Author Topic: Business idea for person with financial skills: CCRC evaluation  (Read 722 times)

profnot

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Lots of baby boomers are looking at Continuing Care Retirement Communities (CCRCs).
 
Most CCRCs charge monthly residence and care fees plus a one-time high entrance fee ($80K and up) in exchange for guaranteeing the resident will have a residence and care for life, even if their personal and government (Medicaid) resources aren't enough.

I've been helping 2 friends look for CCRCs and I can't find a service that will evaluated the CCRCs' financials and tell me what the chance would be the CCRC could go out of business.

IOW - assess the level of risk.

If you have the chops, this could be a great business. 

I've asked financial planners if I can hire them for this and they say no. 

I haven't found any services like this online.  My next stop is to try the Hospice office at the regional hospital.  Then I'll ask the only accounting firm in this county that offers forensic accounting services. 

Geriatric Case Manager are usually former RNs.  So they have the medical chops for care planning and resource location but not the financial chops I seek.

I'm posting this just in case someone with financial chops is looking to start a side hustle or perhaps leave her/his SSJ and go solo.

And by letting you know where I look, you now have some referral marketing partner ideas.

Proud Foot

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Re: Business idea for person with financial skills: CCRC evaluation
« Reply #1 on: July 30, 2018, 03:28:37 PM »
Are you able to obtain the audited financials of the CCRCs? This would be the biggest hurdle into doing something like this.

GeorgeWood

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Re: Business idea for person with financial skills: CCRC evaluation
« Reply #2 on: July 31, 2018, 06:00:28 AM »
What youíre looking for is essentially a credit rating agency. There are a number of agencies that provide these services for SME, Dun & Bradstreet comes to my mind for example. Of course, they analyze financial statements only, and mostly automated. As far as I know, they donít account for non-financial (but nonetheless very important for financial stability) issues like quality and honesty of management, and the commercial side of the business. Especially in the long run, things like the competitive landscape in the region matter more than e.g. the liquidity on the last periodís balance sheet.

The key would be to integrate all of these parts Ė look at the financial statements, but also make on-site visits, talk to management, research competitors, and read third partiesí reviews of the operational quality. I have the feeling that the costs for all of these procedures would surpass what individual clients would be willing to pay for a report.

Nonetheless, I like this idea a lot. Thanks for sharing the idea. Iíll keep thinking about it.

GeorgeWood

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Re: Business idea for person with financial skills: CCRC evaluation
« Reply #3 on: July 31, 2018, 01:07:14 PM »
Just found out that in my country, a yearly report on financial stability of (among others) CCRCs is sold for 300 Euro each. Published by some economics institute and Deloitte, the report is apparently based on more than 4000 financial statements and other industry statistics.

Seems like this niche is already covered over here. But it confirms that this is a viable business idea.