcare that's not the case my dad um who I partner with uh is in the construction industry has never worked in healthcare ever um and he's learned a lot about this uh we're able to get to get the funding together it's very possible for you to do this even if you don't have that background in healthcare so you know give you some peace of mind there as to as to how this all works um now let's get into a little bit of the background on how um what my process looks like for

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how I I get the top markets in Assisted Living um and what that looks like um and I go go over all of this in the business planning guide so if you want to go get access to that it's very inexpensive course um that I have on my website Assisted Living investing. net BPG for business planning guide um gives you access to how to build a solid business plan goes through my underwriting calculator that I also give away for free um and then has the market research guide on there which is what we're going to talk a little bit about

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today and also uh will'll give you my historical financials for my facilities I know a lot of you uh want to what that looks like so those are the things that are in the business planning guide so you know if you need help with any of those things or all of them go check that out it really helps you build that business Foundation uh which is what I'm all about um and then is a big part of the program that I do the Assisted Living investing Mastermind if that feels if you need some help and guidance

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we're actually doing a promotion on that right now through um September 17th uh it's about 48% off uh so go check that out Alim mastermind.com application uh very quick application let's to get through that and uh see if it's a good fit for you um and if it is then I'll send you all the details and if you want to get on a call and chat a little bit about that and and how it can actually help you um and know that I'm a real person not a scam um then uh we can send you all the details on how to do

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that as well um in that email sequence so Alim mastermind.com application that out of the way uh let's get into the review process here research process for how I determine the top markets what we start off with is looking at where people are are moving so we look at the top states and the top markets and really what we're looking at here is like um uh best places to live or best places to retire type things we go really deep on that on that research we we looked at over 60 um sites this this

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year and compiled all of that data in a way that allows us to figure out which ones are are there uh then we look at City demographics um we're we're going to get really deep into those City demographics to see what they look like um and understand exactly what is included in a city so you can feel confident that a specific City or Market is right for you um and then I I actually use this this method that I go through that we'll kind of review here in just a second um to find the perfect

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spot for my facilities the first one not as much I I kind of jumped at that one and there's a lot of reasons why but the second one I realized I had jumped a little bit maybe a little too early on the first one and so I spent a lot of time looking at and researching and figuring things out for the second one and uh it's turned out to be a much better situation for us It just fits overall better and I very much attribute that to what I was able to do in and doing our market research building a

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very solid foundation and getting even more conservative with my underwriting in a way that we felt very confident in what we were doing to to launch that business um so if you need help with any of that go again check out the business planning guide or apply to The Mastermind program so this is how we rank um the top the top places the states and markets we are uh looking number one at how many times they're showing up on one of these lists these top places to move top places to retire top um top places to live type lists

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we're seeing how frequently they show up on those lists and we want to look at their average ranking as well so in that we create kind of a proprietary um type of of a formula that looks at um how many times they show like in a top 20 list how many times they show up just in a list in general what their average is and and then we assign them a a value from there a ranking uh and then we rank them um using using that value I've got a background in statistics and Analysis and things like that so it's kind of how

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we we built that I'm very transparent I show you exactly how you can do it so if you wanted to do this on your own go for it but I do it all for you and then you can use the formulas to to track things and just double check my mathod and make sure it's good but what we're going to see is what what really is on there and not that you know they showed up on one list and so they must be the best place for us to go uh we want to see exactly what that's going to look like based off of how frequently they're showing up on

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these and then what their ranking is um from there as we get into Market demographics this is the piece once you've ranked them and you kind of figure out these are the top states and these are the top markets and this is um what we want to be working on here um what we want to be working with um then we're going to get into demographics and before I get into that I want to remind um those that are new here to type in newbie down below I love seeing when there's newbies and uh for those that

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are watching live uh we're going to do Q&A here in in just a few minutes so go ahead and you can type in your questions now I'll get to them um here in a little bit and give you another reminder but just want to make sure you're typing that if you're watching this after the fact still type in your questions because I I'll do my best to answer them or maybe we turn that into a future video here as well um okay Market demographics this is the the information about the specific Market that you want

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to know that you need to be aware of as you're trying to figure out if a market is really good for assisted living or not the type of demographics I want to look at when I'm looking here is the median age what what how old are people here is it an aging population or not uh what does that look like I want to look at that population by age bands so we do this in fiveyear age bands we do I think it's less than 50 and then starting at 50 we do 5 year age bands until we get to I want to say it's like 80 um like I

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can't remember I don't have it right in front of me um but 80 plus is is another one so we want to see what what does that look like we also want to look at um how things are trending our people is the population growing over the past couple years or or is it decreasing we want to look at that so we look at that we look at average household income how much money do these people have and actually do that by age bands as well um so you can see uh where that is um we want to look at how much they're

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spending on their housing you know what's is there going to be sticker shock when they get into assisted living or are they going to understand the value because you know are they spending $40,000 a a month not a month $40,000 a year on housing or they spending um you know $500,000 uh in housing what what does that look like for for you um and how are they going to interpret the prices of Assisted Living which are which can be expensive for people especially for private pay um we will at Job sectors you know how stable is that

