How to Secure $1M+ in Funding for Your Assisted Living Business
Feb 12, 2025
Starting an assisted living business is an exciting and rewarding journey. But let’s face it—launching your dream facility often requires significant funding, and the idea of securing $1 million or more can feel overwhelming. The good news? With a solid plan and strategic approach, you can make it happen!
This guide will walk you through the steps to secure the funding you need. From crafting a strong business plan to finding the right lender, we’ve got you covered. Let’s get started!
Check out the video, too:
Step 1: Develop a Rock-Solid Business Plan
Your business plan is your roadmap to success and your golden ticket to impress lenders and investors. Think of it as the story of your assisted living vision.
Here’s what to include:
- Executive Summary: Explain what your facility will do and why it matters.
- Market Analysis: Show there’s a demand for assisted living in your area.
- Marketing Plan: Detail how you’ll attract residents.
- Operations Plan: Break down day-to-day tasks, staffing, and processes.
- Financial Forecasts: Include profit projections and budgets to show your facility’s earning potential.
Tip: Use the Assisted Living Launchpad Bundle from Assisted Living Investing for step-by-step help!
Step 2: Nail Your Underwriting
Underwriting means analyzing your facility’s financial potential. This step reassures lenders that your business will thrive.
Here’s how to get it right:
- Project Returns: Use tools like an underwriting calculator to estimate your earnings.
- Scenario Planning: Prepare for “what-ifs” (e.g., low occupancy or rising costs).
- Show Profitability: Highlight how your facility will make money, even during tough times.
This step isn’t just for lenders—it’s for you, too! Understanding the numbers ensures you’re making a smart investment.
Step 3: Evaluate the Property and Business Value
Lenders need to know that the property and business are worth their investment. Here’s what they look for:
- Property Appraisal: Ensure the real estate you’re buying can serve as collateral for the loan.
- Business Profitability: If buying an existing facility, showcase its past earnings.
- Valuation Multiples: Know how the business’s purchase price compares to its profits.
Bonus Tip: Work with professionals who specialize in appraising assisted living properties. Their expertise can make all the difference.
Step 4: Find the Right Lender
Not all lenders are created equal! Whether it’s a bank, private lender, or investor, finding the right partner is key.
Here’s what to do:
- Be Prepared: Have your business plan, underwriting, and appraisals ready.
- Research Options: Compare lenders based on interest rates, terms, and experience with assisted living loans.
- Build Relationships: Start conversations early to understand what each lender expects.
Pro Tip: SBA loans are a great option for assisted living startups because they offer competitive rates and flexible terms.
Bonus Resources to Help You Succeed
Need more support? Check out these tools and programs:
- Free Underwriting Calculator: Estimate your earnings and assess profitability.
- Business Plan Checklist: Stay organized and on track.
- Success System: Learn directly from experts who’ve launched successful assisted living businesses.
Final Thoughts
Securing $1M+ in funding might sound like a big leap, but with the right preparation, it’s entirely achievable. Start with a strong business plan, get your numbers in order, and build relationships with lenders who believe in your vision.
Your dream of running an assisted living facility isn’t just about the funding—it’s about the impact you’ll make in your community. Stay focused, stay determined, and go make it happen!
Need Help?
Securing over a million dollars in funding for your assisted living business is challenging yet rewarding. By focusing on developing a robust business plan, conducting thorough underwriting, evaluating property value, and finding the right lender, you can confidently pursue your dream.
Are you ready to take the next step in your assisted living investment journey? Download our Business Plan Checklist to get started on planning your project.
Need help figuring out where to start? Join the next Roadmap Challenge and build your launch plan with me.
