In terms of assets, the exceptional healthcare read would have their hospitals and nursing homes run by reputable healthcare operators. Focus your attention on the word reputable. By reputable, I mean being well known for the depth of medical expertise provided by the doctors and the quality of care provided by the nurses. Established operators will ensure the hospital buildings are well kept and professionally managed, and in doing so, protect the yields you receive. Again, it comes back to the importance of value added this regardless of the type of building as long as the building adds value to its patrons and tenants, it will command or rental premium. But the important question here is how do we ensure that a healthcare operator is reputable Just like hotel reads, we look into the brand of the healthcare operator find answers to the following questions.

What is the brand well known for? How long has it been in the industry? What are the reviews given by patients and visitors? Allow me to show you how brand due diligence is done. Say for example, you stumbled upon one healthcare read named first reach you head to their website, www dot first dash read.com. Click on portfolio overview and you will see that the read is working with clo m hospitals.

Clo m hospitals is a healthcare operator and a reputable one. I know this because I did a further search into the brands and I found that it has garnered more than 350 excellent reviews on various online forums. Moreover, digging deeper Lome hospitals has a long operating history in Indonesia and is part of one of the nation's largest real estate developers the lipo group. Therefore, I am confident that first read has the makings of an exceptional healthcare reads because it has chosen to let its hospitals be run by professional operators. Moving on to the location pointers. Here are three considerations that make a hospital location ideal.

These locational factors are probably considered by exceptional healthcare reads before they buy into any healthcare properties. Consideration one, the country demographics ideally speaking, the property should be in a country or place where there is a growing number of aging people coupled with a healthy working population. Together, these favorable demographics increase the demand for specific and upmarket healthcare services. Consideration To favorable governmental policies. The hospitals are located in a country where there is sturdy government support for hospital growth in the private sector and said government has established rules and governance that encourage and allow only quality medical tourism to enter and grow in the country. Consideration three area potential Ah, this is an important point.

Area potential is made up of how accessible The hospital is, whether there is a large catchment of people and whether those people are exposed to potential accidents, which is why whenever I invest in healthcare reads, I will make the effort to find out where each hospital is located and whether there is a sustainable demand for their services. Exceptional healthcare reads will put a lot of consideration into area potential whenever they plan to take over Over a hospital. All right, let's do a short activity. Imagine you have invested your hard earned money into a healthcare read that plans to buy this hospital called sh L. Can you spot key sentences in the short paragraph that indicates area potential. Look for sentences that indicate accessibility to the hospital. Large catchment of people and general susceptibility to accidents.

Take half a minute to do this. So did you manage to find those sentences? The answers are as follows. Accessibility can be seen from the new roads that have been passed to the hospital. Moreover, the hospital is located near the airport. Words like crowded region, busy tourist location suggests large catchment of people, whereas snorkeling and diving sites give strong reason why a sh L hospital must be there.

So, remember to do your locational due diligence before investing in a healthcare route. Moving on to the management pointers. Most exceptional healthcare reads have first class negotiators on their management team. Do you recall that the lease structure of healthcare reads are made up of both base rents and variable rents. Whenever a healthcare read buys a hospital, they need to negotiate on both the base and variable Rent rates with their hospital operator. Because the renewal of leases are substantially long, it is essential to have steadfast and shrewd negotiators on the team to argue for favorable rental rates.

You will see the benefits whenever a new hospital is added into the current property portfolio of the rates. The negotiators will ensure that the new property provides stability to the gross rental income or better still contribute more to the gross rental income. Other than having great negotiators on the team and exceptional management is also one that is aware of changing trends in the healthcare industry and open minded enough to consider writing on these trends. For example, the growing number of medical tourists. Medical tourists are a group of patients seeking treatment at specialized hospitals. Far from the homes.

From my observation and studies, there is a growing number of medical tourists in both the US and Japan. Prominent hotel operators such as intercontinental hotels and resorts are capitalizing on this rising trend already. Therefore, it is so unfortunate that many healthcare reads I've encountered do not capitalize on this trend due to the fear of deviating from their investment mandate. But my point to you is this. If you have invested in a US or Japan hospitality read, you can always suggest to the management to look into this rising trend. Because sometimes, the continued success of the route may also depend on the valuable suggestions from mastery investors like yourself.

To sum up here is the list for picking these exceptional healthcare reads.