The Truth About Funding Your Assisted Living Business!

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Starting your residential assisted living business can feel exciting... until you hit the big question:

How do I pay for this?

If you’re stuck wondering how to fund your assisted living business—you're not alone. In this post, I’ll break down the truth about funding, share real numbers, and give you clear steps to move forward.

Let’s get into it. 👇

Check out this video, too:

Why Funding Feels So Hard

Funding your assisted living business is one of the hardest parts for beginners. Maybe this sounds familiar:

You don’t have enough for a down payment.
You don’t even know where to find a lender.
You’re unsure if you’ll even qualify.

If that sounds like you, take a deep breath—we’re going to walk through all of it, step-by-step.

3 Main Ways to Fund Your Assisted Living Business

1. SBA Loans (Small Business Administration)

SBA loans are one of the best tools for beginners.

✅ Lower interest rates
✅ Long repayment terms
✅ Can be used to buy a business and real estate
✅ Often include operating capital

Some lenders may say 10% down, but plan on 15% to 20%.

If you’re buying an existing facility or want funding for both real estate and business operations, SBA is a great option.

2. Conventional Mortgages

This works more like a regular home loan, but it gets tricky because this is a business—not your residence.

Most conventional lenders treat this as an investment property, and that means as much as 25% to 30% down.

Also, unlike SBA loans, conventional loans won’t give you operating capital. You’ll need a second loan or personal savings to cover those expenses.

3. Hard Money or Private Loans

These loans can actually be super helpful.

Hard money is best if you:

Can’t qualify for traditional loans yet
Need short-term funds quickly
Plan to refinance later with the SBA once your business is up and running

Terms are usually 12–24 months, then you refinance.

Loan-to-value ranges from 70% to 100%, but you’ll likely need 20% to 30% down.

Where Do You Even Find a Lender?

Here’s how to take the guesswork out of lender shopping:

✅ 1. Use a Lending Broker

A great broker can help you:

Save time
Shop multiple lenders
Find creative financing options

✅ 2. Do an Internet Search

Search for SBA lenders in your state or other related terms. You’ll likely find a registry or list of active SBA lenders. That will give you a place to start reaching out.

From there, you start sending out your business plan and making connections.

✅ 3. Talk About What You’re Doing

Post about your goals. Join a Facebook or real estate group. Attend meetups. Or, just talk.

You never know who’s listening or who they know. Someone in their network might have the funding help you need.

How to Qualify for Funding 📝

Lenders want proof that you have a solid opportunity. Here’s what to prepare:

🧱 Build a Solid Foundation

You need a business plan. You need to know your underwriting.

Lenders expect:

✅ 24–36 month pro forma
✅ Business plan
✅ Clear profitability path

💡 Don’t have that yet? Download my Business Plan Checklist to get started.

📁 Gather Your Documents

Set up a Google Drive folder and keep these ready:

Personal bank statements & tax returns
Seller’s financials (if buying an existing facility):
- P&L
- Rent rolls
- Balance sheets
- Property tax docs

This will save you a ton of time when lenders request them.

💳 Know Your Credit & Build Partnerships

Lenders will check your credit. If your credit isn’t great, build a partnership with someone who has strong credit to improve your chances.

What About Grants?

Grants sound amazing—but they’re rarely the full answer for beginners.

Grants work best if:

You already own the property
You’re a nonprofit
You’ve been operating for a while
You need funds for renovations, improvements, or specific programs

Grants are a great supplement, but not a reliable primary funding source for startups.

💡 Want help understanding how grants actually work? It’s all inside the Launchpad bundle.

Final Thoughts 💡

Funding your assisted living business can feel confusing—but now you’ve got the roadmap.

Here’s what to do next:

✅ Choose the right funding path (SBA, conventional, or private)
✅ Build your foundation—your business plan and financial model
✅ Start reaching out: lenders, brokers, social media
✅ Don’t wait for “perfect”—take the next step

Free Resources to Help You Start Today

🚀 Need a business plan?
Download the Business Plan Checklist to get a step-by-step guide for building your assisted living foundation.

👥 Want help from an expert?
Join the Assisted Living Investing Mastermind for coaching, community, and support to launch your assisted living business in the next 12 months.

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