If you remember visiting your grandparents in a senior living facility, you probably have a lot of the same ideas about it that Brandon Schwab did. On a trip to Florida, Brandon accidentally stumbled on a quietly successful part of senior living: boutique senior homes. He shares how he sold off every rental in his portfolio to move into boutique senior living homes, what his numbers are, and how he balances the ethical implications in this business.
After realizing the huge amount of cash flow potential in smaller senior homes, Brandon set about finding the perfect home for his first investment property. He describes how he structured the deal, his average profit, and how he filled the house.
Because he didn’t want to be the owner/operator, Brandon had to partner up with someone. He shares why he chose an RN, what he looked for when hiring one, and how many hours he has an employee on site. He also shares what that includes, and how much he can charge per client.
The sweet spot for senior boutique homes are ranch homes, and he can usually fit 10-16 beds in a good-sized ranch home. By offering a caregiver ratio of 1:5, he does give up some of the profit, but he gives great care. And he still ends up with a profit margin of 38%.
Instead of chasing dollars, he has pivoted and become a purpose-driven business. He shares how experiencing end-of-life care changed the mission of his business, and how it’s shaped his employees.
If this idea intrigues you, Brandon’s actively looking for deals for 5,000+ square foot homes across the country. If you’ve got a deal for him, book a thirty-minute call with him on his website.
Watch and learn:
Listen and learn:
- What kind of home you’re looking for to open a boutique senior living home.
- Who you should partner with so that you’re not the owner/operator.
- The limitations for 2 story homes, and commercial regulations for these homes.
- The ethical considerations that Brandon’s had to think about.
- How Brandon still uses lease options for financing senior homes.
- Brandon breaks down his monthly numbers for us, holding nothing back.
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