Buying Small to Then Buy Larger ($1m SDE)

So when I say you can't use this as a basis of what you're going to pay for the business because in the past, you know, you buy business on what, what it's done in the past. This isn't, you know, you don't want to say, oh well, the future is bright. You could, this could be infinity business, you know, whatever you.

Yeah, well, I'm not going to pay for that. You know, I mean like I got to go out and get it if that's what's going to happen.

Exactly. Yeah, exactly. But looking, but you do want to look at that, right? You do want to say, but is there. What is the value I can bring?

So saw a lot of that. Saw where, you know, they were kind of, they were kind of testing the waters and, and having fun and dating a lot of senior living sites, but none of those sites had decided to marry them yet. You know, I mean, like, and, and in the years since acquisition or 15 months since acquisition, sure enough, that's kind of come to fruition.

All these sites are like, yeah, let's, let's go exclusive. You know, you can, you can do all of our communities. You've done a great job.

We're, we're all full and, you know, we're really happy with how this has worked out. We're renting it at rents that are higher than we've ever done. So this is great. And that makes a big difference because maybe we used to do two or three of their communities and now, but their full portfolio is like 10 or 12 or more. And so it can make a big difference.

So to be clear with the dating metaphor, they basically had a good pipeline of business already that was already in the works.

Yes.

And some percentage of that business would close under your ownership. You, you, you forecasted.

Yes, yes, that was the thinking is that they, they had a decent. So they had a decent known pipeline for sure of, of like, hey, here's the stuff that's already committed. But yeah, they also had, you know, you can extrapolate a little bit and say, you know, yeah, but if, if this goes well, what else, what else will happen?

What else could we get? And, and the answer was like, chances are decent that you get quite a bit more, you know, and, and yeah, that's what's come to fruition.