Assisted Living Feasibility is a critical issue to address but the source information for this comes from the Market Analysis and it is important to establish market acceptable rates for the opening rent schedule. From this we can prepare a pro-forma that comprehensively applies realistically expected operating costs (based on local wage rates and the amenities to be furnished). This helps us determine the Net Operating Income before debt service. In other words, does the project make financial sense?
The lender (and you) needs to know if there will be sufficient available money to pay the debt service. What will be the operating cash flow at full occupancy? What is the expected fill up (absorption rate)? How much cash reserve will you need before the facility begins to pay its own way? All critical questions! Haddock & Associates can prepare this for you based on our experience of industry-acceptable costs and the uniqueness of your facility. This financial analysis will determine the NOI the project will produce and whether or not the projected income will be able to support the operational costs based on the model you wish to construct. Ask us about it.
