How to Raise Private Capital for Your Assisted Living Business

Transcript

00:00:04
hey friend it is Brandon Gustafson with Assisted Living investing excited to have you here on the channel today today we're going to be talking about uh raising money um from with investors uh how to go about doing that at Assisted Living investing uh I help beginners like you launch their Assisted Living business in the next 12 months and so that's this is one of those things that a lot of people have questions about and need some guidance with so really excited to be sharing that with you uh

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today uh I'm going to go ahead and share my screen to the scene uh so as I mentioned we're going to be raising money for assisted living uh for investing in Assisted Living uh and want to remind you to go grab the the uh free business plan checklist you can go grab that at Assisted Living investing. netb checklist uh it's a checklist I put together that kind of helps you out along your journey as you're trying to build out your business plan uh you really need to focus on building out the

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the business Foundation uh for everything that you're doing and that checklist is a really good way to help you out uh as you're as you're trying to to get things up and and running so wanted to to share that with you uh there as well um and for those of you who are new to the channel want to just kind of give give you know introduce myself a little bit um my name is Brandon Guston I own and operate two assisted living facilities have been doing this since 2020 and I do that out of state so I live in Utah my facilities

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are in Colorado and in Idaho so they're you know a ways away from me and uh I'm able to to operate those remotely uh have been in the healthcare industry now for about uh over a decade I have a lot of experience just kind of in the healthcare industry uh have secured over one and a half million in SBA funding as well uh through the process of of getting in here and and just kind of running my business so I I've got a lot of experience there um and and have a lot of uh just kind of background in the

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healthcare industry and and know what I'm talking about if you are new to the channel type in newbie down below we would love to see who is new here and how I can help you out just type in uh the thing that you need the most uh at this point in your journey what what are you struggling with the most I'd love to hear that a little bit about that you and for those that are here live uh we do these videos live every Tuesday um and if you are live uh with me make sure you are typing in any questions that you

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have we will have time at the end of the call here for q&as as well so let's get into the topic for today uh we're again we're talking about how to raise money how to raise funds for investing in Assisted Living I hear from a lot of you that are that are in the group that are in Facebook that chat with me on YouTube that uh one of the big things that you struggle with the most is the funding piece like it's it's overwhelming it's it's confusing it's scary and so I

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wanted to dive into this because this is something that I think can really help out a lot of you as you are trying to figure things out and and really try to get things going and moving um on your investment Journey um so we're going to dive into that today I'm GNA shift over on this other side so I can get comments in case something comes up all right so what what you need the money for uh as you are going through this process uh there there's so much uh that goes into starting an assisted living facility um

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you've got to buy the facility number one or buy a home or buy the land or something you have to buy the the physical location unless you're going to be leasing from somebody you're going to have to buy um you know the property from from somebody you got to have the property so you can do Assisted Living so that's number one uh number two is the operating costs so as you're getting into this you're going to need to have some funds available to you that are going to allow you to operate the

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business I highly suggest that you have two to six months worth of operating costs upfront in the bank to help float as you are trying to get more residents into your home and get things to kind of level out and and get to where you need them to be so you need to have those operating costs covered you want to make sure that you have enough in there so that you can breathe and and know that everything's going to be okay um there's going to be licensing and startup costs and while these are relatively small

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compared to the other ones they can be a few thousand dollars and so it's something that you want to be aware of that um that this is it's something that you're you're going to have to spend a chunk of money between five and $10,000 probably depending on the state to get things moving and so that's a chunk of money you got to have access to and then you're going to need some access to Capital as well to grow your business and that could be two ways one marketing um if you need to go out and and have

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some kind of a marketing budget to get your facility your name out in front of people or number two if you want to add more facilities and grow your portfolio um those these are the types of things that you need money for as you are getting into this world of assisted living now there's a lot of ways that you can do this but what I want to focus on right here is how to prep for getting that funding um there's there's a few things that you've got to do and um it starts with the business foundation so

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what you can do here is if you go to if you go check out some of the courses that I have go to Assisted Living investing. netb PG I have a business planning gu that's going to talk about everything that I talk about here in the prepping for funding phase the business Foundation that's what we're going to talk about um or if you want to apply to my Mastermind program just go to Alim mastermind.com and it will take you to the application page so Alim mastermind.com you don't have to put that application at the end

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anymore um so Alim mastermind.com that'll get you there now as you're building out this business Foundation you need to have a few things one is your business plan you when you're starting to work with lenders whether it's a traditional lender or working with somebody that's like private funding we're going to talk about those options here in just a second they're going to want to see a business plan they're going to want to see something that uh you're putting together now if