Show full transcript 👇
Transcript
00:00:00
hey friend I'm Brandon Gustafson I help new and aspiring Real Estate Investors launch their Assisted Living business in today's video we're going to be talking about how to get over a million dollars in funding to help you launch that Assisted Living business if that's interesting to you make sure you stick around for today's [Music] video hey friend it's Brandon Guston with Assisted Living investing. net I want to remind you to get over to the website Assisted Living investing. net
00:00:29
we have our free under W in calculator and links for a bunch of other freebies down below make sure you go and take advantage of those to help you along your journey to launch that Assisted Living business let's get into the topic for today's video though I wanted to talk to you about how to get over a million dollars in funding to help you launch your Assisted Living business which is something that is uh you know it can seem daunting it can seem overwhelming and uh it's something I've
00:00:52
done so I want to talk to you a little bit about that so to give you some quick background on me I own two assisted living facilities they're both out of state but I have secured over one a. half million dollar in SBA funding um through purchasing my house and and another business and have a lot of experience going through this route so we're going to talk about that in today's video the first thing that you want to be aware of that you need to do is business plans um so I'm going to
00:01:14
link up a video uh above that I did a few weeks ago about creating that business plan and why it's so important but having a solid business plan is going to get you down the right path and giving you Clarity on where you want to be but also solidifying that Vision in the mind of of people that you're going to work with those different stakeholders lenders Partners investors it's going to create something that is tangible for them to look at and see what's it going on in your brain that's
00:01:39
going to allow you to create this you know create this business that you want to do you need to have this business plan because uh for both of those reasons give you Clarity and and help make you an authority in the mind of those people that you want to work with and help you get that funding in conjunction with that business plan you need to do some underwriting you need to make sure that you have a sound understanding of exactly what that investment is going to look like for you if it's going to have a good return or
00:02:05
not this is why I put um that I have a couple resources on the website the calculator and the business plan checklist both of those kind of combined are going to help you out with these two first steps I also have the business planning guide Assisted Living investing. netb PG that is another tool that goes really deep into these two sections to help you um make some progress but this underwriting is such a key um part of what you're doing because you have to number one make sure that you are confident in the investment and
00:02:33
that you're confident that you're going to make money but also demonstrate to A lender that it's profitable that they're going to be able to make the payments that they're not going to be able that they're not going to miss any payments that there's no issues there um it's going to give them a level of confidence that you know what you're doing and that you will be profitable and that's going to make it a lot easier for you to get the approval on the funding that you
00:02:56
need so that you can really start moving forward in in running and operating this this business that you want to run the other thing that I like to teach people about underwriting and this is built into that underwriting calculator you can get for free on the website is to run different scenarios you want to look at it and say well what would happen if we had to reduce our rates our our our our monthly rates by $500 per person or what happens if my occupancy rate um goes from 80% down to 60% for a period
00:03:24
of time you want to run these different scenarios and make sure you're comfortable with it and you know what point in the process are you going to become profitable and do you have enough money coming in that you can put money in reserves to help you um you know make payroll and keep things afloat when you're going through a down period because you're running a business and as much as you want to think that everything is going to be nice and Rosy and and everything works well you're
00:03:48
going to run into periods of time where it is a struggle and you're going to have to work through that and and make it work and so that's something you just want to be aware of as you are starting the business and this is why running those different scenarios and understanding exactly what that looks like is going to benefit you because when those rainy days come when it's stormy outside you're going to know how you're going to handle those situations it's going to give you a level of
00:04:10
confidence and um security that you know exactly what's going on now the the third thing that I want to talk to you about is the property and the business value this is actually going to be really key in your ability to get that million dollars in in funding and it's based off of how much that business that property is worth because if it's not worth worth that much you're not going to get that much but you're still going to get the amount that you need I put a million dollars on here cuz it's just
00:04:36
like you know an a round even number and it's easy to visualize but you might not need a million dollars you might just need 400,000 500 600,000 it it just kind of depends on your different scenario but a lot of this is going to be dictated by the property and the business value so that property that you buy is is really the big biggest piece of collateral and it needs to have a value that's going to be sufficient to be used as collateral so you don't have to use any personal assets as collateral
