Securing Funding for Your Assisted Living Home: The Ultimate Guide
Apr 01, 2025
Starting an assisted living business can be incredibly rewarding, but getting the money to launch can feel like the hardest part. Many lenders hesitate to finance assisted living homes, and the process can be frustrating. But don’t worry—with the right strategy, you can secure the funding you need!
This guide will walk you through the best ways to get funding for your assisted living business, how to handle rejection, and why persistence is key to success.
Check out the video, too:
The Five-Phase Approach to Launching an Assisted Living Business
Before diving into funding, let’s look at the big picture. Every successful assisted living business follows these five key phases:
β Phase 1: Building a Strong Business Foundation
- Choose your business structure (LLC, S Corp, etc.).
- Create a business plan and financial projections.
- Learn industry regulations and compliance requirements.
β Phase 2: Finding the Right Property
- Decide whether to buy, lease, or convert a property.
- Make sure the property meets zoning laws and licensing requirements.
β Phase 3: Obtaining Funding (That’s what we’re covering today!)
- Explore different funding options (SBA loans, private investors, etc.).
- Build relationships with lenders.
- Secure the capital to launch and operate your business.
β Phase 4: Getting Licensed
- Apply for your assisted living facility license.
- Prepare for inspections and compliance checks.
β Phase 5: Launching & Scaling
- Hire and train staff to provide top-notch care.
- Market your facility to attract residents.
- Expand when ready!
Now, let’s focus on the funding phase and how to get past roadblocks!
Expect to Hear "No"—But Don’t Give Up
The reality is that most lenders will say no at first. Many assisted living business owners, including myself, have heard dozens of rejections before getting a "yes."
But here’s the secret:
π« A "no" doesn’t mean "never."
β³ It just means "not yet."
If one lender turns you down, move on to the next one. The right funding source is out there, and every rejection teaches you something new.
Building Relationships with Lenders
Funding isn’t just about numbers—it’s about trust. Lenders are more likely to approve your loan if they know, like, and trust you. Here’s how to build strong relationships:
πΌ Be Prepared – Have your business plan, underwriting documents, and financials ready.
π Follow Up – Keep in touch with lenders, even if they say no at first.
π‘ Show Commitment – Be persistent, professional, and serious about your business.
Best Funding Options for Assisted Living Homes
There are many ways to fund your assisted living facility! Here are some of the best options:
π¦ 1. SBA Loans (Small Business Administration)
- β Competitive interest rates.
- β Long repayment terms (10-25 years).
- β Requires 15-20% down payment.
π³ 2. Business Lines of Credit
- β Great for covering operating expenses.
- β Works like a credit card—you borrow only what you need.
π‘ 3. Traditional Bank Loans & Commercial Real Estate Loans
- β Good for buying a property or making renovations.
- β Requires strong personal credit & business financials.
π€ 4. Private Investors & Partnerships
- β Find investors who believe in your vision.
- β Offer them equity or profit-sharing in exchange for funding.
π 5. Seller Financing
- β Buy a facility directly from the seller with monthly payments.
- β Avoid the hassle of bank loans!
π 6. Construction Loans (For Building a New Facility)
- β Funds ground-up construction projects.
- β Converts into a long-term mortgage after completion.
π° 7. Grants & Government Programs
- β Some states offer grants for assisted living homes—especially in rural areas!
- β Check programs like USDA Healthcare Grants.
Pro Tip: Include Operating Capital in Your Loan Request
π‘ If you’re getting an SBA loan, ask for extra funds to cover 2-6 months of operating costs.
This helps you pay for staff, rent, and expenses while you fill beds. Many new owners run out of cash too soon—don’t let that be you!
Final Thoughts: Stay Persistent & Keep Going!
π― Finding the right funding takes time, but don’t get discouraged!
π Every "no" gets you closer to a "yes."
πͺ Keep refining your pitch, building lender relationships, and exploring options.
If you’re serious about launching your assisted living business, take action today!
π₯ Download Our Free Business Plan Checklist – This guide will help you create a winning plan to attract lenders and investors!
