Business Model & Licensing Snapshot
As captured from planning sessionsBusiness Model
Licensing Path
Project Timeline
Click any item to mark complete — syncs to cloudLicensing Checklist
Progress syncs across all your devicesCalifornia — RCFE
0 / 11Oklahoma — RCH
0 / 10Market Intelligence
Evaluated zip codes — both statesLadera Heights
Canyon Crest / Woodcrest
Temecula
Sandy Springs / Johns Creek
Buckhead
Alpharetta
Midtown Tulsa
South Tulsa / Maple Ridge
Chicago North Shore
Why Chicago is deferred
Expansion priority order
Nichols Hills
Edmond
Forest Park
Key Decisions Log
Strategic conclusions from planning sessionsSelf-pay only — no Medicaid
Eliminates billing complexity, rate caps, and audit burden. Allows premium pricing $7,500–$15,000/bed/month. Referral strategy focuses on estate attorneys, financial advisors, and concierge physicians.
Ladera Heights (90056) — Strong candidate but not yet committed
Avg household income $200,304. 20%+ residents 65+. Median home values $1.59M. Neighbor operating as care facility confirms zoning precedent. Verify neighbor on ccld.ca.gov before finalizing. Alternatives under evaluation: Baldwin Hills, Pasadena, Long Beach (Bixby Knolls), Temecula. Property decision deferred until California license is closer to issuance.
Riverside 92503 dropped — demographics do not support model
Median income $91,523. Young population (median age 33). Working-class market cannot sustain $7,500+/month self-pay rates. Replaced with 92506/92508 or Temecula 92592 as alternates.
Shifted from Forest Park to Edmond / Nichols Hills
Forest Park population is only 913 people — too small for referral pipeline. Edmond: avg income $143K, 97K population. Nichols Hills: median income $203,750, strongest demographics in OKC metro.
CA provisional license realistically Q4 2026 or early 2027
June 1 training → July exam → August certificate → Aug–Sep application → CDSS review/inspection → provisional license Q4 2026. First residents likely early 2027. Plan finances accordingly.
Adjacent care home at Ladera Heights is a positive signal
Licensed care facility next door confirms zoning permits RCFE use. Not a hospital — a 4-bedroom residential care home. Check their CDSS record for citations at ccld.ca.gov.
Stress-test at 4 residents, not 6, for year one
Premium self-pay clients require longer decision cycles. 90% occupancy at opening is unrealistic. Budget for 50–70% year-one occupancy. Need 6–12 months operating reserves before opening.
Real estate background significantly accelerates property search
Understanding markets, reading neighborhoods, evaluating buildings — months of advantage over typical first-time RCFE operators. Key risk is zoning compatibility — verify this first on every property.
Atlanta is a yes — but not until California is open and stable
Sandy Springs and Buckhead charge $5,500–$8,000/month for assisted living — close to target pricing. Strong wealth demographics and growing senior population. However, Buckhead is already saturated with large operators (Belmont Village, Sunrise, Brighton Gardens). Best entry point is Sandy Springs, Johns Creek, or Alpharetta where competition is lower. Fits Georgia licensing path already explored. Target as Phase 3 expansion after California is operational and profitable.
Alpharetta is the recommended Atlanta entry point
Lower competition than Buckhead, strong income demographics from tech and professional wealth, growing senior base, and newer housing stock suitable for boutique RCFE conversion. Georgia PCH license (≤24 beds) is the right vehicle — lighter administrator requirements than ALC tier. Administrator licensing requires 1 year experience + 14-hour program + NAB RCAL exam + $110 application fee.
Oklahoma capped at 6 beds — same as California
Original plan allowed up to 16 beds for Oklahoma RCH. Decision: cap at 6 beds for both states. Reasons: (1) Operational consistency — same systems, policies, and staffing model in both facilities. (2) Lower capital requirement — 6-bed property in Edmond $350K–$700K vs larger property for 16 beds. (3) Simpler management — 6 beds is manageable as owner-operator without a large management layer. (4) Proves the model cleanly before any scale decision.
