Fast Growing Industry--A Guaranteed Demand

Should I buy a care home in today's market? That is certainly the question that we are asked most often recently. Our answer to you is: Congratulations! You have discovered a fast growing industry that will bring you significant financial rewards despite the up and down of housing market. Here are top 10 reasons for you to consider buying a care home today:

·         Your clients need your service now. Here's the news provided by Commercial Real Estate Direct at March 13, 2008. The seniors housing industry's leading trade group is warning of a potential shortfall of long-term care properties. The NIC for Seniors Housing & Care said investors are under-estimating the amount of long-term care that will be required by the baby boomer generation in the years to come. For property investors, this translates into increased demand for assisted-living and skilled-nursing facilities.” Economic turmoil will push out stay-at-home parents to the workplace. More and more infants and children are in need of day care. While you are scared and waiting, your competitors are expanding their businesses, and reaping all the benefits that a volatile housing market can offer.

·         Selection, selection, selection. More residential care homes are on the market than ever.

·         No bidding wars.

·         The price is very negotiable. Buyer feels free to ask for closing incentives.

·         Seller is more patient and easy to work with. The rush and frenzy of the seller's market is over. Buyer, take your time!

·         Due diligence is welcome. Write up your offer with contingencies to assure a safe and solid deal.

·         Repair requests are met with compliance.

·         SHORT SALES-sweet sweet deals. With the Bush administration’s HOPE NOW program and Forgiveness Debt Relief Act, more and more owners are ready to walk away from a property with an inflated value at no financial cost to them. Short sale deals are about to explode. Desperate lenders are taking 20%-30% concessions off the current market value. Buyers are paying 2002 or even 2001 prices at a low interest rate.

·         Low financing cost. Are you a qualified buyer? If yes, lenders are willing to work with you for “free”. Here is a typical ad of a lender in today’s market:

• No Intangible Tax
• No Application Fee
• No Origination Fee
• No Points
• No Appraisal Fee
• No Title Insurance Fee
• No Processing Fee
• No Attorneys’ Fees
• No Recording Fee
• Do your homework; crunch the number; harness your business plan, and orchestrate your marketing campaign. As long as you can achieve a positive cash flow within a reasonable period of time and within your financial tolerance, go for it. Risk and reward always go hand-in-hand.