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 get into phase three of my five-phase Approach on how to launch your Assisted Living business that is how to obtain funding for your Assisted Living business if you need some help with this make sure you stick around for today's [Music] video hey friend welcome back to the channel excited to have you on here to talk about phase three of our five phase
00:00:30
apprach roach how to obtain funding before we get into that really deep though I want to remind you to get over to the website Assisted Living investing. net to get access to our free underwriting calculator it's going to help you out in just underwriting a deal which is going to lead into helping you get funding but also number two it's going to help you feel confident that you have a Sound Investment so you know if you should be moving forward or if you should look for something else so go
00:00:52
grab that free resource Assisted Living investing. net the calculator it'll pop up for you and there's buttons just go grab that and it will get you started on the right path now let's get into the topic of today's video we're talking again about how to obtain funding and I've mentioned this a few times I have a five-phase approach for how to start your Assisted Living business we're going to link that video up above where I go through the full five-phase approach on everything that's included
00:01:16
there so you can get an understanding of what that looks like so make sure you go watch that video but this video is centered around phase three of that process which is how to obtain funding the five-phase process is number one building a business Foundation number two is finding the right property and getting everything in in in line there number three is getting the right funding number four is going to be licensing and number five is all about launching and scaling the business so we'll get into each of those topics but
00:01:42
today phase three how to obtain funding for your Assisted Living business and if you need some help as you're going through that process you need anything there with any of those five phases and most of you need help with multiple of those five phases make sure you go check out The Mastermind program Alim mastermind.com application it's how you apply to it just let's get a feel for your goals where you're at in the process what you've done to help you get started so far and if I feel like
00:02:05
there's good alignment there I'll approve your application number one and then from there you're going to get all the details price for the program how it works the length of the program all of that stuff will get emailed out to you and then if you have questions or you need to chat with me to just to feel comfortable before moving forward I give you links for how to set up a call and things like that um so we can move that along I I was doing free strategy calls I had too many of you doing that and it
00:02:29
was incredible to talk to you just had too many and I need to spend time on coaching so now we're streamlining the application process would love to see if I'm a good fit for you again that's Alim mastermind.com application all right and one of the things that I want to make sure that you understand about the whole funding process especially for assisted living is you will get told no by most people you talk to um I was actually talking with somebody in the Mastermind program about this yesterday
00:02:56
she had been talking to a consultant that consultant said you know you can't do this if you're going to be out of state you can't do this if your LLC is in a different state saying all of this stuff and there are going to be a lot of lenders a lot of people out there that say you can't do this you can't here's you can't do it because of this you can't do it because of that no that's impossible you will get told no by 80 90% of the people that you talk to I've been told no dozens of times but I
00:03:26
I've been successful I have my two assisted living facilities they're out of State I I received SBA funding for him I had no background in Assisted Living did have some in healthcare but none in Assisted Living was able to get access to those funds through SBA Loans and really what it takes is a lot of persistence you're going to get told no a lot and that's okay you just need to continue making progress and putting things together and don't get discouraged when somebody tells you nope
00:03:52
it's impossible you can't do that just be like okay thanks and then move on to the next person because the next person might be the one that says yes if I had stopped when I had been told no by by the different lenders that I had worked with there's no way I would have obtained the facilities that I had I would have not been in the position where I'm at today because I I got told no probably oh 15 times or more before I finally got one that said yeah let's look at this a little bit deeper so take
00:04:20
some times don't get discouraged just keep making that progress and keep being diligent in putting things together and you're going to find the right lender for you the other thing that I want to point out to you is when a lender says no what they really mean is not yet it just means you know now's not the right time for us maybe come back to us in 3 years after you have your first facility and it's running and you have a history of doing this that's a very different conversation now they're like oh you
00:04:45
know what maybe we should have worked with them 3 years ago and let's see if we can figure something out now so it changes the dynamic changes everything through that conversation and when you come to them from the the perspective of I've done this before all of a sudden where where before it was a absolutely no it's impossible you can't do that and then you show them that it was and you've been successful and profitable their mindset is oh you know what maybe now we can so that that's something I
00:05:13
want you to keep in mind as well that no actually means not yet so keep that in mind as well another really big key part of this funding process is building relationships so as you go through this you're going to be building relationships with the people with the bankers with the lenders and and showing them you know this is who I am I've built my business foundation and we'll link a video up above about what that business Foundation is and and what it looks like and go apply to The
00:05:39
Mastermind as well Alim mastermind.com application for helping and doing this but you're going to give them that Foundation you're going to say here's my business plan here's my underwriting everything's good they're going to say well I need a personal financial statement from you and I need your tax returns and I need your bank statements and I need XYZ this form that form and you're going to say here you go because you've built this relationship we're going to get into that in a future video
00:06:03
here as well on how to really build this relationship with lenders but the more that you build that relationship the more that you show to them I'm super responsive I have all the things that you need and I and if I don't I'm going to tell you I don't have that but I'm going to get it to you by Tuesday and you're going to work through that that is going to in their mind be like okay I I really want to work with this person and and it makes it endear them to you and that's again why that no
