How To Build a Memory Care Mansion and Transform Dementia Care with Dr. Chloe Kilman & Nicholas Blanchard

Welcome back to another enlightening episode of The Physicians and Properties Podcast with your host, Dr. Alex Schloe.

💡 What if you could transform senior care, build a community-impacting legacy, and create financial freedom—all through purpose-built residential assisted living?

In today’s episode, Alex is joined by Dr. Chloe Kilman, a geriatric physician, and her husband Nicholas Blanchard, co-founders of Bloom Homes Assisted Living in Mississippi. Chloe and Nick are developing a 16-bed luxury memory care mansion—a model that blends exceptional dementia care with the warmth and dignity of a true home.

They share their journey from discovering the RAL model in 2022 to purchasing land, assembling their team, navigating city approvals, securing SBA financing, and preparing to break ground. Along the way, they open up about the challenges, the learning curve, the wins, and the deep motivation behind their mission: raising the standard of memory care in their community.

Through this inspiring conversation, Chloe and Nick show what’s possible when clinicians and families come together to create innovative, patient-centered solutions for an aging population.

🔥 What you’ll learn:

• From Idea to Development: How Chloe & Nick went from discovering residential assisted living to designing a 10,000 sq ft, 16-bed memory care mansion on land large enough for three homes.
• Why Ground-Up Beats Conversion: The zoning, layout, and cost considerations that led them to pursue new construction instead of retrofitting an existing home.
• The Memory Care Mansion Model: What makes this 1:5–1:8 caregiver ratio so powerful—and why smaller, home-style environments outperform many large facilities.
• Behind the Scenes of New Development: A breakdown of land acquisition, architecture, engineering, contractor selection, Department of Health approvals, and the emotional rollercoaster of SBA lending and appraisals.
• Funding the Project: How they’re structuring a joint-venture model, working with lenders, and using an SBA 7(a) loan to finance construction, FF&E, working capital, and lease-up reserves.
• Community Impact: Why Bloom Homes will not only improve dignity and care for seniors—but also create high-quality jobs, support families, and eventually help train dementia caregivers through nonprofit initiatives.

🔥 Key Takeaways:

• Small homes mean better care. A 16-bed memory care home can offer better monitoring, stronger relationships, and deeper dignity than many 100+ resident facilities.
• You don’t need to quit your job to build an assisted living business. Systems, mentorship, and accountability make development possible—even while working full-time.
• Success is built on relationships. Banks, architects, appraisers, zoning boards, caregivers, and mastermind groups all play a crucial role.
• The SBA 7(a) is a powerful tool. Few industries allow you to build a multimillion-dollar business with as little as 10% down while financing construction and working capital.
• RAL is both im

If you want to learn how investing in real estate can give you the freedom to practice medicine and live life how you want then check out the links below:

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Join The RAL Room Assisted Living Mastermind

Transcript

Dr. Chloe Kilman & Nicholas Blanchard: We'd love to house 16 residents and then in the future, 32 more. And obviously that impacts not just the resident or. The patient, if you will, but also their families. And then if their families are happy and maybe a little more relaxed because we're taking care of the patient or the resident, then they can go out and do better things. But we also hope to bring jobs to the community. We hope to be a place where people want to be employed.

Dr. Alex Schloe: Welcome to the Physicians and Properties Podcast, the show where we teach you how investing in real estate can give you the freedom to practice medicine and live life how you want. Doctor, doctor, doctor, doctor, doctor. Now here's your host, Dr. Alex Schloe.

Welcome back, i'm your host, Dr. Alex Schloe. So Dr. Chloe Kilman is with us and her husband Nick  Blanchard. We're really grateful to have both Chloe and Nick on the podcast  tonight.  Chloe and Nick, it's awesome to have you back. For our listeners who haven't met you yet, do you mind just giving us a brief reintroduction and then we'll jump up to speed on where you guys are with your project?

Dr. Chloe Kilman & Nicholas Blanchard: Yeah, thank you. Thanks so much for having us back. We're really excited  or I'm excited to be back. He's excited. I'm excited too, to be on for the first time, so we appreciate it. So yeah. I'm Chloe. This is Nick. We are married and I am a geriatric physician and Nick works at Nissan right now. We started, gosh, it was back in December of 2022.

We learned about RAL, residential assisted living, and we just started looking into it and we thought, oh, I think this is for us.  Here we are three years later, we've made a lot of progress and I don't know what else in the way of introduction. Our business is called Bloom Homes. We are in the process of hopefully building our first memory care mansion, and our land is large enough  to build two more in the future.

So we're in the middle of the process of getting the first one off the ground.

Dr. Alex Schloe: That's awesome. Disrupt the ground and then build the ground. Yeah, yeah, exactly. Yeah. Yeah. You guys are crushing it in terms of getting that new development started located in Mississippi. I'm really excited for this. We were talking before the podcast, just how cool this project is and how this 16 bed, 16 bath memory care mansion.

Model is so cool and how it's just gonna be like a complete league of your own. Like you guys are gonna set the stage. It's gonna be a class of its own.  It's gonna be an incredible home. So really excited to share more about the project.  What stage are you guys at in terms of your development right now?

Dr. Chloe Kilman & Nicholas Blanchard: Great question. So it seems like we've been doing this forever, but it also seems like we just started in some ways.  So right now we have our land. We did all the business planning. We have a mentor. We got all that stuff. We finally locked down our land around this time last year. Actually, we've on it about a year now.

