In this video, we delve into the intriguing topic of senior family housing.
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Discover how the intersection of real estate and healthcare is ushering in a new era of senior living that prioritizes comfort, community, and comprehensive well-being.
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Transcript:
Chris Bounds 00:00
Tell me a little bit about what does this market look like you talked about the availability of the senior family housing as opposed to the communities. So we got a little bit of glimpse of that. But as far as that the need, and where you’re seeing this grow in comparison to communities and other markets, and what that looks like over the next 510 years,
Brandon Schwab 00:26
so the federal government is able to say that we are arm short 600,600 1000 beds by 2050. And we are nowhere on track to ever hit that. So what’s happening is the aging of our country. 10,000 people every day are turning 65 4500 are turning 85 every day. And it’s the aging of our whole country that 70% of people in the country is going to need help, they are going to need this type of care. And it gives people the opportunity to look at and say what would I want, would I if all things are equal, right? If you were able to pay 6500 Each month would I prefer a 100 to 200 plus type building with a caregiver to 20 a 30. Or
Chris Bounds 01:21
a awesome, an awesome, cozy home
Brandon Schwab 01:27
that has 10 to 20 people with a caregiver every five to eight people. That is drastically different. Previously, people didn’t think they had the option. What’s happening is COVID Expose problems in the health care of radically country. And what happened is, is when families are taking their parents home, because they’re terrified that in a 200 bed building COVID is going from person to person to person to person and killing 42% of people that were able to pass him COVID were in those type of buildings, it demonstrated the biggest problem with the industry. So for the first time in a long time, the the bigger competitors got a black guy, because they were all over the front page of the paper. What comes out of that is that the country is a where that that might not be the best option for their family, but they don’t get that there’s any other options.
So I’ll bet you if you would pull everyone that is on that is able to hear this right now. 98 of out of probably 100 people that are on this have never heard of a home that cares for seniors. And that’s why I do 25 or 30 of these each year because I’m trying to teach people that there are other options out there that there’s another part of the industry, which happens to be the top performing asset class from 2005 to 2015, outperforming a apartment buildings, industrial office, and all those things that people talk on all the time. But they outperform them by over 5%. Now, I chose that timeframe perfectly. I chose that timeframe purposely because with the 2008 crash, right, I was trying to find out what asset class can handle when things go tough, when things aren’t very good, because when all things are good, everything tends to do pretty well.
We’re at a phase right now we’re in the first quarter of 2023. And people aren’t afraid, they are terrified that they don’t know where to put their money. And if they don’t, you’ve got inflation that’s eating it up at eight plus each year anyway. So it’s creating an IT an atmosphere that folks really need to realize that there are other opportunities out there that you could get in that have assets underneath it, and have a health care piece to it that is always going to be there because of the aging of our whole country for the upcoming 1020 30 plus years.
There’s gonna be lots of opportunities to basically take what happened the past two years and fix it so it doesn’t happen again, where if it does happen, the cares offered in homes that there’s tend to be about 20 people and we can have an in home care person that doesn’t on leave. You can contain it. It’s possible but you can’t do it in 100 to 200 plus beds.
Chris Bounds 04:42
Yeah. So these in home care facility. Nurses, if you will, or representatives.
Chris Bounds 04:50
right?
Brandon Schwab 04:52
Are they they are they are on current they are currently on eight hours. But what what we would figure out Post COVID That what we would do different is we would actually build out housing in the homes just in case that ever happened over they need to stay overnight. Yeah, because what happened is the other places did not close down.
And they had people coming in and out, in and out, in and out. And that’s what caused people to die. And we have plans in place where if this ever happened over, we would do things differently. But we didn’t have anybody pass in any of our homes from COVID the entire time. Not every other place is able to say that that’s what was different on what we were able to do that every other place. It’s out there.
Chris Bounds 05:43
And you were you were doing this before COVID.
Brandon Schwab 05:47
I was doing this before COVID. For years, yes. We got into doing the industry back in 2014. And I was jumping up and down talent, everybody. But it felt like they didn’t really get what I was doing. Because they felt that the other option was was was fine enough that they didn’t have any issues with it until COVID happened. And then everyone’s like, Oh, you are able to do homes. What a good idea. And I’m like, I’ve been doing it for eight years. And you didn’t hear me the whole time. But why
Chris Bounds 06:20
is that other investors or just like other potential customers or clients?
Brandon Schwab 06:27
Yeah, I’m thinking like other families in the area, families in the area that are choosing between options, to put their own family where we don’t typically have
Chris Bounds 06:40
a we don’t have anything
Brandon Schwab 06:44
out front of any of our homes, that it’s easy to find what we do, but that that is purposely done. We don’t want to have tons of people going in and out of these homes, when we can have
Chris Bounds 06:56
a building.
Brandon Schwab 07:01
With the ads out front, we just aren’t really doing that we have it where these are homes for people that are in these homes, and we don’t psych advertise to get people to come in there.
Chris Bounds 07:12
So from the curb, like build up curb appeal, this is just a typical home. That would would be hard to distinguish from any other home. It’s just through word of mouth, or maybe just online marketing. That’s how you’re getting
Brandon Schwab 07:27
traffic. What we do actually is we partner up with some local hospitals that discharge people out every day. And what happens is when they are able to discharge them out, the hospital doesn’t get paid if they come back to the hospital within 30 days. So what happens is when they destroy Medicare through that, and so in so it so insurance, the how the hem, yeah, it’s really interested. So what happens is,
Chris Bounds 08:02
oh, that’s got to wish it shouldn’t. But that’s got to play into level of care, especially among chronic visitors. I know I know this firsthand with family. It can be very frustrating with a lack of care. You know, in those kind of situations where they’re in and out all the time.
Brandon Schwab 08:23
Yeah, so just so we had a local hospital right where they were getting 45% of their people to come back to the hospital within 30. Within 30 days, this picture if you didn’t get if they would not pay you on 45% of the people were if we can take awesome care in our homes, and we are able to cut that down to 10 to 15%. We just add an extra 30% of income that they couldn’t have earned anywhere else. That’s what we do is different and we don’t really have to advertise as much We will partner with health care in the area because we help them earn extra money. When you talk to them on them earning extra money, they will have that talk easier than if you are trying to advertise where we don’t really have to do that.