Your Real Estate Skills: Your Ticket to a Profitable Assisted Living Business

Transcript

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Hey friend, have you been investing in real estate for a while and you're like, man, assisted living actually kind of sounds like a fun and interesting thing. I wonder if my skills would translate over into assisted living. Well, in today's video, we're going to answer that question, help you understand how those skills will actually transition into it, what it's like to get into assisted living, and just how to take your experience and bridge that over into assisted living. So, if you're

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interested in that, make sure you stick around for today's video. Hey friend, my name's Brandon Gustafson with Assisted Living Investing. I help first-time assisted living entrepreneurs launch profitable, purpose-driven businesses, creating prosperity, purpose, and peace in their lives. I love coaching and helping people and would love to help you do that. If you're interested in learning how we could work together, just type in roadmap down below, and we'll make sure you have a link to the

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next roadmap challenge. So, roadmap down below, we'll send you a link, and I'll see you inside the next challenge. With that, let's get into today's video. So, today we are talking about how your real estate skills are going to transition you into getting into assisted living. And I really want to talk to you about how specifically those skills that you have can transfer to assisted living. I think there's a lot of similarities here uh because of the real estate component to it. There's some complexities that I

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want to make sure you're aware of that. Um we're also going to talk about how this is more than just an evolution, you know, changing from, hey, I'm doing this and I'm evolving over here to assisted living. This is kind of a reinvention of the way that you're going to do things with your business, and I want to make sure that you're not going into this blind. That it may take some a bit of a reinvention on your path to launching your assisted living business, and how to bridge your investing experience into

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healthcare profit. Like the profit that comes from running a business, running a healthcare business, how to bridge the gap, and go from over here I'm making, you know, a few hundred dollars a month on my single-family rentals all the way over to something where I'm making thousands of dollars per month through my healthcare business, and it's pretty cool uh Uh to take you through that. And I want to take you through some strategic moves for some of the more experienced investors. So, you know what

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to look for as you're making this shift over into assisted living. So, you don't go into this blind. So, let's talk about some skills that are going to kind of directly transfer. One of them, a big one, is going to be your data analysis skills. So, if you love the underwriting process, you love kind of going through this at the beginning, making sure you've got the right property in the right spot, you do the market research, you got all those things honed in, and you know how to underwrite,

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this is going to be great for you. Because one of the things that I teach you to do is build a foundation first. A big component of doing that is underwriting. A big component is market research. And then you need to have a business plan, which may be something you did when you first started your real estate investment, maybe you didn't. But I highly encourage you to do that. That's what I call part of the foundation first phase of starting your assisted living business. You need to build a strong foundation. So, if you

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have done that in any capacity in your real estate investments from the beginning, you're going to love it. And this is going to translate super well for you to get in there. If you need some help and some guidance on how to do underwriting for assisted living, just type in calculator down below, and we'll get you a link to our underwriting calculator. It's a great tool. It's free. Uh you can use that to help you kind of move things along and make the changes that you need to make in the way

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that you underwrite and understand the things that you need to understand so that you can ensure that you're going to be profitable. Again, just type in calculator down below, we'll send you a link for it, and help you get started from that standpoint. But the underwriting fundamentals you're going to go through are the same, right? You're going to have your income, you're going to have your expenses, and when you minus your expenses from your income, that's going to tell you how

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much profit it is. At its core, it's that basic. And so, I want to really try to simplify it. That the skills that you have in doing that, it's going to work for you really well. What you're going to see from a revenue standpoint is this is going to shift from what you do now, which is like a revenue per door, it's going to shift and it's going to be called revenue per bed is what you want to be looking at. And rather than like cost per door, you're going to be looking at cost per bed when you're

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looking to buy things. So, very slightly different terminology. You're looking at things slightly differently, but overall it's going to be very very similar to what you're looking at. Your expense ratios are still going to determine your profitability. So, whatever your expenses are, if you can reduce those expenses, then you're going to have more profit. Or if you can increase your revenue while keeping your expenses the same, you're going to increase your profits. It's very similar to the way

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that that real estate's going to work for you. So, at its core, these are very basic universal principles. So, it's not that hard. So, don't get like too scared when you look into this. There's more expenses for sure. I have what I call the WIFE'D expenses. If you want to learn a little bit more about that, just type in WIFE'D w i f e d down below. You're married to them, you're going to have these expenses. I want to make sure you know what they are. Wages, insurance, food, energy, which is like

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your utilities, and your debt service. And I have videos that kind of go specifically into those things. We'll make sure we get you over to those videos. And we'll just like link one up above as well for you. So, you can go watch that. But when you have an understanding of what those look like, it's going to help you kind of move forward with some clarity, with some confidence, knowing that hey, I can do this. I can make this shift. This is possible for me. It's going to be okay.