October. Yeah. Wow. That's crazy. And so we're in the process now of talking with banks, talking with appraisers, and taking the next step in like the paperwork and securing the funding so that we can hopefully break ground in the next few months if we're lucky, if everything goes according to plan, which it never does, but that's okay as long as we get there.

Dr. Alex Schloe: Yeah, that, that's awesome. We, and you bring up such a great point. You guys have owned this land for almost a year and have been working very hard and very diligently to, to get ready to break ground and start construction on phase one of this project.  It's a long road and it does take a lot of work to do new development, especially when  you're doing something that hasn't really been done before in the area.

So.  For folks who didn't listen to that first podcast, what was the driver and the motivation for you guys to do this project?

Dr. Chloe Kilman & Nicholas Blanchard: You want me to take that? Of course. Okay. I think I mentioned December of 2022 is when we first heard about this model. And just like you said, it's brand new here. We had never heard about it being anywhere.

We heard another podcast with another physician that was doing this out west, Dr. Krishnan, I think I mention him every time  and we just started to get excited. 'cause as a physician, I see these patients in my office every single day who are living in nursing homes, living in assisted livings, memory cares, and maybe not getting great care.

And I just thought. Huh. This is so interesting. It took me a while to wrap my mind around it. I was like, this is so interesting.  It can be a big, beautiful home. Yet you have 12, 14, 16 residents. It'll be 16 in our case where it's really more homey, but at the same time, a grand facility, excellent care, all the things that they need, just like basically raising the standard of that type of care.

And I thought, if these folks can do it, why can't we? And we just really started digging into it. We went to a three day course out in Arizona. From a popular row academy, those folks that you've probably seen on the internet and they're like the industry standards, and we got involved with them and we really liked what we were doing.

We learned a lot, but we felt like at the end of that, we just wanted more. Like we were just getting hungrier and more and more excited about all of this. And so we started looking around. We found a mentor. We started working with him on the sort of memory care mansion side of things because there were a lot of aspects that we liked about that as opposed to building, finding a home, if you will, and then retrofitting it, converting it.

We actually did think about doing that briefly, right? We found there was a lot of red tape of doing it in our area. And the cost was prohibitive compared to a ground up build. So it was roughly the same, right? Cost. And we thought if we're gonna put all this money, sink it into an older building just to retrofit it, maybe not even have as much room, why not just build our own?

That's purpose-built as everything everybody needs. From the get go. And so really we just started pursuing that full force.

Dr. Alex Schloe: That's awesome.  Yeah. It's so cool  to see where you guys have come and what you guys are doing, and you're exactly right. There's,  there's multiple different ways to get going in assisted living, and one of those could be, yeah, taking a  large single story house and renovating that or retrofitting that to suit your needs and that you can totally do that and that can really work.

But in some markets, as you mentioned, like it may make more sense to do that new development, although as we see, it does take a lot of time and it takes a lot of work and a lot of effort.  But once you guys are done, gosh, it's gonna be so amazing and it's so beautiful. For folks who don't know what these memory care mansions look like, Brett Chotkevys and his team, they started that assisted living mansion model, that memory care mansion model.  These are absolutely  beautiful homes. 10,000 square feet, 16 beds, 16 bath,  way nicer than my house. Like I, I just can't believe how beautiful they are and it's a. It's such a cool, it's such a cool model and a great way for seniors to really like, feel like kings and queens and to have that experience for the end of life and  just really get treated how they should.

And so it's a really cool model and I'm excited to see that play out for you guys in Mississippi.

Dr. Chloe Kilman & Nicholas Blanchard: Thank you. We're super excited about it. I think. When my patients hear about nursing care or assisted living or memory care, they think about  the dark, dingy, smelly places and the places where you fall and nobody finds you for hours.

And unfortunately, I've seen that firsthand occur with some of my patients. And so we're really excited about being able to show people in the community that there's a completely different way to do this and that we can provide that dignity, we can provide that one-on-one care. In a beautiful home setting and I'm really excited about the home.

But I'll be honest, I'm more excited about the level of care that we're gonna provide. I think to me, that's the meat of the whole thing, right? That's the part that I'm excited about. Right. 'cause we shopped around in a few and saw that there were no caregivers. We couldn't find any. Yeah. And that was heart crushing there.

Seeing that there's some of these residents just wandering around, not really aimlessly, not anything to do for them. There's no caregivers to help them find their way. What we wanna provide is a better caregiver to a patient.

Dr. Alex Schloe: Yeah.

Dr. Chloe Kilman & Nicholas Blanchard: And just better monitoring. So just today actually in the clinic, I had a patient come in and she's losing weight and the fam, and she's at the one of these big boxes, one of the ones on our appraisal actually, who charges a little bit more than we were planning to charge.

And she's losing weight. And the families, we don't know why when we go by, she seems to be eating well, but they're not monitoring her every single meal. And I said, is the facility doing that? And they said, no, that's not anything they do. They have a hundred residents. They don't have time. Sometimes the food is too spicy for mom, sometimes it's something she doesn't like, and we just know she's not eating it with dementia.

She just doesn't think to maybe get something else to eat or her appetite is not where it needs to be. And so in my mind I didn't, I almost wanted to say, give me a two years and she can come live in my place and we're gonna monitor every single thing that she does so that we can follow those trends and really offer the best.

