In this video, we break down the critical differences between small home-based housing and larger communities, shedding light on the unique aspects that define each option.
From personalized care to community amenities, we navigate through the real estate landscape to provide you with valuable insights.
Whether you’re a senior contemplating your housing choices, a family member involved in decision-making, or a real estate enthusiast keen on the latest trends, this video offers a comprehensive guide to understanding the evolving dynamics of senior housing.
Join us for an informative journey into the future of senior living and gain a deeper understanding of the real estate considerations that shape these distinct housing models.
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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 the 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 00:19
so the federal government is able to say that we are on short 600,000 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 and a 20 or 30, or a awesome, an awesome, cozy home 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 auto 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. Perfect. 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 are 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 for you can’t do it in 100 to 200 plus beds.
Chris Bounds 04:32
Yeah. So these in home care facility. Nurses, if you will, or representatives. They live there too, right? Are
Brandon Schwab 04:43
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 happen. because they need to stay overnight. Yeah. Because what happened is the other places did not close down. And they had people going in and out, in and out, in and out. And that’s what caused people to die. Yeah. 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
Chris Bounds 05:33
there. And you were you were doing this before COVID.
Brandon Schwab 05:37
I was doing this before code 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 were 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
Chris Bounds 06:11
is it other investors or just like other potential customers or clients? Yeah, I’m thinking
Brandon Schwab 06:19
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 a we don’t have anything out front of any of our homes, that 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 a building. 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 07:02
From the curb, like get a lot of 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 traffic.
Brandon Schwab 07:18
What we do actually is we partner up with so at local hospitals, that discharge people out every day in 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 discharge Medicare through that, and so in so it so insurance, the how the hem, yeah, it’s really interesting. So what happens is,
Chris Bounds 07:52
oh, that’s got to which 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. In those kinds of situations where they’re in and out all the time.
Brandon Schwab 08:14
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 of 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 relate to do that.
Chris Bounds 09:05
Yeah, from an actual demand, addressing the unique issues and challenges for the actual person. The elderly, they’re living in their homes in comparison to how they’re, they’re addressed in communities. Can you speak to just a couple, maybe the top one, two or three that line items that really set the difference between how things are handled within small senior housing versus a community, especially from the perspective of the loving family members that they’re just trying to make sure that their their parents or grandparents are taking care of.
Brandon Schwab 09:50
So I’d say the top one is always going to be the heart. The type of care that’s offered isn’t even close. When you have owners that Have a caregiver, every five to eight people is the biggest difference because at the end of the day, when a family is going in to check out all their options, you need to be asking questions of how many caregivers you have on the first shift, second shift, and the third shift. And oftentimes, they won’t answer that question because they’re caught off guard. Because what happens is, in the eating time, they’re typically a caregiver to every 50 people. During a day, it’s a caregiver every 15 to 20. That at the workplace, it’s a caregiver, every 30 people, what happens is when you have that type of a atmosphere, the cares not good. Even if they try as hard as they can, they just can’t keep up,
Chris Bounds 10:50
stressing out the nurse or the caregiver, to where that? Yeah, it’s even, you know, when they’re doing their best, they’re not at their best? Well, yes,
Brandon Schwab 11:05
that is 100% sure of the people that are in this industry that offer on help like that they’re awesome people. But when they’re put in a atmosphere where they can’t keep up because they have to do 2030 People, it isn’t actually their fault. It’s the owners fault that put them in a position that they have to choose, do I take care of her or her and all three of them have to have help? Here today, and what they do is when they get overwhelmed, unfortunately, someone often gets hit. And that’s the type of issues that are in the industry that people don’t talk on. But that’s what’s happening today. And that’s the thing that happens when you go to a place and the poor team can’t keep up.
And then when you can’t keep up with people to come in to do that job, then it gets even worse, because then you got people covering for other people that aren’t there. And the poor people that are in there, the elders that are in there don’t get the type of care that they ought to have. So I’m a huge fan of everyone that’s in this industry, I wish more owners would have a scare focus as their top priority. But unfortunately, they just don’t. So until that changes, there’s gonna be some big problems and people are always gonna have issues and I feel that that is sad, but I feel like we are here to change that we have a we figured out how to do it differently and with what we’re doing with our bond in the overall expansion. We can do things differently and have the top number of homes throughout the whole country. And people are going to hear what we were able to do