Demographics and politics tend to be working in favor of seniorshousing operators, a panel tells the association. However,investors must be aware they are buying not only a real estatedeal, but in most cases a health-care operation as well. And thosesame demographics, including a growing population with longer lifeexpectancies, can cut the other way, too.

"It's a challenge for guys who come out of the real estateside," says seniors housing consultant David Citron, who recentlyleft his post as director of the Illinois Department of Public Aid."You're dealing with the hospitality side, you're dealing with themedical side and you're dealing with the social services side."

But then, Citron's former agency writes checks to nursing homestotaling $1.5 billion under the Medicaid program. "I don't knowabout you, but that's more than chump change to me," he says."Nursing home care has gotten to be an entitlement underMedicaid."