Care and, and things like that. It's just amazing what people are doing and what people aren't doing out there. Right. Give them the best quality of life. And also there a family is a peace of mind that, hey, they're getting treated well and yeah, and nourished and instead of the family members saying she eats well when we're there or we really don't know.

 Hopefully with us they'll know and be able to pull up the logs at any time and say, yeah, she has said she ate 90% of her meal or what have you.

Dr. Alex Schloe: That's so cool. Yeah. There's so many different ways to provide exceptional care in this environment. When you have 16 residents instead of a hundred, and that caregiver ratio instead of being one to 15 or one to 20 is one to five or one to eight, depending on the level of care, you can just really provide the exceptional care that seniors deserve and it's a win-win for the seniors, for the families, for the caregivers.

It's just a win all around. I was thinking about what you said. Yeah. Huge win for the community as well. I was thinking about what you said you see in patients today, and obviously you and I both being physicians and we see  a lot of EL elderly patients and  I was thinking when I was in residency intern here in Florida, we went and rotated at this nursing home,  this assisted living home, big box in Florida.

I won't say where it is. I doubt it's still open. But I remember we walked in and like immediately just get hit with that smell of urine. Like that mothball smell.

Dr. Chloe Kilman & Nicholas Blanchard: Yes.

Dr. Alex Schloe: And we're going to like just find the folks to see, hey, who do we need to round on? ' cause the residency program rotated through this nursing home at different breaks in time.

Yes. And we walked in and there's this demented lady, this demented resident laying on a mattress on the ground.

Dr. Chloe Kilman & Nicholas Blanchard: Ugh.

Dr. Alex Schloe: And she was sitting in her urine and in her feces.

Dr. Chloe Kilman & Nicholas Blanchard: Ugh.

Dr. Alex Schloe: And just, you just know the typical picture of like frail, confused, just a terrible situation. And she pushed the call button and no one came for 20 or 30 minutes.

And then it was like, we gotta get this lady changed. So we were like trying to find supplies and change the family, the caregivers came and helped us, and it's like just absolutely terrible. And she's spending thousands of dollars to be there.  And I thought, oh, maybe this is the only resident sleeping on the ground.

Maybe there's another reason for that in the mattress on the ground covered in urine and poop,  but it wasn't, and it was just heartbreaking. And I'm like, this is not a situation that I would want anyone's grandma or grandpa to be in.

Dr. Chloe Kilman & Nicholas Blanchard: And Yeah, that's the one they let you into.

Dr. Alex Schloe: I know. Isn't it crazy that you .

Dr. Chloe Kilman & Nicholas Blanchard: Even imagine the ones where they don't let people come in?

Dr. Alex Schloe: Yeah. Yeah. It is unbelievable about that possibility.

Dr. Chloe Kilman & Nicholas Blanchard: But man, that's awful. Yeah. And this was like a in training.

Dr. Alex Schloe: Yeah. And this is like a decent place. Like it wasn't, it wasn't a terrible place from that perspective, but  yeah, it was wild. They, they no longer rotate through that nursing home anymore, partly for that reason and others.

But  yeah, just heartbreaking that anyone is living in that situation much less. Paying a significant amount of money to be there and bringing that all back. The care that you guys are gonna provide is gonna be exceptional. Your background as a geriatrician is gonna add so many key insights. Just the model itself just offers so much more personalized care.

And  one thing I that you mentioned, Chloe, that I think's really important for folks to realize is  you guys were planning to charge less than that facility that's got the a hundred residents. That's not monitoring their residents in terms of intake.  And that's a thing we hear a lot is like  people think, oh.

Residential assisted living or these memory care mansions, like this isn't gonna be possible. I'll never be able to afford it.  Oftentimes it's actually cheaper than the big box facilities and you're getting that way better care. And so it just blows my mind. That's why I love doing the podcast. 'cause we've had folks too who have come to us and been like, we didn't even know that this was a model that existed and now this is an option for my grandma or my grandpa, or my mom or my dad.

And so  it's just an amazing thing. So  anyways, I could rent forever. I'm pretty fired up about it.

Dr. Chloe Kilman & Nicholas Blanchard: Yeah.

Dr. Alex Schloe: And obviously we love it  and what you guys are doing.

Dr. Chloe Kilman & Nicholas Blanchard: Same.

Dr. Alex Schloe: Last time we talked about you getting under contract on the land and you guys had just closed on the land and started working with an architect or your vetting architects at that time.

What's been the biggest changes that have happened since that last podcast episode?  In regards to your new development?

Dr. Chloe Kilman & Nicholas Blanchard: I can't believe that that was happening. Yeah,  so we landed on some really great architects and engineers and we, they finished  their side of things. Our civil engineer finished what he was doing.

We have landed on a contractor and he's been excellent. We're not even paying him yet. But he's been involved for almost a year now, I think. Right. Just really also fired up about the project. Somebody local who's done similar types of builds in other towns, but nothing quite like what we're doing and so he's just was really excited hearing about it.

I think we took. What, like 10 meetings with different contractors at some point past this past,  it must have been in the spring anyway, and he just, we just really liked him because he's a custom home builder, but he also does small businesses.  And then we found out during that meeting that he's built a couple of those beehive, assisted livings in different areas.

And so we're like, oh, that's perfect. So he's been really great.  And he's come with us to the city.  We've gotten our entire plans approved by the city and county. So basically they've stamped it and said, you can go ahead and build it, which is wonderful. So we turned the plans over once they were finalized to our Department of Health, and so they supervise the licensure and all of that stuff.

