Daniel Smith

Baltimore, MD (USA)
Role(s):
Founder/Owner/Principal

Victoria-Wesley Group ("DayOne Catered Living")

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Location: Baltimore
Industry: Healthcare
Year Founded: 1998
Number Employees: 1-10 people
Business Stage: Growth (not profitable)
Entity Type: Limited Liability Company
Description: Hello, Let me begin by stating that I selected "growth, not profitable" above, because I am far beyond "creation/ideas". I first got interested in Healthcare (Assisted Living, or ALF) when I sold a package of houses to an investor here in Baltimore. At the time I was also in the business of lending real estate secured loans, on a very small level, between $5K and $150K. Mostly, my loans ended up being very short term bridge loans for settlement costs, down payments, refurbishment budget, etc. Well, the lady asked me to financially back her in turning one of the houses that I sold her into an ALF. I said I'd look at it, and then once I became thoroughly interested, she stopped returning my phone calls. So I proceeded to research the business much deeper and found that I liked the business on a human level, as far as the ability to positively impact others' lives, as well as a very lucrative business. I have been buying and selling real estate since I was 25, or 15 years experience in real estate. As well, I am well versed in the world of finance. I majored in accounting at Towson U., however, much of my knowledge has come from writing mortgages for approximately 7 years, as well as loaning my own money for a number of years. I am interested in building/refurbishing an ALF to handle at least 20 clients, but my "sweet spot" I'd say is 25-30 beds/clients, pursuant to my research over the years. I've physically visited over 70 ALFs, from 5 bed ALFs to 200 bed ALFs. I've found the most profitable ALFs seem to be in the range of 12-35 beds. I have a property in which I could build from scratch on, or I have another property that is very attractive and needs to be refurbished. The latter is already entirely gutted and is for sale. Estimated construction costs are $635K, and the purchase price (asking price) of the building is $240K +/- . This would be a 27 client ALF and would need approximately 15 full and part-time staffers/care givers. The "conservative" monthly revenue will be approximately $77,000. The approximate total monthly debt service (on the real estate, the labor, utilities, amenities, food, etc.) shall be approximately $45,000. That debt service is also conservative, and will most likely be about $7,000 to $12,000 less per month. However, I believe in the theory of conservatism, and if there are any "adjustments", I like them to be "in my favor". This standard of building "cushions" around my deals has worked very well in the real estate arena. Even when life brings surprises, they are always accounted for. Even though I could make the deal look far more enticing on paper, by stating more factual data regarding the numbers for debt and income, I choose the ultra-conservative route, as it is much better a policy to "under-promise" and "over-deliver", than vice versa. I am looking to break ground on or before September 1st, 2011, whether building from scratch on my vacant lot, or refurbishing the aforementioned existing dwelling. Please feel free to contact me Monday through Friday, 7 a.m. to 8:30 p.m., and Saturdays, 9:30 a.m. to 6:30 p.m. Sundays if urgent, but I generally earmark my Sundays for the Lord, my wife, family and friends (and football!! - go RAVENS! - lol). My number to best reach me is (Phone # removed). You can text or call. As well, please feel free to email me @ (URL removed). Thank you for your time and interest, Daniel Smith