How to Find the Right Assisted Living Opportunity

Transcript

00:00:03
hey friend it is Brandon Gustafson with Assisted Living investing excited to have you here with me on the channel today uh we're going to be talking about uh how to find the right property for uh an assisted living facility this is actually something that uh somebody in the Facebook group uh Mariah I'm hoping I say I get Mariah and Maria mixed up sometimes so I think it's Mariah um she was asking about uh needing some help from so I wanted to cover that for you in today's live video uh before we get

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started though I want to remind you to get over to um the the website um you can get um access to the business plan checklist we're going to be we got a link here link down below we'll have it going on a ticker as well so go and grab the business plan checklist at Assisted Living investing. nbp checklist um and that will help you uh you know get get things moving in in the right direction for you so uh go and grab that free resource now let's get into our topic for today um how to um find the right

00:01:02
property for your Assisted Living business um sorry GNA grab this really quick is going a little bit slower than um normal to get this over to the Facebook group um almost have the link ready anyways um for those of you who don't know me my name is Brandon gusterson I own and operate to uh assisted living facilities um out of state so I I do this um in multiple States um I live in Salt Lake have one of them in Colorado one in Idaho I've been doing this for over four years and have been in the healthcare industry for over a

00:01:40
decade now um have secured over one and a half million in SBA funding and um you know love kind of coaching people out and helping people out um here you at Assisted Living investing help beginners like you launch their Assisted Living business um to just kind of help you reach your own goals and help you get started if you're new here go ahead and type newbie um down below would love to see who's here um and just kind of help you along it's always good to to see that now let's get into the topic for

00:02:08
today's video we're going to be talking first off like the first thing that you need to do when you're trying to find the right property for for assisted living when you're trying to get started you're trying to figure things out you have to build a base um this is what I teach all the people inside of my program uh you can go apply for that at Al Alim mastermind.com application if you're interested um but in there inside the program we talk about phase one being all about

00:02:35
building the base and in order for you to know what property you want um you need to have this base built inside of here you're going to be building a business plan you're going to identify what your criteria is and this could be something like how many beds you want in the home do you want to um buy an existing facility versus buying a home to convert you know which of those options you want to do um you want to identify which population you want to serve are you doing traditional Assisted

00:03:02
Living are you going to be getting into Memory Care do you want to do develop mental disabilities what about mental health you know which of these areas do you want to work with you're going to identify what that criteria is that you want so that you it's going to help refine and and give you a really good spot to jump off of from there you also want to be doing market research so if you need some help um with any of these things market research is like div diving deep into specific markets and and understanding exactly

00:03:31
what that's going to you know what that entails um where uh where you're going to be um just the population in that area um who you want to be serving uh who you want to be working with all of that is kind of going into the market research phase of this if you need help building out this Foundation um you know check out The Mastermind program Alim mastermind.com application go apply for it there um you can also check out the business planning guide and you can get that at Assisted Living investing

00:04:01
BPG for business planning guide um so just like take that link down below that's scrolling across and just do BPG um that will get you there but inside of that course we go through how to build a business plan I give you a template that's going to help you get there um go through my underwriting calculator in in great detail has a market research tool we're actually updating that for the 2024 version now um and so if you bought the business planning guide today um when we refresh that you will get access

00:04:31
to the 2024 version so that's that's coming out soon we're we're we're getting pretty close to having that out there so make sure you go and and access that because all that course is designed to help you build the base for what you want to be doing so go check that out um but you have to have this base if you want to find the right property I want to remind you as well as I'm going through this we will have time at the end of the call for questions so go ahead and type them in I'm on working on

00:04:58
a single screen right now so I can't see the questions as I go through it so I will get to the questions at the end but as I'm going through things go ahead and and type in your questions as you have them so that I can um answer them um as you know as you're thinking about it now let's the next thing after you have built that base the next thing you need to do is identify what type of property you want to be working with uh you need to identify if you're going to go with an existing business um or if you want

00:05:25
to buy and convert a home I've talked about this a few times um I have a resource for it I'm trying to think of what the website is hold on let me see if I can find it for you um so Assisted Living investing. net slash oh my gosh I cannot remember what it's called um but I have a I have a video um that I did on this on helping you decide if it's best for you to go with uh an existing facility versus buying a home and converting it this is a very personal decision um you can be successful both ways the the idea

00:06:03
with this resource and if you if you need help with this um comment down below um comparison and that will trigger me to uh send you the link for this that's going to be the best way to do it than me rather than me trying to figure out what it is on the Fly here um but go ahead and type in comparison down below if you'd like this comparison tool um but really what it does is it helps you identify if if you are going to have if it's more profitable for you to have a an existing facility versus having