So we've got that process started and now we're really trying to secure the funding. That's our quarter four goal, is to secure the funding to get. Get the investors on board to go ahead and get the banks on board to get the best rates that we can get everything covered that we need. And so we're in meetings with mostly bankers and then also I would say lawyers as far as creating partnership entities and that kind of thing.

 All this while we're both working full-time jobs, right. And trying to be parents and spouses. And the holidays are coming up and I know you know exactly what we're talking about. So it, it does get a little bit overwhelming, but then we have an exciting thing happen. Like the architect's finished. Yay.

Celebrate. Yes. The city's approved it. Yay, celebrate. And then we actually recently had an appraisal done through a banker who's been really interested in what we're doing, but the appraisal did not come back as high as we expected. And I think for one, the comparables weren't quite up to what we think we are.

And maybe part of the problem is that the arai doesn't really. Stand what we're doing just because it is such a new model. And we sat down with the banker this week and went over all of that, and so they're gonna turn around and speak with the appraisers and hopefully we can get a little bit of a better appraisal to show our investor potential investors.

Yeah, we probably spent about 30 hours just in the past four or five days. Yes. Gathering material and Yeah, just to give to the banker. Yeah. So I will say this is a roller coaster. There's a lot of times where you spend 30 hours in five days, or then you spend three hours in a week. On doing things when you're waiting for to hear back.

So Exactly. And so like tonight we knew we were meeting with you, but other than that, we didn't have anything going on. And what do we have to do? I feel like we have a meeting, we have a meeting, we have something going on, it's, no, we actually get to sit down and have a slow dinner together. It's such an up and down, great things are happening and what seems like catastrophic things are happening and then  you figure out a way to pivot around it and then you're back up on a high.

It's like such a rollercoaster is the best way I can describe it.

Dr. Alex Schloe: Yeah, that's a good way to describe it.  It's a long rollercoaster and the track's still being built in front of you sometimes it seems at the end.

Dr. Chloe Kilman & Nicholas Blanchard: Yes.

Dr. Alex Schloe: Yeah,  but you guys are doing it Like you guys are, are proof that hey, you can do this.

 You can still work a full-time job. You can still be, you didn't give yourself as much credit, but you can still be a great spouse, a great parent,  and still do this. And it does take a lot of work and new development. Gosh, you're right. It's like that hurry up and wait's this classic military of hurry up and wait and everything is, when it's needed, it's urgent, but then you don't hear anything back for weeks and you're like, this was clearly not as urgent as it sounded.

And there's just so much that goes into it and a lot of learning.  We're right in that process right now working on the Winchester development and a few other development projects. And it's, it's just a lot of, a lot of waiting and a lot of talking to different folks and meetings and  Yeah. Yeah, it's amazing, but it's, it is a lot and I feel you guys there, and I think that  sometimes folks don't fully understand what all goes into that  pre-construction phase  and then what all goes into phase one, the horizontal construction before you even start going vertical. 90% really of what needs to be done happens in phase one and in that horizontal construction phase before you even start building the building.

And that's what's sexy, that's what people want to see, right? Is like the build of Yeah. So it's a lot of work up there. Yeah. So Chloe is so.

Dr. Chloe Kilman & Nicholas Blanchard: So great on, on putting everything on a calendar and scheduling time blocks on when we have things going on that it, it helps move things smoothly and we don't sit there and be like, oh, what do we have to do?

What meetings are coming up? Yeah. We already know for the week. And she does an excellent job on, we make a lot of lists. Yeah. Yeah. Sounds like it. Thank you. Thank you.

Dr. Alex Schloe: Yeah, absolutely. No, it's really helpful to stay organized and keep all those ducks in a row.  What are some other things, as we're hitting kinda list and things that have been helpful for you guys to  stay on track and work through this process, what are some other things that have been helpful for you guys as you've navigated through this process?

Dr. Chloe Kilman & Nicholas Blanchard: Definitely calendars and lists. And I'll say all the support that we have surrounding us. Mm-hmm. So,  being a part of you guys Mastermind has been really amazing. Being a part of the group with Brett and Laura has been amazing. I think in each of those groups we have at least a hundred people.

So a total of 200, and there's a few overlaps, but  I would say we have a hundred to 200 people that we can, we feel comfortable enough to just call and say, Hey,  where are you in this process? Did you encounter this? I know Nick had a call with one of our colleagues today from one of the groups just talking about civil engineering because we had already been through that.

And he said, I got this bid. Is this appropriate? And so they talked for quite a while about that. And then LA last, gosh, all the time is running together, but a few weeks ago we went out to Texas and we had a big meeting with all the people working with Brett. And so that was really great. We got to walk the mansions.

And so  I think that continuous engagement and the relationships with the other people that are doing the same things  has really helped kept. Keep us on track. Yeah. And it, and it helps idolize you when you're feeling burnt out a little bit. Yeah. And you're talking to somebody else. Mm-hmm. They give you inspiration to Gosh.

Yeah. And it reunites that fire and you to keep going forward. Yeah. Yeah.

Dr. Alex Schloe: That's awesome.

Dr. Chloe Kilman & Nicholas Blanchard: I've working with a lot of people in the Mastermind who've already done it, who already have experience. We just got a new red Pod member and we're really excited to get to know her 'cause she's got experience that we don't have.

