Should You Invest in Assisted Living Opportunities?
Investing in real estate is always a good idea. You own the property outright and you have the choice to rent or sell. With both options, you can easily make a profit. However, your profit will actually depend on the type of real estate you have selected. Most investors would choose residential or commercial real estate, as it is the most profitable.
The 2015 real estate market has a slightly better investment option says Jeff Adams. For investors who want healthy returns on their money, it is the right time to start investing in institutional nursing residences, senior living complexes, or assisted living business models. In 2015, these real estate investment options are appearing as the most profitable investment option.
Why?
The Baby Boomer generation (or the children born from 1946 to 1964) is aging. The first-children of the boomer generation began turning 60 in 2011. As a result, by 2010, there will be more than 79 million aging baby boomers. Over the next 19 years, more than 10,000 baby boomers will be turning 65 every day. This will account for more than 25% of the US population. Boomers are educated and intelligent enough to collect healthy nest eggs for their retirement years. As a result, market-savvy and prosperous seniors will need assisted living facilities and they will be more than willing to pay good money for the right community.
Making a Profit
For most real estate investors, it all comes down to make a profit says Jeff Adams #1 Real Estate Trainer. As a result, the investor may be accustomed to buying property and then renting or flipping it for a profit. Instead of doing that, Adams recommends buying and managing a senior care facility. It is not that simple though. There may be problems here for investors in the form of cost and choice. Even a small senior nursing home will cost anywhere from $20 million to about $50 million. This is not feasible for a small investor.
On the other hand, investors can think about buying several small one-family dwellings in up-scale neighborhoods. These homes should be single-level, single family residences with larger rooms. Jeff Adams also recommends buying homes that have extra bathrooms and attached garages that will allow expansion in the future. By buying multiple single-dwelling homes in an area, investors can rent the homes out only to seniors and turn the area into a community that deals exclusively with seniors.
Adams does caution investors about local zoning laws. For example, in California, state regulations regulate the number of units in an assisted living facility and their proximity to each other. Investors will also have to check and factor the cost of renovation and general accessibility into their budget before they invest in the property.
Too Much Work?
Adams points out that this may seem like too much work for an investor who just wants to make a profit. In that case, there are different levels of involvement in assisted living facilities depending on how much you want to invest and how actively you want to be involved in the everyday running of the facility.
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