The Assisted Living Launch Formula: How to Successfully Start Your Facility

Transcript

00:00:04
hey friend it is Brandon Gustafson welcome to Assisted Living investing I help beginners like you launch their Assisted Living business in the next 12 months uh excited to have you on our live today sorry I am in uh Tech issue mode and also uh we are we're we're making some really good fun progress on our grant we'll have an update for people on that if you want to type in Grants down below um so I can give you an update on that when we are ready to do that would love to hear that and if you're

00:00:32
new here and just kind of learning about assisted living and and and want to learn more about this launch formula then um type in newbie down below we' love to see uh who's here that that's new as well um let me get this thing going here on the Facebook page alrighty so um again welcome to Assisted Living investing excited to have everybody here with me today uh and jump right into our topic so our topic today we're going to be talking about the Assisted Living launch formula um if you um as we go

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through this we're going to be talking quite a bit about uh everything that you need to have uh in order to launch a successful Assisted Living business um and a big part of that is your business plan so you can go get this free resource the business plan checklist at Assisted Living investing. netb checklist uh free resource you can go grab that and move things along uh for those of you who are new here um that don't know who I am my name is BR in I own and operate two assisted living facilities have been doing that since

00:01:35
2020 um I uh do that out of state I live in Utah and have one of these in uh in in Utah sorry I have one of these in Colorado and one in Idaho I live in Utah I've secured over one and a half million in SBA funding and as I mentioned I operate out of state I have a masters in healthcare administration have been working in the healthcare industry uh for over a decade I have a lot of experience there as well so uh that's kind of my background and and why I'm able to teach you um exactly how to do

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this because I have have done it before and that's what I really want to talk about today in uh in in our live so as we go through this I'm going to be going through my the Assisted Living launch formula the the formula that I used to help me launch my Assisted Living businesses um but I want to make sure that there's plenty of time for Q&A um whether that's um here in the middle and I'll try to back and forth so I can see if there's any questions in the moment um but also I definitely have some time

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for you at the end for Q&A so make sure you're putting those in and if you're here after the fact put any questions that you have about things um in you know in the chat as well um in the comments down below so that I can help you out and give you the support that you need as you're trying to move things forward so tell me right right here um tell me if this sounds like to you right now um you might feel like you don't have any direction on how to get started on your Assisted Living Journey um you

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you feel a little confused lost uh you don't know what to do uh so if that's you uh then type in me down below um you know you're trying to figure out how how do you know uh if this is even going to be a profitable Venture how many beds do you want or need in your home and which population do you want to serve these are some of the questions you're probably asking yourself um you're probably even confused by the licensing process so you don't know what the licensing process is the different types

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of licenses uh confused by the facility license versus the administrator license how are you going to fill out that application for your license and how do you put your policies and procedures together so that you can obtain the license you also probably are feeling a little overwhelmed at just the entire idea of funding the the acquisition so if that's you type in funding down below um you want to know what that down payment looks like you want to figure out what type of loan is best for you

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how are you going to get pre-approved for loone what does that look like how much money can you get these are all questions you as you're trying to get into assisted living you know that this is something that you want to do you just are confused you feel lost you don't know what to do and I I've been there like I I totally get it um I I felt the exact same way when I was trying to get started in 2020 um and it's it's hard it's hard to figure all of that out and so I want to thank you

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number one for watching my channel because uh what I try to do is help you understand what those things look like for you so that you can make some real progress on it um and and help you along your path and along your journey to launching that Assisted Living business and all of these questions all of these concerns that I just went over helping remove those roadblocks out of your way so you know exactly what to expect as you're trying to get started on your Assisted Living investing Journal so

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does that sound like you if it does um go ahead and comment me um down below I'd love to uh hear from from those of you that that are in there that are just struggling with with some of those things um would would love to hear that um and yes I'm I'm seeing a few comments in here uh we got a newbie we've got jacn saying me uh we'll talk about SBA um yes we'll talk about SBA uh here in a little bit funding uh and just just finding the time to learn all the basics that's a big one jacine um so yeah

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finding the time to figure out all those Basics it is it's overwhelming um and and it could feel very heavy can feel like it's a lot um so yeah make sure you're continuing to comment those in here and I'll get to that question on the SBA here um a little bit later for sure so what is the Assisted Living launch formula I talked about this a little bit um as we were're getting started but really it's the only system that helps you build your business Foundation which is the first thing you

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got to do build uh that Foundation finding the right property obtaining the funding understanding the rules and regulations that exist in side of assisted living and the industry and then launching and scaling your business is it's designed to do those five things to really help you out in and doing this in a structured way that makes a lot of sense take things um from step one all the way to the very end in a sequential manner that um just makes a lot of sense that for people uh so that's what the

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Assisted Living launch formula is so I'm going to get into each of those uh those pillars I I like to call them phases but if you follow these I'm going to tell you the what and the why behind it um as you get into this and if you follow a little bit of this um and follow the process here it's going to really help you out in launching that Assisted Living business so that's that's everything that we're trying to do here on the Channel I want to provide you with this value so if you're finding it