And then Erin and Andrea are just a little bit ahead of us.  And then some of the other group members are like real close behind us. We're moving laterally. It's just  that part I think has been huge. Just the accountability group and having us, yeah, everybody accountability and helping push each other as towards as their goals.

It's great. And meeting weekly just we have a standing time and unless. Maybe once every two months we can't make it. But other than that, like we're update updating each other on the GroupMe and so we just, we have that weekly accountability, which is huge. And  of course the different communities that we can be a part of and be in the social media aspect of things.

I would like to be more active in those, but life gets in the way and we run out time. We gotta sleep sometimes. Exactly.

Dr. Alex Schloe: Yeah. Sleep's important for sure. No, yeah, I completely agree. Obviously. We fully believe in the Mastermind. We fully believe in community and accountability and it can really make all the difference.

I was thinking about the Red Pod. So for folks who don't know what Chloe's mentioning when she says the Red Pod,  in the rail room, in the Mastermind, we have pods, community accountability pods, and it's usually six to eight or so members who are in these pods and they work together and they hold each other accountable.

And it's this beautiful  like microcosm of community and. It's just so good at helping you elevate yourself and see like this is possible and bounce ideas off of, and all these sort of things. Really amazing.  But I was thinking about your guys' pod  and how nuts it is that Yeah, Aaron and Andrea raised $2.8 million.

They're getting ready to build these two 16 bed homes, you guys, and your development. Obviously Dustin and Randy are getting, they're getting ready to purchase land in Vegas and start doing a new development and Angela's already operating  and she's looking at more deals and Jeb bought a. Yeah, Jeb bought a ton of land and he wants to build 10 of these.

Dr. Chloe Kilman & Nicholas Blanchard: Yes, exactly.

Dr. Chloe Kilman & Nicholas Blanchard: It's just so cool to like action takers and that's what we're really shooting for in the RALRoom, is that it's a community of action takers who are gonna build each other up and be go givers. And you guys fully embody that. And gosh, it's just been so fun. And Charlie and Luke and I were talking about, we set a goal when we first started the route room.

Hey, we wanna  open a hundred homes through the RALRoom. By 2027. And we thought that was like nuts. We're like, it's crazy. 

Dr. Chloe Kilman & Nicholas Blanchard: Yeah.

Dr. Alex Schloe: And now we're like, shoot, this is probably gonna happen.

Dr. Chloe Kilman & Nicholas Blanchard: Yeah.

Dr. Alex Schloe: And it is amazing. 'cause that is a hundred homes providing amazing care for seniors. Awesome. And it's just super exciting.

Yeah. Oh man. Good stuff. Yeah.

Dr. Chloe Kilman & Nicholas Blanchard: We're super excited. Just so grateful to be a part of it all. Yes.

Dr. Alex Schloe: Yeah. Yeah. And it's awesome. It's amazing what Brett's doing, and there's just a lot of great people in the space who are really helpful, who are go givers, who wanna help each other out, and it's just an awesome environment because I think one thing that folks don't really think about is like the.

There's such a massive supply demand mismatch that like everybody that we ever talk to about assisted living could build a home and we're still not gonna meet the need that's needed. So that competition compared to other real estate asset classes is not really, it doesn't really exist. So it like, doesn't matter.

We all need to collaborate so we can open more and more of these homes. And get 'em built faster. Man, I keep getting on soap boxes tonight. I apologize for folks that are, that are listening, but yeah. So let's talk about some challenges. You guys mentioned the appraisal and you're work in that process.

What have been some other challenges or unexpected things that have come up as you guys get closer to getting this project across the finish line?

Dr. Chloe Kilman & Nicholas Blanchard: Great question and we don't wanna necessarily call anybody out 'cause some of the people that we've been working with maybe in our audience. But I will say that probably the biggest challenge is just explaining what we're trying to do.

For example, with the Department of Health, we have one person who had heard of me and I had never met her, but I guess she had heard good things and I'm really grateful 'cause she's like really trying to speed things along for. And then there's some other people who really don't seem to understand what we're doing and they're like, wait a minute, the process is this.

And I'm like, but last year you said it was that.  So now I don't understand. I don't understand exactly where we are. And it's, no, you need to go back here and do this. And I'm thinking, that person already said I did this, so how do we, anyway, it's just,  that part has been a little bit tricky, a little bit of the bureaucracy.

I think most people, once we explain what we're doing, they're really excited about it. But I would say that's been challenging. Right? Explaining, you know. Yeah. And then even to the banks and potential investors and just everybody, most people are excited to hear about it once they understand, but it, it is a little bit of time to get people up to speed and I don't know, I liken this process.

For us it's like learning a new language, but honestly it's more like learning 10 new languages. I feel like now we could go out and be appraisers. We could be lender. No, I don't know that much about any of that stuff, but I feel like more about architecture than I ever did. I know more about appraisals than I ever did.

I know more about  like different partnerships, structures. There's just so much that you're learning. So it's learning taxes. We're learning about lawyers and all the different things. So  I would say it's been both. The best thing and the most challenging is speaking with all the different people that you have to speak with to make this deal work.

Right? Making the connections and everything like we, we found. Through the network of the RALRoom, we're able to find, okay, tax people, we need to talk with them and we're learning on that. And that can use outside of assisted living, if you wanna start something else that has been a benefit of doing that.

So yeah, for sure. Yeah, just.

Dr. Alex Schloe: Yeah.

