Page 6 - Gracecare Homes Brochure

Investment Str ategy
Gracecare Homes believes thorough research and knowledge of its’ niche market along with the wisdom gained by its managers practical experience has provided us
a competitive advantage expediting our ability to achieve our objectives. Logic and demand are the two key factors driving our expansion in this marketplace. Logic dic- tates that capital preservation must be the primary goal in any successful investment strategy. The purchase of the single family homes in which these facilities are located contributes a tangible asset that not only achieves this goal but provides the upside
of long-term capital appreciation in California’s traditionally stable median value
real estate market. Due to the mandate given to the department of health and human services in response to the Lanterman Act, enacted in California as proposition 63 in November of 2004 and revised as the Mental Health Services act (MHSA) in Decem- ber 2019 all patients whom currently reside in a nursing facility must be given the choice to reside in a assisted living setting as an alternative. Presently there are simply not enough residential home care facilities to serve the rapidly growing demand.
Gracecare Homes carefully crafted investment strategy is intended to provide our investors with long term capital appreciation, and the potential of exponential growth in a recession resistant industry, along with income sufficient to offset the liquidity that is an inherent part of the alternative investment market.
Acquisition
Our market research has shown that throughout California residential care facilities are disproportionately located in lower middle class neighborhoods. The median price of a home in California has made it extremely difficult for homeowners in these neighborhoods to balance the American dream of owning a home with the necessity of being able to afford essential goods. Our ability to buy homes for cash gives us the distinct advantage of targeting distressed properties in the pre-foreclosure and fore- closure stage. The experience of the manager whom owns numerous commercial and residential properties throughout California will allow us to purchase these proper- ties at 10-20% below market value. The purchase of these tangible assets for cash will provide the capital preservation your investment capital deserves. California’s median home market over the last seventy five years has shown an annual 5% appreciation. This provides our partners with the long term growth necessary to maintain the value of their principle investment by outperforming the average rate of inflation and possi- bly providing a completely passive 3% annual gain.
Renovation
In order to receive the certification necessary to open a residential care facility it is necessary to renovate the properties we acquire to fit the standards stipulated by the community care licensing division. It has been the experience of the manager that the renovations required has on average raised the appraised value of the acquired prop- erty by an average of 10-15%, in most cases offsetting the cost of renovation through appreciated value.