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to be helpful make sure you like the video um but let's talk about phase one or or step one um building your business foundation so what's involved with this is you have to have a business plan it has to be good it has to be solid um you want to review it enough times that you're just sick of looking at it is what you want to do with your business plan and make sure everybody um it's super clear to anybody that's reading it because this business plan is going to go to people um like with this city may

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want to look at it when you're going through zoning or they'll at least ask you questions that you can answer inside of your business plan funding definitely going to want to look at your business plan the um State as you're getting your license oftentimes want to look at it or they'll have questions that you could answer in your business plan which makes it a lot easier for you to answer those questions so business plan is is such an important piece of what you're doing you

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also want to be doing some underwriting so you understand the financial model of the opportunity um is does it have enough beds how many how much are you able to charge uh you want to make sure you understand those numbers you feel confident in them you understand the expenses you feel confident in those and see if it's going to be profitable don't just assume that oh somebody told me a five bed facility is perfect and it's going to generate $5,000 in cash flow do not assume that make sure you do the

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math make sure it works in your situation for your scenario and uh move things forward you can grab my my free underwriting calculator by the way to help you out on this uh if you go to Just Assisted Living investing. net go to the website it'll pop up so you can grab it or to assisted Liv investing. netal either way you'll get access to that but I give it away for free um and then we have our business planning guide course so if you're interested in that type in BPG for business planning guide

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and we'll get you a link uh for that uh as well there's one in the video description on YouTube um you're going to want to be determining who you're going to serve who who is it important for you to serve who which population is it elderly is it Mental Health Developmental disability which which population do you want to serve and help out as you're going through this process of starting an assisted living business um and you want to do your market research so you know where you're going

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to invest and we had a video on this uh a couple weeks ago in one of our lives where I talked about the top 10 um space top 10 uh markets for assisted living uh you and I in my business planning I'd actually give you that entire resource so go ahead and check that out again type in BPG down below and we'll make sure you have the link for that but um these are the things that you have to have in your business Foundation when you build this when you make it in a way that you spend a good chunk of time you

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feel like you have something really solid there it is going to the rest of the process go so much more smoothly um which is why you do this it gives you Clarity um lets you know okay I know exactly what I'm going to do helps you solidify your goals which is something you need to do and it gives you something tangible to give to lenders or Partners or investors or the state uh the city whoever needs it you have something you just hand it to them and say this is like this is my vision and it makes people get really excited to

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see that so that's why you do this it just and it really it makes everything go so much more smoothly because people will ask for this over and over and so you want to make sure you have a really solid foundation for your business um I'm G to just double check make sure I don't have any um questions here so eou said BPG so here's the link Assisted Living investing. net BPG um so that that should get that over to you um so you can go grab that it it goes through build building that Foundation plus um

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you're going to get access to like an overview of the entire calculator how to use it and and and really kind of take some of the confusion out because that that calculator can be a lot so this is going to help you out a lot so Assisted Living investing. net BPG all right let's get into phase two here so phase two is finding the right property and this is something that I've been talking with a lot of people recently and they they're confused like I I don't even know like what type of property I need

00:10:59
to have to do assisted living or I have this three-bedroom home can I convert it into assisted living um these are all questions that we answer here in phase two um this is finding the right property so what what's involved here is you're deciding if you're going are you going to get started are you going to buy an existing facility are you going to find a home to convert are you going to convert your own home are you going to lease from somebody which of those methods is most interesting to you I'd

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love to hear that actually in the comments so type like which which path do you want to go down uh existing facility buying a home and converting it converting your own leasing from somebody which would those um sounds most appealing to you go ahead and chat that down below as well um but you have to ultimately find a property that's going to meet your needs as a business is it going to have enough beds in it to sustain what you're trying to do with Assisted Living um and also that it's

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going to meet any requirements or things by the state square footage uh wise uh that it's going to um meet safety standards for the type of residents that you're going to be working with that's where you're going to check on zoning as well to make sure that it can actually operate as an assisted living facility um passing the inspection by the fire department um all of these things to give you your certificate of occupancy so you have to figure all of these things out um and figure out exactly

00:12:23
what's going to happen and navigate a little bit of that there will be questions and things that come up which is why we build that business plan and then they ask you and you say oh yeah we're going to be working with this population we're going to have 10 people in the house um we have 247 coverage uh we provide services like U bathing and toileting and meta management and and these types of things uh there's not going to be a lot of cars there because these people they they live there but

00:12:47
they don't have cars um you know you're just able to answer those questions because you've thought about it in your business plan you've written it down and you know how to answer all of those questions another question I get often is actually about h o um HOAs is is not something you need to worry about um because of the fair housing act you're not going to have to worry about HOAs you're working with a protected class unless um some HOA specifically from the very beginning puts in their ccnr and

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their bylaws that you cannot do Assisted Living even then I don't know that it would hold up in court it just might not be worth pursuing but um it is it's something that HOAs cannot stop you from doing this uh you just have to kind of work within the par parameters and and then zoning is is probably the bigger thing um that you have to work with um because you cannot you just have to make sure that it it's zoned properly for that and there's there's ways around that getting conditional use or or

00:13:41
special use permits um as well that can help you um get this started but you have to make sure those things are in place so why why do you have to do this with finding the right property as I was mentioning you have to make sure it's going to meet the needs of the residents so um make sure you know if you're working with an elderly population that can't do stairs you need to have something that has Zero Entry no stairs up front or has a ramp and no stairs on the inside at least where they need to

