Valley ALF Ventures is a real estate syndication firm focused on acquiring and leasing residential assisted living facilities. Our business plan includes: purchasing single-family homes that have been converted or have the potential to be converted to assisted living facilities; ensuring proper zoning and licensing is in place to operate the facility; sourcing qualified, experienced local operators looking to expand their business to a new location; leasing the facility to the operator on a 4-5 year lease with the option to purchase after year 3; exiting the property – either through the purchase option or refinancing of the existing loan.
A purchase/lease option is a provision in the lease that allows the operator we are leasing to the option to purchase the facility after year 3 of the lease (between years 4-5)
We require a 5% purchase option fee due at the beginning of the lease. This fee is held by Valley ALF Ventures and is applied to the down payment when the operator exercises the purchase option. If the purchase option is not exercised, Valley ALF Ventures retains the option fee.
Valley ALF Ventures does not charge any fees. Each of our investments are set up
to only include a split of the equity ownership. There are no acquisition,
management, or disposition fees of any kind.
The minimum investment is typically $50,000, although there are sometimes
exceptions for lesser amounts.
Investing with a self-directed IRA is a popular way to invest. We have worked with
self-directed IRA’s in the past and can help assist you in the process. Two of our
preferred self-directed IRA custodians are The IRA Club (https://www.iraclub.org)
and Quest Trust Company (https://www.questtrustcompany.com/). Please be sure
to discuss with your tax advisor if investing through a self-directed IRA makes
sense for you.
Investors make money from both the rental income that is received every month as
well as the future sale and/or refinance of the property. This is based on your
equity ownership in each particular investment.
Valley ALF Ventures strives to issue distributions to investors every quarter. We typically do not issue any distributions the 1st quarter of owning the investment as we work to stabilize the property.
Our business model is based on a 4-5 year hold period, at which time we look at to sell the property (typically through the operator exercising their purchase option) or through refinancing the property to pull invested capital back.
Valley ALF Ventures bases the ownership structure on an equity split between General Partner and Limited Partners and does not typically offer a preferred return. However, 100% of any cash-out refinance proceeds go directly to investors until their capital is returned before Valley ALF Ventures shares in any proceeds.
We will send out the investment package 2-3 weeks prior to closing on the investment. This will include the SEC compliance documents, Operating Agreement for the investment entity, and wiring instructions for closing. We are always available to talk through these documents over the phone to answer questions and provide guidance.
No, only the General Partners at Valley ALF Ventures will be required to sign on the mortgage. Investor’s individual names will not appear on the mortgage and will not be required to submit an application or any financials to the lender.
Interested operators can click on the “Operators” tab on the home page. This will direct you to a quick questionnaire to fill out that will provide us with the necessary details and contact information we need to get started. After reviewing the information submitted, we will reach out to you to discuss your goals, ideal location and general lease terms.
We are willing to lease facilities ranging in size from 10 licensed beds to 100 licensed beds.
The typical lease is 4-5 years in duration with a monthly lease amount of approximately 1% of our total acquisition costs (purchase price + renovation costs). Tenant would be responsible for all utilities, landscaping, appliances, maintenance and minor repairs. Landlord would be responsible for all property taxes, property insurance, and capital expenditures on the structure of the property (roof, HVAC, exterior walls, electrical and plumbing).
We require that all potential operators complete an operator application form and provide financials for their current businesses. Financials include last 2 years tax returns, last 2 years profit and loss statements, pro-forma profit and loss statement for the subject property, and current bank statements showing liquidity to cover the purchase option fee as well as 2-3 months of business expenses.
A purchase/lease option is a provision in the lease that allows the operator the option to purchase the facility after year 3 of the lease (between years 4-5).
We require a 5% purchase option fee (based on our purchase price) due at the beginning of the lease. This fee is held by Valley ALF Ventures and is applied to the down payment when the operator exercises the purchase option. If the purchase option is not exercised, Valley ALF Ventures retains the option fee. The future purchase price is based on our total acquisition costs (purchase price + renovation costs), plus 5% annual increases for the first 3 years of the lease. The operator then has the option to purchase the property at that price between years 4-5 of the lease.
We require that all potential operators complete an assisted living operator application form and provide financials for their current businesses. Financials include last 2 years tax returns, last 2 years profit and loss statements, pro forma profit and loss statement for the subject property, and a current bank statement showing liquidity to cover the purchase option fee as well as 2-3 months of business expenses.
No, the family does not pay for assistance and help to find the right fit for their loved one. The facility pays our in-house placement agent a “finder’s fee.”
Yes, a face-to-face meeting is done prior to doing any tours or looking at facilities for
your loved one. If the family is out of state, a phone/zoom call will be required to collect
more information.
Yes, we can either meet you at the facilities or drive you there and accompany you on
the tours to gather as much information as needed.
Contact Valley ALF Ventures, a leading healthcare syndication firm. Their experienced team is on-hand to guide you confidently through the investment process. Take the first step towards your first ALF investment today.
Managing Partner
jarrett@valleyalfventures.com
Managing Partner
serg@valleyalfventures.com
Copyright © 2023 Valley ALF Ventures