Valuation of Adult Family Homes

I recently attended the Wisconsin Assisted Living Association’s Spring Conference and a person asked me – how do you determine the value of a 4 bed adult family home?  I began my answer as usual, describing the income approach to value and how to capitalize the net operating income to determine value.  But it quickly […]

Use Caution When Using Seller Financing

During the past several years, conventional financing has been more difficult to find.  So seller financing has made a comeback, and has helped revive deals that were lost.  But seller financing presents its own set of challenges. Here are some tips to help make seller financing a benefit and not a burden. 1.  Get bank […]

When to Expand With a New Assisted Living Facility

The Wisconsin Assisted Living Association had some great sessions at their spring conference recently. I enjoyed being part of a panel discussion on the topic of “When It’s Time to Expand, and When It’s Time to Wait”. We panelists shared our thoughts on this topic, and the audience had some great questions and feedback, too. […]

Don’t Leave Money on the Table

For nearly every assisted living business owner there comes a time to sell the business. Whatever the reason for selling, you want to command the highest possible price. But, how do you set a price that is reasonable to attract buyers yet guarantees a good return on your investment? Selling without an accurate valuation runs […]

What’s My Facility Worth?

It’s probably not surprising that the most common question we’re asked is: What is my facility worth? While we have talked about this question in other newsletters, it’s time for a refresher. Real estate appraisers use three approaches in determining value: income, comparable sales, and replacement cost.  For most buyers and lenders, the income approach […]