00:14:08
to to go you could maybe have stairs for an office downstairs or something like that um but that's that's something that you want to make sure that you are taking into consideration uh do you need to be a locked facility because you're doing memory care you know those types of things what what's important to you um you need to um make sure you don't run into any issues down the road with the state um so you you got to make sure you have that certificate of occupancy that you can actually run this business

00:14:34
there that you can serve this population and that you know everything that goes into place because what you don't want to have happen is to get things started uh start start the business start bringing people in start serving them and then State comes in and they say you got to put in this fire suppression system you got to um make the doorways wider put a ramp here whatever and and you can't cover the costs for that you you don't want to get into that situation and then the state shuts you

00:15:02
down so you got to be careful with that um it's it's not I I made it sound a little more scary than it is it's not that complicated it's just steps this taking the right steps at the right time is what you got to do um and you want to make sure that you're able to run the business in the home if there's certain types of permits um uh business licenses anything like that that the state or the city uh the local municipality might require you want to make sure you have those in place and that's all here um

00:15:29
with finding the property um so that's that's what you're going to look at there um let's see some comments here uh so you're going to look at purchasing and remodel love it um and then you had a question here Eble do you know how many residents you can have in North Carolina I'll get to um a little bit of that here um in the Q&A session at the end um but the short answer is it depends on the state so I don't have like a a a quick like an exact answer for you we'll get into that

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uh into more of the details on that so let's get into phase three here this is obtaining the funding and this is the one I hear the most about uh that people are concerned with funding is it's a struggle uh it's something you have to to work through I'm actually through my grant and again if you're interested in learning more about the grant stuff uh type in Grant down below I have some exciting news on that coming in about a month so uh keep keep uh stay tuned make sure you like the video subscribe and

00:16:27
ring the bell so you get notified when we drop that that because it's going to be a lot of fun to to talk more about that but I am in the process right now where my grant got uh timing accelerated on it and I now have to find funding to pay for the the work that's getting done with the grant so that I can then submit those for reimbursement to get reimbursed to pay off the the funds that I'm getting so I'm going through this process right at the start of the call I was getting I was started the live was

00:16:59
getting a call I don't know if you heard it on my watch um but that was one of the lenders that I'm working with we're trying to figure everything out here I've got a very tight timeline um so you know I get it I understand I I went into this thinking like I I don't know I'll figure out how to do funding but it can be overwhelming um what you want to do here is you've got to figure out what type of funding you're going to use is it going to be private money is it going

00:17:23
to be hard money uh what about SBA Loans what about traditional mortgages um or do you need just a small General business loan what does that look like you need to figure out what what that's going to be for you um you want to also start to work start working towards securing that funding um you know getting the right down payment having all the paperwork filled out making sure you have everything ready getting things from a seller so that that you can provide it as you're buying a facility

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um understanding how grants can play into this and what that's going to look like for you that's that's what we talk about in the funding phase uh and the things that you really need to be focused on is you're trying to figure out funding um is just a little bit of that process and it can be overwhelming it can be a lot um but it is one of the the things that you absolutely have to figure out as you're trying to to get in and and launch that Assisted Living business um and why um well you have to

00:18:23
have the money to close the deal um it's important that you have that um the other the reasons why I talk about this as and why it's important for this to be its own step is it helps you understand how to develop good relationships with lenders which can be something that um leads into something further down the line uh may not work on on this opportunity but on the next one or three months from now um you never know what happens as you are building relationships with lenders uh it will

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lead to to more and better opportunities for you down the line also after you do one of these deals the amount of knowledge that you gain for the entire lending process is going to increase exponentially and it's going to make things so much easier for you um as you're trying to to figure all of that out so um this is this is one that um it's so important for you to to get in here and understand so that uh you get the funding that you need today but also the funding that you you're going to

00:19:27
need tomorrow for something uh you want to build those relationships and learn the process so when you're in a situation like me where you've got to get a few hundred, in a very short period of time you're not scared and overwhelmed by oh crap how who am I going to reach out to how am I going to do this what is that what are they asking for over here you know what to do um and it just becomes okay now I just got to do I got to make a bunch of calls I got to get through all this I got to

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make sure I have all the the paperwork and everything ready to go so that when uh I find somebody it's a very seamless process um that's that's your goal so funding is something that you're you're worried about or trying to figure out would love to to hear from you go ahead and type in funding down below there as well um so that we can um we can help out with that and yeah Eble so I'm going to uh give you a link here Assisted Living investing. netg grants um so that link is going to get you a free

00:20:21
underwriting or a free grant writing template um and then once I uh put once I have some of that exciting news coming uh you'll be the first to know and get some you know it's I'm super excited to to throw that out um here in about a month um okay let's get into phase four here so understanding the rules and regulations so this is phase four and this is this is one of those things that when you look at Healthcare especially those of you that are watching this that are not familiar with

00:20:54
the healthcare industry um and and you look at this and and you say to yourself I I think this is an awesome business opportunity but I am just overwhelmed and confused by everything that's going on here um from uh from the rules and regulations piece you know if that's you then go ahead and type in regulations down below um because it can feel overwhelming as somebody that's worked in the healthcare industry for over a decade I have a masters in healthcare administration have done assisted living

