Summary
We propose the development of a 10,000-square-foot, purpose-built mansion designed to provide exceptional end-of-life care. This facility will cater to individuals in their final stages of life, offering a high level of care in a private and luxurious setting. The proposed property is located within the Extraterritorial Jurisdiction (ETJ), less than two miles from the hospital, and situated in a desirable residential area on Highway 16 in Kerrville, Texas. Our goal is to create a premium assisted living environment that prioritizes dignity, comfort, and comprehensive care.
Market Opportunity Demographic Trends
• The baby boomer generation is aging, with 10,000 people turning 65 daily for the next two decades.
• There is a national shortage of approximately one million end-of-life care beds.
• Our region has a disproportionately high population of seniors, many of whom have the financial means to afford premium care services.
• Younger seniors (50s-70s) are bringing aging parents (80s-90s) to this area, further increasing demand.
Industry Shift
• The COVID-19 pandemic highlighted the drawbacks of large-scale nursing facilities, leading to increased demand for smaller, more personalized care environments.
• Traditional facilities often lack the warmth and individualized attention that families desire for their loved ones.
• Our concept provides a superior alternative: a mid-sized, custom-built mansion offering all the amenities and services of larger facilities in an intimate setting.
Facility Design and Services Physical Infrastructure
• 16 private rooms, each with an en-suite bathroom
• On-site salon with a professional barber/stylist
• Private chef providing customized meals for residents
• Luxurious and homelike ambiance designed to feel welcoming, not institutional
• Fire safety systems including sprinklers, fire alarms, and proper egress pathways
• Compliance with Type B licensure requirements for assisted living facilities
Care and Services
• 24/7 awake staff providing assistance with activities of daily living (ADLs)
• Full-service housekeeping, laundry, and meal preparation
• Memory care services for residents with dementia or Alzheimer’s
• Partnerships with external medical providers including doctors, nurses, home health, hospice, dentists, podiatrists, and chaplains
• Secure environment to prevent wandering for residents with cognitive impairments
• "Aging in place" model allowing residents to remain in the facility through the end of life
Competitive Advantage Market Positioning
• We bridge the gap between small residential care homes (typically 6 beds) and large, institutional facilities (60+ beds).
• Competitor pricing ranges from $6,500 - $7,500 per month; our pricing structure aligns with the higher-end market while offering superior service and amenities.
• Unlike larger facilities, we provide:
o A higher caregiver-to-resident ratio (2 caregivers for 16 residents, even at night)
o A boutique, home-like environment
o A transparent flat-fee pricing model to eliminate financial uncertainty for families
Strategic Location
• Situated in a high-demand residential area with affluent seniors and their families
• Close proximity to medical facilities and support services Licensure & Compliance
• The facility will be fully licensed under Texas’ Type B Assisted Living regulations, ensuring adherence to all state and health department requirements.
• We will implement all required safety features, including fire suppression and emergency egress systems.
• By following the same regulatory framework as large-scale facilities, we offer comparable services in a more personalized setting.
Business Model Revenue Streams
1. Room & Board – Monthly fees covering housing, meals, housekeeping, and daily care services.
2. Supplemental Care Services – Residents’ insurance and state services cover additional medical support (e.g., physical therapy, hospice care, specialist visits).
3. Premium Amenities – Salon services, personalized meal plans, and other luxury services add value and differentiation.
Financial Projections Income
• 16 beds @ $7,000 = $112,000/month Mortgage
• 10,000 sq. ft. @ $225 per foot = $2.25 million
• Furniture, land, working capital, interest reserves
• Total $3.0 million SBA 7(a) loan (~$20,000 monthly payment)
Payroll
• 2 caregivers 24 hours/day @ $18/hour = $12,096/month
• Chef (40-45 hours/week) @ $20/hour = $3,600/month
• Manager (salary) = $5,000/month
• Payroll taxes = $16,000/month
• Total Payroll: $39,500/month
Operating Expenses (Insurance, Utilities, Food, etc.) = $11,000/month Scenarios:
16 beds @ $7,000 = $112,000
Expenses = $70,500
Cash Flow = $41,500
Worst-Case Scenario:
10 beds @ $7,000 = $70,000
Expenses = $65,500 (no manager salary)
Cash Flow = $4,500
Financial Summary: *All $ amounts are based on information from strategic partner’s recent build. Figures will be adjusted and provided to you before closing on SBA loan.
• Total Development Costs: $3,033,178*
• Building Appraised Value at Completion: $5 million*
Investment(s) Needed
• Funds to Raise: $370,000
• Exit Timeline: 5 years
Projected Investor Returns
• Real Estate (RE) Equity Split (15%) = $855,000*
• Operations Annual Cashflow Split = $74,700*
• Total RE & Operations Split = $929,700
• Projected ROI = $559,700
Conclusion
The proposed end-of-life care mansion represents a pioneering solution to a growing societal need. By blending high-quality care, luxurious accommodations, and a strategic business model, we will provide an unmatched level of service while ensuring a sound financial investment.
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