NIC has answers.When you need information about financing for development or acquisition, IN A TOUGH MARKET, you need every competitive advantage to entice your lender to loosen the purse strings purse strings or purse·strings pl.n. Financial support or resources, or control over them: the politicians who control federal purse strings; tightened the corporate purse strings. . Recent studies have shown that money still is available, hut will more likely go to experienced operators who can demonstrate market savvy and well-planned strategies. How can you, as an owner or operator, get the business information you need to gain the confidence of your lender or investor? One way is to turn to the NIC (1) (Network Interface Card) See network adapter. See also InterNIC. (2) (New Internet Computer) An earlier Linux-based computer from The New Internet Computer Company (NICC), Palo Alto, CA. . Since 1991, the National Investment Center for the Seniors Housing & Care Industries has been an objective source of strategic business and financial information. Our mission--to facilitate efficient capital formation--is accomplished through research, networking and an annual conference, which has drawn more than 1,200 financiers and senior living executives. (The 10th annual conference will be held this September 13-15 in Washington, D.C.) Proceeds from the conferences are used to fund research on timely topics such as financing trends and consumer behavior. NIC also publishes directories, monographs, audiocassettes, and more. This year, NIC launched a revamped and expanded Web sire, [less than]www.NIC.org[greater than], which gives owners and operators instant access to practical business information as well as the latest finance and industry developments. One new feature, Key Financial Indicators, provides operating and valuation benchmarks. This quarterly update gives capitalization rates Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. , construction starts (for the most recent quarter), occupancy figures (by property type), move-in rates, loan volume, and loan performance. Other new features are a Lender Locator LOCATOR, civil law. He who leases or lets a thing to hire to another. His duties are, 1st. To deliver to the hirer the thing hired, that he may use it. 2d. To guaranty to the hirer the free enjoyment of it. 3d. , which helps providers find lenders and investors who can meet their financing needs; and a StockWatch, which tracks the industry's publicly traded stocks and news about those companies. In addition to the online information, providers who want to he "in the know" can turn to NIC's research and resource publications. They will help you to better understand the industry and your product type, current and prospective residents, and lender requirements. Knowing how seniors housing and care stacks up against other real estate sectors can help you make the case for supporting your project, especially with financiers who may be less familiar with this industry. NIC's "Size, Scope and Performance of the Seniors Housing & Care Industry: A Comparative Study with the Multifamily and Lodging Sectors" compares three real estate sectors that have many similarities. Conducted by Pricewaterhouse Coopers LLP LLP - Lower Layer Protocol for NIC, the study compares seniors housing and care with multifamily and lodging in terms of number of properties and units, value of new construction, revenues, margins, profits, and investment returns. Results will show your lender that seniors housing and care compares favorably--both as an industry and investment--to these other, better-known real estate sectors. For specific information about the size of the seniors housing and care industry and your property type within it, the "NIC National Supply Estimate of Seniors Housing & Care Properties" answers key questions such as how big is the industry, what have been the growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. , and how do the numbers break down between large and small assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. properties and between combination products and freestanding free·stand·ing adj. Standing or operating independently of anything else: a freestanding bell tower; a freestanding maternity clinic. communities? UNDERSTAND YOUR CUSTOMER How about research to help you better understand what you need to do to attract and retain residents, so that you can demonstrate to your lender that you can achieve rapid fill-up and maintain a high occupancy rate Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) ? To learn what seniors think about seniors housing, NIC's "National Housing Survey of Adults Age 60+: Opinions, Attitudes, Perceptions And Behaviors, Volume II," a follow-up to the 1997 report of the same name, reports results from 3,500 telephone interviews and compares households that will inquire in·quire also en·quire v. in·quired, in·quir·ing, in·quires v.intr. 1. To seek information by asking a question: inquired about prices. 2. about, investigate, and move into seniors housing with those that will not. The differences are summarized in NIC's Seniors Housing Prospect Qualifying Instrument: 18 predictors that can help you identify the most likely candidates for supportive seniors housing. Assisted living operators can benefit from NIC's "National Survey of Assisted Living Residents: Who is the Customer?," a landmark study that reveals that income alone may nor be the best indicator of market potential; providers should also look at overall wealth and assets. NEW TOOLS FOR A NEW CENTURY NIC will soon release results from two national surveys. "National Survey of Adult Children: How They Influence Their Parent's Housing & Care Decisions" will help you market to the adult children of your prospective residents. For a comparison of business strategies in these turbulent times, "Survey of Seniors Housing & Care CEOs: Strategy and Operational Plans for The Industry's Top Companies" should be an excellent benchmarking document. Before approaching your lenders, peruse pe·ruse tr.v. pe·rused, pe·rus·ing, pe·rus·es To read or examine, typically with great care. [Middle English perusen, to use up : Latin per-, per- our annual Lender and Investor Survey, the industry's most thorough review of financing preferences and trends. It includes company profiles, project types now being financed and plans for future investments, lending terms for permanent debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay and construction loans, how projects are valued, how lenders view the industry, how lenders underwrite To insure; to sell an issue of stocks and bonds or to guarantee the purchase of unsold stocks and bonds after a public issue. The word underwrite has two meanings. projects, and what to include in a financing package to get a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. review. By becoming familiar with the resources described here, you increase your chance for obtaining financing. Robert G. Kramer is executive director of the National Investment Center for the Seniors Housing & Care Industries in Washington, D.C. |
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