00:21:20
now for uh almost four years oh wait four years I think today was when we closed on our first facility I was the 17th or the 18 so um four years um that's exciting let's see uh it can feel overwhelming though to try to figure out but as somebody that's done this for a while um I promise you you can figure it out my dad had a background uh in construction for an electrical contractor and now like I was just talking to him yesterday and today as we're trying to figure out the grant

00:21:49
stuff um and it's it's just so seamless it's such an easy conversation now as we're working through things and nothing uh really phases him because we've been doing this for a while so it's it's very easy to learn and it doesn't it's not too bad can feel overwhelming in the beginning but it's not too bad um but here you're going to understand all those rules and regulations uh you're going to need to know how to fill out a license application which we have a

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video on here on the channel actually for that uh making sure your policies and procedures are in place and that they're good and they're up to standard they get approved that's bya the one of the hardest parts actually of the entire process of launching your business is your policies and procedures because it can take a ton of time and you've got to get it done uh and it's dry it can it can just feel like a lot and it's not super exciting um but it's necessary uh becoming Medicaid certified if you want

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to serve a Medicaid population we would love to hear from there um type in Medicaid and we have a lot of videos but I could do another one on Medicaid here in the future um to kind of review over that so comment that down below if that's something of interest um and then obtaining your administrator license which is different from the facility license and when you should go about doing that and what does that look like and how does that work um if you want to be the administrator or if you don't and

00:23:07
you want to hire somebody to do this for you um then that's an option for you as well U but this is what you're focusing on here in Phase 4 those are the things you got to figure out as you're working through it and the reason why is the healthcare industry is is so complex like there's there's a lot of rules and a lot of regulations it's probably the most regulated industry in in the nation in the United States there's just a lot that goes into it and and that holds

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true for Nations throughout the world um Healthcare and I think it's accurate I think it should be regulated because we're dealing with people's lives and their health um so that's something you want to to make sure that we're we're staying up to date on but it it just makes it a little bit more difficult for people that are running these types of businesses there's a lot of Hoops to jump through a lot of things a lot of boxes to check a lot of things you don't want to miss um so we want to make sure

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that you are are hitting all all those things um so that you don't miss a step and you don't fumble and And Delay something that that kills a dill or anything like that um and you are going to need this information so you can effectively operate your business um there's the reason why you do all the follow all these rules and regulations is because that's how you run your business so you have you have to put all this together um so that's that's why we're doing the you know the the rules

00:24:26
and regulations I'm going to hop back over here um website for administrator license um each State's going to have their own um website there um but yes and I'm seeing yeah State specific exactly um and then seeing a few comments here on Medicaid so I'll get into that um here when we get to Q&A I'll chat a little bit more about uh what Medicaid looks like but it's uh well I I'll give you a quick overview Medicaid is it's a federally funded State um State administered program um

00:24:53
for healthcare and it works with Assisted Living Medicare is ferally funded and done at a federal level um assisted living is not a part of Medicare so um that's something people confuse those often and so it's something I want to make sure that I'm clearing but if there's questions about Medicaid I can definitely get into those here uh in in a second we'll get into the the Q&A part here um okay phase five uh this is the the phase that uh is I I like to call it the Forgotten phase uh

00:25:23
because you get so caught up in okay I got to build my business plan and I've got to figure out the funding I've got to get my life license and I've got to do this and those are the things that you focus on as you're trying to launch your your business and I think it's correct for you to do that um but what you one day you're going to and this happened to me four years ago I was like oh my gosh I I want to get this facility i w to I want to do this and then we flew to Colorado which is where we

00:25:47
bought our first facility we're out there and and we're signing papers and we're closing we go to dinner and we're celebrating and everything's great and then the next day we go to our facility for the first time as the owners and it kind of hit me crap I have a business now I've got to run this thing um and it was it just like hit me like a ton of bricks and and was like okay well now I've got to figure out how to do this luckily I had a lot of experience working in the

00:26:14
healthcare industry and and understanding how these things go and to navigator but we made a lot of mistakes in the in the beginning um and and costly mistakes um that just made it harder on us to operate the business um and it's I I talk to people I get messages from people all the time on on Facebook that say I like I can't I can't fill my beds I can't do this and I think a lot of that comes back to the base building that Foundation Building a solid marketing plan up front um so that

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you know what to do once you get to this phase you know how to implement things because you thought it through and it's not a rush to get to the finish line and then and then you get to the finish line and you realize that was only lap one I've got to keep doing this now um You don't want to to run into that so that's what this phase is all about you have to learn to run a successful business you have to hire the right people whether you're the administrator or not um you have to hire good people and make sure

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that they're happy and that they have this and that they have the support that they need you want to implement some internal policies and procedures um things for your staff for your residents and the way that you bring people into the facility um you want to set up some kpis key performance indicators so that you know um is your business healthy or not um so you want to do those types of things it's going to really let you see at a glance is this um is this going now I I hope what I said there didn't scare

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you because this is also one of the most rewarding things that you get to do um about this like the reason why you are interested in Assisted Living uh apart from the money is that you are going to have an impact on your communities on the people that that you get to serve and it is oh man it is so rewarding to do that that is that's why you have to figure out how to do this in a good way so that you can really give back to people um that that's why and don't lose sight of that that that's why you want