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And when you start doing that and you start understanding those expenses, understanding how the revenue's going to work, that's going to allow you to see the cash flow potential. And I think you're going to be blown away when you use that on the running calculator. Again, type in calculator, we'll get it over to you. But you're going to be blown away by the income earning potential that you have here in assisted living. The numbers are large. They're much bigger than you

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would see in single family home. They're more similar to what you would see inside of a multi-family or apartment type opportunities with one house, right? So, this is an incredible with one smaller residential style building. You're going to be able to get a lot of that. And so, that's something I want you to understand as you get into this that like hey, this income earning potential is is pretty sweet. It's awesome. There's a lot there that you need to understand and grasp, but it's

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going to be pretty cool. And I think that because you are doing real estate, you've kind of developed this mindset around like risk assessment and that's going to benefit you a ton as you start looking at assisted living because there's risk involved just like with any investment, you need to understand that hey, this might not work. I have had businesses fail on me in the past. Not my assisted living business, but other businesses and it has opened up my eyes to what I'm willing to accept from a

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risk perspective. And that I think is really important. A skill that is going to benefit you quite a bit as you start looking at getting into assisted living. So these are all like really really good things. Skills that you've developed and you're in a much better spot to move forward. I'm also going to say that market research is still going to be something that is just very beneficial for you. You know when you are looking at real estate that finding the right market is is so important like location, location,

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location, right? It's the same thing in assisted living. You need to be doing your market research. You need to be paying attention to the different markets, the different locations that exist inside of just like the ecosystem inside of the community where you're going to be located. It's going to benefit you to be in a spot that's easy to get to and maybe it's close to hospitals or close to restaurants or other amenities like maybe a rehab facility or those types of things. going

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to benefit you to be close to those. It's not necessary, but it can benefit you. So the closer you are to those places, the better off you're going to be, right? So the more you are the more comfortable you are doing market research and understanding that, the better off you're going to be. What shifts a little bit here is you need to spend a lot of time understanding the demographics. What population do you want to serve? Is it elderly? Great. What age? Do you want to work with only women? Do you want to

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work with you know like having a coed type of a facility? Do you want to work with a mental health population? Look at those things, and then you want to dive deep into figuring out what those are going to look like. I actually have uh take my quiz, we'll have a link down here, ALIquiz.com, or scan the QR code, either way, uh it's going to get you over to looking at that and and seeing which of my programs is going to be best for you. But, inside of my coaching programs, the Launch Accelerator or the Success System

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program, I have my market research guide where I go and do the market research, like 90% of it for you on an annual basis, and we really put a lot of time and effort into making sure that we understand exactly what's happening in the different markets, so you know what to expect with the different populations you're looking at, and I give you a lot of the details on how to go and grab specific market data for the groups that you're you want to be working on. So, go check that out, take the quiz,

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ALIquiz.com, scan the QR code, uh see which of my programs is a good fit for you, and get in and take advantage of that cuz that's going to help you out a ton as you're moving forward with this. So, those demographics are really going to help you determine if there's going to be demand for your facility or not. Something we are seeing though, which is really incredible and why I think assisted living is going to be a huge thing for decades to come, is the population that is aging. So, there is

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what I call in my book the Profitable Assisted Living Facility. We'll have links for you down below, this is what it looks like. There we go, I got it in focus. You go to theALIbook.com, and I've got audiobook version, we have a workbook that goes with it, and you can get the book, all three of them, just theALIbook.com, links will be below on that. But, inside of there, I I have what I call the 5% rule, and it basically says, "Hey, 5% of whatever population I want to serve, let's say

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it's people that are 80 years old or older, uh that's the population I want to serve, 5% of them are going to need assisted living services." Okay? And and so, if there's 20,000 people in a given area that are meeting that criteria, then a thousand of them are going to need assisted living services. That's 5%. Now, from there I can look at it and be like, okay, how many facilities, how many license, how many beds are are already licensed in that area? Are they residential style or they commercial