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going to be um so you can get a feel for that and then crime risk statistics as well uh we want to look at is there a lot of crime in the location we also are looking at taxes um specifically income taxes for you as a business um are you going to have to be paying uh any of that money back in taxes or not um we want to look at that political leanings which regardless of your view on on politics and I know we're in an election year um and everything that is involved there um the political leanings of a state and a

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market um can actually have a big impact on your ability to run a successful business um more liberal states are more heavily regulated typically um and and it's a little more confusing and it can be harder to operate a business there they're not as small business friendly whereas conservative states are a little easier to operate in um but on the flip side you might have more government money coming in for like Medicaid or things in in more liberal states as opposed to conservative states that

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typically are going to let the free market play out so there's pros and cons both ways you have to decide which ones more important to me as a business what does that look like and understand what gets you know how that's going to work I also want to look at the the markets that are nearby where are some of those population centers that I can pull from what are they and then those major markets what are the big ones that that are nearby that um you know is it is it something that's full

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hour or two away or is it something that's actually pretty close and we can we can work with that population we want to look at all of that so there's a ton of Market demographics that go into into this research and I I'll say this I do all of this research for you um so inside of the market research guide I I do all of what I have just explained to you ranking those States and those markets and then once we've identified the top 10 states we do the market demographic for every Market that we can find inside

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of those 10 states we have uh this year uh I think we've got information on like 180 different markets in those top 10 states um that we're looking at so we do if you're in one of those States we do 95% of the market research for you if you're not um I show you exactly how I do that inside the the business planning guide course um so that you can finish you know the research on your own where we use our resource where we get our resources and everything where we do our research uh and that's going to be 80%

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of the work that you need to do because you know exactly you know how how to go find this information how to get it so everything that I'm talking about I like I I do it for you so this is where there's huge value in this thing so if your state does not make the cut if it does not make that top 10 list and I don't have the market demographics for them um a couple things here it does not mean that you should not do assisted living in that state okay it absolutely does not mean that and I'll tell you

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this California is not in the top 10 it does not mean that California you should not do assisted living there it just means um from a market research standpoint I'm not doing all of the work for you and it's something you want to get really um confident in what you're doing there are pockets in California that are excellent for assisted living um it's just the state itself didn't make my top 10 list every single state is going to have specific markets that work great for assisted living you just

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have to find them and do some research okay so it just kind of depends and I'm I'm going to show you how to do that research in in the market research guide um so just wanted to to make sure we throw that out there so these are the top 10 that made the list here in um in 2024 again you can get the full analysis of everything at uh by going and getting the business planning guide Assisted Living investing. net BPG but and this is the order that they came in actually as well so really interesting Wyoming um

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was number one Florida number two Iowa is number three Delaware is number four South Dakota is number five Pennsylvania at number six Alabama at number seven Mississippi at number eight Missouri at number nine and Tennessee comes in at number 10 so Tennessee made that top 10 list um I will say there was a pretty uh it was not a like in years past I've actually had a really like this is a pretty clear cut off for me um this year the the states below Tennessee um were not that much further down I think

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Georgia was number 11 there was another state that was in the South um that was number 12 I was seeing a lot of of places in in the Southeast that are here in the top 10 list or that are really really close to it so while it may not have made the top 10 list doesn't mean that it's it's it's not right there um what I am finding it was actually kind of interesting to look at this because there there's a few places up in the Northeast we have Delaware and Pennsylvania up there um and then we

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have uh some places that are down in the South Alabama Mississippi Tennessee um and Florida are down there and then we have some that are kind of in the middle of the country with Missouri uh South Dakota Wyoming uh and Iowa so we have actually a pretty good mix there's not a lot on the west coast um and I think that's a attributed to a lot of people are are leaving the west coast and moving to other places right now um so just the population is starting to um decrease there that's the trends that

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we're seeing as far as popular popularity but uh if your state um that you want to do that in is on this top 10 list um go ahead and type in your state number put that in the comments and then put 10 or put the number that it is here if your state is not on here just type in your state um I'd love to see which states you are interested in we actually have a really fun post on the Facebook group right now where people are saying which markets and States they want to uh want where they want to get started at

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uh and one I'm seeing trending up a lot right now is actually Maryland um so really interesting to to see that so this is our top 10 list for um 20124 we update this uh every year um if you buy the business planning guide you actually get the updated version every year you you can go in there you can see the 2023 version of this so you will get um updated versions every single time we put out this content so all that said want to uh remind you to like the video subscribe and ring the bell as well so

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you get notified every time we put out this content we do our Q&A sessions here on Tuesday so we'll get here uh into that in just a second if you are are here go ahead and type your questions and happy to do what I can to answer those for you today um and then also um want to remind those that um may need some help and some guidance we are doing our promotion on the The Mastermind program if you go to Alim mastermind.com application you can apply for that very quick application process um if it's a