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you need help with your business plan type in business plan down below um go grab that business plan checklist Assisted Living investing. netb checklist but for those of you that need help with the business plan I'm working on something um that will come out soon um that's a really inexpensive resource for you like actually even less expensive than the business planning guide that's going to help you um help you move forward so type in business plan if that's something that you need

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help with you're don't to want to run your financial projections you can go to my website Assisted Living investing. net and grab the free underwriting calculator it's going to help you out through that process the business planning guide again goes through that that calculator and helps you understand exactly what you need to do um to to run a successful business and make sure that the financials are are in place and you need to do your market research you got to figure out is this the right place

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for me um are we going in are we trying to build something in the correct location uh from a market standpoint are we is it going to be able to support um the amount of residents that I need to have for my facility is it oversaturated is it not um you got to perform that market research so all of these things right here business plan financial projections market research they are your business foundations once you build that Foundation everything is going to go so much more smoothly um as you get

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into the next phases of this when you're talking with zoning trying to get your certificate of occupancy you're talking with lenders or working on getting your license everything that you've done here in the business Foundation phase is going to feed from that and and it's going to make those processes so much more simple for you as you're trying to get things going so I highly suggest that you spend a lot of time in this business Foundation phase again check out the business planning guide Assisted

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Living investing. net BPG or if you need some help and and want some guidance want me to help you out through the process go apply to The Mastermind program at Alim mastermind.com and I can help you out with that now let's get into the funding options that you've got in front of you so there's there's a few that are what I would call traditional funding options traditional funding is going to be um bank loans uh SBA Loans or just using your personal funds um those are kind of the more traditional

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ways to fund something uh is to go through that route now bank loans this could be something like a traditional or conventional mortgage if you're buying an existing home and then you're going to renovate it could be small business loans that are that are set up there with you know with a bank to help you get some of that operating Capital that you're going to need to help you get things up and running the SBA can actually help you out with operating capital and purchasing the physical

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facility um there's there's a few different Hoops that you have to jump through it's a little more stringent than traditional financing but it's definitely an option I mean I've done that I've done three SBA Loans uh one over one and a half million uh but it's a really good option for you to get into or personal funds and this could be funds that you have in a HELOC a home equity line of credit or through um you know like a 401k uh doing it in advance on that um or there there's different ways that you

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can kind of get into this using funds that you have available um to you through retirement or money you just put away or any number of things um traditional funding is how everybody thinks about getting started um for those of you that are watching this you're like all I can think about is Banks and SBA Loans um and if I had enough money myself to do this and that's that's where your head is at and you know I'm grateful for you to be here and to be thinking about that and trying

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to figure out exactly how that's going to work for you but also want to tell you there's better ways to do this there's there's better ways to to get in and and try to figure out the whole funding process and that's what we wanted to talk about um here um in the next slide is not working there we go creative funding okay um so I want to talk to you a little bit about some creative funding things um so what I want you to think about here is you're thinking about creative funding is you

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got private investors so these are private individuals that want to give you money um because they want to get into assisted living they want to give back to the community in that way they um they like investing in real estate and they're really interested in the Assisted Living Niche um all of those types of things these are private individuals that have money and they don't want to do all the work but they want to be involved they want to have an impact they want to make a difference and they want a good return on their

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money and so they are willing to work with you but they are going to want to see that business plan they want to see that you have the experience that you know what you're talking about and that's why building that business Foundation that that I just talked about in the beginning is so important because it doesn't matter if you're talking with an SBA lender or private investor they're still going to want to see where you want to go what your vision is and how you're going to achieve those things

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so still just it's so important for you to build that foundation in a way that that you feel confident in in what you're talking about so private investors is number one number two is going to be Partnerships so this could be something this is actually how I got started um I have a partnership with my dad who had funds um some personal funds that allowed us to um do the down payment on our home and then we did SBA Loans and so we were able to work that out uh together now that partnership is

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something you're going to have to negotiate this could be a 5050 partner um it could be something that you've got 10 partners that are coming together um it could be you've got two people and you're going to negotiate how much ownership each one has everything there is up for negotiation um you just want to if you are not if you're the person that doesn't have the funds you're going to have to bring something to the table and that could be all of the work it could be the knowledge it could be the

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background in healthcare it could be the just the the energy to go and get the thing done uh you have to bring something to a partnership if you're going to have ownership in it you can't just say yeah you bring the money and you know I'll I'll fill out a little bit of this paperwork but if you can do that as well that would be great and then we'll just be 50-50 owners no they're bringing the money to you and now you've got to do a lot of the work that's that's what you bring to the partnership

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so you have to create a partnership that is um that is uh equally beneficial to the parties that are going to be involved it's very important for you to do that but Partnerships are a great way for you get started here as well or there's grants as well if you're interested in Grants I've talked about grants quite a bit here on the channel uh especially lately type in Grants down below I'm going to be uh getting some really fun and exciting things out for you soon um and if you want the grant