Dr. Chloe Kilman & Nicholas Blanchard: So just meeting all the different professionals has been great. Yes.  But also challenging because it is all new. And we have to have such a, an understanding. We don't have to have a complete understanding, but because we're doing it ourselves, we have to, we can't just hire somebody and say, here, you do all this for us, and we don't know anything about it.

Like at the end of the day, we may not be running the facility every single day in the future, but we at least wanna know how to do all the things so that if we had to, we could. And also just to get up and running, you have to have a basic understanding of all the different. Pieces that go with it. So that's been the most challenging and just wishing there were more hours in the day.

Dr. Alex Schloe: Yeah. When you figure that one out, let me know. No, I think a key point that you guys ha have brought up, and you've mentioned this multiple times, is. Is talking to people about what you're doing and explaining what you're doing. And this business, just like really any business is all relationships, right?

And  if you're willing to go talk with the lender and go talk with the appraiser, go talk with your local community, the zoning office, whoever it may be, and explain what you're doing in person and be willing and able to like share your story and your journey and what you're doing.  It's gonna get you so much more buy-in and understanding.

'cause you're exactly right. A lot of people don't know what this is. And they immediately think that facility that I mentioned where the lady's sleeping on a mattress on the ground with urine covering, covering her, right? Yeah. So it just takes that explanation and then it takes building that relationship.

And that's something that people can do now, regardless of where they're at in terms of new development or looking for homes. I start building those relationships now. So when  these opportunities come up, you're ready to go and you know who to talk to. So that's really great advice guys.

Dr. Chloe Kilman & Nicholas Blanchard: : Totally. That's something Brett taught us.

Go talk to everybody early and often, and we're both introverts, so we're like. We don't do that. But with my job, obviously I've had to learn how to do it throughout the years, and we've both gotten better at it over time. But it's, I don't know. That was a big challenge, I think, for me too, just to go and talk to people and, and they're like, do you need something from me?

And it's eventually, yes, but for now, I just want us to get to know each other and I want you to understand what I'm doing and  support me. And I don't know. That's been tricky, but more rewarding too, because you do actually get to know people. But it was pretty in return, but pretty neat. Remember we went and talked with the fire chief probably a year ago?

Yeah. And gave, gave him a card and everything. Spoke with him. About a week or two later, the fire chief's father called, who's retired, worked in the city council and everything, gave us a call and was just interested in our project. Yeah. So we told him about it. And then a year he used to work in senior housing.

It turns out. Turns out, yeah. A year, A year later here when we're in our, at the zoning meeting, he want, he heard that it was gonna happen and he went there and he  came and he met us in person. Yeah. And everything. That was really great. Like a year later, he still remembered Yes. About our project. Yes. And was interested.

Amazing that we found some really unexpected, wonderful support.

Dr. Alex Schloe: That's awesome. And,  and telling everybody what you're doing and  what you're building and your vision and your dream like it helps them buy into the vision. And also once you guys get to that point where you start marketing for residents or who knows if you'll even really need to market, I think you guys are gonna  be able to get plenty of residents really quickly,  just given how integrated you guys are in the community.

But once you get to that point, you guys have already been telling everyone, so it's not gonna be like,  what is this like new really beautiful building? What in the world are they doing there? It's already gonna be known. And then it's gonna be a lot easier for you guys to attract residents and fill the home.

Dr. Chloe Kilman & Nicholas Blanchard: We think so too.  We hope so.

Dr. Alex Schloe: That's awesome.

Dr. Chloe Kilman & Nicholas Blanchard: Thank you.

Dr. Alex Schloe: Yeah. Yeah, it's awesome.  What, what kind of impact are you guys hoping to make in the community with this home as well as phase two where we're hoping homes two and three will get built?

Dr. Chloe Kilman & Nicholas Blanchard: Yeah, certainly we'd love to house 16 residents and then in the future, 32 more.

 And obviously that impacts not just the resident or. The patient, if you will, but also their families. And then if their families are happy and maybe a little more relaxed because we're taking care of the patient or the resident, then they can go out and do better things. But we also hope to bring jobs to the community.

We hope to be a place where people want to be employed. We plan to pay a little bit higher and try to really value. People for what they're doing for us and do extra, extra things for them when we can. But I also have a couple of ideas for different nonprofits and things that we would like to do eventually.

There's a huge need for dementia care givers out in the community, and unfortunately, insurance will not cover that. And so one of my ideas is to do a nonprofit where we could train people maybe in our homes. To do that, to provide that care to community dwellers and maybe somehow get some grants or some funding from our business or all of the above in order to do that.

That would be one of my dreams down the road. And then we have a few other potential dreams like that, but really just impacting senior care in general in our state would be amazing. Amazing legacy to leave. Tell him we're doing the tip of snow training too. The teach our caregivers. Yes. All the way to treat a dementia.

Patients are totally different than, yeah. Than there different stages of dementia they go through and that a regular caregiver that may not have any kind of dementia care Yeah. Would realize that, oh, that this is a, this is just part of the dementia that they'd have to understand on how to treat patient That's right.

And how to communicate. There's a really specialized way that she goes about doing it and she's had a lot of success. I mean, there's even evidence-based studies out there that say that her care is the best. And that it reduces trips to the ER and the jury psych unit and things like that. So we've really gotten integrated in her group with her people, and we're going through the trainings and our plan is to transmit that to our staff as well. Hopefully.

Dr. Alex Schloe: That's awesome.

Dr. Chloe Kilman & Nicholas Blanchard: Hopefully, hopefully all of this will have a good impact on the whole senior community and their families.

