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Proposed Assisted Living Program in Nicaragua

By Margie Fincham [email protected]

Real Estate Limited Partnership – Mi Casa Con Corazon Business Plan – Phase 1

I. Executive Summary

Mi Casa Con Corazon is a proposed assisted living (AL) facility in the municipality of Tola, Rivas Department based upon the United States model for a small (six to 10 resident) community. This type of AL doesn’t exist in Tola, although there is a clear need for such a residence for older Nicaraguan and ex-pat families. A well-managed, full-time, professionally trained, caregiving staff will provide 24/7 service to residents who are either unable to remain safely in their own homes or whose families aren’t able to maintain a safe and healthy environment. The intention of Mi Casa Con Corazon is to facilitate a comfortable and beautiful home for individuals to live day to day until they die.

Mi Casa Con Corazon is a privately funded Real Estate partnership of professionals, a limited liability partnership (LLC) in the US, Sociedad Colectiva Limitada (LMTD) in Nicaragua. Two of the partners have over one hundred years-experience working with older adults in assisted living, home health, and medical institutions in the United States.

II. Industry Analysis

Assisted living is a huge business in many developed countries in the world. It has been well researched and documented for over twenty years that as the global population ages, there will be a substantial need for caregiving in the home and facilities. Family caregivers play an important role in helping family members age with dignity, independence and purpose. However, being a family caregiver — providing unpaid care to a parent, spouse, partner or friend — is hard work often demanding training and knowledge of medical procedures such as dressing changes or injections. Assisted living is an obvious alternative.

In several countries AL residences are part of the country’s medical benefit program — Switzerland, UK, Denmark, and the USA for example. Other options for assisted care are the utilization of homecare agencies both private and public. This caregiving benefit, although provided in the individual’s home, still requires a delegated caregiver. Regardless of their mission, motivation, or expertise, all homecare operators face the same challenge of recruiting and retaining a stable workforce of trusted caregivers. This challenge also exists in Nicaragua for private caregivers within the home.

Hence the opportunity for small home like AL exists. The Del Webb Sun City and Leisure World AL communities began in California over fifty years ago with their first phase, individual houses surrounding a central community room with or without shared meals, and professional staff amenities all within a gated area. Their models were an instant success that expanded into the variety of AL facilities large and small that are known today in every State in the USA.

Nicaragua has an increasing older population with fewer family caregivers. More households require two incomes to maintain their standard of living or in some cases survival. This necessity precludes providing a safe environment for a housebound individual or companionship with peers on a daily basis.

An AL at the beach area of Nicaragua with an ocean view is an ideal location for both Nicaraguan families and ex-pats who would prefer to retire to an AL that is beautiful and affordable. In California ALs in a beach community range in price between $4000 and $7000 per month dependent upon the size of the room and needs of the client. The AL may or may not have an ocean view.

Mi Casa Con Corazon will be an ocean view facility. It will be Nicaraguan licensed by the Ministerio de la Familia, MINSA, MINED, and MITRAB.

III. Company Description

The mission statement of Mi Casa Con Corazon is: To provide a home where people can realize a life of joy and dignity from beginning to end with individualized care for those with special needs. We believe that caring for each other is essential for individuals, families, communities and society.

Emphasis in the mission statement on joy and dignity are at the heart of Mi Casa Con Corazon care. The location with an ocean view is only one aspect that separates this AL from any competition in Nicaragua. Other characteristics of Mi Casa Con Corazon include supervised activities frequently designed by the residents such as dancing and singing that are only seen in ALs where the importance of joy and dignity are an integral part of the mission.

The first partners in Mi Casa Con Corazon, LLC all have management experience as nurses and administrators of AL facilities in the USA. The partner’s experience is a currency and can provide competitive advantage should such occur in Nicaragua.

Processes to obtain the necessary licensing have begun. Due to the current political situation in Nicaragua, culmination of proper licensing and Nicaraguan legal status for Mi Casa Con Corazon cannot be determined at this time. Formation and registration of the LMTD has already begun in Rivas.

The President of Mi Casa Con Corazon, Margie Fincham, is a Nicaraguan resident of over 15 years who lives full-time in Tola, Rivas Department. She is a registered nurse (RN) and a Gerontology Clinical Nurse Specialist (GCNS) licensed in California with over 40 years of AL management in the USA. She has both purchased property and sold property in Rivas Department. Margie currently acts as a consultant to Nicaragua clinics and individual families seeking help for their elders in country. Other members of Mi Casa Con Corazon, LMTD are RNs with unique specialties and a contractor who has AL experience with facilities in construction and renovations. Phase 1 will begin with one home of three private rooms and baths in Guasacate.

IV. Market Analysis Mi Casa Con Corazon’s target market is two-fold by design—one, ex-pats desiring AL in a beach area; the other, Nicaraguan families who desire dignity and quality care and can afford to pay for it in a beach area. This two-fold approach will be a selective mix. Each group as residents in the same home can engage the other in sharing their unique cultures and histories.

No current competition exists for this type of assisted living in Nicaragua.

