Posted by phil fernandez on January 20, 2000 at 17:57:13:
Hey Dan,
Michael Warren is the ACLF’s expert. He has a report about them for about $25 and also offers a course for I think about $595, ouch.
Warren has a web site wealthnetwork.com
Anyone have experience with ACLFs ??? - Posted by DanM(OR)
Posted by DanM(OR) on January 20, 2000 at 16:29:36:
I am looking at buying several properties about 12 units total. Thanks to ideas from Ed garcia at last years convention I had Condo Conversions on my mind with this deal.
Secondly, I remembered somewhere, I thought it was here, that Bronchick posted about a good course on ACLFs and Retirement Living Facilities. They are sprouting up everywehere here in Oregon.
Anyway, JP, Terry, Jeanne, or anybody else. Can you please point me to them? I looked all over here and can not find the course I thought was here.
Thanks! See you in Atlanta.
Dan Matejsek
I have not heard any positives experiences regarding small ACLFs… - Posted by JD
Posted by JD on January 21, 2000 at 24:23:43:
…except of course from someone selling a $495 course.
Marty’s comments provide additional support to my suspicions that small (100 beds) facilites unless there are some ecomomic incentives provided to smaller facilites by State and local governments. As far as I can tell there are no such incentives provided to smaller facilities, in fact, it seems that the reverse is often true. Large facilites appear to be a great investment.
Re: Anyone have experience with ACLFs ??? - Posted by Marty Greenberg R.N.
Posted by Marty Greenberg R.N. on January 20, 2000 at 20:18:16:
I have experience with ALFs. My partner and I ar RNs and own a 34 bed place. My wish is that I never gor into it. I do not have a life anymore. This is a 24/7/52 job where we work 12 hours a day seven days a week. Over the past nine months I have had three days of and my partner has had two days off.
The place makes about $1,000 a month positive cash flow after none months ownership. I got into the deal using ALL my cash, IRA, credit cards, and mom kicked in $150K on this $1.4M place. There were no motivated sellers and the only terms we were able to get was a 10% of the price purchase mortgage at 9.5%. It took two years to find and fund the place. We tried to buy a four plex and convert it but had a nightmare with the zoning that cost us some time and money.
Our problem is marketing. Where do you find residents? We have ‘encouraged’ our doctors to refer clients and when they didn’t we fired them. Resideents come and stay or they leave. We had two residents die. We are still seeking referal sources who can send us residents the year round. Florida is very seasonal.
Some of the places we looked at were sh!tholes. They looked bad and smelled worse. Wemade offers based on the census. The owners wer insulted at our offer. They said you could fill the place up and bring in more rent. We told them to increase the census and we’d pay them more. One owner thought our offer was the downpayment. We told owners the place couldn’t support the payments we would have to make. They didn’t care. That place is still for sale.
A very important component of the operation is the staff. We are looking for a caring staff that will work for $7.00 per hour. It is hard finding good people. The place won’t support more of a salary. My partner works for $2k a month and I don’t get paid at all. I work per diem at a hospital to pay my bills.
Being a nurse can be a big help. Being a woman is also a big help. Most of the residents are women and the family(as well as the residents) don’t feel comfortable having a man bath or take mom to the bathroom. My advice is before going into the business is to tour some places and pump the owners for information. Also consider getting a job in the field prior to making the jump into the business.
This is a good business. The demagraphics are in your favor. More and more people need this service and it can feel good to provide quality care to people who need it and their families.
To sum up my observation of the business after nine months is that this is a TOUGH business. It is time intensive and not immediately profitable. You should know where your clients are comming from and where you can find good staff. ARE YOU SURE YOU WANT TO GO INTO THIS BUSINESS WHEN STRAIGHT REAL ESTATE INVESTING MAY BE MORE PROFITABLE AND LESS WORK AND RESPONSIBILITY?
Please feel free to contact me for more information and good luck on youe endever.
MARTY