00:16:24
good fit there's a series of automated emails that will go out to you to kind of give you an idea of the program but um that's because I ran out of time talking to so many people and I need to focus on coaching people not on trying to sell the program so I give you all the details let you make a decision if it's a good fit I would love to to work with you if you have questions then you can feel free to ask them um I I try not to make it a funnel I hate those um as much as the next person but um I need to

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spend time coaching people and and not trying to sell you to do something and you are adults and you know how to make that decision so I'm going to let you do it and I give you all the information you can do it so go check that out if it's a good fit for you and if you feel like you have questions or want to make sure you're com comfortable working with me um I give you details on how we can have a conversation about that it's not a sales call it's just a answer your questions make sure you feel confident

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in that again Alim mastermind.com application okay um now let us get over to the sorry I'm trying to get over to my piece where I have the questions at there we go all righty there we go all right now I got a few of you on here so uh people typing in their states on here this is exciting so V is Missouri um yeah I love I'm a Chiefs fan so excited for Thursday night um this week uh Chiefs against the Ravens so that will be fun um I have friends that I have family that live in Kansas um right

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in Kansas City so Missouri is uh something that's close to me actually I have family live in Missouri as well so love Missouri love seeing that on there um Anya is in Florida Anthony is Texas and thanks Anthony for being here excited to you're you're in the program love working with you uh reach out on you know in our community if you have any questions and things if you need help uh wherever you're at in the process there we love to give you some extra guidance there uh on where you're

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at um and if you haven't done your um Vision exercis let's make sure we get that in um so we can help you out uh and Mickey I don't think I've seen that from you yet so let's get that in there Divine um is in Florida as well and then spana is Virginia spana and I have been chatting a little bit um and talking about Virginia Virginia is interesting I I was talking with some other Consultants recently and um they told me and this makes a lot of sense to me Virginia is a very highly regulated

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State um and I think it's very much because of where it's at in relation to DC and just like from a getting back to that kind of political thing that we were talking about a little bit earlier um it it is uh something that is um it's more regulated so it is harder it doesn't mean you can't do it there it's just something you want to be aware of as as you're getting into that with Virginia so um yeah I what I would say is don't go into it blindly and be like Oh Virginia it it it's a really good

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State I would say um be aware that it is highly regulated it's one of the I would I would put it up there with like California um Oregon Colorado um uh let's see Virginia is up there uh I'm trying to think of other very highly regulated States um and when you think about it it just makes sense that they would be more highly regulated New York is is very highly regulated as well um so the more that you understand what those states are and the regulations are and that it's not going

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to be easy but it is going to be possible um you can navigate things just you want to be careful and recognize there's going to be more paperwork you want to spend more time or at least if you don't want to do all of it then hire somebody that is very very good at working in those States um that that's what I would say um like not not just like a consultant like me but like an administrator that that works well or a state specific consultant that can help you out with with that type of work

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so that's what the guidance I'd give you there for that hopefully that helps spit L I know you were asking about when we're going to do the live so if you have any other questions um feel free to to put those in the chat here as well um Anthony did the evaluation include how a resident would be paying private or Medicaid and what type of cash flow um for a facility should be able to capture um so the evaluation doesn't get super deep into um like resident rates that's actually a

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really good thing I could potentially add in here in future years uh or maybe have my assistant help me in doing the research there um you can find that pretty easily um like if you know which Market you want to be in so I know Anthony you're in Texas um and I can't remember specifically which area of Texas you're in um but you know you could get on there Texas is not on the top 10 list this year but I think it was in 2023 um so you could go back there and you could look at um the data for

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the the markets in in Texas and then you could figure out okay this is you know this is the population yeah in Austin okay um so this is the population that we want to be working with in Austin um this is how many people are here this is where things are trending what's the population doing um get a really good feel of that that's going to fill out your in your business plan um the market research piece and then from there it's going to be doing a little bit of uh extra diving into what that looks like

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inside of the community um who was it lasagna actually is in is in the Dos Fort Worth area and she did some really good solid um uh research on on kind of rates and things like that I would reach out to her in the community there and I think she could help you give you some extra guidance on just kind of that the DFW area which I I'm not up to my geography on in Texas but I think it's kind of close to Austin maybe I don't know um but um she could help you out with that uh we also have some people that are in

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uh San Antonio and and people in Houston so there's like those big population centers um there in in Texas um that are in the The Mastermind that can help you out and and be some extra support as you're trying to figure out some of that some of the deeper maybe rate um specific questions or if you need help finding that put that in the Mastermind group um and then we can help you figure that out specifically for for Austin for you okay um spit Lana where can you look up regulations for the states that you want to explore so

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what you want to do there is do an internet search for something like um uh Assisted Living license application in Virginia or you know in my state um that's going to be a really good question to start off with uh and then it will take you at the very least take you to the licensing agency in the state and I would tell you which what licensing agency it is but it it varies from state to state like um some of like in Utah it's Health and Welfare in Colorado it's the Department of Health I can't Health policy or