V. The Economics of the Business

Revenue for Mi Casa Con Corazon is derived totally from the monthly room rental. Proposed monthly room rates are $3000 per month which is an inclusive rate for room, meals, activities, and total care.

As a real estate venture each $50,000 investment will have 8% ownership of the $600,000 partnership. Each $100,000 investment will have 18% ownership with a return on investment within year two.

In Phase 1 financial projections , the largest fixed cost is salaries for eight full time employees plus their Nicaraguan benefits amounting to approximately $54000/yr. The second largest annual cost is food and supplies at $15200/yr. The third largest cost is utilities including internet and cable = $5600/yr. Included in food and activities is occasional offsite group meals at local restaurants. Margie Fincham, president, will receive a monthly fee of $1000 for total management of the staff and business processes.

Proposed Phase 1 start-up cost is the completion of an existing property. Purchase of a transport vehicle for residents to activities such as a Polaris or Club Car is also a start-up cost.

VI. Marketing Plan

Marketing will initially be done through word of mouth to friends of the Mi Casa Con Corazon partners in the USA and Nicaragua. Since Phase 1 AL is small, a large marketing plan isn’t useful to begin operations. When Phase 2 begins, a formal marketing plan will be devised and implemented that will include a Medical Tourism component.

VII. Design and Development Plan

Nicaragua has specific laws governing AL facilities. Law 720 (Law of Older Adults) is the governing law for Nursing Homes and Other Places for Adults under the jurisdiction of EL MINISTERIO DE LA FAMILIA. This law is overseen by the Council of the Elderly (CONAM) under Executive Decree 51-2010. Law 720 requires further government applications to various other departments — MINSA (health department, MINED (education department), MITRAB (guarantee of labor rights).

A Nicaraguan attorney has been hired to begin the two-fold process of forming the LMTD in Nicaragua and acquiring all the applications for the licensure of an adult living facility.

Without proper licensure with MINSA and MITRAB oversight, there can be no business. The cost for licensure will be approximately $7000 to $10000. Depending on the time of year applications are made, successful fulfillment of the applications may be executed promptly or take months. Nicaraguan government offices have many long holidays and their systems for keeping and filing applications are still third world processes

VIII. Operations Plan

Location of Mi Casa Con Corazon has two prospective areas within the Tola municipality. Phase 1 location is in La Loma in Guasacate, a small pueblo on the Popoyo/Guasacate beach. There is an existing unfinished house of 3100 sq. ft. owned by president, Margie Fincham. The structure, although physically suited for AL requires completion of plumbing, electrical, floors, windows, doors, wall finishes. The house has a magnificent ocean view with access to the beach within a 5-minute drive directly down the hill in front of the house. There are three bedrooms and bathrooms on the first floor with direct walk-in to the interior of the house. A 700 sq. ft. space suitable for AL staff dormitory room, bathroom, and laundry exists on the lower floor.

Phase 2 AL will be located in the small pueblo of Limón #2 in Tola Municipality. Phase 2 will begin with three homes of four to six private rooms with bathrooms for the elder long-term population. A medical tourism component is scheduled to have three homes with private room and bathroom but will be situated slightly farther in distance from the common community center. Phase 2 is based upon a pod design of homes. The medical tourism component will not provide any clinical features only recovery room and board aspects.

Both locations are suited for safe comfortable adult living in a beautiful environment.

AL licensure in Nicaragua requires basic 24/7 care. In addition, Mi Casa Con Corazon will provide the following inclusive specialized amenities:

• Professionally trained 24/7 staff – Margie Fincham, teaches Cuidadores de Personas, a five-day caregiving training class. Completion of this class will be required of all staff including guard, chef, maintenance and cleaning personnel

• Dynamic calendar of activities, classes, and outings for appropriate residents

• Wellness exercise programs by certified trainers and yoga instructors

• Nutritional meals both community and individually prepared with input from the residents

• On site visits by a doctor twice a month

IX. Management Team and Company Structure

The LMTD partners will provide total management of Mi Casa Con Corazon. Two of the partners are registered nurses licensed in the USA. Margie Fincham, LMTD president is a Gerontology Clinical Nurse Specialist and a permanent Nicaraguan resident. Grace Sagun Harley is a business owner, building contractor in the USA with experience as an AL contractor. All of the LMTD partners have extensive personal experience with AL living and caregiving in the home and medical facilities as primary caregivers for family members.

Each member of the LMTD brings with them their network of business and medical advisors who will provide input when appropriate to the Mi Casa Con Corazon management team.

X. Overall Schedule

Initial paperwork and registration for the LMTD partnership and AL applications has already begun. Mi Casa Con Corazon is beyond an idea and talking point.

XI. Financial Projections

Margie Fincham as the primary investor has a $300,000 or 48% investment.

Partnership solicitation is for two investors at $50,000 each for 8% per $50,000 share of the total $600,000 real estate partnership business and two $100,000 investors for an 18% share of the business.

The initial $50,000 by Grace Sagun, a founding partner, will be valued at 8% of the business.

Details of the Financial Projections are included below:

Margie Fincham [email protected]

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