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style? What's out there? And that's going to help me do my market research to see. And what I will tell you is in almost every single market, you're going to find that it's pretty good market for assisted living. There are very few, there are some, but there are very few markets where it's over saturated. And nationwide, there's a huge deficit. Like just a massive deficit and that's only going to grow in the years to come as the aging population continues to age, the acceleration of that that

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population aging and the amount of beds we have today versus what I think is projected to happen in the future. It it's it's just pure economics right here. Supply and demand. There's going to be way more demand than there is supply and that's just going to benefit you as a business owner more because you're going to be able to charge premium rates to bring in good residents that need the service. And it's it's going to be pretty awesome for you. Um so, make sure you're paying attention

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to that as well. It's an incredible opportunity to jump in right now into assisted living. You should really be considering it because I think it's an incredible opportunity. I really really do. But your location is still going to determine your competitive advantages and the way that you're going to market yourself and how you're going to portray yourself in the community and what types of amenities and types of other perks that they have based off of where they live and and those are things that you

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want to leverage. And your income levels in those different demographics are also going to kind of determine your pricing strategy. If you're going to be working with a Medicaid population versus private pay versus like super high-end private pay. Uh and so, you want to be paying attention to those things and seeing what those rates are and getting comfortable with them. That's where the calculator is going to come into play and helping you figure those things out. So, market research is key and this is a

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a skill that I would think and hope that you have developed as a real estate investor, and that's going to play into your success as an assisted living owner and operator, as well. The financing knowledge that you have as a real estate investor is also going to be so beneficial. For those of you who are my nurses that are watching this that don't do real estate investing, type in nurse down below cuz I love talking with you all. But, like to be frank, and I I think you all would admit this as well cuz this is

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something I see in my Road Map Challenge, is those that are not real estate people, the funding piece of it is the thing that is like, I can't figure out the funding. I don't know how I'm going to do that. I don't know how I'm going to get around it. My real estate people, and if that's you, just type in RE down below, you all are like, man, I'm not worried about money at all. I could raise funds like it's nothing. There's so many different opportunities, so many

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ways to get into this. That is a huge benefit for you as you are getting into assisted living, that you know how to raise those funds. One thing that is probably different for you than what is typical is you're going to have access to SBA loans when you get into this world, and whether that's something you're going to start out with or refinance into something that I think you should be considering and get familiar with because it's a great option. It's probably a better option

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for you to refinance into an SBA than just like a traditional mortgage. You're going to get better rates and better terms than you would by going into a traditional mortgage, but maybe you still want to start off with doing some hard money to get into the home and then flip it and refinance it into something like an SBA or even a HUD loan um as you get into this. But, uh that's something that I want you to be aware of, that these are different loan products that you have access to that you're probably

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not going to get access to in traditional assisted living. So, it's pretty cool that you have access to that. The creative financing strategies that you have learned and have been using throughout your journey, they still apply here in assisted living. And in my Road Map Challenge, we go through what I call the Cash Compass, where I teach you a little bit about those funding strategies and how you can leverage multiple of those strategies to help you catapult yourself into getting the funding that you need. So, again,

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type in roadmap down below, we'll make sure you have links to get into the roadmap challenge. I would love to see you there. But, you can leverage the increases that you're getting here in your assisted living facility, I think more so in this business than you can in others, to catapult yourself into further growth and to really scale your business. In single-family rentals, it can be really hard to add more doors and it's kind of a bit of a slog and that's why a lot of people they give up or they

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just stop after they get, you know, five to 10 houses because it's just hard to add that many houses and to manage that many houses. But, in assisted living, you can create that. You can create these policies and procedures, your SOPs, and really create a business that can scale and grow with you. And then you're taking the income because it's so much more than you would get in single-family homes and you're setting some of that money aside to then add to the next one. Or, you have stabilized

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the your profits and you have your policies and procedures and now you're able to go to other investors or maybe start a syndication and you're able to bring in more people into the fold and help you really accelerate the way that you're doing this. Or, maybe you're going to add larger facilities. You know, you start off with a 10-bed and then you're like, you know, now we want to do a 50-bed and we do three 50-beds and now we're like, "Shoot, man, we're going to do a 1,000-bed complex and

