Legal Disclosures and Investment Terms

Important Information About AFH Investments, Revenue Projections, and Professional Services

PLEASE READ BEFORE INVESTING IN ADULT FAMILY HOMES

This page contains critical information about the risks, limitations, and disclosures related to Adult Family Home (AFH) investments and services provided through AFHMarketplace.com.

Investing in or operating an Adult Family Home involves substantial financial risk. The information below explains important limitations on revenue projections, cost estimates, timeline expectations, and the scope of professional services we provide.

Before making any AFH investment or business decision, please read this entire page carefully and consult with qualified legal, financial, and business advisors who can evaluate your specific circumstances.

TABLE OF CONTENTS

Scope of Professional Services and Licensing
Revenue and Income Disclosure
Investment and Cost Disclosure
Timeline and Projection Disclosure
DSHS Licensing and Regulatory Authority
Property Suitability and AFH Property Review
Real Estate Market Analysis and Outcomes
General Risk Factors
MLS and Third-Party Data Disclaimer
Website Information and Accuracy
Fair Housing and Non-Discrimination
Communications, Email Alerts, and Marketing Platform
Privacy and Confidentiality (RCW 70.02)
No Warranties or Guarantees
Requirement to Consult Qualified Professionals
Questions, Licensing, and Contact Information

1: SCOPE OF PROFESSIONAL SERVICES AND LICENSING

Real Estate Services Only

All services described on AFHMarketplace.com and provided by Petru Mihaluta are strictly within the scope of Washington State real estate brokerage services under RCW 18.86 through Windermere Real Estate/South Sound, Inc. (Washington State Brokerage License Number: 18513).

Petru Mihaluta is a licensed real estate broker and REALTOR® (Washington State License Number: 22035924). Services are limited to:

Real estate brokerage and representation (buyers, sellers, landlords)
AFH-focused property evaluation (from a real-estate perspective only)
Comparative market analysis and pricing guidance
Transaction coordination and negotiation
Real estate market and AFH-property education
AFH-aware marketing and positioning for properties

Real Estate Scope Boundary

Real estate services are limited to those allowed under RCW 18.86. AFHMarketplace.com and Petru Mihaluta do not provide:

Legal advice or legal interpretations
Tax, accounting, or financial planning advice
Investment recommendations, financial projections, or investment suitability analysis
DSHS licensing advice, application completion, or regulatory predictions
Business or operational consulting for AFH providers
Staffing evaluation, staffing plans, or care-planning guidance
Medical, clinical, or healthcare advice or services
Construction cost estimates, design services, or contractor services
Business valuations, certified property appraisals, or financial analysis
Privacy compliance support for RCW 70.02 or HIPAA
AFH business viability analysis or operational performance assessments

Adult Family Home (AFH) Administrator Certification
Petru Mihaluta holds an Adult Family Home (AFH) Administrator certification. This certification provides general regulatory context and is intended for informational purposes only. It does not authorize the provision of legal, tax, financial, business, operational, clinical, or medical advice.

Educational Content Disclaimer

All articles, guides, mini-guides, checklists, and overview content on AFHMarketplace.com are for general educational and awareness purposes only and reflect a real-estate-focused perspective. They:

Do not provide legal, tax, financial, medical, operational, or DSHS licensing advice.
Do not guarantee any specific outcome, result, approval, or performance.
Are not a substitute for advice from your own licensed attorney, CPA, financial advisor, AFH consultant, or DSHS.

Any references to Washington regulations (including RCW 70.128, WAC 388-76, RCW 18.86, RCW 49.60, and RCW 70.02) are for general awareness only and are not interpretations of law. Always consult legal counsel or DSHS for specific regulatory guidance.

No Downloadable Guides / Intellectual Property

All mini-guides, checklists, and overview content in the AFH Resource Center and across AFHMarketplace.com are for on-screen viewing only and may not be downloaded, copied, distributed, repurposed, or used as professional guidance without written permission.

2: REVENUE AND INCOME DISCLOSURE

CRITICAL: Revenue and income figures are NOT guarantees of your potential earnings.

