The Wonderful World of Assisted Living
Real estate investing is rewarding for a number of reasons. Financial freedom, wealth-building capabilities, and flexibility are all awesome, but what about helping others? Many of us enter the industry for that exact reason, and Jared Addis is a fine example of this. A veteran of the Marine Corps, Jared now owns Serenity Senior Living, a Type B Assisted Living Facility, with his wife, Kate. Assisted living is an incredible area of real estate with great potential for growth and the reward of helping one of society’s greatest treasures: the elderly.
Since this is such a unique area, investors may not have a great understanding of where to start. According to Jared, it’s best to check with local regulatory bodies to determine which homes on the market might qualify for the standards for becoming an assisted living facility. Oftentimes there will be several real estate investors in your area who specialize in selling licensed assisted living facilities. Checking with them can be a great resource.
In terms of neighborhoods, it’s best to seek out areas that look and feel authentically residential. Older folks don’t want to live in an institution; they want a home. Look for nice neighborhoods where a house with a two- or three-car garage could be converted relatively easily. States like Florida and Texas are good targets. Texas allows a maximum occupancy of 16, while most states generally only allow 10 to 12. There aren’t any magic answers; using common sense is the best way to find neighborhoods that will be ideal for assisted living.
Making a Home
Like I said before, the most important part of assisted living facilities is how much they feel like home. This means your residents should be able to do things like garden, cook meals, take strolls outside, interact with each other, play the piano, or even swim in a pool. Jared’s “avatar”, or ideal resident, is one who wants all of these things and has the personality to make that happiness happen for other residents.
Timing in any real estate market is significant, and with the special considerations involved in assisted living, things are a bit different. Some people might acquire a ton of properties at once and get to work on all of them after negotiating the best deals. Jared, on the other hand, sees every investment in assisted living as a long play. He spends very little time negotiating so he can get to work making buildings into homes right away. By putting all their love and energy into the homes they buy, Jared and Kate can attract the best residents.
This attraction can’t happen without marketing as we all know. For Jared, this means doing renovations to attract attention. He piques people’s interest via Facebook (old people use it too!), Chambers of Commerce, flyers, and word of mouth. Throw a big party for the grand opening of the facility and invite potential prospects. They’ll begin to spread the word, and before long, you’ll have a bustling new facility full of excited, grateful tenants. You’ll be making a profit and, on top of all that, you’ll be making a difference. That’s a slam dunk!