Payroll that doesn't move with census
Staffing is set by licensing rules and resident needs, so when occupancy slips, labor stays put and the margin takes the hit.
INDUSTRIES · ASSISTED LIVING AND SENIOR HOUSING
Assisted living deals live or die on census, acuity and payroll, not square footage.
For operators, investors and first-time buyers of assisted living, memory care, independent living and adult day centers who need numbers a lender and an investor will both accept.
Where these deals go wrong
The license, not just the building
Change of ownership approval and licensed capacity decide what you can operate and when, and the closing date has to account for both.
A ramp nobody funded
New and turnaround buildings take longer to fill than most plans assume, and the cash it takes to get there is usually short.
Care fees and payer mix
Care revenue, waiver rates and private pay need to be tested against what residents actually pay, not the rate sheet.
Services for assisted living
ALL SERVICES →Deal Review
A written verdict on a live deal.
Acquisition Underwriting
A full model built from your source documents, plus the live Excel file.
Due Diligence Support
Leases abstracted, census and payer mix tested, trailing financials rebuilt, expenses repriced.
Market and Feasibility Studies
Competitor rates, occupancy and demand for a facility or apartment market, before you buy or build.
Lender and SBA Projections
Multi-year projections, debt service coverage, and the working capital it actually takes to get to stabilization.
Offering Memorandum and Investor Presentation
Built by the person who built the model, so every number ties.
Case studies
ALL CASE STUDIES →ASSISTED LIVING
The Ramp Nobody Funded
The plan had the building full in six months with $420,000 set aside to get there, but nothing in that market has filled in under fourteen months, and on a realistic ramp the number was closer to $1.34M.
Read the case study →SBA
The Owner Who Never Paid Herself
The seller's numbers showed 2.31x coverage on a $1.3 million care home, but she was also the administrator and the night nurse, and once those jobs were paid and occupancy was taken at its two-year average, coverage fell to 1.02x.
Read the case study →INDEPENDENT LIVING
Underwritten Like an Apartment Building
The model ran a 48% expense ratio on a building with a commercial kitchen and a transportation program in it, and once the margin got rebuilt at 58% the 23% return came in at 1.9%.
Read the case study →Common questions
Can I use an SBA loan to buy an assisted living facility?
Often, yes. A 7(a) loan can cover the real estate, the business and working capital in one note, up to $5 million, and many buyers pair it with a 504 on the building. Independent living is different, because the SBA treats it as renting apartments.
Is my deal big enough for HUD?
HUD 232 has no minimum loan size, but it requires at least 20 beds or units and a certificate of occupancy at least three years old, and its fixed costs weigh heavily on a small loan. Many smaller buyers start with SBA or bank debt and refinance into HUD later.
What do you need to review a facility?
The seller's financials, the census and rate sheet, the staffing schedule and the license details. Send what you have and I'll tell you what else I need.
Do you work with first-time buyers?
Yes. Nurses, administrators and caregivers buying a first facility or opening a center are a big part of the work.
Latest senior housing articles
ALL SENIOR HOUSING ARTICLES →SBA 7(a) vs 504 for Buying an Assisted Living Facility
The 504 gives you a cheaper fixed rate on the building but will not touch the business, the license value or your working capital, and most care acquisitions need all three financed.
Read it →How to Buy an Assisted Living Facility
You are buying a building, a business, and a license at once, and each one can fail on its own at closing.
Read it →Why Your Deal Is Too Small for HUD 232, and What That Leaves You
HUD does not set a minimum loan size, but the economics of the program quietly do, and smaller buyers need a different plan.
Read it →Payroll Moves With Census and Acuity, Not Square Footage
Underwriting assisted living expenses per square foot is a multifamily habit that hides the largest cost in the building.
Read it →