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something like that um Idaho it's Health and Welfare so it just kind of depends on on who on which department you're working for so just kind of a a more broad search is going to be able to get you to the agencies website that can do that and then from there you can uh start diving in and figuring out what the application process actually looks like and excuse me they'll also typically have like the the rules that you need to follow or you could also just do like a simple internet search

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like um assisted living facility rules in Virginia or Florida or wherever uh you you might want to to do things in um those are going to be the best places there is not a One-Stop shop like here's you know choose your state and here's all the regulations for it the the interesting thing with assisted living is they there's a federal rule um so there's chap there's actually multiple there's chapter two chapter 7 and chapter nine or chapter 11 I can't remember there's there's three of them

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um maybe there's four um but there there's Federal rules that that govern Assisted Living so you want to get familiar with those but then each state has its own little spin on how they interpret each of those rules it's very similar to like zoning um each municipality municipality has its own spin on how they interpret zoning rules um so with Assisted Living you're going to find you know here's a chapter two stuff here's the chapter seven stuff at a federal level and then your specific

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state will have kind of their own spin on it they all have to at least meet that Federal standard but um then when you get beyond that they they may require more things or more paperwork or more reporting or uh higher Staff um types of ratios or those types of things that's that's that's the type of stuff that you want to pay attention to um so if you're looking at multiple States I would do that type of search for the different states and see what the differences are um you could also I

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don't know how chat GPT or gemini or some of those AI tools would do at at um evaluating that just because they're not up on current documents uh I believe on Gemini potentially on chap GPT if you do a paid version you can upload documents into that and have it like do an analysis and tell you what's different between the states and things like that so that could be something that you could look into as well uh and helping so you don't have to read through hundreds of pages of Dole regulations um

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that will put anybody to sleep so um that that's kind of how I would suggest that you go about looking up those regulations in the different states that you want to explore um it it is a research process for sure okay uh Anya we're looking at markets are you considering the average Al cost per month and home prices Florida appears on a lower side when it comes to Al monthly cost so we look a little bit at the home prices uh but I'm not looking at the AL cost per month um generally it's something I think I'm

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actually going to add this in a future version um of this and maybe we do like a 202 24.2 version um I I'll I got my assistant working on another project right now but I might have her flip back to this one and see if she can do some of that um and give you some extra guidance there but or you know we put it in the business planning guide under the market research uh guide for you uh because I don't I don't do that research for the Assisted Living cost um you can figure out some of that that detail um

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online uh just by searching what rates are in things or or doing some cold Outreach to places to figure out what rates they they are uh it can be a little bit confusing uh especially when you start looking at those things you often get things like A Place for Mom popping up um in your searches and that's not necessarily helpful um and some of the data that you're finding can be old so um you can find it just will take a little bit of time to to dig in and find the the specific costs that

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that you're looking for okay hopefully that answers your question but that's it's a really good need I'm hearing that quite a bit sorry my cat is coming in you might hear her meowing on the microphone so sorry um let's see uh and Anthony you're open to all areas of Texas yeah so I would I would get on the group and uh on the community there and just chat and say hey I'm I need some help doing some research on on the rates here in Texas to figure out which one is going to work best um and the people

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that are interested in Texas they I think have done a little bit of work I'll tag the people if you put it in the community chat I'll tag the people that have done this in Texas and uh see if they can give you some some guidance there now that I'm thinking of that I think I may have told you the wrong Market that they're in but I may have mixed people up but anyways there's people there in Texas that can help out uh Anthony do Al Network organizations exist in communities for

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professional networking um amongst uh yeah no problem amongst networking like-minded individuals people to communicate and share experiences this is a really good question and the answer is no um I know of one in Florida I know there's there's a guy um he's in the Facebook group um what's his name I can see his face um his wife's name is Emily I can't remember his name but anyways um he he's based in Florida they are building out a kind of Meetup and things like that in

00:29:21
Florida uh really really cool guy um God it's gonna bug me I can't remember his name but that's the only one that I'm aware of in in uh in that like exists the reason why that I'm finding is a lot of Assisted Living owners are they they don't want they they they feel like you're going to steal my staff you're going to steal my residents and so there's there's kind of this mindset that is a little more closed off and I I don't agree with that um that's where I

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think we we benefit from The Mastermind program uh there's people that are kind of in the same phase and as people uh start acquiring their businesses is I think that will lead into um conversations amongst owners of facilities and best practices and things like that um which I think will be a lot of fun to to see where that goes and that ultimately it's it's my goal to to get us there but there's there's not a lot especially State specific because I think there's just this a mindset that

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people don't want to to share this information they're scared to because they're worried that you'll find out their thing about um about how they get residents or you're going to steal their residents or staff or things and I I don't think that's the case but it's just I think it is a it kind of is a generational thing with the people that have owned these facilities for a long time um that or else you have the big boxes and they don't want to share that they don't they don't want to play nice

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with the small operators so yeah there there might be some um I know the raw academy uh has worked on creating like a national thing um I I think I joined it at one point but I don't think they really do many events or if they do they're very specific to Iona um so yeah it's there's nothing that I am aware of that is like here's here's the big organization and we have state chapters and and we do meetups and stuff like that I'm not aware of anything if anybody is I'd love to hear

