Why Touring Before Buying is Crucial for Assisted Living Investors

assisted living facility tour due diligence process facility evaluation facility inspection facility maintenance in-person tour investing in assisted living resident quality of life staffing patterns virtual tour Nov 27, 2024

When you’re buying an assisted living business, touring the facility is a big deal. Sure, looking at documents and talking with people helps, but seeing the place in person (or even on a virtual tour) gives you important details that paper alone can’t show. Let's talk about why touring is essential and what you should look for.

Check out the video, too:

Why Touring Matters

Here’s the truth: a tour shows you what an inspection report can’t. Touring a facility lets you see the property, check for issues, and get a feel for the staff and residents’ daily lives.

1. Spot the Hidden Details

Sellers have to share a lot of information, but some details might get missed. When you visit, you can see things that impact the business, like how staff treat residents, how clean the place is, and how things are set up.

2. Check Out the Physical Condition

In person, you can see stuff that photos might not show, like paint, flooring, windows, appliances, and important systems like heating and air conditioning. Noticing any wear and tear now means you avoid big surprises later.

3. Build Key Relationships

Tours help you meet the important people, like the seller, broker, and staff. Getting to know them can make the buying process easier and help you work better together if you take over.

Virtual Tours vs. In-Person Tours

You can take a virtual tour or in-person tour (or both!). Virtual tours are great because you can explore on your own time and go back to spots you want to review. In-person tours, on the other hand, let you get a real sense of the place—you can feel what the atmosphere is like and get a close-up look at everything.

What to Focus On During a Tour

So, what should you be checking out? Here are some key areas:

1. Cosmetic and Functional Checks

Look closely at things like paint, floors, and appliances. These show how well the place has been kept up. Check for cleanliness and any signs of neglect, as these can reveal a lot about the facility’s care standards.

2. Staffing and Culture

See how staff interact with residents. A well-maintained, friendly environment says a lot about the culture and can make your transition into ownership smoother.

3. Resident’s Quality of Life

Observe the residents’ living conditions and activities. Happy, well-cared-for residents usually mean the place is well-run and focused on quality care.

When to Consider a Fixer-Upper

Don’t be quick to dismiss facilities that need a bit of sprucing up. If a place just needs fresh paint, new cabinets, or a few other cosmetic fixes, it could be a great deal. But if there are big issues like a broken foundation or leaking roof, that’s a much bigger investment and safety risk.

Ask All the Questions!

Don’t hold back on questions during the tour. Ask why the seller is moving on—this can give you clues about the business’s current state. Maybe they’re retiring or moving on to new ventures, opening up a chance for you to continue their work.

Final Thoughts

A tour is an essential part of buying an assisted living business. It lets you spot hidden details, check the physical condition, and meet key people. So, take your time, ask questions, and make sure to look closely at everything, from the condition of the property to how happy the residents seem. Whether you tour in person, online, or both, this step is crucial to making a smart investment decision.

Download our Business Plan Checklist to ensure you have a comprehensive business plan in place for when you've found the perfect property. Additionally, apply to our Assisted Living Investing Mastermind program to learn more about building a business plan, finding the property, securing funding, obtaining a license, and scaling your business.

Download Your FREE Calculator

Send Me My Calculator

Stay connected with news and updates!

Join our mailing list to receive the latest news and updates from our team.
Don't worry, your information will not be shared.

We hate SPAM. We will never sell your information, for any reason.