00:06:33
something that you are buying and converting a home this is one of the key things you know in that business foundational piece that that I was talking about that you need to figure out your criteria which one are you going to look for because that is going to dictate the people the people that you talk to and the tools that you are using um for you to to find the right property I personally have bought existing businesses um your pathway to profitability is is it accelerates um quite quite a bit actually and you know

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what that triggered my mind for what it is I think it's profit profit path profit path let's see if that got yep okay so if you want that tool go the profit path analysis tool go to assisted living investing. netprof paath and that will get you access to that to that free resource um anyway but comment down below um comparison there so Jack jacn I saw your your thing uh go and grab that at um Assisted Living investing. netprof PA there you go um so that will get you access to that free tool I

00:07:43
bought existing facilities because the pathway to profitability is it's accelerates things quite a bit for you actually um you have the ability to become profitable when you do this if it was a decent um operate decently operating facility um you can get to profitability definitely within the first year um if not the first four to six months like it's it's very possible for you to get there now if you want to buy an existing a home and and you are going to then convert that uh it doesn't

00:08:13
mean that you can't also be successful uh it doesn't mean that it won't be profitable or anything like that it just means you're probably going to have to extend it out a little bit um you have to build in the time where you are finding all your staff and finding the residents to come into the home and and all of those types of things and so you want to to make sure that you are figuring out which of those two are best for you now buying an existing facility that's up and running is a

00:08:39
different um funding process and um it might be something that you can't do the SBA for whatever reason or or one of those opportunities that that will allow you to fund um the acquisition of an existing business that might be hard for you to do you need to figure out which of those things are going to to be best for you so um that's you know this is this is the question which of these do you want to go now let's let's talk about this um when it comes from when it comes to the type of home you you've

00:09:10
talked you you figured out you know I want to buy an existing facility I want to buy home and I want to convert it once you do that you also need to figure out the type of home what this home is going to look like for you you want to be looking at Bed and Bath count um you do I mean you could I have a video on this um kind of two or three bed uh Care Home be profitable and it can be if you are pretty involved um go go ahead and watch that video just search for it on my channel and you'll find it um so it's

00:09:39
possible for you to do that but most more than likely you are not going to be looking for a three-bedroom two bathroom home when you're doing Assisted Living that's not a blanket statement just more than likely you're going to be looking at something like a a five 8 10 12 bedroom home you're looking for a big home something that that is very large um the home style you probably want something that is ranch style that is Zero Entry um you know you can see here on this picture the one there in the

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middle that even has a few steps so when you are looking at this you have to consider these are these are residents that may not be able to do stairs at all um and so you need to kind of account for that um that does not mean that you can't do this with stairs I have one of my facilities is four stories tall we it is a requirement for a resident to do stairs to come into our home it limits us because now we can't um we can't have residents come in that um that are IM mobile and can't do stairs but you can

00:10:42
do assisted living in homes with the stairs uh you just need to account for that um you got to look at zoning you need to verify that zoning is going to work for you inside of the the area where you're in um if you go and talk to the city planner who is who you need to talk to about zoning and you talk to them about Assisted Living they may not know what you're talking about they may think of the big box facility they may not be thinking of a residential home so the questions that you need to ask there

00:11:09
are much more geared around can I do a care home here or how many unrelated individuals can I have in a home um in inside of this you know inside of this neighborhood in this in this Zone zoned area and then if the if the answer comes back no you can't do it and you Probe on it a little bit and you figure out no we can't and you have to do rezoning what is that rezoning proc processes look like um it could be a simple application it could be going to the city council and putting it out for public comment

00:11:35
like it could be very complex or it could be super simple it's going to depend but you have to figure out which type of home okay so a lot of up to this point is just a lot of research a lot of trying to identify what is going to be the best option for you as you are trying to um find the right property for you now if you decide that you want to buy an existing business there's a few really good resources for you out there and I have some videos on these on the channel so go ahead and and search for

00:12:08
those um on on YouTube um I don't know if they're going to be on the Facebook group um but if you um want information on one of these go ahead and type in loopet Bisby cell or cxy down below and I will link those videos for you so if one of those is going to be helpful for you just go ahead and comment that and we'll make sure we get you the video link for it um but what what you're going to find here is these resources are free you can set up free accounts you can go in filter it