What Revenue Figures Represent

Revenue and income figures stated on AFHMarketplace.com represent market observations from established AFH operations in the Greater Seattle-Tacoma and Eastside area (King, Pierce, Kitsap, Thurston, and Snohomish Counties, Washington State). These figures are derived from:

Public data and records
Industry averages and market research
Seller-provided financial disclosures (for specific properties)
Observable market patterns and trends

What Revenue Figures Are NOT

These figures are NOT:

Guarantees of your potential earnings
Predictions of your future financial performance
Promises of what you will achieve
Typical or average results you should expect
Representative of what most AFH owners earn

Revenue & Performance Variability

Revenue, occupancy, staffing outcomes, operational performance, and business success for AFHs depend on numerous operator-controlled, regulatory, and market factors. No revenue, occupancy, provider performance, or business success is guaranteed. All business performance must be independently verified.

Revenue vs. Profit: Critical Distinction

IMPORTANT: Revenue figures shown represent gross income before expenses. Revenue is NOT profit.

Gross revenue does not account for:

Operating expenses (staffing, food, supplies, utilities, maintenance)
Debt service (mortgage or loan payments)
Property taxes and insurance
Licensing and regulatory compliance costs
Professional fees (accounting, legal, consulting)
Owner compensation or salary
Capital improvements and equipment replacement
Marketing and administrative costs

Net income after all expenses may be significantly lower than gross revenue—or you may experience losses.

Many AFH Businesses Struggle Financially

Not all AFH businesses are profitable. Many operations:

Operate at break-even or losses, especially during initial years
Experience financial difficulties due to occupancy, staffing, or regulatory issues
Fail to achieve projected revenue levels
Close or sell at a loss

Operating an AFH involves significant business, regulatory, staffing, and financial risk. Business success cannot be predicted or guaranteed.

Financial Data & Revenue Information

Any financial performance data or revenue information provided must be independently verified with qualified financial professionals. No earnings claims or guarantees are made.

This information is for general educational purposes only and should not be considered financial advice specific to your situation.

3: INVESTMENT AND COST DISCLOSURE

CRITICAL: Investment figures shown are MINIMUMS and do NOT include all costs required.

Investment Ranges Are Estimates Only

All investment ranges, purchase prices, and cost estimates shown on AFHMarketplace.com are general market observations and typically represent purchase price only. They are not financial guidance or guarantees.

Budget Categories & User-Selected Ranges:
Budget categories in forms are user-selected and do not represent typical market pricing, affordability, or investment expectations.

Total Capital Required Is Often Substantially Higher

Actual total capital required is often 15–40% higher than purchase price ranges shown and may be higher in some cases. Additional costs may include:

Transaction & Closing Costs

Closing costs (typically 2–5% of purchase price)
Loan origination fees and points
Appraisal fees
Title insurance and escrow fees
Property inspections (general and specialized)
Legal fees for contract and business purchase review
Accounting and tax planning fees

Working Capital & Reserves

Working capital reserves
Operating expense reserves (often 3–6+ months)
Emergency/contingency funds
Initial cash flow coverage during transition or ramp-up

Property Improvements & Equipment

Property repairs, renovations, or improvements
Accessibility modifications and safety/fire systems
Furnishings, equipment, and appliances
Technology and communication systems

Licensing & Operational Start-Up

DSHS licensing application fees and inspections
Background checks, training, and certifications
Staff recruitment and onboarding costs
Insurance (property, liability, workers’ compensation)
Initial inventory (food, supplies, linens, etc.)
Consultant fees (operations, licensing, healthcare)

Unexpected Costs

Deferred maintenance discovered after closing
Major system replacements (HVAC, roof, plumbing, electrical)
Regulatory-driven upgrades or corrections
Legal issues or disputes
Economic or market changes affecting operations

Your actual total investment may be substantially higher than any ranges or examples shown on this website.

Operating Costs Vary Significantly

Operating costs vary based on:

Number of residents and care acuity
Staffing model and wage levels
Property size, age, and condition
Geographic location and utility costs
Insurance premiums and regulatory compliance needs
Maintenance, repairs, and professional services

Unexpected and higher-than-expected expenses are common, especially in the first years of operation or ownership.

