By , the population over 65 is projected to exceed the population under In addition to the large quantity of baby boomers, major strides in the economy and in healthcare have increased longevity and quality of life, creating an aging population that is more active and often continues to work beyond typical retirement age. These facilities can vary widely with regard to location, layout, size, and property management model.
They can be directly connected to a medical center which provides staff members for training and professional work. Alternatively they can be operated by a private company employing licensed healthcare professionals.
Other staff may include administrators, activity directors, and maintenance and janitorial support. There is a spectrum for the level of care provided in the four major types of ALFs:. Update : Big box facilities are suffering badly nowadays in the wake of the Covid virus. Finally, as I always say it, the diversification of investments is key. Hence always looking at various investments types and adding new ones to your investment portfolio should be one of your investing goals.
This article is written in collaboration with Krista Kennedy. Private Equity meets Stock Market In this article, I will explore options for wealth-building, as well as how to best Pros and Cons of Investing in the Self-Storage Investing in self-storage facilities is a lucrative venture for real estate investors Deciphering Syndication Investment Terminology So, you are at the point where you finally received your first Executive Summary also known What are various apartment asset classes When searching for a multi-family home or apartment, or whatever other type of real Five reasons why I like investing in apartment complexes There is no safer way to build your real estate investment Are compound and cumulative dividends the same thing?
How do I define a value-add opportunity in a multifamily building? There are several different strategies available when it comes According to US Census data, it is estimated that by , senior citizens will make up roughly 20 percent of the population.
Ignoring these realities, or not fully exploring them mentally, or even spiritually before making the commitment can, and will most likely lead to failure.
Embracing these realities, working with and internalizing them will help you with your success. I am making the assumption, too, that most people reading this are looking to open a smaller, residential home. Larger, more corporate facilities are usually owned by numerous people, entities, and their staff are paid employees, with no ownership. Large facilities, however, are where people often get the experience, and inspiration to go it alone, and open their own care home.
Often-times, these facility owners live in the same homes that their residents do, and attend to issues, demands, and crises 24 hours a day. The owners are the eyes and ears of the facility, and leaving the property, even for a day, or a few hours, can be challenging.
This can be a great, bonding experience, but it can also present many challenges for a relationship. Your residents will become like family to you, and sadly, there will be loss from time to time. Some people can handle witnessing such an event. Things happen, water-heaters break, and expensive repairs and state-mandated fixes or additions are all part of the deal.
Expect the unexpected, and although you will have a budget to work with, your numbers will be occasionally blown out of the water by pipes breaking on a holiday weekend, or several beds becoming vacant unexpectedly. The assisted living market is booming, and it seems like every time I blink, a new care home opens. Yes, it is all-consuming, and stressful, and leaves little scraps for you in terms of a personal life. However, the one thing that I noticed that trumps items above that I found that most of the facility owners and administrators I have spoken to share: A profound sense of satisfaction.
My number one tip for anyone thinking about embarking on the adventure of owning a senior care home: Hire, and surround yourself with awesome people that you trust, and care for. Knowing that if you have to leave your facility for a few hours, or to possibly take a day off — that business will be taken care of, and your residents will be in good hands. Your residents will become your family, and so will the people working for you, and with you.
I have nothing but the deepest respect for anyone caring for seniors, a family member, or a loved one, whether in a professional capacity or not. Your realities are spot-on, and if you can conquer those, it can be an absolutely rewarding experience and career. Then I think the potential business person needs to sit down with owners and look at what the business side of the work looks like. Remembering that no one is good at all things, I like your final paragraph about finding others who can handle different parts of the tasks.
Ann, thanks for your reply. I think you are so right.. Thanks for the comments David. I own a private home facility with 4 beds and have experienced personnel to assist me with getting it off the ground.
Therefore, asking for an opportunity to shadow sounds great, but a bit unrealistic I feel. Your thoughts are appreciated! Hi Celeste, thanks for the reply, and congratulations on getting your home off of the ground and running!
I think my suggestion of shadowing is still a good one, depending on where you live. I have found that many facility owners are very chatty and love to talk. Building that trust with them may take a few emails. But yes, if you are in a town or city with a tight market, it may not be as realistic unless you are willing to go a little further down the road.. If you plan on going into this field my best advice is that you take care of yourself.
It takes an enormous amount of energy and stamina. Good luck! Really great post. Just wanted to mention that if anyone is looking for a more contemporary take on assisted living services, you should take a look at Home Instead Senior Care. Home Instead is revolutionizing the assisted living and home care industries by offering unique in-home assisted living services. Now seniors can remain in the comfort of their own homes, and families can benefit from competitive prices for these wonderful services.
Great article! My husband and I are seriously considering opening an assisted living facility. I am a registered nurse and worked in a long term facility for 4 years. I am now currently a home health nurse. I see the great need for good and honest homes for our seniors and have a desire to follow our plan. God willing, we will be successful in doing do. Thank you for the tips. I will definitely keep them all in mind.
But with the additional income potential also comes additional risk and liability. Those choosing to manage and operate a facility should have a deep understanding of the laws, regulations, practices, and quality of care required to own and operate a well-run facility before getting started.
While this is first and foremost a real estate investment, it's also a business responsible for the livelihood of its residents. An assisted living facility is one way to invest in senior housing. This niche of the senior housing industry serves a specific clientele and requires significant knowledge, experience, and understanding to invest profitably while providing adequate and competent elderly care. As the aging population rises, demand for senior housing, including assisted living facilities, will grow with it.
Right now is a great time to get started in the senior housing sector. It's a matter of doing your due diligence on the various methods of investing and risk to reward associated with it. Our team of analysts agrees. These 10 real estate plays are the best ways to invest in real estate right now. Find out how you can get started with Real Estate Winners by clicking here.
Liz Brumer-Smith is a real estate investor and Millionacres contributor. Advertiser Disclosure We do receive compensation from some affiliate partners whose offers appear here. Millionacres Logo. Tax Deductions Depreciation Capital Gains. New York City Denver Philadelphia.
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