00:12:36
down all the way to assisted living on all three of these we actually did a master class on this recently inside of the Mastermind program um Alim mastermind.com application if you want to apply for that and um we went through each of these and you can filter down all the way to assisted living for every single one of these and in there um you're going to find opportunities that are out there it also gives you the listing agent you can reach out to these people and have a conversation about that specific opportunity and then

00:13:05
if you find somebody that you really like working with start working with them to help you find the right opportunity work with this broker you want a commercial broker is who you want if you can find them one that specifically specializes in Senior Living um that's something that you want to do and I know there's a few on the Facebook group so go ahead and reach out to them um burn Harris is one that comes to mind uh um I think Charlie Cummings is on the Facebook group as well they're

00:13:33
both based out of Colorado but I think they'd be able to help you out in in different scenarios so um shout out for those guys um and you know if you feel like you need to do a connection then join the Facebook group and and reach out to them and and get to know them a little bit um or get on one of these websites Reach Out build a relationship and see if you can continue working with them U these are great opportunities for you to do that but you can narrow this down to Assisted Living you can narrow

00:13:59
it down to bed counts you can start looking at these in the areas that you want to look at and see if you can find something understand not everything that is listed and available is going to be on one of these websites though so you know it's it's one of those things that some of these are off Market some of them um get sold beforehand some of them are relationships so don't make this your only way of finding a property build relationships with people and have those people work with you there's a

00:14:28
great book by benjam Hardy called who not how and I'll try to link that um in the bio on YouTube um so or in the video description um in in YouTube so you can go and grab that book but great book um who not how by Benjamin Hardy and it is all about leveraging other people to help you be more successful so highly recommend that so that's how you can find Opportunities with an existing business um but don't just rely on these talk to other people and have them help you out after you've built your

00:14:56
foundation and everything that you need build that first first and then uh get into get into finding the right property the next one is buying and converting so on here um you built your criteria you you know you need a six-bedroom home um that is in a specific Neighborhood use sites like Redfin and Zillow um to to help you find those opportunities set up alerts um so you can do that those are free websites that are going to allow you to find really good properties that that are out there and see see where

00:15:29
they're at and then also allow you to have conversations with zoning like we just talked about um to know if if a a home is is zoned properly um even if you don't own the home maybe you know somebody in the neighborhood or you could reach out to somebody and say hey I I really want to do assisted living in this neighborhood um I need to talk to zoning would you mind if I use you as an example home just so I can just check on it there's no no commitment from you on this I just need to get an idea of what

00:15:58
zoning is going to look there just in case municipality city planner person calls this person um probably not going to happen though honestly but these are ways that you can get around all of this without being under contract or owning a property okay the other thing with this is again partner with somebody hire a real estate agent a realtor um to help you look at properties on the MLS um and and and find opportunities here if you're going to do a buy and conversion you don't need a commercial broker I I I

00:16:29
would highly recommend if you're going the the route of buying an existing facility every single day work with commercial broker like I would not work with a realtor when I'm going that route at all I would go with a commercial broker if I'm finding a house to convert though I would go with a real estate agent um it's they're easier to find they're going to all have access to the MLS they're all going to be able to help you find the opportunities that you want and so find somebody could be a family

00:16:56
member could be a friend um but find somebody that's going to help you out and just let them know hey this is kind of a long-term thing I I'm looking for a very specific type of home um and you know maybe we'll find it tomorrow but it we might not find the one that I want for three months um but I I really want to really try to find something that works really well for this chances are they're going to be happy working with you because if you can find something um you're probably going to want more than

00:17:23
one of these and it's going to lead to more things and plus these are bigger homes so they get bigger commission checks um so spend the time and develop relationships with people but um these are excellent free resources to help you find that the other thing that I'm going to tell you is you got to be patient um it is entirely possible you're going to start looking and you're not going to find anything um as possible um the market can be slow sometimes and and it feels like right now you know what is a

00:17:53
summer of 2024 is one of those kind of slow down periods um that is is not always going to be the case and so you just have to be patient you have to be persistent and consistent in looking and finding things and then you're going to find the right opportunity for you um is is the guidance I'm going to give you there so with all of that said any questions um and and while people are typing in questions want to remind you to like the video subscribe and ring the bell as well so I can um you get

00:18:22
notified every time we do these live sessions um we do this we do lives on Tuesdays uh we also put out uh content on Thursday days um remind you to also get over and check out the the application for The Mastermind Alim mastermind.com application and check that out would love to see where you're at and see if I can help you out it's it takes you less than five minutes to fill out the form there uh gives me a really good idea on if I can help you or not and then I will point you in the right direction um if I