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writing template go to Assisted Living investing. netr you can get that free underwriting template but I've got some really fun and exciting things coming out in a couple of weeks I think so uh just kind of a sneak peek there um and we'll try to put links here on the video after we we put this through so just kind of keep an eye out for links that will come onto the video description on YouTube um after the fact uh after this video comes out and we we release some of those exciting things that are coming

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out so again you can get that free underwriting template at Assisted Living investing. netg grants now those are all different ways that you can really get some creative juices going and helping you find ways to to get the funding that you need to start your Assisted Living business the one that I really wanted to focus on here though in in today's video is working with private investors and what that looks like because I think this is the one that a lot of people aren't as familiar with and they need a little bit

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of guidance on exactly how to find private investors um and what that all is going to to look like for you and so when you're working with a private investor number one you got to find them so places where you can go to look for them are leveraging your network um this could be just people like there are you have people I I promise you you have people in your network that have money and you just don't talk about it because you don't talk about money but they are more than willing to to do this this

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could be an uncle or a nephew or uh an aunt or a grandma or uh it could be um you know a business associate that you have or somebody at your local church or it could be any number of things and all you have to do is start open opening your mouth and talking about the things that you want to do I want to do this Assisted Living business and you know what we're going to be doing we're going to be serving elderly the home's going to have 10 beds in it um and we're going to be serving people that just need help

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with like you know hey helping them get dressed or toileting or or bathing or those types of things we're not a nursing home we don't do that level of care but we're still providing the service to people and we really get a give back to the community and I love doing it like that's this is the type of thing that you need to be saying you got to be excited about you got to tell people you got to open your mouth because otherwise people aren't going to know that you want to do Assisted Living

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so you got to start talking about it to to people like I love that you're watching the video here and and you're you're on the live session and you're talking to me uh and asking questions and things like that um and that's good but yeah I'm I'm I'm a personality on on YouTube right I'm I'm not I'm not the person that that's going to do that you got to go out and you got to do a little bit more than just watching the YouTube videos you got to go out and start

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taking action and doing those things and building relationships and letting people know that you want to do this go leverage your network um I would ex I would also uh encourage you to go to Industry conferences and events I know um just this past week was the there was one maybe even two down in Arizona the the raw academy one was going on and I think there was another one down in Arizona as well go to those industry conferences they are great networking opportunities while you know I I have my

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own coaching um program and things like that kind of like in competition with the raw Academy I will say that their their on-site stuff well I've never G and done the the go you three-day intensive or whatever um I I leave that up to you I I don't have any I can't give you testimonials on it or not I know they upsell you on those but um what I do know is they're incredible networking events and great opportunities for you to to go out there and do that go to some of these other conferences go start um networking with

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people in the industry because that's going going to help you out a lot and there's going to be people there that that can provide you with funds if it's not residential Assisted Living specific go to Real Estate meetups go to Real Estate conferences and start building relationships there it's really important for you to get out and and ex you know say what you're excited about and say what you want to be doing that's how you're going to meet people that are willing to to do Investments with you go

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join investment clubs there's a lot of those they can be local they could be virtual um they're they're all over the place go just search four investment clubs near me you can go in and and and look at those and having your business plan ready to go so you can speak intelligently to to what that's going to look like when you're doing your elevator pitch when you're in these clubs and things like that is going to benefit you quite a bit as well use online platforms um there's there's

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crowdfunding websites there's there's other places that you can go to uh to just kind of go out and and share deals that you have um and and ways to get your information out there about what are trying to invest in so you utilize those and also social media um get on Get on um Facebook groups get on LinkedIn uh listen to podcasts find out where people are at um and then go find them on LinkedIn and go follow them and and and introduce yourself and and start talking about the things that you want

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to do start building relationships these are all ways that you can build relationships the the entire idea of working with private investors is very much a relationship business it's it's very much um you have to you have to put yourself out there you got to build relationships you got to share what you want to do and you're not going to find you know every single person that you talk to is going to to want to invest with you but you're going to find that there's one two 10 people that want to

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invest with you but they have to get to know you a little bit more um as as you're doing that you have to go out you have to be a little bit vulnerable you have to start talking about what you want to do get excited about it and that's going to let people catch the vision for where you want to go you can't just go to an investment club or go to a conference and and just be like with the expectation that hey I'm going to go and I'm going to raise a million dollars it could happen for sure but

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what's more likely is you're going to go there you're going to start developing relationships with 20 people um you're going to start going down the path of like actually finding opportunities that work really well you're going to start emailing people and saying hey this is what I've got this is my business plan underwriting looks solid you know you've done all those business f foundational fundamental things um and and then you start really moving things along and then you're starting to ask for funds I