00:06:31
really means not yet cuz you're building this relationship with people and it's really key for you in the success that you're going to you're going to achieve this success you will you can I promise you you can it just might take some time in building those relationships with people it's it's such an important part of what you're doing and as you're building those relationships that no that really means not yet is a future relationship that you're going to have
00:06:53
with this lender your goal here number one is to get funding yes but number two is to make a lender feel so bad that they have to tell you no because somebody at their Bank said they can't work with you but you want that relationship with that lender to be so solid that they're dreading the call to tell you sorry we can't work with you that that's your goal I've had lenders tell this to me that they say man like I believe in what you're doing your business plan is solid what you're
00:07:21
asking for makes a ton of sense it makes sense for us from a financial standpoint I just can't get my Underwriters to approve it I can't get my board who's reviewing it to approve it but but please stay in touch for the next one because I'm going to go to Bath for you again and again and again that's the relationship that you want to have so you're building future relationships here which are absolutely key to what you're trying to do in the world of assisted living and acquiring more and
00:07:46
building out your portfolio of business it's also important to remember that this is a learning process you will not know everything up front I'm going to teach you all the stuff you know in The Mastermind program everything that I know but you're going to have these experiences as you go through this process that you're going to learn from and it's going to make the next conversation with the lender a lot easier and the one after that easier and the one after that easier to the point
00:08:07
that talking with lenders and finding lenders it's not scary at all anymore because you know these are the things this is the paperwork they're going to need these are the conversations this is the process they go through and it makes things so they're not scary so this is a big learning process for you as well it's going to make everything go so much more smoothly as as you get into the process of you know I need funding I need this for for this purpose uh it just makes it a lot easier because you
00:08:34
have experience you know what to expect and you go into that and you go into it with confidence when you go into it with confidence it makes people be like oh I want to work with this person that's what you got to do you got to exude that confidence exude that experience and make people want to work with you now there's a couple other things that I want you to know that we're going to review here in this part of the course you know phase three of the entire process we're going to have a few a few
00:08:58
videos that are going to come up about this as well but number one is the different financing options that are out there there's you know I talk about SBA it's the thing that I have the experience with I I I'm really comfortable with that I understand the process so all those things you know they make a lot of sense for me that's a lot of what I teach but there's so many different financing options out there we're going to get into that in a future video I'll try to link that up above once it's
00:09:20
ready so you can watch that one as well but as you get into this phase of just like oh man I don't know what to do uh SBA yeah that's what everybody talks about that's the way I want to go there's a lot of different financing options out there that I want you to be aware of so we're going to get into that in a future video I didn't want to get too deep into it here because I think it warrants its own video to really talk about those other all those different opportunities that you want to look at
00:09:45
all right let's recap a little bit about what we have talked about today uh we've been talking about the funding process again this is phase three of a five-phase process that I go through in Assisted Living investing if you want more information on you need some help check us out at Alim mastermind.com application out that application I'll review it if it's a good fit to get you all the details about it and then we can chat about it from there but in this video we've been talking about how to
00:10:08
work with lenders how it's important that no means not yet how you're building these relationships how you want to make a lender feel bad because they have to tell you know and that it's not just like the thing that they do to everybody uh you want them to feel bad about it we're we talked about that and really what I'm hoping is you understand here that this is a a process something that it's not going to happen overnight it's going to take some time and that's okay but the more consistent you are the
00:10:34
better off you're going to be and you're going to be successful I promise you that it just takes some time if you did find this video to be helpful found this information helpful make sure you like the video subscribe and ring the bell as well so you get notified every time we put out content like this we do lives on Tuesday so if you need help guidance in the moment jump on one of those lives I'll I have Q&A sessions that I can help you and give you some guidance there we also put out our content on Thursdays um
00:10:58
join the Facebook group follow on social media all of the things we everywhere and and providing content uh to get out to you that's going to help you launch that Assisted Living business so make sure you just follow us just in general we'll have links down below for everything go grab our free resources we have like five or six of them down below go get those and check out the website Assisted Living investing. net get access to your free underwriting calculator there to help you underwrite
00:11:21
and and number one it's going to help you get the funding and number two help you feel confident in the opportunity that you're looking at to make sure it will actually be profit so you know that you're getting into getting yourself into a good situation that won't put you upside down does residential Assisted Living sound interesting to you but you don't know how to get started at Assisted Living investing dnet I'm here to help beginners like you launch their Assisted Living business in the next 12
00:11:44
months and I want to remind you as well that it doesn't take a lot just a little bit keep going step by step by step and I promise if you do and you're consistent and persistent you're going to be successful thanks for watching and have a great day [Music]
Download Your FREE Calculator
Stay connected with news and updates!
Join our mailing list to receive the latest news and updates from our team.
Don't worry, your information will not be shared.
We hate SPAM. We will never sell your information, for any reason.