3,360sqft home build in semi-detached pairs ● 10 Beds each incl: 2*3pcs Bath ● 2*2pcs Toilet ● 2 Living Areas ● Mezzanine ● Kitchen ● Office ● Storage ● Backyard Deck ● 10,000sqft Garden ● Open Concept ● Fully Furnished, incl. medical equipment ● Turnkey operation as 2*10-bed high needs assisted living/late stage dementia care facilities.
Each home is developed on a 1/4 acre lot, providing for parking in the front, garden in back.
Investment provides bricks and mortar ownership. Together Care Services buys back, mortgages; or life leases property from investors at 6% of development cost.Send me more info
Currently seeking landowners and investors for development
- Build / Landscape ------------ $1,500,000
- Land --------------------------------- $600,000
- Furnish ----------------------------- $115,000
- Applications / Fees ------------- $160,000
- Operating Capital Req's ------ $200,000
- Total ------------------------------- $2,575,000
Cash Flow Analysis
- Rental Income ----------- $142,500
- EST Property Taxes ------ $17,200
- Management fees --------- $4,000
- Cash Flow ----------------- $161,700
- EST. NET Yield -------------------- 6%
Fed by the increased life expectancy of an aging population, demand for seniors’ housing continues to grow.
The major chains like Revera and Chartwell along with others are building to meet the demand, but the industry continues to operate, for the most part, as it has. Meaning retirement homes continue to provide care using the same business model — following the same paradigm; where care begins as independent living and services are added on as needs increase. The real challenge comes with seniors living physically beyond physical and mental independence… beyond the capabilities of the current private care paradigm.
In these cases, seniors reach a point in care referred to as a “two person transfer”, “level 5″ or “total care” where even in full time care, the resident requires an aid — an individually assigned Personal Support Worker or “PSW”.
The reality is that retirement homes don’t like these cases. From a business perspective, they complicate and confuse what is otherwise, a well oiled machine. From a family and resident perspective, it means costs can double, triple or even quadruple. While these costs cover the physical needs of the resident, that’s about all they do, ensuring that the resident doesn’t need to leave a facility they’re grown used to but is not equipped for their needs. But life is about more than a bed, medical care and a warm meal. Together Care specializes in these cases, especially those experiencing dementia or other memory challenging conditions; focussing on who the residents are as individuals as well as providing for their medical needs.
With seniors living longer, healthier lives, life expectancy has exceed 80. While many remain physically able into these ago groups; a dramatic spike in Alzheimer’s, dementia and memory challenge related conditions is overloading the current care establishment both privately and publicly. This has resulted in a 20,000 person wait-list for public care, bed-blocking in hospitals, private facilities compassionately retaining residents who’s needs exceed the facility; and families housing elderly family members for informal care offset by support workers.
The end result is an ecosystem bleeding informal care hours, mismanaged funding and elderly living out the rest of their lives in a makeshift system that focusses highly on medical needs, ignoring the individual behind their medical conditions.
A model is needed that places as high a focus on quality of life as it does on quality of care. Privately, Together Care’s model does just that and has been proven in St. Catharine’s Pioneer Elder Care.
Together with medical advances, improved health care, diet and exercise awareness, life expectancy for Canadians is increasing. Today’s seniors are outliving their parents by an average 20 years.
Even more interestingly, more than 55% of dementia cases in Ontario’s seniors is found in the 80+ and 90+ age group. That means more than half of Ontario’s dementia cases are experienced by seniors that are outliving the average Canadian life expectancy.
So what do we do with Ontario’s long lived seniors experiencing dementia and other memory challenges? What changes can the industry make to encourage a sustainable means of maintaining quality of life?
Together Care has one answer. It requires a paradigm shift in how we envision retirement care, but luckily it won’t be a first attempt. St. Catharine’s Pioneer Elder Care has made this vision a reality and it’s a huge success. Now, working alongside Lynne Martin, Pioneer Elder Care’s Co-Founder and Director of Care, Together Care aims to make that vision a reality province-wide.
Today’s market is more informed and involved than ever. Canadians are more knowledgeable of their health needs and the needs of their elder family members. More Canadians are health conscious and diet aware.
As more Canadian’s today than ever before have family living a retirement communities, the trickle-down of information means Canadians planning for private care are aware prepared for the growing costs of assisted living. Today, these costs, at the higher end of assisted living exceed 5,200/mo. Many Canadians are prepared for these costs. Their challenge comes in where needs exceed private care’s offering. In these cases, informal care by family members is used as a stop-gap. This continues to draw from family resources both emotionally and financially, meaning families are paying top dollar while taking time away from the very jobs needed to sustain these costs.
Many families are opting for in-home care or offsetting private care as an alternative to public care. This is a result of the extreme strain the current public care establishment is facing and will continue to face with greater difficulty for the foreseeable future. Today, public funded dementia care costs Canada $15 billion annually, within a generation, that number will swell more than ten times to $153 billion. Today, Canadians spend an average 231 million hours in informal care each year. Within a generation, following the current care paradigm, informal care hours will exceed 756 million hours annually — time that could otherwise be spent working to afford care and spending quality time socially engaging with elderly family.