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about it though and see what we can do to help out in promoting that for people uh spana why is Wyoming number one on the list uh what about it makes it so special so Wyoming is it it's high on the list of places to um where people are moving the population there's a a big set of population that are moving there and it is also not heavily regulated I actually have a buddy uh who lives in Utah he operates in Idaho and Wyoming so he's kind of similar to me um but he he operates in Idaho Wyoming

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instead of Idaho in Colorado and I was chatting with him at lunch a few months ago and he said like from a regulatory sampoint is very easy to to get in and um to operate a business there the the one piece that you have to be aware of is they do require CNAs um whereas like Idaho you can get away with working with just like MedEx or caregivers that don't have to be a CNA um and being a needing a CNA typically is not a problem but Wyoming has a low just not very populated right and so if you're in these small locations like

00:32:19
I think he's in Evon which is this um little town that's kind of on the border of of Utah and Wyoming um and there's just it's not a lot of people it's a few thousand people that live there so there's not a lot of CNAs so that has been detrimental um to to him like it's been hard but um like from a regulatory standpoint to get license to operate the business and and those types of things uh it's been actually pretty um pretty easy for for him there so regulatory um

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people are moving there those are the big reasons why why Wyoming might stay off people's lists um like I would consider doing it because I can get to Wyoming in two hours like I can drive there it's it's not very far from me um but why some people might not do it is it is low population Center um like there's there's not a lot of people that live there uh there's a joke I'm pretty sure there's more cows in uh Wyoming than there are people so that's something that you want to be aware of

00:33:17
uh so it's it's not a you know I don't see a big shift everybody's going to do assisted living in Wyoming because I don't think there's a huge demand there but um I do think for people that um that are able doing things out of state and and can understand the regulations and um are are just kind of comfortable with understanding some of the limitations with Wyoming I think it can you can be very very successful there so hopefully that gives you good answer there um talk about the Florida markets

00:33:46
as well why do you think it's good so Florida I think is good one thing to be aware of with Florida is there's a lot of people that do it there so the ones that I hear the most about why people are going a certain where people want to go is Florida yeah no problem Atlanta um so Florida Texas Arizona like those are the big ones California also pops up often in conversations where people want to do this um and I I mean it makes sense right some belt um States they're warm States people typically historically

00:34:20
have wanted to retire to those places um Florida is up there because of that reason you have a lot of you have a big population where Wyoming um is less regulated and um you know it's easy to to work there people are starting to move there and things like that Florida has historically been a place where people are are moving um my understanding I don't operate in Florida so I don't understand all of the ins and outs of it but it is uh it's it's relatively easy to get licensed for

00:34:51
assisted living and to work with people in in in Florida um they're friendly to working with assisted living for all of those reasons Florida is really good what I would say in Florida is you then have to start thinking to yourself where where is this um where are like you got to think of where where people actually moving in Florida and this is where the market research guide can really help out uh and looking at those specific populations and markets and and in different cities and things like that to

00:35:24
help you see what that looks like and then the deeper dive that we don't get into in the market research is going to be um you know how how many assisted living facilities are in um Miami or Orlando or Tallahassee Fort Lauderdale um you know some of these bigger places and then you're like okay I'm going to compare that to the population that I know exists in there from the market research guide um and see what aligns there and then I'm going to look a little bit at just you know the

00:35:52
population what is what are the trends how old are they how much are they making what are they spending on housing um does that feel good and then you're going to start looking and doing a little bit of research on um pricing so the the problem that I can see with Florida is picking the exact Market that that's going to work really well for you and and just like the states that didn't make the top 10 list there will be markets in Florida that it makes no sense to do I don't know exactly what

00:36:18
markets those are off the top of my head but there are there are going to be markets in Florida which is a you know second state on my list um where assist living makes no sense and you're what you're doing your due diligence is figuring out where you should be avoiding um and in in your journey to try to figure all that out so it it it very much is I'm giving you a lot of the the research showing you how to do the research uh giving you some guidance on what that looks like but then it really

00:36:47
does come down to you doing the doing a deeper dive on research and then spending time under writing to make sure that it actually will be profitable that you're not just yep Florida's on Brandon's top 10 list it's number two and you know every single place there is just gold and it's going to be perfect and I'm going to blindly make a $2 million offer on a home don't do that um that would be a mistake you want to every single every single market and City and every single opportunity needs

00:37:17
to be taken um on a case-by casee basis um to help you out and and figure out which one is right so hopefully that that helps give you some guidance there okay um really quick I need to make sure I don't have any other meetings that I'm going to bump into um get on the right calendar here okay I think I'm good um Anthony um from my experience what is the optimum size for assisted living that you'd recommend and why that's a good question I personally for me I would never look at something that's

00:38:01
less than 10 beds it's it's too small for me to feel comfortable with um it doesn't mean you can't be successful like there are people in in my Mastermind program that are looking at six bed facilities and they do the underwriting and I've reviewed it and it makes sense like so it can work with with less than that I one of my most popular videos on YouTube is um is a two or three bed Care Home profitable um and some of you may have watch watch that um so you can do this with with less for me