00:28:10
to do this um it it really helps you as you're going through those struggles of of running a business uh which just happened um it it makes you feel so much more confident and and understand why you're why you're doing this so you can continue making that impact so why um why is this a big thing um like I said so you don't make the mistakes that I made that that's a big reason why uh you want to learn to delegate your responsibilities um you don't have to do everything and you should not be doing

00:28:42
everything you need to delegate don't wear all the hats give people other responsibilities uh you want to make it easier on yourself to operate and you want to feel confident that your business is running efficiently uh that's why this is such a big part of of the entire process of launching your your your Assisted Living business um I'm going to pop back over here okay I don't have any questions um so now the question would be how to get the formula so that five-phase formula that we went

00:29:11
through um building the business Foundation we talked about finding the right property getting that property ready the funding process uh we talked about um the the rules and regulations understanding those and then launching and scaling the business so I have a few resources that are out there for for people um one is the accelerator course and this is a go aty own pace and actually we are updating it right now I have recorded everything we are in editing and once we drop it um if you buy the accelerator today you

00:29:41
automatically get the upgraded version of it uh once it goes out so you will you will get access to that um or if you're watching this you know two years from now you'll have that updated version but uh the reason why I updated it was I looked at it and I was like you know this hits everything but there's stuff in here here that that I think I really need to get out to people and so we updated the accelerator course really excited to be putting that out there uh we'll kind of do like an official launch

00:30:06
with that um here once we upload everything um to to let everybody know that it's on there um but if you go and and grab that you can do that at Assisted Living investing. netal it's the easiest way for you to get access to the the Assisted Living launch formula the least expensive way to do that um and to really help you out the other thing is you can apply to my Mastermind program so you can do that at Alim mastermind.com application um it's kind of an automated process lets me look at

00:30:36
your goals your situation see where you're at and if I feel like I can help you then I will approve that application for you and then send you all the details and if you want to jump on a call to chat about it then then we can do that but you get the accelerator program plus you get some coaching it's a year-long program um so if you're interested in that type in Mastermind and I will um make sure you have the link to it so you can go apply it's no obligation if you apply I just send

00:31:00
you all the info and you make the decision um and if you're interested in the accelerator then type in accelerator down below and we'll make sure you get the link to that as well um so I can get you whichever option feels like the best one for you um we are doing a promo on The Mastermind right now so it's like 46 48% off it's like you save like $4,600 um if you sign up soon um so make sure you're doing that I'm not sure you're watching this after the fact if that will still be available um but um

00:31:28
yeah yeah just want to throw that out there so that's that's how you can get the formula um so that is the assistant living launch formula I'm going to shift over to Q&A now um and as people I know I've got a few comments and things in there so I'll get into those but please if you're if you're here live then type those questions in if you are watching this after the fact then type in comments down below and I will respond to you as best I can um to to make sure I'm answering any questions but I remind

00:31:55
you to also like the video subscribe and ring the bell as well so that you get notified every time we do this these live sessions on Tuesdays uh or we put out our other content on Thursdays um you get notified of that uh go join the Facebook group uh we put a bunch of content in there um to help you out and and engage with you uh which is a ton of fun to answer people's questions there and would love to help you out and make sure you go grab that business plan checklist as well ali uh no Assisted

00:32:23
Living investing. netp checklist um so that's there's been a ticker going down below as well we'll have all the links to all of the free stuff that I have on the YouTube video so all that out of the way um let me jump up here to our comments uh on here um so oh I need water but it's over on the other side so I'm gonna push through um okay uh so we got a newbie uh jacn says me let's see so um I'm G to click this I don't how this works all right there we go so I can put

00:33:01
this up here um did you get uh SBA funding before after you opened so we did SBA um to as we were getting things um as we're getting the funding um to to purchase the facility so you get it upfront um and you could do it after the fact um you uh it depends on how you want to do this if you're going to buy a home and and then buy an existing home and then uh make some renovations to it you might need to do a uh conventional mortgage to buy the home and then get a small business loan after the fact um to

00:33:39
help out with some of those operating costs and and things like that you could also do it up front um e either way is going to be fine but uh we did ours upfront um we bought the facilities with an SBA loan um and then the first one we actually did not get extra operating Capital which is a big mistake for us to have made um but the second one we did we put that in there um and I learned how to put that into my underwriting and how to ask for it up front um and you have to do it pretty early on in the

00:34:05
process or else you're they'll tell you no um if you wait too long so you have to figure out how to have those conversations but it helps out immensely to have that but yeah we did SBA funding upfront um to to get facilities before we opened um that's that's how we did that um so we got a couple things on funding yeah I mean funding is just some of those um so some of those things is just hard to figure out and and understand and it's um you know I talk a lot in in the courses and things about

00:34:36
developing relationships with People Partners um and working with people um that that have funds and it that like there may be some of you that hear that and you say I got burned by this person or that that person and it's it's true it can happen but you want to to it's good to to create Partnerships um me and my dad um as an example like it's it's a little bit different it's it's family and things like that but um I would not have been able to get the facilities that I have without his help

