Is Assisted Living a Good Investment?


One of the biggest wonders of those looking to enter the seniors housing industry would have to be, “Is it worth it?” Most investors will agree that it certainly is.


The amount of assisted living facilities for sale in today’s market includes many that are already performing well and offer a quick turnaround investment. Generating cash flow will require more than just the acquisition of a senior living property.


The Key to Success: Boots on the Ground


Although most assisted living facilities that are up for sale will include a full staff, it does not mean that you are purchasing a guaranteed recipe for success.


It is important to keep the operational teams for assisted living homes that are currently doing well, especially in the transitional phases of acquiring these facilities. The true value of your assisted living facility will come from the managers and staff who run the daily operations.


Keeping an existing staff does not guarantee the continuation of good performance. There have been times in the industry when the staff has had difficulty acclimating to the changes in the standards and culture in facilities under new management.


This is when it is suitable to remove individuals who do not contribute to the livelihood and success of your assisted living facility.


Assembling the right staff is considered to be more important than the building and the seniors housing market itself. It is worth taking the time to choose a staff that has the potential to drive your investment into the future.



New Investors, Greater Returns


The seniors housing industry has grown into an institutional asset class of its own. The size of today’s market allows both new and old investors to get in the game. Newer investors have the benefit of well-documented business models that can be used as a formula for their investments.


The biggest benefits come to veteran investors and operators who are involved in long-term relationships with the same facility.  Having this experience and know-how will provide a continual cash flow for investors in a market that is currently experiencing record valuations for long term asset holders.


Several elements differentiate assisted living homes from skilled nursing facilities. Investors that have experience in skilled nursing facilities can expand their portfolios by looking for private pay revenue sources by acquiring assisted living properties for sale.


You can generate revenue from two separate sources by diversifying your portfolio. This is a necessary move that will allow you to work with skilled nursing facilities that survive on government reimbursement and revenue from private pay sources that are provided to assisted living facilities.


Today’s Best is the New Norm


These strategies and fundamentals are concrete as ever and will provide structure and guidance for investors in the years ahead. The demand for such acquisitions is powered by the high volume of seniors that need assisted living care. This demand alone should set any uncertainties at ease for investors looking to get into the assisted living facilities market.

People should not be discouraged by the high pricing of seniors housing investments because a chance that is not taken is an opportunity that is missed.


An experienced seniors housing living brokerage should be contacted if you are serious about investing in assisted living facilities. Specialists with The Stahler Group at Marcus and Millichap can offer expert services which include a complimentary valuation. Arrange a meeting with one of our specialists and find out how we can help you.