California property decision deferred — evaluating multiple submarkets
Not committed to Ladera Heights. Multiple Southern California submarkets under evaluation: Baldwin Hills/View Park (same demographic, lower cost), Pasadena/Altadena (older established wealth, Huntington Hospital referrals), Long Beach Bixby Knolls (lower entry cost, growing market), Temecula (wine country positioning, strong self-pay demographics, lower property cost). Decision will be made when California license is closer to issuance — Q3/Q4 2026.
Two 6-bed facilities combined financial projection
Oklahoma at full occupancy ($7,000/bed × 5, Maxwell property): $420,000/yr gross + $108,000 add-ons = $528,000 total. Zero debt — cash purchased at $450,000. California at full occupancy ($12,000/bed × 6): $864,000/yr gross. Combined total revenue: $1,248,000–$1,392,000/yr at full occupancy. Oklahoma net estimate: $241,000–$338,000/yr. Year one OK realistic: $140,000–$170,000 during ramp. Oklahoma cash flow fully funds California startup. Oklahoma property confirmed: Maxwell, Forest Park — $450,000 cash, zero debt.
High-return niche options identified — decision pending
Top niche candidates evaluated: (1) Concierge Dementia Care — highest rates ($12K–$18K/bed), longest stays (4–8 yrs), lowest turnover. Requires §87706 advertising compliance. (2) Post-Acute Luxury Recovery — short stays at premium daily rates ($400–600/day), one referral relationship fills beds. (3) Cultural Affinity (Black community) — Ladera Heights specific, no competition, lowest marketing cost. (4) Executive and Professional Transition Care — highest rate ceiling, most differentiated. (5) Oil and Gas Retirees — Oklahoma specific, royalty income is non-depletable, old money Nichols Hills. Niche selection decision pending property confirmation.
Forest Park Maxwell property confirmed — Oklahoma Phase 1 facility
Cash purchase and full renovation completed at $450,000 — zero debt. 4,000 sq ft total: 2,700 main floor (4 bedrooms) + 1,300 finished basement (1 bedroom, full kitchen, bath, private patio with hot tub). 5 total resident beds. Zoning confirmed for RCH use. Large elevated deck with fire pit, dining, and chaise lounge zones. 3-car garage for operations. No debt service — all revenue goes to operations and net income. Estimated net at full occupancy: $241,000–$338,000 annually. Break-even at 3 residents.
5-bed Oklahoma model — shift staffing, no debt, revised projections
5 residents @ $7,000/bed = $420,000 gross/yr base. Add-on target $108,000/yr ($1,800/resident/month). Labor: shift model 3 caregivers/day 24/7 @ $16/hr + 20% burden = $168,000–$175,000/yr. Overhead $35,000–$45,000/yr. Zero debt service. Net estimate: conservative $241,000/yr, target $338,000/yr. Year 1 realistic $140,000–$170,000 during ramp. Cash-on-cash return at target: 75% on $450,000 investment. Break-even: 3 residents. Stress test at 3 residents: $107,000 net — still 23.8% return.
Minimum financial qualification standard — 36 months at full rate
Never accept a resident whose assets cover less than 36 months at full rate. This is the minimum financial qualification standard. Pre-qualification questions: (1) What is the source of monthly funds — pension, investment income, rental income, or home sale? (2) Has family consulted financial advisor or elder law attorney? (3) Has family modeled total cost of care? Natural wealth screens: trust beneficiary referrals via estate attorneys, oil and gas royalty recipients in Oklahoma, pension income residents (military, federal, CalSTRS), home equity from $1.5M+ home sale.
Recommended structure: S-Corp holding company + one LLC per facility
TDM Oklahoma Holding LLC (existing) owns all real estate. TDM Residential Care LLC (new — S-Corp election) operates all three facilities and leases properties from TDM Oklahoma Holding LLC. TDM Community Services Inc. (new nonprofit) operates free food service program in Oklahoma only. Each entity is completely separate with its own bank account, EIN, and books. Liability at any one facility cannot reach real estate assets in TDM Oklahoma Holding LLC. Estimated annual tax savings from S-Corp election: $50,000–$100,000 at full three-facility occupancy.
