06/11/2026
It is called the lease to operator model. Here is how it works.
1. You purchase a residential property and get it licensed as an assisted living home.
That license transforms the asset. A property that rents for $2,500 a month as a standard rental leases for $7,500 to $11,500 a month as a licensed assisted living home. Same house. Completely different financial outcome.
2. You lease it to an experienced licensed operator.
They run everything. Staffing. Residents. Medications. Compliance. Daily operations. You are not a caregiver. You are not a manager. You are a real estate owner collecting a commercial lease.
3. You keep every real estate benefit.
Depreciation. Appreciation. Equity growth. Principal paydown. All of it stays with you. The operator carries the operational complexity. You own the asset.
4. The cash flow is in a different category.
From our own portfolio — homes leasing at $7,900 to $11,500 per month. Net cash flow of $3,000 to $5,700 per month after all expenses. From properties we are never operationally involved in.
5. The demand is not going away.
10,000 baby boomers turn 65 every single day. The shortage of quality assisted living beds in this country is over one million and growing. This model sits directly in the path of one of the most powerful demographic tailwinds in modern real estate.
Own the real estate. Let the operator run the business. Collect the lease.
That is the model.