00:35:08
and we wouldn't be as successful as we've been without his help because we kind of divide those responsibilities so as long as you are able to create an operating agreement upfront um and come to an agreement on who's going to do what things and and then you hold each other accountable to that and and you feel confident in your ability to work together with somebody uh I think you're going to be a lot more successful a lot more happy and trying to figure out how to do this by yourself um you don't have

00:35:33
to and so partnering is a really good way to help out from a funding perspective and you can ask family you can ask friends you can ask co-workers you can ask go to meetups uh real estate meetups get on active on on Facebook groups uh go find other places to do networking um that's how you're going to find those Partners that's going to help you out with funding uh if that's that's something that you're doing now if you have the funds and you you just like don't know the funding process I can

00:36:01
definitely help you out with that um through the courses and the coaching that I have and the accelerator or The Mastermind program um let's see so Jacqueline just finding the time to learn all the basics so hopefully this uh this video has been helpful and just kind of helping you understand just kind of those basics of the steps that you need to take as you're moving through that I hope that's been helpful uh the business planning guide sent that over to you so it's Assisted Living investing. net BPG um so

00:36:27
you can access to that um ew are looking at purchasing and remodeling so yeah I would say in your scenario you're going to probably be doing a uh buying it unless you already have the facil the home which is which happens often um and in which case you you're GNA still want to build that Foundation um that business Foundation but um you're going to want to um so you want to build that business Foundation uh so you have it when you're talking through other things uh but the the big

00:36:57
thing you got figure out as well is is is your home the existing home you have going to fit in with Assisted Living so if you already have the house and you want to shift into that then there's some conversations you definitely want to have um there as as you're getting into it um if you're buying an existing home somebody else's then you're probably looking at traditional or conventional um funding to get that house and then getting some kind of a small business loan to help out with

00:37:23
operating costs um so let's see question here uh do you know how many residents you can have in North Carolina so um Most states there's there's kind of three different levels of Assisted Living so there's like a care home and those are depending on the state four to six residents in a home there's the residential Assisted Living which is between typically like 16 to 20 um again depends on on the state I think I've even seen some be as low as 12 but that's kind of the

00:37:55
residential setting um and then when get above that 20 then you're kind of the big box and and you're more of a commercial style Assisted Living so that's a that's a different um beast on of its own um so those are kind of the the tiers that you would go into it's it's hard to say where North Carolina is uh if you're doing the care home it's probably four and if you're doing the residential it's probably 16 but um I you'd need to look specifically on the

00:38:25
states and you could just Google something like like um what is the um you know what is the resident count threshold for assisted living in North Carolina something along those lines will probably get you a close enough answer to to help you and give you some guidance that you need there um let's see Jacqueline you say uh I would be more interested in leasing or getting an established home so um yes I I I think there's I I love the idea of buying existing homes and or existing facilities and and going from there it

00:39:02
really accelerates your pathway to profitability I think it helps out a ton um so that's the path that I went and and the path that I I prefer um but you know everybody has different scenarios and situations and so I'm not saying that's the only way to do this by any means leasing stuff um I get messages from landlords actually quite often um of they they have a home and they want to lease it to somebody to do Assisted Living so um you know message me uh get on on Facebook and just send me a DM and

00:39:34
let me know where you're at and I'll see if I have anybody like I don't have contacts throughout the entire state but I have or Across the Nation but I do have them in in a few different spots so maybe I can help you out um if you are watching this and you're uh interested in in doing leasing type in uh lease down below uh because I think that would be helpful and then people could reach out to you uh maybe like lease and then which state you're in and then people can reach out to you um through the DMS

00:39:59
and and comments and things down below um I think that would be helpful um yeah grants uh sent you that that resource get the free grant writing template at Assisted Living investing. netg grants um some really exciting news coming in about a month on that U is is my plan um Medicaid as I mentioned is uh it's a federally funded program I'm GNA pull down the comment there by jacqu so it's not hanging out there um uh Medicaid ferally funded administered at a state level so uh it's there's a lot of people

00:40:33
that don't like it because there's a lot of paperwork involved um but thanks for comenting into that I'll I'll take that take note of that and do something a little bit more uh like a deeper dive on Medicaid um here in the future um hopefully not too distant future and help out in understanding exactly what that looks like but I have a ton of Medicaid content on my channel so just go to Assisted Living investing on YouTube and then type Medicaid on the channel and I probably have I don't know

00:41:00
four to eight videos uh just around Medicaid it'll really educate you on that um website for administrator license so the best way to get your administrator license uh it's going to be State specific um so what you would do is you would go to the State uh just Google like how to get an administ assisted living administrator license in North Carolina I think is where you mentioned you're at um and it will take you to it'll be either a state site or it'll some other like organization

00:41:29
inside of North Carolina that tells you how to do it typically what you're going to have to do is take a course either a 40 or an 80 hour course um depends on the state um you're going to have to have some amount of work hours working in an assisted living facility or in a long-term care setting um and then there's going to be an education component as well what education level do you have and then that will um tease out how many hours of work you need to have that combined with with the the

00:41:58
course that you take and then you have to pass a test like in general that's kind of the the process that you go through to obtain an administrator license each st's going to be slightly different but that's in general um typically how that's going to work for you all right um this question how do you refinance out uh private lenders if the Home Improvements for Alf don't necessarily raise the home value that's a good question um so I would say it's going to depend on the