Why one LLC per facility — liability isolation is non-negotiable
A lawsuit, regulatory action, or financial problem at one facility cannot reach assets of the other two when each operates as a separate LLC. This is especially critical in healthcare where a single resident incident can trigger significant liability. Each LLC also has clean books — essential if a facility is ever sold independently. Three facilities in two states with regulatory licenses in each location requires this structure. One entity across all facilities creates unacceptable cross-facility liability exposure.
Why Wyoming or Nevada for the holding company
No state income tax, strongest asset protection laws in the US, lowest annual fees ($50–$100), no requirement to publicly list member or officer names, and no requirement to register in Oklahoma or California if operations run through the state LLCs. The holding company does not operate facilities — it owns the LLCs. This keeps the holding company clean, simple, and outside the tax reach of both California and Oklahoma. CPA must confirm this structure does not trigger nexus in either operating state.
Immediate entity formation sequence
Step 1: Engage healthcare CPA and business attorney this week. Step 2: Form TDM Residential Care LLC in Oklahoma. Step 3: File IRS Form 2553 S-Corp election within 75 days — cannot be missed. Step 4: Obtain EIN for TDM Residential Care LLC. Step 5: Open TDM Residential Care LLC bank account. Step 6: Execute lease agreement between TDM Oklahoma Holding LLC and TDM Residential Care LLC for Forest Park property. Step 7: Register TDM Residential Care LLC as foreign entity in California when CA facility is ready. Step 8: Form TDM Community Services Inc. nonprofit. Do NOT commingle funds between any entities at any time.
Three-facility plan confirmed — OKC, Tulsa, Southern California
Revised expansion: Phase 1 — OKC Forest Park (Q1 2027 first residents). Phase 2 — Tulsa Oklahoma (mid-2027). Phase 3 — Southern California (late 2027–early 2028). Two Oklahoma facilities generating cash flow before California opens. Combined three-facility net at full occupancy: $881,000–$1,218,000 annually. OKC and Tulsa fund California acquisition. Georgia remains Phase 4 after all three are stable.
Dual ARF + RCFE certification — California and Oklahoma
Pursuing four administrator certifications: CA ARF, CA RCFE, OK ARF equivalent, OK RCH. CA ARF exam scheduled end of April 2026. CA RCFE training complete November 2026. Both CA certifications target November–December 2026. Oklahoma training taken jointly with facility employee who will serve as OK administrator of record. BLOCKING: Must confirm OK license types and training requirements with OKSDH (405-271-6868) and OKDHS (405-521-3571) before enrolling in OK training.
Employee as Oklahoma licensed administrator of record
Owner takes Oklahoma training alongside designated facility employee. Employee obtains Oklahoma administrator certification and serves as administrator of record for OK facilities. This allows Oklahoma facilities to operate under employee license while owner focuses on California licensing and property. Employee manages day-to-day operations in both OKC and Tulsa. Owner retains ownership, oversight, and strategic control. Critical: employee background check must clear before training investment.
Forest Park Maxwell — new construction completing July 2026
Property is new construction not renovation — completion target end of July 2026. Cannot open until OK administrator training complete November 2026 and license issued. Gap period July–November 2026: property complete but not yet operational. Oklahoma OKSDH application submitted Q4 2026 after training completion. First residents realistically Q1 2027. Gap period options: final facility preparation, staff recruitment and training, referral network outreach, marketing development.
Chicago is a strong market but wrong timing — defer to year 4+
Chicago average assisted living cost is $7,040/month — well above national median. North Shore suburbs (Winnetka, Lake Forest, Kenilworth) have generational wealth ideal for self-pay model. However: Illinois is a 4th state requiring completely separate licensing framework, property taxes in Cook County are among the highest in the US, labor costs are high with increasing union pressure, and regulatory scrutiny on staffing is increasing. Market fundamentals are real — revisit at national scale. Priority order confirmed: California → Oklahoma → Atlanta → Chicago.
Oklahoma opens first as pilot — California opens second as flagship
Oklahoma is now Phase 1. Lower capital requirement ($350K–$700K property), simpler regulatory path, faster time to revenue. Oklahoma cash flow funds California startup costs. California is Phase 2 — flagship facility with proven systems from Oklahoma. Both facilities capped at 6 beds for operational consistency. Do not open both simultaneously — master one before scaling to two.