00:18:48
feel like I can help you and if not that's fine too I'll give you some resources and tell you you know keep watching the keep watching the videos and we'll help you out through through that process um but let's see a couple questions and and go ahead and continue um writing some things in here I know there's a few of you on here um so got the stuff for Jacqueline um rosette um couldn't find the singal occupancy Grant you're in California can can you put up that link so the single occupancy Grant I I wonder

00:19:22
if you're talking about the video um that I did on my single occupancy Grant so let me go find that before you really quick um now the single occupancy Grant is one that is um specific it's an arpa era Grant um it is um it's something that was in the state of Colorado other states did that um but it is something that I think is gone now I don't think that that specific Grant is available in other states um but yeah so here's the the video um and Jack here's the um Mastermind application link Alim

00:20:08
mastermind.com application um so there's the link for that you can also just go to the to like set up a strategy call Assisted Living investing. net strategy and that will get you to the the application there as well um but um to go back to rosette Rosetta's question here so the the single occupancy Grant itself um is you know I I just sent you the link there so go ahead and watch that video uh and learn a little bit more about that um but the the those grants are probably not available anymore uh the one in

00:20:40
Colorado has they've finalized everything uh we have to spend our budget by like October of this year like so it's it's very quick now um so they're not doing that anymore but other state just because that one's not there doesn't mean there's not another um Grant out there that can do this um I did have I saw there was a a comment and and maybe Rosetta this was you I saw on another video there was a question about um grants and like starting up uh doing using grants to start things up it is

00:21:10
entirely possible for you to find a grant that will work for you um and help you kind of get through the startup phases um but it's also possible you won't find something grants are um you have to dig uh kind of hard for that I'm actually going to be creating a a course on grants so if people are interested in in getting a course about grants type in Grants down below um and I'll you know go over to Assisted Living investing. netg grants um and get the access to the free grant writing template that will

00:21:43
get you on the list for when I launch that that Grant um program um that I'm hoping to get out in the fall um here in a couple of months and but it will teach you how to go find grants how to find Opportunities and what to look for as you're you're trying to get started um grants can be funny um you can find a ton of Grants sometimes and and often times they have such specific criteria that you're not going to meet um the you're not going to align with what they need and it's just being consistent and

00:22:15
persistent in looking for those opportunities um finding them having building relationships and um having a good solid Grant template um for for what it's going to look like at least the base of of of what you need to put together you know your solid your business plan who you are um what you're trying to accomplish and then you're going to uh then cater that to a specific Grant opportunity when they do come available um so keep an eye out for for that that course it will drop here have not started working all the way on

00:22:49
it um it's in my mind but we'll get out out uh to people here in the coming months um so type in Grants down below if if you're interested in Grants um question Here Again by Rosetta um so thought because the grant that seems similar back and said no grants available right now yeah so you're you're right Rosetta they they just might not be grants available right now and you just have to keep um asking question um there are a lot uh some good resources for your granto for.com and

00:23:24
grants.gov um those are really good opportunities for you to go in and look um just broadly and see what you can find um in the course we'll go we'll go really deep into how to actually use those resources um but you can get started and just go and look for them so yeah and VA thanks for the thanks for the comment there make sure you go and grab uh the grant writing template Assisted Living investing. netg grants and then that will get you on the list of of people when I do the promotion

00:23:54
I'll probably give a special bonus for people that are um that are on that specific email list for me um to give you a little bit of a discount on on that Course once once it released um okay well any other questions feel free to go ahead and type those in um but again thanks to everybody for watching if you are interested in uh doing The Mastermind program check us out at Alim mastermind.com application you can apply there takes less than five minutes I you fill that out um go get the free

00:24:25
business plan checklist as well Assisted Living investing nbp checklist um you can get the grant writing template at Assisted Living investing. netg grants or you can get the profit path tool at assisted Livin investing. netprof paath um we have links to all of the free resources on YouTube um so you can go grab that there's the calculator there's a webinar uh a bunch of other stuff there to just kind of help you out um as you're going through um the process of trying to get started uh I try to do

00:24:53
everything I can to to give you guidance and and help you have the resources and the tools that you need to help you be successful um and and do that through just giving you a bunch of free stuff and then um you know if if you ever end up needing more support uh courses and things like that then you know check me out and I love working with people helping the people in The Mastermind program um it's it's a ton of fun uh to work with those uh that are in there um we we just had our our monthly Q&A

