RAL Operators?
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RAL Operators? (by Ray-N-Pa [PA]) Nov 30, 2021 7:11 AM
       RAL Operators? (by WMH [NC]) Nov 30, 2021 8:42 AM
       RAL Operators? (by Ray-N-Pa [PA]) Nov 30, 2021 9:01 AM
       RAL Operators? (by WMH [NC]) Nov 30, 2021 9:18 AM
       RAL Operators? (by Robin [WI]) Dec 1, 2021 9:17 PM
       RAL Operators? (by Ken [NY]) Dec 1, 2021 11:14 PM

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RAL Operators? (by Ray-N-Pa [PA]) Posted on: Nov 30, 2021 7:11 AM
Message:

I will be participating in a webinar tonight with someone who wants me to invest in their assisted living facility. For those who operate residential assisted living locations, what should I be looking for?

--24.101.xxx.xxx




RAL Operators? (by WMH [NC]) Posted on: Nov 30, 2021 8:42 AM
Message:

In the state we investigated (VA) codes were changed recently (last couple of years.) One suggestion for getting into the business is to buy an existing RAL. Well VA's code changes wouldn't allow that - an existing RAL was not grandfathered to the old codes if it changed hands.

It made it very tough for small operators. And RALs in general are on the radar everywhere so be sure the place you are looking at is conforming to the nth degree.

It's a booming business but while the numbers per bed looked good at first, we found that personnel costs could break you quickly. And that was before minimum wage changes were factored in. --50.82.xxx.xxx




RAL Operators? (by Ray-N-Pa [PA]) Posted on: Nov 30, 2021 9:01 AM
Message:

I have some more 1031 funds and I wondering if this might be a good way to deploy them. I would not be picking up the business aspect of this- nope I would be doing the real estate side. --24.101.xxx.xxx




RAL Operators? (by WMH [NC]) Posted on: Nov 30, 2021 9:18 AM
Message:

It was the real estate side that had so many code changes.

For instance, to convert an existing older home to an RAL was a time-honored way of getting going.

BUT nowadays most existing older homes - the bedrooms are too small for the new codes. You could do it, but you'd lose substantial bed space and thus $$$$$. And that was what really stumped us. --50.82.xxx.xxx




RAL Operators? (by Robin [WI]) Posted on: Dec 1, 2021 9:17 PM
Message:

We haven't invested, but got close to funding someone who wanted to acquire one. They were cagey about the numbers, so we talked to the owner and got them directly from him.

The way to make money is to put as many people in as possible, pay the staff as little as possible, and spend as little on food as possible.

The owner did this successfully, because he:

--had two people in each bedroom

--had two staff people who he paid $12/hr

--had the food down to a science. He got food from the food bank, the Stouffer's outlet, some other kind of subsidy, so it was super cheap.

If you're thinking about investing in one, I'd ask to see the numbers and scrutinize them very carefully. I would want to see someone who has a pretty significant track record of success. Staffing is the biggest wild card, and in today's environment...that's a big one. --174.96.xx.xxx




RAL Operators? (by Ken [NY]) Posted on: Dec 1, 2021 11:14 PM
Message:

Robin,I wouldnt have anything to do with that guy.Wont give you the numbers is bad enough but he is getting food from the food bank which is meant for the poor not a cheap ass businessman.$12 an hour wont get him someone who cares in the least. --72.231.xxx.xxx



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