Dr. Alex Schloe: It definitely will. Yeah. If any of Teepa Snows folks or listening, we would love to have people on the. Podcast  I've reached out a couple times. We'll see what happens. We're looking forward to meeting her at the conference in November and yes, see what happens.

But yeah, I do really love what she's doing. Just how she's flipping the script in terms of taking care of patients with dementia and really just providing excellent care and we're gonna need more and more of that. And that's a field that's  always growing and changing and just so much learning. I think if folks listen to this have have heard, like you guys are learning a ton and you, you have that willingness, and I know Chloe, you as a physician, like we just have that learning muscle where we just want to keep learning more and more all the time and do have to balance the learning with.

The being willing to take some risk as well and maybe not know all the information.  Yeah. And take action. But, but yeah, it's awesome. I'm excited for the impact that you guys are gonna make. That's gonna be fantastic. I, I know folks that are listening to this, we get a lot of questions about funding. What has that process been like for you guys?

How are you anticipating funding this property and. Bringing on investors, what does all that look like for you? 

Dr. Chloe Kilman & Nicholas Blanchard: Good question. So we've been talking with a lot of different people about our project and a lot of,  we've had a lot of interest of people who are like, Hey, I wanna invest with you guys. And so we are looking to do a joint venture partnership.

We have been talking with a lot of people. Like I said, we don't have anything finalized, but essentially that is our plan to do the investors to help us with the down payment and then to get the SBAA loan to fund the rest. Which is a perfect product for what we're trying to do because it will cover the, what is, what do you call it?

Brick and sticks. Yeah, bricks and sticks. The fur furniture and fixtures and from you through the lease up period time and working capital and things like that. Yeah. So it's a really great small business starting pro product. So that's our plan. Yes. And we reached out to Cavi with Cornerstone, and he's a broker who's shopping other banks for us.

And they reached out to a few, and then we have, what, three, three other banks that mm-hmm. We are working with specifically on, on our own that are, I guess, getting all our information to get a term sheet from just trying to get the best, most fair deal out there. Yeah.

Dr. Alex Schloe: Yeah. Absolutely. Yeah. It's always good to get multiple term sheets and multiple options and work with banks.

There, there is some room folks. I think sometimes that banks are just like incredibly rigid and like you get one quote if you will and you have to go with that 'cause it's never gonna be any different. There's a lot of wiggle room and working with different lenders and local banks and all those sorts of things.

So it's definitely helpful to shop around and it's helpful to work with folks who have experience with assisted living and copy's great. Some of the other banks in the community Live Oak Bank, five nine local lenders. There's  there. There's some good ones out there and so that, that's awesome.  The SBA loan seven A is amazing and it's so cool that you can have this loan product sometimes get for 10% down, depending on experience and some other things, but sometimes get that for 10% down and then just be able to wrap everything.

It's like unbelievable.

Dr. Chloe Kilman & Nicholas Blanchard: Exactly.

Dr. Alex Schloe: That you can do that. And so it's a really cool option and I think perfect for you guys and what you're building that That is great. Yeah. We're just so excited for you guys.

Dr. Chloe Kilman & Nicholas Blanchard: Thank you.

Dr. Alex Schloe: I figure a lot of people also, Nick, you're up my man. I feel like people are wondering like, Hey, what does it cost to build one of these?

Do you mind just sharing some rough numbers? Don't have to be exact  on what it may cost to build this home and what. What potential income may exist with this home as well. This is a business and you guys are working full-time jobs and you're doing this and you ultimately wanna obtain some degree of financial freedom, I'm sure, through this project.

So what is the, what do the numbers look like, if you don't mind sharing that?

Dr. Chloe Kilman & Nicholas Blanchard: So yeah, we had our, we gave our all our blueprints and everything to our contractor and he went out and did a bid. And everything with our mentor Brett. He has his construction administrator that's on there and he looks at the bid, he takes the bid odd GC as pairs it, 'cause he has other people around the country too.

So he knows what the average price is. He said it should be within 20% margin of all the, everybody else, which, if not, let's try to correct these and everything  so he knows what things are going for. So for our particular build, just the sticks and bricks you'd say would be $2.1 million. Just for that portion.

And then there's, is it included in there and then all the, is that included in the two point? No, that's not 2.1 you said 2.1? Yeah, 2.1. Then we include the land, two plus the land 2.6, and then all the bank fees. It comes to roughly 3.9, but that includes the working capital, the furniture, lease up reserves.

So a whole bunch of the, basically the entire project yes, comes to about 3.9 total costs.

Dr. Alex Schloe: That's amazing. Yeah.  Yeah. And again, for folks who are like, man, that's a lot of money. We're talking 10,000 square foot luxury mansion and it is a lot of money. Yes, you're exactly right.

Dr. Chloe Kilman & Nicholas Blanchard: It's a lot of money. Lot of money.

Dr. Alex Schloe: Yeah. I know. It definitely gives you palpitations. It's just an amazing project.  We, and so folks are here, 3.9 million, what the heck? How are you gonna support that and support that payment to the SBA? What does the income potential look like for the home?

Dr. Chloe Kilman & Nicholas Blanchard: So when we're shopping around, we get the price of the other assisted livings, and we'd find out what the, their prices were for memory care, their low end and their high end. We decided we'd come in right at the middle of what, what the local competitors are charging. So we're coming in under what they're charging. So hopefully we'd draw more, more clients that they would and coming in at the middle and we'll make a great profit on that, which will pay back everything.