00:25:21
session last week and it was great just a ton of fun chatting with people answering questions and helping people along the way um vaita question here can you apply for SBA loan as a startup so yeah um you can um if you're buying an existing business it's going to probably be easier for you to go the route of SBA um you're probably going to have a little more success doing that when you buy an existing business because it is something that SBA is is very familiar with um and and they're they're more

00:25:48
likely to work um with somebody in that sense um I I have a buddy in Idaho who is starting something from the ground up and uh is getting around $4 million in funding from the SBA um he has a lot of background in assisted living but he has a very solid business plan solid underwriting helped him out through that process um through the predecessor to The Mastermind program um he and I work through that a lot uh and and helped him uh so he's got the pre-approval for $4 million uh has raised a million dollars

00:26:20
and is now just kind of working on finalizing a few things so he can push that project all the way through and that's through the SBA if you're going to buy an existing home into a conversion there the chances this is an assumption that I have and I think it's pretty accurate the the chances of you using an SBA loan to buy that home and do the conversion I think is is less you will probably need to do some kind of a combination where you buy that home um using a conventional mortgage um and it's going

00:26:52
to be an investment property so it's going to be a higher down payment they're typically 25 to 30% down um and then you could work with the SBA to get funding for um the operating Capital to help run the business and and things like that so you could still use the SBA it's just not to buy the house it will be more likely for the operating Capital um side of things so yeah hopefully that that helps out um and then building a home online yes that that you my experience having conversations with

00:27:22
people is you can use the SBA to do that you could also look at other programs you could do something like the USDA I know has loan products that help out with that depending on where you're at in the United States um there are so that's the Department of Agriculture so if you're in a more rural spot um doesn't not you know not out in the country or anything like that but um Texas um Oklahoma places in the midwest um like if you're in La you're not going to get a USDA loan but if

00:27:54
you're somewhere else um there's I would say a likelihood that you could have conversations there with USDA um you can also SBA I think is a good option for you uh you could look at doing something that's like private money to um get things started and then refinance it uh into a bridge loan and then refinance that into something that it's a process but you could use some of those different options to help you get there and um help you get something built from the ground up so yeah rural

00:28:26
out in country Missour yeah I think um for U V being out there I would check with the SBA I would also check with the USDA um I would check on some of those other government programs and see what they have that's out there um just to see what you can find because I think there's there's opportunities there um and I think I mean you definitely definitely want to chat check with zoning as well so I've got somebody that I know in San Antonio area um he uh owns land he owns the land already um but the

00:28:58
zoning um has been thorn in this side so um if you already have the land then check on zoning if you don't already have land but you like this is the spot I really want to do this in check with zoning first before you buy it just so you don't get uh you know you don't have a a chunk of land um that you can't do anything with if you already own it then have the conversation before you get started um and then um if it's not zoned properly figure out what the rezoning process is like for you um to see what

00:29:30
you can do to to get that started so yeah um and love seeing the the conversations here Rosetta and VA having conversations about um you know people out there in Missouri so that that's exciting um let's see any other questions uh happy to stay on for a couple more minutes uh if anybody has anything yeah no problem VA happy to help and remember people if you if you want access to you know some extra coaching with me uh go check out The Mastermind program it's a yearlong Alim mastermind.com

00:30:06
application um takes you less than five minutes it's like no there's no commitment on it it just lets me look at it and see where you're at and and let me see if I can help you or not and then from there if I can you know I'll tell you what that looks like and and we can go from there I love having calls with people but I got to the point where I was having way too many um which is a good problem to have um but and as much as I love talking with people uh I just don't have the

00:30:31
time to do that as much so we're shifting to an application process and um you know as as you know I'll see see what it looks like and then um from there I can help you out and then go grab all the free resources the calculator the business plan checklist the grants grant writing template The Profit path analysis tool the lease agreement those are all linked Down Below in the YouTube video so um cool well um I think we will close this out right now I don't think I'm missing any extra questions here just going to

00:31:03
scroll through all the comments just to make sure yeah I don't think I've got anything else so um inv Vita you're or who was who's asking about the grants vaita you were asking about the grants um yeah I I I would also look at grant opportunities grants.gov might be a good opportunity for you to look at at that for Rural type places so yeah yeah no problem Rosetta thanks for thanks everybody for being on um you know we'll close out by what I always say does residential Assisted Living sound

00:31:33
interesting to you but you don't know how to get started at Assisted Living investing. net I'm here to help beginners like you launch their Assisted Living business in the next 12 months love helping people out so check uh out all the resources online um and and go apply to The Mastermind program we' love to see if I can help you out AI mastermind.com application andh thanks for watching and we'll talk to you next week thanks everybody