How to Buy an Existing Assisted Living Facility (Step-by-Step)

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Buying an existing assisted living facility can be one of the fastest ways to enter the industry.

It saves you time. It lowers your risk. And it can start cash flowing from day one.

But if you’ve never done it before, the process can feel confusing and overwhelming. That’s why I’m breaking it all down—step by step—so you know what to do, when to do it, and how to avoid the biggest mistakes.

Let’s jump in 👇

Check out this video, too;

🧠 Why Buying an Existing Facility Matters

Here’s why buying an existing facility might be your best move:

🏃‍♂️ Faster launch — You’re stepping into something that’s already running
💰 Cash flow on day one — Residents and staff may already be in place
🧩 Easier path to licensing — CHOW (change of ownership) is faster than starting from scratch

Buying instead of building can mean fewer headaches and a much shorter learning curve. You’re not reinventing the wheel—you’re improving what’s already there.

That’s why I personally bought two facilities this way—and I help my coaching clients do the same.

🏡 Step 1: Find the Right Facility

You can’t just Google “assisted living homes for sale” and expect the best ones to show up.

Here’s where to start your search:

🏢 Commercial brokers — Ask if they have any experience in senior care

🧑‍💼 Business brokers — Websites like BizBuySell or LoopNet are good, but good deals go FAST

🧠 Your network — Let your real estate and healthcare contacts know what you’re looking for

🚗 Drive-bys — Old-school still works.

📌 Pro Tip: Some of the best deals aren’t listed online. Build relationships with brokers and owners now—before you’re ready—so you’re top of mind when a deal comes up.

When you evaluate a facility, look for:

Good location (residential area, close to hospitals or shopping)
Clean licensing history
Staff and systems already in place
Financial records that show positive cash flow or clear potential

💬 Step 2: Start the Conversation

Once you’ve found a property you like, reach out to the owner or broker.

Here’s what to ask for (a lender will need all of this information as well):

✅ 2–3 years of profit & loss statements

✅ Most recent tax returns

✅ Census data (how many residents are there?)

✅ Payroll info (who’s on staff and what do they make?)

✅ License details (is it current? Any violations?)

Also ask why they’re selling. Retirement? Burnout? Moving out of state? Their answer will tell you a lot about the deal, and give you clues on what to negotiate.

💸 Step 3: Secure Financing

Next up is money—and yes, you can absolutely buy a facility using mostly other people’s money.

Here are 3 common financing options:

💼 SBA Loans – My favorite method. These loans are designed for small businesses like your assisted living facility.

🧑‍🤝‍🧑 Private investors or partners – Especially helpful if you have the time and healthcare background but need the capital.

🏦 Commercial loans – These can work, but usually require more money down and tougher terms than SBA.

To qualify, be ready to show:

A solid business plan
Your underwriting and projections
Your resume (including any relevant work experience you have)

📌 Need help with any of this? We cover it inside the Launchpad Bundle and go even deeper in the Accelerator.

📝 Step 4: Make an Offer

You’ll submit a Letter of Intent (LOI)—this outlines your offer price and basic terms. If the seller accepts, you move into due diligence.

Due diligence is where you roll up your sleeves and verify everything:

Licenses and state inspections
Vendor contracts
Staff roles and wages
Utilities, insurance, and expenses
Maintenance records
Any existing liabilities

Look for red flags, but also opportunities. For example, maybe they’re charging under market rent — that’s a chance to increase revenue after purchase.

📄 Step 5: Work Through the Needs List

Once the deal is moving forward, your lender will send you a long list of documents they need.

This list usually includes:

Tax returns (business and personal)
Bank statements
Business plan and projections
Seller’s financials and license docs
Organizational documents (LLC, EIN, etc.)

It might feel overwhelming — and that’s normal! But your closing officer will guide you through it. You’re not alone.

📌 I recommend using a shared folder like Google Drive or Dropbox to keep everything organized and accessible.

🏛 Step 6: Handle the Licensing Process

If you’re buying a licensed facility, you’ll go through a Change of Ownership (CHOW) application with your state.

The good news?

✅ It’s usually faster than a brand-new license

✅ You’re stepping into a proven business

But you do need to time things right:

Coordinate with the licensing agency and your bank
Get approval to operate as close to your closing date as possible

💡 Your lender won’t fund without a license, and the state won’t give you a license unless you control the property. So both sides need to work together.

🖊 Step 7: Close the Deal

You made it!

Closing day is when everything becomes real. You’ll sign the final documents, wire the funds, and officially take over the business.

You’re now a licensed facility owner. 🥳

It’s normal to feel excited and nervous. This is a big moment — but it’s also the beginning of your new future.

Celebrate it. You earned it.

Next Steps: Take Action Today!

🚀 Want to launch your assisted living business in the next 12 months?

✅ Step 1: Download the Business Plan Checklist to start planning.
✅ Step 2: Apply for the Assisted Living Investing Mastermind for expert coaching.
✅ Step 3: Follow this guide, take action, and bring your vision to life!

Got questions? Drop them in the comments below! ⬇️

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