Are You Prepared to Invest in a Senior Community in Florida?

Many people aspire to build their own senior community, but let’s be honest; it takes more than inspiration to turn dreams into a reality. So what else will you need if you already have the inspiration and knowledge to create your facility? The answer is money! 

 

Now you may be wondering, just how much money does it take to create a new senior facility in the state of Florida? That’s where we come in. Here at ALF For Sale, we help our clients purchase or sell an assisted living facility.

 

How much money is Needed to Start a Senior Community in Florida?

 

The amount you’ll need to create your senior facility depends on several factors. Here are some questions to ask yourself before you create your budget for this project:

  • What is the current cost of real estate in Florida?
  • Are there any changes or repairs needed in regards to the property? If so, what are they, and how many?
  • Will you be working on-site at the facility? 
  • How many, if any, staff or managers will you need to hire to help with the work?

 

The exact cost of your new assisted living facility will vary, of course, based upon your personal choices. But listed below are a few things you need to consider before getting started.

 

How much will my down payment be?

 

Regardless of whether you’re buying, converting, or building your senior facility from the ground up, it’s very likely you will have to source the cost through an outside lender. As a rule of thumb, you should be able to provide at least 25% of the cost for the down payment. You may be able to find a lower price, but it’s best to be safe and over-prepare. 

 

What are my start-up costs?

You are going to need furniture, equipment, and supplies for each unit and for the various common areas throughout your facility. The cost will also depend on the size of each unit, as well as the quality of furnishings you decide to provide, but a good estimate would find you spending between $3000 to $5000 per unit.

 

How much working capital will I need?

Once your facility is up and running, you aren’t done just yet! You still need to be able to pay your employees. If you’re taking over an existing senior care facility, talk to the previous owner to get an estimate of much capital you’ll need. Typically, 30 to 60 days worth of your expenses, including mortgage payments and employee payout, will generally suffice. However, if you’re building your facility from the ground up and hiring all new employees, you will need to have much more. A safe number would be six months’ worth or possibly more, depending on how large your facility is.

 

If you keep all of these things in mind, you should now have a good idea of how much money your senior community is going to cost. It takes time, but with deliberate planning and ALF For Sale, you can make it happen! Good luck! 

 

Contact Us

ALF For Sale is a Florida based company that offers available assisted living communities for sale. Call or visit us today for more information. 

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