Anonymous wrote:You do need to research very carefully and frankly I’m not sure that you can avoid the risk of losing your deposit. Private equity is heavily invested in 55+ communities and continuing care. PE is based on an economic extraction model. In order to maximize profit for investors, it increases fees, saddles the entity with debt, and liquidates any assets it can. The goal isn’t to provide, maintain or grow the service. The goal is to extract what it can. As PE operates on leveraged buyouts where the investment firm is immediately paid back for its purchase by the entity taking a large loan once it’s acquired, the PE firms will sell it to another PE firm. When there is truly nothing left and the bank has devalued the entity to where no other PE firms will buy it, it goes bankrupt. Bankruptcy of the entity doesn’t hurt the PE firms. It basically part of the cycle.
The question isn’t whether you can avoid the risk of losing your deposit or home but timing. Will your elder live longer than the time it takes for PE to extract all the assets.
This is truly depressing.
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