Welcome to Assisted Living Investing! I’m Brett Chotkevys, and today, I want to share with you a creative way to raise money for real estate deals—without using your own capital. In this post, I’ll break down exactly how I raised $1.1 million to fund an assisted living facility, kept 100% of the equity, and structured the deal strictly on the debt side.

The Power of Strategic Financing

One of the biggest challenges in real estate investing is funding. Many investors rely on SBA loans or conventional banks, but I want to show you how to use private money and hard money loans to your advantage.

Back in 2019, my wife, Laura, and I purchased a 1974 ranch-style house in Georgetown, Texas, with the intention of converting it into a state-of-the-art assisted living facility. The house required significant renovations, and we transformed it into a 6,300-square-foot memory care mansion with 15 bedrooms, 12 bathrooms, and full commercial sprinklers.

Step 1: Acquiring the Property with Hard Money

We purchased the house for $350,000 using a hard money loan. Since it was a distressed property, I negotiated the price down from its original listing and secured a quick closing. I put down 10% ($35,000) in my own capital, which I later recouped through my financing strategy.

Step 2: Replacing Hard Money with Private Funding

After acquiring the property, I needed additional capital for renovations. Instead of seeking equity partners, I raised money through private lenders—specifically, a self-directed IRA loan from a couple in my church.

Here’s how I structured it:

First-position loan of $700,000

12% interest rate

5-year term with no monthly principal or interest payments until the loan was repaid

This loan replaced my initial hard money loan and provided an extra $350,000 for renovations.

Step 3: Securing Additional Financing

While the $700,000 loan helped, I needed more funds to complete the project. I raised additional capital through promissory notes and second-position loans, securing the remaining funds needed to reach $1.1 million in total financing.

Why This Strategy Worked

Maintained 100% Equity – By structuring the deal as a loan instead of offering equity, I retained full ownership of both the real estate and the operations company.

Avoided Traditional Bank Loans – No need for bank approvals, long processing times, or SBA restrictions.

No Monthly Payments During the Loan Term – The lenders agreed to defer payments until the loan was repaid, freeing up working capital.

Leveraged Private Lenders – Using self-directed IRAs and promissory notes allowed me to tap into funding from individuals looking for solid investment opportunities.

The End Result

Fast forward two years, I paid off all my investors and now own 100% of the assisted living facility. This strategy allowed me to complete the project, build wealth, and maintain control of my investment.

If you’re looking to finance your next real estate project without giving away equity, consider hard money, private loans, and creative financing strategies. With the right approach, you can fund your deals, retain ownership, and maximize your returns.

Want to see the facility in action? Check out the virtual tour at platinumresortassistedliving.com.

Stay tuned for more insights on real estate investing, and let’s build wealth together!

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