Financial Freedom with Real Estate Investing

Multifamily investors know the advantages of scale. But when it comes to residential assisted living or RAL, bigger isn’t always better. The big-box model often leads to poor healthcare outcomes, treating residents not as individuals but part of a process. So, how can investors scale senior living facilities without compromising care?

Loe Hornbuckle is CEO of Sage Oak Assisted Living and Memory Care and Cofounder of GoodHorn Capital, a real estate investment firm focused on recession-resistant asset classes including build-to-rent and senior living. Loe has a heart for improving the residential assisted living experience, providing residents with both the quality care associated with small RAL facilities and the advantages of scale.

On this episode of Apartment Building Investing, Loe joins cohost Garrett Lynch and me to share his unique, hybrid approach to building assisted living and memory care facilities. Loe explains how his father’s bad experience in hospice inspired his interest in RAL and offers insight on applying his strategy to multifamily deals. Listen in to understand how Loe is solving the scaling problems of residential assisted living and find out if the business of caretaking is right for YOU.

Key Takeaways

Loe’s approach to building assisted living and memory care facilities

  • Unique physical plant and operations (boutique experience)
  • Campus of 10 buildings with 16 residents in each

How Loe is solving the scaling problems of residential assisted living

  • Campus of care homes can use third-party management
  • Much easier to appraise and finance through bank

What Loe’s campus of care homes looks like

  • 5 or 6 homes (9K ft2) + 2-story sales and admin office
  • Homes have four quadrants and commons area

What inspired Loe’s interest in assisted living as an asset class

  • Dad had really bad experience in hospice care
  • Presentation and podcast on converting real estate to RAL

How an investor can get into the business of caretaking

  • Invest as LP with operator you believe in
  • Hire team with medical background

How Loe thinks about processes and systems in RAL

  • Works only up to point to establish baseline
  • Hire for heart and talent, get out of way

The critical hires for a residential assisted living facility

  • Executive director and head of clinical team
  • Look for integrator or visionary

How to apply Loe’s RAL strategy to multifamily investing

  • Analyze deal if converted to age-restricted community
  • Additional tool for competing on deals

Loe’s advice on getting started with residential assisted living

  • Must have heart for business and strong WHY
  • Determine core competencies of team, hire for gaps

Connect with Loe Hornbuckle

Loe on LinkedIn

GoodHorn Capital

Resources

Register for Deal Maker Live

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Podcast Show Notes

Michael’s Website 

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Direct download: ABI_274.mp3
Category:Commercial Real Estate -- posted at: 1:00am EDT

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