In this episode of the Assisted Living Investing Podcast, host Brandon Gustafson explores the profitability of operating a six-bed assisted living facility. Brandon provides a detailed financial breakdown, analyzing key expenses such as labor, insurance, utilities, food, and debt service. He discusses the importance of understanding income projections, managing vacancies, and whether being hands-on as an administrator can influence profitability. Additionally, the episode offers practical advice on market research, securing funds, and the foundational steps required for launching an assisted living business. This episode is invaluable for beginners looking to navigate the complexities of assisted living investments.
00:00 Introduction to Assisted Living Investing
00:22 Is a Six-Bed Assisted Living Facility Profitable?
01:41 Understanding the Numbers: Income and Expenses
05:17 Labor Costs: The Biggest Expense
09:44 Other Major Expenses: Insurance, Utilities, Food, and Debt Service
16:16 Making the Numbers Work: Strategies for Profitability
23:14 Final Thoughts and Next Steps
23:35 Underwriting Assisted Living Investments
23:57 Launchpad Bundle and Free Resources
24:58 Adjusting Monthly Rent for Residents
28:13 Understanding Full-Time Equivalent (FTE)
30:30 Finding and Evaluating Facilities for Sale
33:14 Private vs. Shared Rooms and Administrator Roles
38:14 Handling Staff and Resident Challenges
41:46 All-Inclusive Fees and Caregiver Options
47:00 Finding Great Locations and Final Thoughts
Visit our website, AssistedLivingInvesting.net, for additional resources, including our year-long mastermind program and free underwriting calculator.
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Apply for the Mastermind today: alimastermind.com/application
Join the Bussiness 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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