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we're going to do a huge one." The ability to scale and grow is there because it it's not like real estate where single-family and multi-family is this is quite a bit different when you're going from 10 beds up to hundreds of beds, the process is going to be very similar. The licensing process, the staffing process, it grows, yes, but it's it's going to be a very similar asset class and so that's something that's really really cool about it. And then your business valuation

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is going to impact your lending structure as well. So, the more that you can show that your business is profitable, the more you're going to be able to leverage that with lenders, with banks, and that's going to lead to more opportunities to get the funding that you need. So, it's just a really cool opportunity that a lot of people don't see because it's just not like super readily apparent, but it's going to open up a lot of doors for you. And if you are familiar with some of these creative

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financing strategies, you're going to be really successful when it comes to this and getting started in assisted living. It's going to help you out a ton. Now, the big thing that I would say is a difference here is operations for this business. It's like the key difference. You are running a business. There's licensing and compliance that you need to deal with, and that can be hard. It's going to require systems and processes. The cool thing is it's kind of forced upon you when you become a licensed

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facility. You're going to have to create policies and procedures. Like it's part of the process of getting licensed. So, they're taking like what you would learn in the E-Myth book by Michael Gerber, they're taking that process, and you're just like you have to create those to get licensed, and now you have them. And so, you can use them. You have policies and procedures. You have the standard operating procedures, and that's going to allow you to be successful because you have those systems and processes in

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place, which is what we all know we need to have a successful business, and sometimes it's hard to take time to create that. In assisted living, you're kind of forced, for lack of a better phrase, to do that from the beginning, which is really kind of cool. Your staffing as well as huge. Like it's your biggest expense. You need to figure out how to find and hire good staff. You don't have to do this all by yourself. I own a facility in Idaho. I owned one in Colorado, and I live in Utah. I do this

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out of state. You can do it wherever. I have a background in health care, but my dad, who's my business partner, works in the construction industry for a big electrical contractor. Doesn't have that experience. And so, you don't even need the experience. It can help, for sure, but it's not absolutely necessary for you to have that experience to get into assisted living, but you do need to understand that staffing is important, and if you are not going to work in the business, you need to hire good people

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that can take care of a lot of that stuff for you. Super, super important. So, staffing is going to become your operational backbone if you're going to be successful. The care quality is also going to determine your long-term occupancy and really your long-term value and revenue in in the business. So, you cannot do this. If you're doing this for just for the money, stop. Like, you can't do this just for the money. You're not going to be successful. Like, you could be somebody that's like,

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"I'm going to be the strategic capital partner for other people and I'm going to get them the money and and help them through the process and they're going to do it and they care about it and they're going to make sure everything works well." Sure. That That's fine. But, if you want to be a little bit more hands-on and like do this yourself, there has to be a deeper why. And we talk about this in the roadmap challenge. So, again, type in roadmap, we'll get you the the link

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to the challenge below in the comments. But, it is so important for you to understand that you have to have a passion and have a desire to really help these people out because it it is their life. You're impacting the lives of your residents, your staff, your residents' families, your staff's families. Like, you have a lot of people that are relying on you and that's a lot of pressure. And And so, you just need to understand that going into it. But, when you provide high quality of care and a high quality

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experience for your staff, man, there's like nothing better. It's such an incredible opportunity and an incredible experience. I love it. And when you do those things the right way, you're going to be so so much more successful and that is just going to be so rewarding. So, uh just make sure you take advantage of that, but be aware of it before you get into it. And the other thing I want to say is something that's cool here. There's an extra barrier to entry when it comes to this. And so, you want to be

00:19:06
aware of this. You're dealing with health care and the regulations, right? That means not everybody's going to do it. That means statistically, you watching this video, thank you for watching it by the way. Make sure you like the video, subscribe, ring the bell as well so you get notified every time we put out content. It's going to help you out a ton. But statistically, I know that you watching this are probably not going to take action on this. I'm just being honest with you. Um

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and you're going to lose out on a ton of opportunities. And that's because there's this extra barrier to entry to getting into this. And if you really want to be successful and you want to progress, then you got to kind of get beyond that. And you've got to learn how to create these systems and processes, learn, and not be scared of the staffing and the residents and and all the things that are there. Because most people are they're not brave enough to make the leap. And I think you should.