00:38:32
my risk tolerance um kind of kicks in at about 10 beds and that's that's what makes sense for me um I would actually prefer that it have at least 12 beds but I I I don't think I would really look at anything unless it had 10 and that's just me knowing how I operate how I want to do things the involvement I want to have in the business the types of things that I want to provide to my staff and my residents um I know how much that's going to cost me and so doing less than 10 makes margins super super thin for me

00:39:05
um not always not the case for everybody um but for me it does so that's that's what I would say 12 plus is what I feel comfortable with um I I really like 16 that's what my two facilities are um it's it's nice it it gives us gives us a lot of breathing room lets us cash flow a lot um even when we are out ofate operators that are hiring people to do all the work for us and we're Medicaid so you know theoretically we have lower rates than private pay um even with all of that in place um we can still cash

00:39:36
flow really really nicely um with with what those look like so yeah that's that's where I would be um that that's what I would say your situation might be different um and everybody's situation is different and then there's also just um when you get into different states that have different rules you know we talked wait we didn't talk about it today I just recorded a video on this but um the the different license types um they uh they they can impact um they can impact things quite a bit so

00:40:09
if you're doing like a six or less bed and you're kind of doing Care Homes there's less regulations typically in those types of homes you can even have them be unlicensed um but even as a licensed facility uh there's less regulations to get in and get that thing up and running and and things like that and so when you do that it can make it um quicker to get things started there's a lower barrier to entry um potentially things with like the fire suppression system you know those types of big

00:40:35
expenses to get something started um might make sense for something that is that is smaller um so whereas if you're getting up into that residential 10 12 plus bed um that's something that is is going to be different and and maybe more costly to get things up and running and and so these are all trade-offs things that you want to take into consideration there so hopefully that um hopefully that helps answer that question for you um V why Missouri why is Missouri on the top 10 so Missouri I think um I I've seen a lot of

00:41:11
again I think it comes back because the big piece of of what drives that top 10 list is where people are looking to retire where where where is the population shifting why are why where are people going um so I think that's the biggest reason why it's on there um I have also talked to because I I mentioned I have family that are in Missouri and I know that they one of them um owned a home health agency for a long time um I think he just sold it couple years ago um but I know that the population there is very receptive to

00:41:46
that type of care um I I think it works well and I think Missouri is if I'm remembering correctly I think from a regulatory standpoint Missouri is actually pretty easy to work in as well I don't know all the specifics on Missouri but um it is largely because people are moving there you've got a really good population base to to build off of and I think there's some really good locations in Missouri that can help out that are going to be very friendly to working with Assisted Living so

00:42:15
that's that I think is why um it popped up on the top 10 list um Ona how quickly did your second a fill up to 100% oh I don't know because that was like three and a half years ago when we bought that um I don't know I I I actually go I would say it was less than six months we were it was already existing facility um so we had 12 or 13 people in it already and so it wasn't like you know it wasn't something we're trying to fill all of the beds quickly um we were already we

00:42:55
were we were definitely profitable in the first months there um as far as like the the census and where we're at it fluctuates so much so uh it's it's really hard to say like right now we're at 100% occupancy but um two months ago we we were 13 out of 16 beds um and we've got a resident who I think is probably going to pass away soon in that facility so we'll drop down and then you know who who knows so it just there's a lot of fluctuation that ends up happening um in inside of facilities for

00:43:27
occupancy um and so that's what you want to build into your underwriting um to make sure that you account for for all of that um so yeah I I honestly I can't say when we were at 100% for the first time it was probably within the first few months um but then we probably had something happen where we had to have a resident move out because of the level of care or maybe somebody passed away and then we were down a couple of beds for a couple months and and then it just kind of fluctuates quite a bit um it it

00:43:56
happens that's why when I go through underwriting with people I always suggest that you are very conservative in your underwriting and don't just assume that you will always be at 100% occupancy all the time because it's not going to happen um like you will have vacancies in your home and so you need to account for that when you do the underwriting just to make sure that you you plan for that very very important for you to do that okay um Jeff Weir says Market Jeff if you want to expand on that that

00:44:30
would be good and you're welcome VA um Ona why am I not buying more homes so right now we are actually in the process I'm pretty sure I've told this and I said this in a few videos we're actually in the process of selling our home in Colorado um so if you want more info on that then reach out to me and we can uh share the details on it um we're actually doing a big renovation the the value of the home is going to go up significant L we have a low census there but we've been keeping it low because of

00:45:00
Renovations we're going to be doing uh so it's kind of all been on on purpose um long story there but we're selling the home in Colorado right now and um we then will once that gets sold once we're done with the grant that we're working on there we're going to shift over our focus into growing in in Idaho we want to be pretty aggressive we've had I've had conversations with a couple Brokers about our goals there um my dad and I who are Partners on this have had conversations uh we're kind of in

