Build a Profitable Residential Assisted Living Business While Making a Real Difference

The average in America today is $5,900 per month for a private room in assisted living. That includes everything from Medicare, Medicaid, to the highest privately paid. The idea of $5,900 is average but you’re more than likely going to be above average. You wouldn’t want to put mom in an average place, when you pull up you don’t even want to slow down the car.

Average or above, so $5,900 to $7,000 a month is what people pay for private assisted living homes. That’s the sweet spot, that’s the focus, that’s what we teach people how to do. That’s what you should plan on paying if you’re going to move into somebody else’s home. If you want to live for free, start your own home.

Five, six, $8,000 a month, that’s a lot of money. How do people afford it? We don’t focus on Medicare and Medicaid. We focus on private-pay, so whether it be longterm care insurance or an individual’s income stream from their pension, social security, or liquidating assets — like their own home or other assets and investments — to pay for their assisted living. This is what people typically do for assisted living.

Even if there is a senior who doesn’t have access to those assets, it’s their kids who are taking care of the costs.

So, how do people afford it? Frankly, they take care of it any way they can because they love mom and dad. The seniors we serve have families who make sure their parents have the very best care.

Yes, you can! We show our students how to do RAL with their own money or how to use other people’s money. When you think about it, borrowing from a bank is borrowing other people’s money. When you bring in outside lenders, investors, or private individuals those are all options utilizing other people’s money.

A lot of times people will think, “Oh, I have to have skin in the game,” and they believe they have to have their own money in. That’s not how we think about it. If you’re putting in the time, the effort, you have the plan, and you’re willing to do the work, you’re putting a lot of skin in the game.

Others have the money and are looking for something or somebody to invest in. That can be you! But you need to know what you’re doing. That’s where we come in. We’ll show you exactly what to do — whether using your own money or someone else’s. The choice is yours. You decide.

You have a home now — can you use it as a residential assisted living home? Maybe yes — but just because you could doesn’t mean you should. The biggest and most important piece of this puzzle is location, location, location. Is it near the right people? Is it near the right demographic?

If it’s near a college campus where the average age is 30 years old and these 30 year olds have parents in their 50s and 60s who are not in assisted living, that’s not an ideal location.

However, if your home is in an area where the average age is 50-60 years old and their parents are 80 and 90 years old, that’s the right neighborhood.

You’ll then want to look at economics. Are the residents in the area middle and below or middle and above? A successful residential assisted living property will want residents in the upper middle income, making location critical.

You don’t need to worry about the home structure, itself. We can scrape it away and build it new. It’s the location that we want to be certain is a fit.