Adding Assisted Living To Your Portfolio with Julie Holly

Passive Wealth Strategy Show - Real Estate for Busy Pros

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Julie Holly is a successful real estate investor with experience in multifamily and ground-up development. She is the founder of Three Keys Investments and is passionate about making a positive impact in the communities she invests in. Summary: Julie Holly shares her journey into the assisted living space and how she approaches due diligence on opportunities, teams, and markets. She emphasizes the importance of focusing on the people first, including the employees and residents of assisted living facilities. Julie discusses the scale of employees in assisted living compared to multifamily and highlights the need to keep employees happy and retain quality staff. She also explains how she adds value to assisted living facilities by optimizing the business side, negotiating contracts, and improving the quality of care. Julie shares her approach to building relationships with partners and vetting them before entering into deals. She also discusses the challenges of investing in markets outside of her local area and the importance of physical due diligence. Julie concludes by emphasizing the need to trust your instincts and focus on the present reality rather than potential future outcomes.

Key Takeaways:

• Assisted living facilities require a larger number of employees compared to multifamily properties.
• Due diligence in the assisted living space involves evaluating the value of the real estate, the business, and the human collateral.
• Building strong relationships with partners is crucial and should involve getting to know them for at least a year before entering into deals. Physical due diligence in remote markets requires time, travel, and careful evaluation of the asset and market.
• Adding value to assisted living facilities involves optimizing the business, negotiating contracts, and improving the quality of care. Trust your instincts and focus on the present reality rather than potential future outcomes.

Quotes:

• "I don't like to take on anything new into the portfolio unless we have people that are experienced leading the charge." - Julie Holly
• "For every resident in an assisted living facility, you're picking up a staff of a minimum of 80 people." - Julie Holly
• "Trust your instincts. If something feels off, something's probably off." - Julie Holly