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I think it's a a great opportunity. I think you can be really successful. I think you can make a difference in the lives of dozens, hundreds of people during the time that you were doing this. And it's incredible. So, I think you need to take action. Like I'm just having some real talk here with you. If this is like speaking to you and you're like, "You know what? I I do. I need to take some action." Then type in roadmap down below. Take the quiz, AL IQ quiz.com. We'll have the

00:20:24
QR code for you there. But you've got to start taking action. Like you're stuck in the spot where you're just like, "Man, I I love real estate. I love investing. It's kind of been a slog or or making a few hundred dollars a month. But I I Yeah, assisted living sounds really cool. And I'd like to make some progress there, but I just don't know how to get started. Like those rules and regulations, they scare me." That's what I'm here for. I'm here to help you out

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with that. I'd love to help you and guide you and give you some pointers and and make sure you're not making mistakes as you go through this process because this industry needs people like you that know what they're getting into. And like it's just such a great opportunity and I don't want you to miss out on it. So, I Yeah, I I I I don't know. It makes me a bit emotional because I know the impact that you are going to be able to have on on this world and I want to help you do

00:21:15
that. Like whether it's me or somebody else, I want you to be able to have that for yourself because it's just such an incredible experience. So, I hope you take advantage of that and you know, if that's you just type in me down below. I will make sure I get you the links anyways. It's just like me. Like you're speaking to me. Just type that in down below. We'd love to see you there. So, the big takeaway from today is the work that you have been doing in assisted living. Like they give you so many

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advantages here that you can leverage in the world of assisted living. And I think you're going to be really successful as you add and and gain more operational expertise, it's going to unlock some profitability for you. The likes of which you probably haven't seen in your single family investing. The world of assisted living is also going to multiply returns 5 10 20 X over what you would see in typical traditional real estate investing and it's pretty cool. And there's a lot more that goes

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into it. It's hard, but if that's what you want to achieve, then this is the right business for you and I think it's going to allow you to be successful. The complexity in here does create that extra barrier to entry and I know statistically most of you watching this video aren't going to do it, but if you are going to do it and you're committed, type in me down below so I can give you some guidance and help you out and and help you start taking the right actions and and help you start

00:22:34
making some progress in here because that strategic evolution you're going to make is going to create time and financial freedom for you. It's going to allow you to have this incredible impact in your community, but it's going to help you build a legacy for the people in your life. And it's just pretty cool. So, I hope you liked this video. I hope you enjoyed watching it and sorry a little bit more serious at the end there than I had anticipated, but yeah, if you liked it, make sure you hit like the button, you

00:23:03
know, hit that thumbs up. Subscribe, ring the bell so you get notified of whenever we put out content like this. We go live on Tuesdays and put out content on Thursdays. And we're I'm here to help you out along your path, along your journey to launching your assisted living business. I mentioned at the start of the video and a few times throughout the road map challenge. This is, you know, type in road map, we'll get you the links or just go to roadmapchallenge.com. But this is a live

00:23:23
coaching experience. If you get the VIP ticket, you can ask me whatever questions. I'm an open book. Can help you out through the process and help you launch your assisted living business. See if this is a good fit for you before you really fully commit into it and know, hey, yep, this is what I want to do. I want to make sure you have that background. And that's what we do in the road map challenge. So, go check it out. roadmapchallenge.com. Just type in road map or take the quiz, ALI quiz.com, scan

00:23:46
the QR code. 30-second quiz will tell you which of my programs is the best fit for you and to help you out as you're trying to figure out where you want to go. Are you curious about assisted living, but you're just not sure how to get started? At Assisted Living Investing, I help first-time assisted living entrepreneurs launch profitable, purpose-driven businesses, creating prosperity, purpose, and peace in their lives. I love doing it and would love to have the opportunity to coach you and

00:24:07
help you out and move you from I don't know how to get started to I'm making 10,000 plus per month in this business and having this incredible impact. And if that's what you want, then, yeah, come check it out. I would love to have you in the road map challenge. And I just want you to remember as well that it doesn't take a lot. It's just a little bit. Just keep going. Step by step by step and I promise you if you do and you are consistent and persistent, you're going to be successful. Thanks

00:24:31
for watching and have a great day.