We'll be able to pay our,  pay, our caregivers and our managers and chef a decent, a good, fair wage that's higher than the the average in the business and still come out with, I guess what. 25. 25 to $30,000 a month profit.

Dr. Alex Schloe: That's amazing. That's amazing.

Dr. Chloe Kilman & Nicholas Blanchard: Everything goes well.

Dr. Alex Schloe: Yeah. Still.

Dr. Chloe Kilman & Nicholas Blanchard: Once we're stabilized, first generation will not look like that.

Yes. But that's how,

Dr. Alex Schloe: Yeah. Yeah.

Dr. Chloe Kilman & Nicholas Blanchard: And then that creates enough money to hopefully turn around and do the two others, and then assuming all that goes well, then that turns around and would feed into the nonprofits and the giving back to other organizations in town. Yes. That we would like to do.

Dr. Alex Schloe: It's amazing. Love it. Love it. Yeah. There's a lot of potential for sure. And you're still providing. Absolutely amazing care  at a cheaper price than a lot of the other facilities. And I have no doubt, I know you guys underwrote conservatively middle of the road in terms of memory care, what you're gonna charge, but  I have no doubt that you guys are gonna be the pinnacle and ultimately gonna be able to charge whatever you want for the care that you're gonna provide.

'cause it's just gonna be a class of its own. That is. That is awesome. As we wrap things up here, what are you guys most excited for, let's say, coming up in the next couple months in regards to this property? Because I know the answer is getting this done and getting it operating, but what are the, some things coming up in the next couple months that you're excited for some milestones we can celebrate along the way.

Dr. Chloe Kilman & Nicholas Blanchard: Yeah. For me, quarter four is gonna be about securing the funding and then hopefully quarter one of next year will be about breaking ground. That's what I'm looking forward to actually seeing something. Yeah. Being built. And I plan on going, watching it every morning, seeing like we wanna take a picture in the exact same spot over the year and then do a TimeLapse someday.

Dr. Alex Schloe: That'd be awesome.

Dr. Chloe Kilman & Nicholas Blanchard: How to do that. Can you bury a tripod legs and then just put the camera on every single day and take the, I don't know. We're gonna have to figure that out.

Dr. Alex Schloe: Yeah. Yeah, I'm sure there's a way.

Dr. Chloe Kilman & Nicholas Blanchard: Yeah. I'm really excited to watch that and can see that come to fuel. Yeah, absolutely. Me too.

Dr. Alex Schloe: That is awesome.  Is there something that you wish more people understood about memory care or this type of development?

Dr. Chloe Kilman & Nicholas Blanchard: I guess that bigger is not necessarily better. Is the first thing that comes to mind. We do have a couple of really grand assisted livings in town, but like I said, those are some of the ones that I've literally had patients in my office say that they've fallen and nobody has found them for hours, and these are the best.

Not saying accidents can't happen everywhere. When you start to see a pattern in some of these places, bigger is not necessarily better. Even talking with the banker this weekend, one of, I guess his parent, one of his parents or somebody they know is in one of these Premier Yeah. Assisted living places, paying, paying him a lot of money.

And he saw the renderings and the actual pictures that I provided that show them of Brett's home already completed that we have the whole decor and a spec sheet of everything that he has we can put in our home also and make it look exactly like that. And he was just amazed on how grand and beautiful it looked compared to that.

That Premier one in town? Yes. 'cause it is a lodge. A hundred plus facility. So it has that a huge build. It's not a nice homey mansion look, it's a.

Dr. Alex Schloe: Yeah, that homey, personalized care boutique environment. There's just something so special about it and yeah, it is. Awesome.  Before we wrap things up, how can folks reach out to you if they want to know more or if they're interested in potentially partnering with you guys now or in the future?

Dr. Chloe Kilman & Nicholas Blanchard: Yeah, we would love to speak with anybody who's interested in learning more about what we're doing.  We also spend a lot of time talking to other folks who are just interested in doing this themselves and trying to promote our different mentors. And that includes you guys in the Mastermind? Yeah. Y'all can find me on LinkedIn.

I think Nick is on LinkedIn as well. So is Bloom Homes the name of our project. We're also on Facebook, Instagram, all the usuals Blue Homes assisted living.com. We have a webpage. Mm-hmm. And I'll link us. Link you to our Facebook. LinkedIn and all the other sites that we have. Yep.

Dr. Alex Schloe: Awesome. Yeah.

Dr. Chloe Kilman & Nicholas Blanchard: Well learned how to do build websites, social media, like one of the 10 languages.

That's right.

Dr. Alex Schloe: Yeah. Yeah, exactly.  Yeah, it's awesome. Check out Bloom Home, check out the website.  It's amazing to see what you guys are doing and you guys have some really awesome renderings and picture sheet. Wrap your head around the idea of what you guys are building there in Mississippi. Oh man, this has been awesome.

Chloe and Nick, thanks so much for coming back on the podcast, and Nick, so glad that you're here this time sharing this chapter of your guys' journey. We'll be cheering you guys on, looking forward to Breaking Ground and then bringing you on  once you get this launched.

Dr. Chloe Kilman & Nicholas Blanchard: Oh, heck yeah. We'd love it. All right. Yeah. Thank you.

Dr. Alex Schloe: Awesome. Absolutely. With that, it's been Chloe and Nick and Alex. Take care.

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