Fast Financing Options to Grow Your Assisted Living Business
Mar 28, 2025
Why Financing Matters π°
Before diving into specific funding options, let’s talk about why financing is so important for assisted living investors. Whether you're buying an existing facility, converting a home, or building from scratch, having the right financial plan helps you:
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Cover startup costs
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Handle unexpected expenses
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Keep your operations running smoothly
A solid business plan and underwriting will make it easier to secure funding and grow your business successfully.
Check out the video, too:
Top Financing Options for Assisted Living Businesses
π΅ 1. SBA Loans
Small Business Administration (SBA) loans are a top choice because they offer:
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Lower interest rates π²
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Longer repayment terms π
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Smaller down payments π
They work well for buying or building facilities, but converting a home into an assisted living facility with an SBA loan can be tricky.
π‘ 2. Traditional Mortgages
If you're buying a home to convert into assisted living, a traditional mortgage can be a great option. These loans typically require:
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A strong credit history π
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Financial stability π°
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A good debt-to-income ratio π’
ποΈ 3. Construction Loans
If you're starting from the ground up, a construction loan provides funding to build your facility. Once construction is complete, these loans often transition into a long-term mortgage.
π³ 4. Private Funding & Hard Money Loans
If you don’t qualify for traditional financing, consider private funding or hard money loans. These loans:
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Provide quick access to capital π
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Have higher interest rates π
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Are often short-term π
πΌ 5. Unsecured Loans & Business Lines of Credit
Need flexibility? Unsecured loans and business lines of credit can help with:
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Furniture & equipment ποΈ
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Hiring staff π©βοΈ
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Covering early operational costs π₯
π 6. Seller Financing & Subject-To Deals
Some sellers finance the sale themselves instead of requiring you to get a bank loan.
“Subject-to” financing lets you take over an existing mortgage, helping you avoid large down payments. It’s a creative financing strategy that can save you a ton of money!
ποΈ 7. Grants & Government Programs
While grants for assisted living are limited, some programs exist! π
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The USDA provides funding for healthcare facilities in rural areas π‘
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Some state & federal programs offer assistance π―
Which Financing Option is Right for You? π€
πΉ Buying an Existing Facility? SBA loans, traditional mortgages, private funding, and seller financing are great choices.
πΉ Purchasing a Home to Convert? Consider traditional mortgages, private money, or subject-to deals.
πΉ Building from the Ground Up? SBA loans and construction loans work best.
πΉ Leasing a Property? Business lines of credit and unsecured loans can help fund operations.
π Pro Tip: If using an SBA loan, request 2-6 months of operating capital in the loan to cover early expenses. π‘
Final Thoughts π―
Finding the right financing is a game-changer! Whether it’s an SBA loan, private funding, or creative financing, having a solid plan puts you in the best position to secure funding. πͺ
π Need help with underwriting? Grab our free underwriting calculator at Assisted Living Investing!
π Want a step-by-step roadmap? Download our Business Plan Checklist and start your journey today!
Need help figuring out where to start? Join the next Roadmap Challenge and build your launch plan with me.
Show full transcript π
Transcript
00:00:00
hey friend I'm Brandon Gustafson I help beginners like you launch their Assisted Living business in the next 12 months in today's video we're going to be getting into the different financing options that are available to you for starting your Assisted Living business so if you want to understand exactly what those financing options are stick around for today's [Music] video hey friend welcome back to Assisted Living investing excited to have you here with me on the channel today to talk about the different
00:00:28
financing options to help you launch your Assisted Living business before we get into that though I want to remind you to get over to the website Assisted Living investing. net and grab our free underwriting calculator it's going to help you know if you have a profitable opportunity on your hands and number two help you get the funding which is a lot of what we're going to be talking about those different financing options each of these options that we're going to talk about today and each of these
00:00:49
scenarios are going to be things that you're going to need a business plan for a really solid one uh and really solid underwriting so make sure you go and grab the free resources that we have at Assisted Living investing done there we'll have links down below for all those as well all right let's get into the topic for today's video what we're talking about today are the different financing options that you need to be aware of for launching your Assisted Living business this is part of phase
00:01:12
three of my five-phase process which is how to obtain funds we'll link the video up above about how to obtain funds and what that looks like for you so if you missed that video go watch that now but let's get into the topic the different financing options that are available to you there's actually quite a few that are out there so what I'm going to do right here is we're going to talk about the different financing options that exist and then we're going to talk about different situations or scenarios that
00:01:34