00:05:03
as you are trying to get that loan um from the bank so you want to make sure that it has that value you're going to do an appraisal um as you go through the process to get things approved and stuff you're going to know what that home value is it's going to be used by the lender to to use that as as value um for the collateral the other piece is the business and and so what you want to see here is that the business has been profitable because if the business has been profitable it's going to make the
00:05:27
bank feel like oh yeah like it's been profit for the last three plus years why would it not be with these new owners especially given this business plan this solid business plan and the underwriting that they did uh it's going to instill confidence in them where you have to kind of be aware of this is oftentimes the sell of a business is based off of a multiple of the profit that it generated in the past and this could be anywhere from like a just a flat this is how much it's worth because it it made that just
00:05:57
like one for one um like uh like value or it could be a 1 and a half 2 3x amount of that and that's going to kind of help dictate the amount of money that you're purchasing the business for and and that valuation is going to help dictate exactly how much money you're getting from the bank so that you can obtain the the loan to purchase the business and purchase the real estate and the last thing that you have to do and a lot of people think this is the first thing but in reality I would say
00:06:26
it's probably the last is finding a lender you're going to need to have this business plan you're need to have the underwriting you're going to need to know the value of the property in the business and once you have all those things and you're confident and you've done your due diligence and everything is in place that's when you're going to find the lender because they're going to have the confidence that that you need it doesn't mean that you wait until you
00:06:45
have all those things to start talking to lenders you still want to do that but up until this point where you have those three things in place you're not going to get a lender to say yes let's work together you have to give them those things otherwise you're never going to get a million dollars you're never going to get $500,000 whatever amount that you need you will never get it if you do not put in the work upfront this is why I created the business planning guide it's there to really help you solidify those
00:07:09
first two things and the the third one is just getting an appraisal so if you can get those first two things done through the business planning guide it's going to give you such a leg up in moving things forward to get the funding that you need to get that million dollars to purchase that business and and help you move forward so that's the importance those four steps there number one business plan plan number two is underwriting three is getting the appraisal of the business and the property and making making sure the
00:07:35
value is in place and then four you got to find the lender that's going to give you the money without that lender I mean you're never going to get a million dollars and this does I use a lender as the example here but the same scenario is going to go with investors and partners you want to make sure that you have this the business plan you want to make sure you have the underwriting and that you have a good valuation on the property those three things they are absolutely key to getting that person
00:08:00
whoever it is lender investor partner whatever it is whoever you're working with you need to have those three things so you can get that million dollars that you need to launch your business I hope this information was helpful to you if it was make sure you like the video subscribe and ring the bell as well so you get notified every time we put out content we are doing live sessions on Tuesdays we are doing long form videos on Thursdays I'm I'm giving you a ton of content if you have something you're
00:08:24
like oh man this stood out a ton to me I want to learn a little bit more about appraisals um comment that down below or business plans or whatever it is comment those down below because it's going to help me build content that's going to help you out as along your journey and I want to remind you as well to get over to the website Assisted Living investing. net I have a bunch of free resources those are all linked down below to help you along your investment journey and have a couple products as
00:08:48
well the business planning guide Assisted Living investing. net BPG for business planning guide as we talked about in this video it is going to help you get 90% of what you need in place to to get that that funding for for your business the other is The Mastermind so we have the Assisted Living investing Mastermind go to um the link down below for assisted living investing. netmaster to learn a little bit more about that program but at its core we're teaching you four things one is building that
00:09:16
business plan two is finding the property three getting funding and four is helping you obtain that license so that you can actually launch that Assisted Living business and achieve your dream does residential Assisted Living sound interesting to you but you don't know how to get started at Assisted Living investing dunet we are here to help you through the process start to finish to help you launch your Assisted Living business and obain time and Financial Freedom that you're looking for also want to remind you that
00:09:40
it doesn't take a lot just a little bit keep going keep making progress step by step by step I promise you that if you do and you're consistent and persistent you're going to be successful thanks again for watching and have a great day [Music]
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