Bonus Episode – Should You Invest In Senior Living During Covid?

<p><span style="font-weight: 400;">If you’ve been listening to this show for any amount of time, you’ve likely picked up on the fact that I am very bullish on the senior living sector for many reasons… </span></p> <ul> <li style="font-weight: 400;" aria-level="1"><span style= "font-weight: 400;">Highly favorable demographics</span></li> <li style="font-weight: 400;" aria-level="1"><span style= "font-weight: 400;">Complexities of the asset class create an opportunity for value-creation through ancillary income </span></li> <li style="font-weight: 400;" aria-level="1"><span style= "font-weight: 400;">Significant delta between purchase cap rates and interest rates, particularly through the use of HUD financing </span></li> </ul> <p><span style="font-weight: 400;">Of course… </span></p> <p><span style="font-weight: 400;">My interest has been piqued, especially now that Covid has slightly reduced the competitiveness of the space, though it is still VERY difficult to find favorable opportunities, given so many private equity firms are seeing the same favorable data that I am. </span></p> <p><span style="font-weight: 400;">Despite my interest in the space, it’s been very difficult for us to find the right operating partner in the sector. </span></p> <p><span style="font-weight: 400;">This is in part because the asset class is very fragmented, and there isn’t a centralized reliable resource that annotates those operators who are growing quickly and having the most success, like there is in many other asset classes in which we have participated over the years. </span></p> <p><span style="font-weight: 400;">In fact, it actually reminds me of the mobile home park business from 2011-2013. </span></p> <p><span style="font-weight: 400;">After many years of due diligence, we are confident we found an excellent operator who has a significant amount of market knowledge in Florida, likely the most favorable place to invest in senior living in the US. </span></p> <p><span style="font-weight: 400;">Today, we have an interview with t