00:45:28
alignment on where we want to grow and how much we want to grow so we're going to be pretty aggressive I would say here in the next depending on how things shake out in Colorado I would say in the next 12 to 18 months we're going to be pretty aggressive in our growth strategy um up in Idaho um but it's just like kind of a timing thing for us right now is is the big reason why um and I've just been busy wanting to build out the coaching business and a few other things that I had going on like I I distracted with

00:45:58
other stuff um that I enjoyed doing so just haven't really been looking to expand but that's it's on the horizon for us uh something we'll be looking to do here in the next little bit for sure um SP Lana did we buy existing businesses in both cases yes we did yeah both of ours were existing businesses um that that we purchased and um used SBA funding for for doing that uh experience buying a regular home and remodeling it to become a facility so I don't have I've never done it with the facilities

00:46:29
that I've owned but I have gone through the process with it um in a couple of different ways one um so here in in Utah in a town called Riverton which is in the Salt Lake Valley uh I had somebody I was looking at doing a partnership with uh she owned the home and um she wanted to do assisted living and so we ended up starting the process here of doing a conversion so we had talked to I talked to City Planning I talked to the fire department we had them come out we had them give us an idea of what the

00:47:01
renovations would look like uh we got a feel for how many beds we would be able to get in there we started doing the application process uh and then as we got a little bit deeper into that um because I had I ended up doing a lot of underwriting on it and figuring out um based off of the conversations we were having with each of those people that that house was going to be very sorry I'm going to take a drink of water I've been talking a lot today the that specific property um was going to have a hard time being profitable and

00:47:32
I didn't feel super confident in its ability to to do what she wanted it to do um and while she had a lot more skin in the game than I did um I just I didn't I didn't feel comfortable with it so I ended up backing up but I had gone pretty um deep into the the research process figuring out exactly what needed to be renovated uh talking with state to get the license and everything there so that's number one one uh experience number two um experience was before I did all of my facilities I started

00:48:04
reaching out to a bunch of municipalities to figure out which ones were the best and started looking at at homes as well and talking with the state about licensing again this was in Utah um and that's when I decided to buy existing facilities um because it just was an easier way for me to get into um starting my my businesses and and building my portfolio out um and then the third one that is kind of related to that is our Colorado facility and the renovations we're doing so it's not a

00:48:30
it's not a relensing or licensing process uh we'll maintain the license but it is a sizable renovation um we have a million-dollar Grant to do Renovations on the home to do what's called the purpose of the grant is called single occupancy um so it's kind of creating more private spaces for our residents in the home um and helping out with um disease prevention um is is kind of the the objective of the goal um but through doing that uh have had to go through the process of getting permits

00:49:02
which in this scenario the home was built in the 1890s so you know it needs a lot of work um uh and uh in doing that uh there's been a lot of permits and and reapplying for permits and reapplying for permits and we finally got those actually last week um so that was really exciting and now it's working with general contractors to get things in place and then there's what's called an fgi application which is like a federal guidelines for Senior Living I can't remember um what the acronym stands for

00:49:31
but fgi um and some states will follow that it's like it's like a nonprofit organization actually um so it's not a a federal standard um but a lot of States especially the more heavily regulated States want you to follow fgi um uh standards um for for senior living homes so it's something that uh you you if you might want to look into or need to look into so it's working with Architects and engineers um and if they have experience with fgi um it's it's better off for you the if

00:50:02
they have excuse me if they have experience working um in uh Senior Living that also is is beneficial so we have a lot of experience doing that just because of that process uh construction is I just reached out to our contractor today uh hopefully going to start anytime soon has to be done by the end of the year um because that's when our grant funding uh runs out so now we're working on a tight timeline just a lot of working with government agencies and it takes a while and yeah it's B it's been fun so yeah um let's

00:50:39
see let me make sure I answer that question so yeah no no like true practical experience where I took a home and did all the renovations and then licensed it um I've personally not done that um but I know people have so yeah Anthony Walker let's see Anthony are you able to fill empty bed with temporary residents needing Recovery Care for surgery because they can be alone until they cannot be alone until full recovery as a way to keep your revenues up um that's your goal okay your goal is to

00:51:14
purchase an existing facility already cash yeah I I really like that method you can do it the other way and be successful I really like buying existing beds but going back to your other question here Anthony um so like a tempor resident um what I would say is it's hard to say that you could like have a resident coming in with the intent of them being temporary um most residents that come in they need the services and the intent is for them to be there for the long term um often times you are their home and then when

00:51:54
they need something they need to go to reh have or uh they need to go to the hospital or something like that then they leave your home for a period of time so there there's a lot more for a temporary period of time then they come back to you that's the more likely scenario um if you want to look into kind of you have empty beds you're trying to fill them and and you're struggling with that uh you can look at programs like adult daycare um or respit care um to bring in people on a

00:52:24
temporary basis so this is um families that you know they want to go on vacation um and they but they've been taking care of their family their their loved ones have been on home health or something like that but they they're going to leave for three weeks and and go to Disneyland or whatever um you can set up your home to be able to do respit care or adult daycare um and bring them in on a temporary basis for that purpose or adult daycare is actually they just come in for the day but they don't stay

