Episode 112 | When Assisted Living DOESN'T Make Sense

In this episode of the Assisted Living Investing Podcast, Brandon Gustafson breaks down when investing in assisted living doesn't make sense—and how to fix it. He explains why small facilities (under six beds) often struggle financially due to staffing costs and low occupancy, and offers practical strategies like increasing bed count, charging market rates, and using conservative underwriting. Brandon also shares tools like his free underwriting calculator and business plan checklist, and encourages listeners to join the ALI Basics community for step-by-step support. It's a must-listen for beginners who want to avoid common mistakes and build a profitable assisted living business. 00:00:00 – Introduction00:00:16 – Topic Introduction: When Assisted Living is a Bad Deal00:00:40 – Understanding the Numbers Behind a Losing Deal00:00:53 – How to Adjust and Make Assisted Living Work00:02:36 – Breaking Down a Financial Scenario00:03:52 – Challenges of Small Facilities (6 Beds or Less)00:04:21 – Detailed Expense Breakdown00:05:17 – How to Fix the Numbers: Charging More00:06:40 – Occupancy and Realistic Underwriting00:08:20 – Alternative Fix: Increasing Bed Count00:09:08 – Room Size and Regulations00:10:12 – Comparing Scenarios: Small vs. Large Beds00:11:02 – Staffing Ratios and Costs by State00:12:39 – Charging Higher Rates with More Beds00:14:06 – Importance of Number of Rooms00:14:58 – How Residents Pay: Medicaid, Reverse Mortgages, Family Support00:15:28 – Value of Assisted Living vs. Home Care00:16:52 – Steps to Succeed in Assisted Living00:17:34 – Importance of More Beds and Charging Market Rates00:18:13 – Avoiding Financial Pitfalls: Underwrite Before You Invest00:21:22 – How to Pay Your Team: Payroll and Gusto00:22:08 – Closing Remarks   Resources Mentioned: Visit our website, AssistedLivingInvesting.net, for additional resources, including our year-long mastermind program and free underwriting calculator. Get your free business plan checklist today: https://urlgeni.us/alibpc Learn about the Assisted Living Basics: https://www.assistedlivinginvesting.net/basics Learn about the Assisted Living Investing Mastermind: assistedlivinginvesting.net/mastermind Apply for the Mastermind today: alimastermind.com/application Join the Business Foundation Basics Workshop: Assisted Living Business Foundation Basics Learn the five steps to help you start an assisted living business: https://youtube.com/live/dRVCa80SOyM Get the 12 Week Year Book: https://amzn.to/4bAOpQf Marketing Made Simple by Donald Miller: https://amzn.to/3ECoNY5 Who Not How by Benjamin Hardy : https://bit.ly/whonothowbooklink Courses:- Do you need guidance on your journey to launching your assisted living business: https://urlgeni.us/aliala- Do you need help building your business plan: https://urlgeni.us/alibpg FREE Resources:- Business Plan Checklist: https://urlgeni.us/alibpc- Calculator: https://urlgeni.us/alicalc- Lease Agreement Template: https://urlgeni.us/alila- ProfitPath Analysis Tool: https://urlgeni.us/aliprofitpath- Grant Writing Template: https://urlgeni.us/aligrantNeed help with your payroll? Get Gusto: https://gusto.com/i/brandon9590 Follow Us: Subscribe to the podcast for more episodes.Leave a review to help us continue bringing you valuable content. Engage with us on our various platforms for further learning and support.Facebook | LinkedIn | X | Instagram