How I Raised $1.1 Million for Assisted Living Without Using My Own Money

Welcome to Assisted Living Investing! I’m Brett Chotkevys, and today’s episode is packed with actionable insights. We're diving into creative ways to raise capital for your next deal—specifically, how I raised $1.1 million for an assisted living investment without using any of my own money, while keeping 100% of the equity. Sounds impossible? Stick with me, and I’ll show you how it’s done using private and hard money, without resorting to SBA loans or traditional banks.

The Assisted Living Investment Story

In 2019, my wife Laura and I purchased a 1974 ranch-style house in Georgetown, Texas. The house was outdated, but our vision was to turn it into an assisted living facility. We completely gutted the property and added an extension, transforming it into what is now our Platinum Resort Memory Care Mansion. The house, now spanning 6,300 square feet with 15 bedrooms and 12 bathrooms, features commercial-grade systems like sprinklers and more.

You can take a virtual tour of the mansion on our website: Platinum Resort Assisted Living.

How I Raised $1.1 Million Without Losing Equity

The core of this strategy lies in debt financing—not equity. That means I didn’t give away any part of the real estate or the operational company. Instead, I used a mix of hard money and private loans, structured in a way that allowed me to repay investors without sharing ownership.

Step 1: Buying the Property
We bought the house for $350,000 using a hard money loan. I put down 10%—roughly $35,000 of my own capital—but I quickly recouped that investment. After making an offer of $350,000 (lower than the asking price), we closed the deal within 30 days.

Step 2: Securing the Right Loans
After purchasing the property, I needed to raise funds for renovations and improvements. Here’s where private financing comes into play. I raised $1.1 million in total, starting with a $700,000 loan from a self-directed IRA of a family friend. This loan replaced the initial hard money loan and provided additional funds for construction.
The loan terms were structured as follows:
Interest rate: 12%
Term: 5 years
Payments: Interest rolled over until the loan term ended, meaning no payments during the construction phase.

Step 3: Raising Additional Capital
I also raised a second loan of $200,000 to cover additional costs. This second loan was secured in a similar manner and had a five-year term with quarterly interest payments.
With both loans in place, I had $550,000 of working capital to fund construction.

Step 4: Dealing with Surprises
As with most projects, unanticipated expenses arose. I realized that I needed more funds and raised a third loan for an additional $200,000. This loan was a bit more complex since it was in third position on the property and thus had more risk. However, the property’s appraised value at completion would be around $1.8 million, so the loan-to-value ratio remained strong.
To attract this third lender, I structured the loan as a participating loan agreement, offering them a mix of interest payments and a share in the upside of the project.

Why Keeping 100% Equity Matters
By using debt financing, I was able to retain 100% ownership of the property. There are pros and cons to taking on partners, but for this deal, keeping full equity allowed me to have complete control and maximize profits.

​This strategy is ideal if you want to keep control of your real estate and business, without relying on traditional bank financing or giving up equity. With the right approach, market research, and a solid plan, you can raise capital through private financing while maintaining ownership.