00:42:30
lender um and the conversations that you have you will get told no by almost all of them they'll say it's impossible you can't do that um and you know then you just move on to the next one um you just have to find ones that are willing to work on it they will probably want to collateralize the equity in the house um as they're doing that um they'll they'll want something um you're probably honestly you might be better off to get something like some private money or um

00:42:56
some type of a bridge loan that is just shortterm to um to get those types of things done and then refinance into something that that's bigger that's a little more stable like an SBA loan or something like that um so the process that you kind of go through is um you you go find those lenders you can reach out to to a bunch of them search them online uh local banks and Credit Unions I think are great options for that um tell them what you need it for uh this is where business plan really comes in

00:43:26
handy uh but you're saying this is what I need the funds for this is what we're going to use it for and then we will because it's a a money generating business uh it will cover the the finances uh a lot some businesses like to see something that's been in business for at least a few months um before they do that but some banks will will lend it out you probably would have higher interest rates because they're assuming a little bit more risk but that's kind of the process you would go through and

00:43:52
then um once you have that done then you'd probably be looking at doing a refinance a little bit later down the line okay accelerator um so jacn the accelerator is Assisted Living investing do God I could spell investing. netal uh is where you can get that so I just put the that in the chat for you um let's see Team Fuego uh licensed administrator in Southern California and looking to Network I can open up small medium facility if anyone is interested so yes anybody that's interested in that reach

00:44:32
out to team fego um that sounds awesome uh looking to network and grow some small and medium facilities there if anybody's interested so uh don't know team fego can't vouch for you but uh whoever wants to reach out there uh go for it and see what happens uh let's see uh getting into Eble let's see uh do you need a really high credit score for an SBA loan um I don't know that you need a really high I have I have good credit so it's hard for me to say um what exactly they would want I don't think you need

00:45:09
to have like high 700s I think um 650 is probably uh I I you're GNA the higher the better your credit the better um chances you have of getting um funded with the SBA um 650 is a number that sticks out of my mind for some reason but I don't know why um so you could potentially be something a little bit lower than that but you don't have to be high sevens or 800s um to get SBA loan um it doesn't need to be that uh but the better credit you have the better rates and terms you're going to get and the

00:45:45
more likely you are to be able to get credit get an SBA loan so hopefully that makes sense um this is another reason why partnering can be a really good idea because if you have bad credit and you partner with some that has good credit that can really bolster um your application with with the lender as well um Jacqueline what state looks good now for Alf so um I did my video on the top markets in Assisted Living uh we just released that two weeks ago so I would encourage you to go watch that one

00:46:19
um so that that's that's a good one I think if you just like Get on YouTube and search top markets for assisted living that video should pop up for you um but we did our 2024 version uh in the business planning guide we actually have have that uh available the market research guide where I give you the top 10 actually in that video I give you the top 10 as well I just can't remember off the top of my head who they are Wyoming Florida Delaware Pennsylvania Iowa I want to say was on there

00:46:50
uh those are the ones that are but that's not in the right order so U go watch that video it'll tell you in the market research guide I do a lot of that research for you uh do the the market research there again for you as well and if if your State's not on one of those top 10 isn't on the top 10 list it doesn't mean that it's not good each each each State's going to have a pocket that's really good for assisted living um it's just trying to figure out what those are and then doing the research

00:47:17
and making sure you're confident in it so like California is not high on my list um but I know a lot of people that are really successful in California so I I I personally probably wouldn't do it um but that doesn't mean you shouldn't so you know that that's just I probably wouldn't do Arizona either like for me it's just a little too saturated but that's me um that doesn't mean you shouldn't do it there um like there's there's a lot of states that I would not

00:47:43
touch but those are personal reasons uh and and so yeah I think it depends on the person and where you want to be and then it's just doing the research making sure you're confident and its ability to um support you in what you're trying to do there um let's see what sites um to view existing Al to purchase so some really good sites there are loopnet loopnet.com Bisby sell.com and kxy cxi cy.com uh those are really good sites and you can actually filter that down to assisted living in The Mastermind program I

00:48:16
actually have a master class that goes through on on how to use all three of those um and and how to find Brokers not only facilities but also Brokers that can really help the people that you can leverage to help you be successful as you're getting started um so that's that's a master class in The Mastermind program uh Team Fuego literally just told you guys I'm a licensed administrator looking to network yes got it uh Wise Guy um you can do this remotely like in a different state yeah

00:48:49
so I uh I live in Utah have a facility in Colorado have one in Idaho as well um so yeah doing it remotely uh for sure can do that um yeah there's no requirement for you to be in state I just have administrators at my facilities who run things um for me and I just have regular touch points with them and help them out through the process so um there you go uh favorite states and cities for the business I we we love working in Idaho like for me uh we're going to expand in Idaho that's where we want to be um but as I was just

00:49:23
chatting about each person's going to be different um so I I think it really depends on uh like I don't know all the markets that are out there and and the intricacies of all of them um there's probably going to be different places that um that can really help you out um help you be successful but I I couldn't tell you exactly which ones are are the best go watch my market top markets video that'll probably be the best way to to give you some guidance there um and another one by Wise Guy uh what do