you might find yourself in and which of those financing options apply to that specific opportunity okay so hopefully that will make sense so the different options that you need to be aware of are SBA funding you want to be definitely looking at SBA uh it's a really good way to get into it we have a bunch of videos on SBA so we'll link those up above here on this video so you can go watch those and and get some guidance there to understand exactly what that looks like so SBA is number one number two could be
00:02:02
conventional or traditional mortgages to help you buy existing home so that's an option that you can get into as well conventional traditional type mortgages you could be looking at construction loans if you're doing a new build construction loans are a really good way to help figure that out you could be looking at unsecured types of of funding as well so this could be unsecured lines of credit which is really hard to actually do when you're doing an acquisition but there is a space for
00:02:28
there is a scenario where you might want to look into that private funding is another option there as well so private funding this is from a private money lender the or hard money lenders some people call them so that's something that essentially is a lower down payment it's it's less secured options for people that might have bad credit or that have exhausted their ability to get SBA funds or or things like that so all of those are are things that you want to be um aware of as well
00:02:54
you also might want to look into some non-traditional types of funding so seller financing or subject to now I don't have videos on all of these things if one of those sounds really interesting to you and you'd like me to dive a little bit deeper into those comment one of those down below so SBA traditional mortgages or conventional construction loans private money unsecured loans seller financing or subject to if you're interested in any of those just type that down below so that I can know that you want something
00:03:23
that's a little bit deeper on that and I will go and create some videos for you on that topic as well so with that kind of Base understanding these are your different financing options and what I want to get into now are talking about some of the different situations or scenarios you might find yourself in let's talk first about buying an existing business so as you're buying an existing business there's a few of those options that will probably work really well for you SBA is definitely one I
00:03:45
have a lot of experience with SBA we will link up another video on the SBA up above so you can go watch that the the more you understand the process there of working with an SBA lender the more success I think you're going to have so SBA is a really good opportunity there as you're trying to move things into that phase uh you can also actually look at traditional or conventional mortgages as you're doing this especially for more of the residential style properties sometimes SBA just doesn't do it and so
00:04:11
you could go and look at traditional or conventional type mortgages to help buy an existing business you could be looking at private money here as well private lenders are are very open to these types of Acquisitions I've had a lot of conversations with them in the past they don't Shy Away really from anything and so they'd be willing to look at that you could also be looking at seller financing or subject to opport OPP unities when you're looking at buying an existing business so that's
00:04:34
the overview of the existing business and when it comes to buying an existing home that you're going to renovate is basically the exact same thing although I will say that SBA Loans are going to be really hard when you're buying an existing home and then you're going to convert it to use an SBA loan to buy that property that's where it gets a little bit fuzzy you can use an SBA loan to help supplant and give you the operating Capital that you need in order to run the business that that is
00:05:01
definitely possible but to buy the real estate if it's just a single family home SBA Loans are not going to work very well for you but you can get into traditional or conventional mortgages you could look at private funding private lender you could look at seller financing or even subject to um those are all different options that you could look at when you're looking at a traditional home that you're going to buy and convert now let's talk about the option of building something from the
00:05:24
ground up SBA actually works out for these I have had conversations with people in my program been able to secure millions of dollars for in in SBA funding to help build something from the ground up so that is actually an option that you can look at you can look at construction loans here as well not really going to be something you can do a conventional or traditional mortgage on but construction loans that shift into that traditional or conventional mortgage that is an option for you you could be looking at private money here
00:05:52
as well to potentially help you build that out uh as you're getting into this world now what I want to talk to you about is the scenario where you're buying a home and you're renovating it and you're using a traditional mortgage there or you're going to lease from somebody so this is something that a lot of people want to get into you're going to still need some funds to help run the business this is where that underwriting calculator that we give away for free at Assisted Living investing. net go grab
00:06:18
that if you haven't already where it can help you understand exactly how much you need what I recommend to people is you get two to 6 months whatever you're comfortable with and whatever seems reasonable in operating cap some of you have that money some of you just have the funds available and and you're fine using that others want to obtain funds they want to get some type of a loan to help out with that so when you're doing that you can go the route of getting an SBA loan or other types of
00:06:45
small business loans that can really help you that are going to give you the operating income that you need another option that you can go on this route is unsecured lines of credit big lines of credit and those types of things that you can get with banks that you can basically say here's a credit card or or or something like a HELOC potentially that let allows you to spend a good chunk of money to help operate the business that's another option for you as you're starting to get into this and