00:52:56
um in the evening so you feed them um you do activities with them but they don't have to stay there so those are a couple programs that you can Implement um I have looked into them um I've just been too busy to actually do it but you can do that in tandem with uh what you're doing at your assisted living facility um that is all all possible I just realized my charger is not working my batter is about to die let's see try to click this back in I don't know I probably have a little

00:53:27
bit of time I don't know why it's not working Al righty um Anya uh what type of properties can even be converted to 16 beds are they extremely hard to find finding a home to um and Anthony hopefully I answered your question there I that's what you mean but I forgot what yeah hopefully I answered the question if if you need more just type it in Anya uh what type of properties can be converted to 16 beds and are they extremely hard to find I would say yes they're going to be hard to find now you do need to also

00:54:10
understand so our 16 bed facilities they are there's a lot of shared rooms there um so there's a square footage uh guideline there each state I I I what I see typically for square footage um requirements in in in States though they do have the ability to change this is um 100 squ F feet in a single room so it needs to be at least 100 foot room or in a shared room uh it's 80 square feet per resident that's in in a shared room um so 160 square feet for that room so if you're looking for properties

00:54:46
and you're you're looking for something you want to convert and you're trying to get to 16 beds um what you are going to probably be better off doing is finding not necessarily A home that has 16 bedrooms but finding one that maybe has 8 to 10 bedrooms and six of those rooms are big um they're 160 square foot rooms they're Master room sizes um that's probably the route that you're going to be better off going so this is uh one of the properties that I was initially looking at when I was very first

00:55:20
starting was in Draper Utah um it's I don't know I guess it would kind of qualify as like a mansion um it was it was a really big beautiful home um didn't have 16 rooms but I think was licensed for 12 to 14 beds um probably had eight to 10 bedrooms so there were a few of them that were were shared um in there uh and then other ones were private so um what you can do there there there's a couple schools of thought with it one is getting a home with 16 bedrooms one is getting a home

00:55:57
with really big bedrooms um and and doing shared rooms or number three is doing a lower bed count you find an eight-bedroom home but they're nice big rooms and they're spacious and you do only private pay and you create a really um nice experience for them and you charge them a lot um for that um and it would be the same as potentially having like shared Medicaid beds in there um but then you've got to you're working your clientele is probably somebody that's paying you 8 to $12,000 a month

00:56:32
whereas um Medicaid or kind of some of the the lower end type of Assisted Living you're probably between like three and 5,000 a month um somewhere in there so that's where having a shared room at $4,500 a month um which we do on on Medicaid um even more than that uh that can get you up to $9,000 in a room um you know and and that's much more easy for somebody to to stomach paying 4500 for assisted Li it's very common type of a rate um versus paying n 10 $12,000 for a room that that's like

00:57:10
you're working with a very different um type of Resident at that point you're you're catering to a very different type of Resident and so it it really just kind of depends on what you want to do but finding finding a 16 bed bedroom home is you know very hard uh finding it even an eight-bedroom home um that is big enough to do 16 beds in it can be difficult um they're out there is this is where working with a an agent a commercial broker somebody like that is is really helpful or finding existing

00:57:38
businesses that have already done all of that work for you um can be very beneficial so hopefully that helps alrighty that is all the questions that I have left on here so this is our our longest live we've ever done so we're almost at an hour um so want to thank everybody for watching uh if there's any last minute questions go ahead and type those in um but I want to remind people to get over to Assisted Living investing. net BP checklist to download that that free checklist uh to help you

00:58:08
out uh on moving along on your investment journey and if you feel like The Mastermind if you need some help uh like I do these question these Q&A sessions um with our Mastermind group once a month um where we just do Deep dive on the questions that they they want answered that they need answered um so we do that um Plus we're in the community like I was mentioning to Anthony go put this in the community so we can chat about it over there um there's a lot of things that go into that um where you I give you guidance

00:58:35
I'm in there multiple times a day answering questions doing personal videos for people um to help get unstuck and and give you some guidance on things um in that scenario like we talked I just did one over the weekend um for somebody that had a question about um llc's and which states to put things in and and stuff like that so um you know consider if you are interested consider applying for that Alim mastermind.com application I would love to uh try to help you out there um and see if I can

00:59:04
get through things it is like I've had a few people be like oh this is automated it's a funnel and it's because I like I want to spend time coaching people and not selling to people so um yeah just it's I'd rather I'd rather coach people I love building relationships with people and things like that but as much as so I just kind of automated the process um but happy if you have questions after you apply uh if you want to reach out and have a conversation we can do that as well so uh thanks

00:59:29
everybody for watching yep you're welcome Anya and spana thanks for being here and uh we will chat with you next week I'll send out an an email um on Monday morning that we'll say the topic and and the time for for that so just kind of stay um you know stay keep an eye on that and then you'll know when we're meeting next so thanks everybody for watching and we will talk with you next week thanks yeah thanks Anthony we'll see yall thanks