Assisted Living - Posted by Angelo


#1

Posted by Angelo on May 12, 2009 at 09:29:10:

Thanks, I was thinking about separating real estate from business.


#2

Assisted Living - Posted by Angelo

Posted by Angelo on May 11, 2009 at 15:10:12:

Hi, I apologize if this is not the correct forum.

I have an opportunity to purchase or lease an assisted living facility in CA.
It has a capacity of 52 and currently has 40 residents. Has anyone ever creatively financed this type of facility? I’m thinking of a lease option v. buying (credit is not the greatest).

Thanks for any advice.


#3

Re: Assisted Living - Posted by Anne45

Posted by Anne45 on May 13, 2009 at 21:04:26:

Come up with a price for the real estate, and a price for the business, and don’t make the mistake of overvaluing either one. As a matter of fact I would separate the deals if it were me.


#4

Re: Assisted Living - Posted by BTI

Posted by BTI on May 12, 2009 at 09:18:44:

Angelo

Just a general answer. If you buying just the real estate you will value it using the common commercial approaches.

But It sounds like you want to buy the whole thing. In this case remember you are really buying a business and will be operating a business.

So come up with a price for the real estate, and a price for the business, and don’t make the mistake of overvaluing either one. As a matter of fact I would separate the deals if it were me.

BTI