Episode 112 | When Assisted Living DOESN'T Make Sense

In this episode of the Assisted Living Investing Podcast, Brandon Gustafson breaks down when investing in assisted living doesn't make sense—and how to fix it. He explains why small facilities (under six beds) often struggle financially due to staffing costs and low occupancy, and offers practical strategies like increasing bed count, charging market rates, and using conservative underwriting. Brandon also shares tools like his free underwriting calculator and business plan checklist, and encourages listeners to join the ALI Basics community for step-by-step support. It's a must-listen for beginners who want to avoid common mistakes and build a profitable assisted living business.

00:00:00 – Introduction
00:00:16 – Topic Introduction: When Assisted Living is a Bad Deal
00:00:40 – Understanding the Numbers Behind a Losing Deal
00:00:53 – How to Adjust and Make Assisted Living Work
00:02:36 – Breaking Down a Financial Scenario
00:03:52 – Challenges of Small Facilities (6 Beds or Less)
00:04:21 – Detailed Expense Breakdown
00:05:17 – How to Fix the Numbers: Charging More
00:06:40 – Occupancy and Realistic Underwriting
00:08:20 – Alternative Fix: Increasing Bed Count
00:09:08 – Room Size and Regulations
00:10:12 – Comparing Scenarios: Small vs. Large Beds
00:11:02 – Staffing Ratios and Costs by State
00:12:39 – Charging Higher Rates with More Beds
00:14:06 – Importance of Number of Rooms
00:14:58 – How Residents Pay: Medicaid, Reverse Mortgages, Family Support
00:15:28 – Value of Assisted Living vs. Home Care
00:16:52 – Steps to Succeed in Assisted Living
00:17:34 – Importance of More Beds and Charging Market Rates
00:18:13 – Avoiding Financial Pitfalls: Underwrite Before You Invest
00:21:22 – How to Pay Your Team: Payroll and Gusto
00:22:08 – Closing Remarks

Resources Mentioned:

Visit our website, AssistedLivingInvesting.net, for additional resources, including our year-long mastermind program and free underwriting calculator.

Get your free business plan checklist today: https://urlgeni.us/alibpc

Learn about the Assisted Living Basics: https://www.assistedlivinginvesting.net/basics

Learn about the Assisted Living Investing Mastermind: assistedlivinginvesting.net/mastermind

Apply for the Mastermind today: alimastermind.com/application

Join the Business Foundation Basics Workshop: Assisted Living Business Foundation Basics

Learn the five steps to help you start an assisted living business: https://youtube.com/live/dRVCa80SOyM

Get the 12 Week Year Book: https://amzn.to/4bAOpQf

Marketing Made Simple by Donald Miller: https://amzn.to/3ECoNY5

Who Not How by Benjamin Hardy : https://bit.ly/whonothowbooklink

Courses:
- Do you need guidance on your journey to launching your assisted living business: https://urlgeni.us/aliala
- Do you need help building your business plan: https://urlgeni.us/alibpg

FREE Resources:
- Business Plan Checklist: https://urlgeni.us/alibpc
- Calculator: https://urlgeni.us/alicalc
- Lease Agreement Template: https://urlgeni.us/alila
- ProfitPath Analysis Tool: https://urlgeni.us/aliprofitpath
- Grant Writing Template: https://urlgeni.us/aligrant
Need help with your payroll? Get Gusto: https://gusto.com/i/brandon9590

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