00:49:54
you think of California La for this business so is just expensive um and it's more regulated than a lot of States so that for me is why I would not choose to do California but I think you can do it and be successful there um like I I know a lot of people I was just chatting with somebody um who does it there and they they're growing their portfolio it's where they want to be uh they're more Northern California Sacramento area area I think um but um yeah like for me I wouldn't do la but that's me uh and I

00:50:26
I've talked with people and I know you could be successful there um so yeah that's that's my opinion but yours is is maybe different so that's fine um so hopefully that was helpful uh if there's any other questions here I think I got to the end of all the comments there uh but if there's anything else uh please go ahead and and uh and type those in uh again you can get access to some of these courses for the formula go to the accelerator assisted living investing. netal or The Mastermind um and we go

00:50:55
through that entire Pro process yearlong program I give you some coaching and support as you're going through that and that's Alim mastermind.com application no obligation to to purchase if if you do that it just lets me see if I can help you out if I can I'll send you all the details for it there as well and I want to remind you as well to get over to the website Assisted Living investing. netb checklist to get that free business plan checklist um which is really going to help you out as you're

00:51:20
trying to to build that solid business plan to build your foundation and help you make some good progress towards launching your Assisted Living business does residential Assisted Living sound interesting to you but you don't know how to get started at Assisted Living investing. net I'm here to help people beginners like you launch their Assisted Living business in the next 12 months that's that's what I'd love to do thank you again for being here I do have a question here from Ros um what do you

00:51:45
think of Washington state I it is not on my top 10 list but I really like Washington State um I don't know that I would do something in the Seattle area but uh I Eastern Washington absolutely and other parts of Washington I think I would do um I I actually really like Washington it's something that as we grow in Idaho we may consider expanding into Washington so um yeah I like Washington that's what I'd say there um I don't know any other specifics but hopefully that helps out um all right

00:52:23
um see do you mind me taking talking about your number numers cash flow Roi Etc what are industry averages um yeah I'm I'm fine talking about them so uh in the business planning I'd actually give away my numbers um for I think it was 2022 um is the ones that I have on there for both my facilities they 16 beds um they are God I can't remember off the top of my head what they look like um but um yeah like we have we have good returns we have good cash flow one of our facilities isn't doing well right

00:52:57
now but we've kept at a low census for a reason um because we have a grant there and so from a cash flow perspective that one's not doing well but that's on purpose because we have a huge renovation on that house and so uh it's a lot easier to move um eight residents around the 16 residents as we're trying to get the project done so um I and I like I'm fine giving you real numbers I just don't know them off the top of my head so that's why I'm not giving them

00:53:26
uh because I don't want to say incorrect numbers but I would say on a monthly basis we um I was talking with my dad about this just a little bit ago um with after a few changes at our Idaho facility uh getting our census up um adjusting a few of our expenses and things like that we're expecting about 20 to $25,000 a month in cash flow um on that facility so and it's it's a 16 bed Medicaid facility um in in Idaho so uh there's there's a lot of potential for you to to make some really good

00:54:05
money um in the business uh you just have to understand what your finances are you have to um understand how the business works and you need to also um make sure you are keeping the beds full um understand your expenses keep your beds full develop a good marketing plan and when you do those things you can be very successful with with it um but you want to make sure you understand all of those numbers before you jump into it and just because I say I can make that much doesn't mean your scenario is going

00:54:36
to be that much it could be more like it just kind of depends on on the individual but uh those the numbers that you see that people talk about all the time they're real um and so you can cash flow that you just have to understand the finances as you get into it to make sure you know um what you're getting into so don't don't just rush into it build that Foundation first um you got to do that alrighty um well I want to thank everybody for watching here again uh it's been fun to chat and and hope

00:55:09
hopefully the the Assisted Living launch formula makes sense um and and can help you out as you're trying to launch your Assisted Living business again I love helping people I love coaching people and guiding them and this is something I'm super passionate about and uh excited to help those that that join and if not and you're just on uh on here on the um on the videos that's fine too I love interacting with you um got one more question uh and this will be the last one unless somebody sneaks one in

00:55:37
um after this so uh Cola uh Cola the great I like it uh would you recommend an LLC or a Corp so I would recommend that you talk to a professional about that that's what I would do talk to an attorney or a CPA or both and figure out what's going to be most advantageous to you we um have done this as llc's um we have a a relatively complex legal structure um and here's the followup to that uh recommend LLC or escorp I personally would say go with an LLC but I would also very high I'm not an

00:56:13
attorney I'm not a CPA I would talk to those individuals and figure out what makes the most sense for you um that's that's what I would say we I yeah that that's what I would say I'm not going to get too deep into it cu I'm not an attorney so I yeah no problem but yeah that that's what I would say is go talk to them I think llc's are great though so grants yeah go grab the grants uh at Assisted Living investing. netg grants uh you can get access to the free grant

00:56:44
writing template there and I will have more Grant stuff out and Mell thanks for being here I appreciate you being here live um it's good to have you okay I am going to drop off now thanks everybody for being here again uh and yeah we'll talk to you next week and and help you out along your path make sure you join so you can answer ask any of your questions I'll help answer them and help you move things along thanks everybody and we'll talk to you next week