There are many investors in today’s market that are excited about the prospect of senior housing, and we at Luxe Crowdfunding in Florida can help steer you in the right direction to avoid major pitfalls. The fact of the matter is that the market for senior housing is expansive and complicated. A lack of understanding or sufficient research can result in disaster. That is where we can help. As a real estate investing platform, we seek out the opportunities that will bring in return and guide you past the properties that are more trouble than they are worth.
Failure to Understand the Senior Housing Sector
The most important thing to remember when you invest in senior housing is that you are dealing with a market that involves a lot of moving parts. Unlike other real estate investments, senior facilities could have healthcare components as well as other components that affect it. While there is a slew of investors who are interested in independent living, skilled nursing did not fare as well in recent years. The reason behind this had to do with the funding for Medicaid and Medicare, which received dramatic cuts. Before you look into investing in any community, it is important to do your research as to what factors–political, social, or otherwise–will affect it.
Not Diversifying Your Portfolio
All of real estate investing encourages diversifying your portfolio. Only having one community or senior housing facility could result in zero return if something were to happen. There was an instance, for example, where the state of Louisiana issued eviction notices for state nursing homes. If you had invested in those communities, you could end up in a situation where you lose all of your investment. Had you diversified, you could’ve at least buoyed the loss.
Relying Completely on Market Trends
Market trends can only say so much about an investment. The reality is that there are many more components that factor into a senior facility’s success. While data and market statistics are a good place to start, they also need to be backed by data of the local market. It is important to look at an array of elements such as competitors in the local market, the introduction of new competitors, demographics, amenities of the facility in question, and others.
Contracting Inexperienced Operators
The operators of your facility are going to be the ones that have the day-to-day dealings with your residents. In other words, they are the face of your whole operation. The last thing that you want is to have someone running your facility that does not have experience and is not prepared for every scenario.
Luxe Crowdfunding in Florida understands real estate investing and all the parts that play into a successful investment. We make sure our clients have every tool to gain return on their investment and expand their portfolio to where they want it to be. Contact us if you would like to learn more.