The key to building the right senior housing investment is matching the right buyer to the right seller. Both sellers and buyers have different requirements and expectations from the transaction process. This is where JCH thrives and adds value in finding that perfect match.
To make the match, JCH senior housing investment specialists use several marketing methods to connect these two parties. While these two popular methods each have their unique strengths and weaknesses, they work well for different reasons.
The Targeted Marketing Campaign
The targeted marketing campaign exposes the opportunity only to a select few qualified buyers. In this process the senior housing investment is offered to well-qualified buyers, sometimes already pre-approved by the seller.
The targeted marketing campaign limits exposure, which specifically reduces confidentiality breaches, an important factor in the success of a sale.
When confidentiality is breached, news of the potential sale circulates throughout the senior housing industry. Rumors spread and, almost always, reach the facility listed for sale. Thus, staff members might resign, caretakers leave and residents relocate to different facilities. Breaches in confidentiality have the potential to be detrimental to the sales process of senior housing investments. A targeted marketing campaign limits irresponsible exposure and protects the asset from confidentiality breaches.
The targeted marketing campaign also allows time for buyers to research and analyze the senior housing investment. Allowing them to put forth offers they can perform on. Realistic offers cut down on re-negotiations, moving the transactions along at the agreed upon pace.
The Mass Marketing Campaign
At the other end of the marketing spectrum is the mass marketing campaign. This notifies the entire senior housing industry of a listing. Specialists use a variety of media to announce the sale, including Internet marketing, phone calls and e-mails. With just a touch of a button, a listing can be sent to 5,000 potential buyers in the senior housing industry at one time. With mass marketing campaigns, it is worth noting that confidentiality has a very good chance of being breached.
Mass marketing campaigns generate a great deal of exposure for the asset. It can also produce a bidding war. While the seller may interpret the attention and activity as positive signs, this is not necessarily true.
In order to secure their potential senior housing investment, bidding wars force buyers into submitting bids they cannot perform on. This is done only to cut out the competition. Once that is done, the buyer attempts to renegotiate with the seller during the due diligence period.
However, mass marketing campaigns in the senior housing industry still work. In fact, many sellers choose this method to cast a wider net in hopes of quickly obtaining full market value for their senior housing facility.
The JCH Solution for Your Perfect Housing Investment
The senior housing investments specialists at the JCH group have topped success after success using both marketing strategies. We use the strength of the senior housing industry for your fullest advantage. Whether it’s a mass marketing campaign, targeted campaign or something in between, JCH works with each seller to customize the right campaign to achieve their goals.
Our team expertly handles niche-oriented sales as well as those for the entire senior housing industry, and anything in between. Choose the top senior housing brokerage for your next senior housing investment. Contact Nick Stahler, [email protected] or Jim Hazzard [email protected] at the JCH Group for more information.