Together Care’s model alleviates strain on hospitals and public care, on families, on tax dollars. It creates jobs, provides personality-centric care and improved quality of life and information for all those impacted (both family and elderly) by dementia and memory challenges.
Canadians, like people all over the world prefer living close to where they called home — where their family is.
In a densely populated area like York Region, it’s easier for large retirement chains to establish 200-300+ resident homes. While drastically more expensive for the resident, the more retirement homes in an area means the more likely they can augment full-time care to accommodate one-on-one care cases. But that doesn’t mean it’s cost effective or the best care solution.
In less densely populated areas of Ontario, residents are forced to move further away from their community in seek of augmented care, placing them and their families under additional strain.
What we all must keep in mind, is that the idea that current private care will permit augmentation of care for residents who’s needs exceed the facility is not a guarantee. In most cases, residents are asked to seek care elsewhere, many of whom currently contribute to Ontario’s 20,000 person wait-list — people who can otherwise afford care, but have no-one to provide it.
Micro specialized care-homes do not fit the traditional retirement home model based on scale alone. Therefore, the banks aren’t interested in lending to them, and the major chains don’t want to build them. Of course, the beyond full-time care needs of our elderly suffering from a Dementia related disease, in particular those that traditional retirement homes refer to as a two-person transfer (requiring one-on-one care) don’t fit the traditional retirement home model either.
This is where Together Care comes in. By establishing ten-resident micro specialized care homes, Together Care can establish throughout Ontario and maintain consistent care without augmentation, and for investors, consistent profitability.
These micro-specialized homes, in contrast to traditional private care, focus on a specific type of need, such as dementia and memory challenges, reducing staffing requirements from one-on-one, while remaining well above conventional patient-to-caregiver ratios. By limiting to ten-resident homes, in a home-like environment, a unique opportunity is created, one which has caught the attention of the Alzheimer’s Society of Canada as a means to care, so effective that it may even prove as a solution in calming elderly who have become uncooperative or combative. The reasoning behind this uses the format of the care facility both as a soothing, trusting environment and as a breeding ground for social activity, where naturally, by sharing in experiences, a bond and greater understanding between caregivers and residents occurs.
Together Care’s focus is integration and interaction. These core values, like in any loving home, radiates outwards and applies universally. The decision to operate as single-floor residentially presented homes was made to benefit all aspects of the Together Care experience. For staff, residents and their families, a home setting is calming, provides added warmth and fosters engagement.
For the surrounding community, a home, instead of a commercial retirement facility, preserves community appearance and values.
- 6% Annual ROI in form of rent
- Accepting late stage dementia and memory challenges refused by private care and wait-listed by public care
- Rent of entire building regardless of occupancy level stabilizes ROI
- Short build time (9-12 months)
- High ROI - Public Retirement REITs offer 4.5%, Together Care offers 6%
- Immediate tangible ownership
- Feel-good investment
- Benefit to industry as opposed to competitor
- Targets niche market of elderly on public wait-lists and refused by private care
- Separate from service provision means minimal liability to investment
Investment is available to accredited investors, investing a minimum of $25,000 CAD or those meeting the following criteria (as per the Ontario Securities Commission: Accredited Investor Exemption Guidelines):
- An individual who, alone or together with a spouse, owns financial assets worth more than
$1 million before taxes but net of related liabilities or
- An individual, who alone or together with a spouse, has net assets of at least $5,000,000.
- An individual whose net income before taxes exceeded $200,000 in both of the last two years and who expects to maintain at least the same level of income this year; or
- An individual whose net income before taxes, combined with that of a spouse, exceeded $300,000 in both of the last two years and who expects to maintain at least the same level of income this year
- An individual who currently is, or once was, a registered adviser or dealer, other than a limited market dealer
- Financial institutions
- Governments and governmental agencies
- Insurance companies
- Pension funds
- Registered charities
- Certain mutual funds, pooled funds and managed accounts
- Companies with net assets of at least $5 million
- persons or companies recognized by the OSC as an accredited investor
Investors residing outside the Province of Ontario are welcome to invest and are encouraged to meet their local securities regulations prior to investment.
Upon meeting investment requirements, potential investors are invited to sign a term sheet. Each private placement round will consist of sufficient funding to cover the full cost of a development project. Once sufficient investment has been located, funding will be collected and held in trust until sufficient funding has been collected. Should the private placement round fail to gather sufficient investment during the allotted time, all monies will be returned to the investors.
Return on Investment
Upon successful closing the sale of a private placement, development will be completed within a period of approximately 9-12 months. Following development, Together Care Services will occupy the property and commence operations. Following an initial 6 month rent-free period, investors will begin collecting rental payment from Together Care Services at a rate of 6% the total development cost.
Cost Breakdown is an estimate. Costs do not include taxes and may vary depending on locality and build date. Cash Flow Analysis contains estimates and forward looking information and should not be considered historical fact.