00:07:11
and get that business that you have that needs some funds to operate UPF front those are some of the options that you could look at when you can't get the extra funding from another spot now something that I want to give you is just a quick Pro tip here if you're going the route of securing SBA funding and you are buying an existing business you can actually build into that SBA fund Proposal with the solid business plan and good underwriting the two to six months of operating Capital that you
00:07:40
need to help get your business up and running you can actually combine that into one thing so it's a really helpful tool to leverage there if you want to know more about that strategy and other strategies like that consider applying to The Mastermind program it's something we talk about all the time in that program go to Alim mastermind.com application apply there takes you less than 5 minutes I ask you a few questions about your goals where what you've been working on some of the barriers that are
00:08:06
in your way to see if it's a good good fit for me if we align and if I can help you out I'll send you all the details and if you want to jump on a call and chat a little bit specifically about how I can help you in your scenario after you apply we can we can figure that out I'll send you all the links and things to set up one of those types of calls another option that you could potentially look at are grants so grants are opportunities that are out there they may be few and far between for ones
00:08:29
that are going to help you you launch a business or do all the renovations but you will probably be able to find opportunities that will allow you to uh get things to help operationalize your business um you know potentially like buying beds or uh getting the equipment um for for residents and things like that there are also opportunities like with the USDA if you're in a rural location that can help you um build something from the ground up so there are grants out there that that kind of help you out with that two things here
00:08:56
grants I have a free grant writing template you can go grab that that at Assisted Living investing. netg grrs to go get access to that and we also have a grant course it's called the grants accelerator so if you go to assisted living investing. netg for Grant accelerator you're going to get all the details on that program to see if it's a good fit for you to understand what grants are how they work and and how to write a successful proposal to get the funding that you need uh giving you
00:09:23
everything that I know about grants putting it into a course it's going to help you out so go check that out again it's Assisted Living investing. net slga for Grand accelerator all right so as you are going through this there's also a few people that I want you to be aware of as you're trying to obtain funding and figure out which funding option is right for you and what's going to work for you there's three key people here that you can talk to and they'll help you out through the process number one
00:09:46
is a lender talking with lenders is is going to benefit you a lot it's going to help you build relationships help you understand what their needs are and how they work so go start talking to lenders start building relationships with lenders it's a huge part of what will be your success story number two is what's called a lending broker these are people that they have relationships with a bunch of lenders and when you go and you find one of these they're they are a little bit hard to find but if you find
00:10:12
one and you say I need SBA funding I need traditional mortgage funding for this opportunity they will have relationships that they can leverage and help introduce you to the right people so these are really good people if you can find them they are worth their weight and gold they are incredible relationships to build with people and the third person is a broker if you have a really good commercial broker that works especially in the senior living industry they're going to have a lot of these relationships with a lender with a
00:10:39
lending broker they can build those relationships for you they'll have already built them for you and then they will introduce you and then you can stand on their shoulders and really make some incredible progress with that so that's something that I want you to be aware of those three people they're key in your success now I hope you found this information to be helpful if you need help as you're trying to figure all this out again go check out The Mastermind program Alim mastermind.com
00:11:03
application go apply for that but if you found this at all to be helpful like the video subscribe and ring the bell as well so you get access to all the notifications when we put out content like this we go live on Tuesdays on YouTube where you can get on and ask me questions we put out content on Thursdays we have our Facebook group where we put in a bunch of comments and things like that it's growing it's an incredible Community I love working with people there we have our Mastermind program we've got just all the tools and
00:11:30
resources um that we'll link down below I just have a lot of information out there and the more that you subscribe ring the bell all those things the more I'm going to be able to get in and help you out as you're progressing to launch that Assisted Living business in this video we've been talking about just the funding process we went through all the different funding options that you have available to you how you're going to use any of those specific funding options in your specific scenario and situation to
00:11:55
help you uh obtain your goals there as well does residential Assisted Living sound interest interesting to you but you don't know how to get started at Assisted Living investing. net we're here to help beginners like you launch their Assisted Living business in the next 12 months I want you to remember that it doesn't take a lot just a little bit keep going step by step by step and I promise you that if you do and you're consistent and persistent you will be successful thanks for watching and have
00:12:19
a great day [Music]
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