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need $200,000 for this I need a million dollars for this I need $50,000 for this but you've started building that relationship and building that trust with people that's how you start working with investors that's how you start raising private funds if you want to start this business in six months from now you got to start today building relationships with people uh with those private investors I'm actually working on some resources that are going to allow um those that are more on the

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investment side that that have funds to give me their information I've got to work with attorneys just to make sure I do it all correctly so I don't get in any trouble um but there will be some information coming out um on that hopefully soon and then um for those that are in The Mastermind program you'll get um there will be some level of access to to those individuals um so if that's something that that people are interested in uh this just you know stay tuned make sure you subscribe like the

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video um ring the bell all all of those things um because then I know that that's something that's going to be beneficial for you as well now as you're getting into this there are some pitfalls that I want you to avoid um as well as you are starting to get down this path of trying to raise funds to to work and and start investing in Assisted Living I don't want you to get over leveraged and by that what I mean is don't don't just be like don't get so caught up in a deal that looks so

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incredible on paper but then you are putting all of your eggs in one basket you're putting all of your money there and and if it doesn't work then you know you lose everything I don't want you to do that I want you to go through this I want you to underwrite it I want you to make sure that you're comfortable with it I I don't want you to put all of your money into one thing I I want you to make sure that you feel confident that you've run this all conservatively that you know what you're getting into

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because it can while I believe in in this world I I love investing in Assisted Living I think it is the the future I really do um I think it's an incredible way for you to make an impact on people and then also do well financially for yourself that doesn't mean every single deal is perfect and it doesn't mean that every single opportunity is going to be the best one and that you an opportunity just because it's in front of you and you shouldn't be putting everything that you have into one single deal because

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then you can get over leverage you can get upside down and things can go bad I've had businesses that have failed in the past and I know how frustrating and um just it can really cause a lot of mental health issues anxiety depression it can really put you in a really bad spot um and one day I'll I'll talk a little bit more about my situation there um and what that went through for me my family uh an extended family but it was it was rough and I we got a little overleveraged in in that situation and I want you to

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avoid those things I want I don't want you to put everything in one basket I want you I want you to also not neglect any of your relationships personal but also um just the other relationships that you have with people um you have to maintain those things um with other investors and things like that so that when opportunities do come up and they will I promise you they will you're going to find a perfect deal for you um you you are ready to jump on that when it comes and I don't want you to

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rush through the process you know my Mastermind program it's a year-long program and it's because we spent a chunk of time a really good chunk of time building that business Foundation because I know how important it is if you want some help and guidance as you go through that go to Alim mastermind.com apply for The Mastermind I'd love to see what I can do to help you out but um you you cannot Rush this process you have to figure things out you have to go through the steps um once you find the right op and you're

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comfortable with it things will start to go fast um but you have to make sure that you know what you're getting into and and exactly what that's going to look like for you so avoid those pitfalls make sure you're taking the right steps don't get over leverage don't put all your eggs in one basket make sure you maintain those relationships with everybody around you and and everything will be fine uh and you're going to make it through this and you're going to you're going to start

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that business everything's going to work great and it's going to be awesome um just do the right way so uh if you need help with that go check out uh go apply to The Mastermind Alim mastermind.com so while um while people are typing up questions uh please go ahead and I want to remind you as well to uh like the video subscribe and ring the bell as well so you get notified we go live on Tuesdays um and then we are we we do these the long form videos on Thursdays that get released as well so I want to

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make sure that you you get all of those uh go join the Facebook group as well we have some extra uh things that go out on Facebook uh with you know questions and things that I try to do to to get people engaged and and love talking with people there and then make sure you comment any of your things down below questions or things like that uh that you might have so um yes if there's any questions please go ahead and type those in now um and just want to remind everybody as well to you know thank you for watching

00:24:24
I love helping people uh kind of get through this process and and helping them understand exactly what they need to do to launch their Assisted Living business you know does residential Assisted Living sound interesting to you but you're not sure how to get started at Assisted Living investing. net I'm here to help you like beginners like you launch their Assisted Living business in the next 12 months I love doing it I want to remind you to go grab that business plan checklist at Assisted

00:24:47
Living investing. netb checklist so I can help you out with that um yeah not a problem thanks VA um and thanks uh Nicole thanks everybody for being on here I love I love chatting with you guys even if you're not asking questions or things like that it's uh it's so much fun to see a handful of people on here uh and chat with you and and see where you're at on the process um feel free to type in any questions that you've got um and uh with that I will talk to you next week thanks everybody and have a great

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week remember it doesn't take a lot just a little bit keep going step by step by step and I promise you if you do and you're consistent and persistent you're going to be successful thanks for watching and have a great day