How To Open An Assisted Living Facility

Assisted Living Facilities Exit Strategies

Your ALF business can provide a sound financial future for your children’s children as they say in those snooty investments commercials. Buying selling and flipping houses as "regular" houses has gone away for a very long time.

Who knows, you may someday find yourself spending your final years as a resident-owner of your nicest ALF. What I mean is this, you may someday have to living in an ALF, so you might as well own it.

You may want to keep your ALFs as your exit strategy. Check into getting life insurance policies in amounts that cover any debt on the actual property. When you move into that great ALF in the sky, your ALFs are paid off, and your family benefits. Just don’t leave them to a dog. That’s just stupid.

These types of techniques are beyond the scope of this book, but I mention them to get you thinking. As you know, there are a million or so real estate investment technique website out there.

Once a house that’s being operated as an ALF pays off its own mortgage, it turns into a monthly cash flow and a big lump of equity in any market.

Paid-for real estate is not bad to own in just about any situation or market, especially if its been converted into and ALF. Assisted Living Facilitiess could provide employment for your family members. Maybe someone in your family is interested in health care or health care administration.

Flipping Assisted Living Facilities

Selling off profitable and operating ALFs is another exit strategy, if not a new business in itself when you get tired of operating them.

Even in a bad real estate market, selling an ALF is not as difficult, because you’re selling a service people need instead of selling simple real estate.

You may find that you like the process of converting single family residences into ALFs, and then selling them instead of running them yourself.

You can make a lot more money “converting” single family houses into profitable ALFs instead of “flipping” them to end buyer who are waiting for property to drop even lower although they can never get a mortgage.

ALF conversions are going to quickly become the new “buzz” technique in the guru community. Soon you’ll see knock offs of this book, but you’ll already have an unfair advantage and head start.

You’ll be selling operating ALFs instead of real estate, so today’s crappy real estate market won’t apply. You’re not in the real estate business anymore, remember?

You will sell your ALFs based on the amount of money they bring in vs. the expenses.

If you’re not a commercial real estate person, we call that a CAP rate. ALFs usually have high CAP rates by their very nature, so they are easier to sell than traditional commercial or residential real estate.

You can still use some of the real estate techniques you learned as an investor to buy and sell your ALFs. You can sell for all cash, or hold a mortgage.

You may even be able to lease option, or even rent your operating ALF to another “operator” if your state’s laws allow.

A Must-Read for Any Potential Assisted Living Facility Owner!