Financing Terms and Availability

Any references to financing terms are general market observations only. Actual approval, interest rates, and down-payment requirements:

Are not guaranteed
Depend on borrower qualifications, property characteristics, lender policies, and market conditions

Always consult lenders and financial professionals directly for current, specific terms.

4: TIMELINE AND PROJECTION DISCLOSURE

CRITICAL: All timelines are estimates only and may vary significantly.

Any suggested timelines for:

DSHS licensing and approvals
CHOW (Change of Ownership) processes
Real estate transactions and closings
Renovations and property improvements
Resident placement and occupancy ramp-up
Business stabilization and cash-flow

…are general estimates based on typical scenarios under favorable conditions. Actual timelines may be longer, shorter, or not achieved at all.

Factors affecting timelines include:

DSHS workload, policies, and inspection schedules
Completeness and accuracy of applications
Local permitting and zoning processes
Inspection findings and negotiations
Financing contingencies and underwriting
Contractor availability and supply chains
Market conditions, competition, and unforeseen events

No specific dates, processing times, or completion timelines are promised or guaranteed.

5: DSHS LICENSING AND REGULATORY AUTHORITY

CRITICAL: All licensing and regulatory decisions are made solely by government agencies.

No Licensing or Regulatory Determinations

Terms like “AFH-suitable” or “AFH-potential” are real-estate marketing language only. They describe how properties may appear to AFH buyers from a property perspective and do not:

Create or imply any licensing status
Constitute regulatory approval
Confirm code, fire, or zoning compliance

DSHS Authority & Licensing

All AFH licensing, capacity, and CHOW approvals are determined solely by:

Washington State Department of Social and Health Services (DSHS) under RCW 70.128 and WAC 388-76
Local jurisdictions, building departments, fire marshals, and other regulatory authorities

Real estate services do not include:

Licensing advice or interpretations
Completing or submitting licensing or CHOW applications
Predicting or guaranteeing any DSHS outcome, timeline, or approval

Buyers and sellers must verify all licensing, capacity, zoning, building code, fire safety, and regulatory matters directly with DSHS and appropriate local authorities.

CHOW (Change of Ownership) Limitations

All CHOW decisions are handled exclusively by DSHS.
Real estate representation applies only to the property component of a transaction.
All business, operational, and licensing requirements must be handled by qualified AFH consultants, attorneys, and DSHS.

Licensed AFH transfers and CHOW opportunities are subject to DSHS review and approval. Timelines, approvals, and outcomes are not guaranteed and are outside the scope of real estate brokerage services.

6: PROPERTY SUITABILITY AND AFH PROPERTY REVIEW

AFH Property Review – Scope & Limitations

The AFH Property Review service for sellers and buyers provides real-estate market positioning and property-focused analysis only. This review may consider whether a home appears:

AFH-suitable
AFH-potential
Primarily traditional

It does not evaluate or determine:

DSHS licensing eligibility or approval
Regulatory or building-code compliance
AFH operational feasibility or business viability
Renovation costs, construction feasibility, or timelines
Financial performance of any AFH business

All decisions about renovations, licensing, compliance, business planning, care operations, taxes, and financing must be made with the client’s own licensed professionals (AFH consultants, contractors, attorneys, CPAs, lenders, etc.).

Real-Estate-Only Suitability Review

Property suitability reviews and AFH suitability labels are real-estate-focused assessments only. They do not:

Guarantee DSHS approval or licensing readiness
Confirm zoning or building-code compliance
Confirm operational capacity or safety for AFH use

All suitability and licensing decisions must be independently verified with DSHS, local authorities, and qualified legal and technical advisors.

Lease Terms & Tenant Screening Boundaries

Attorney Drafting Requirement: All AFH-specific lease terms (use permissions, regulatory access, insurance documentation, modification procedures, operational clauses, etc.) must be drafted and/or reviewed by a licensed attorney before signing. Petru negotiates real-estate terms only.
Tenant Screening Limitation: Any tenant screening guidance is limited to real-estate-related factors (e.g., credit, references, general readiness). There is no evaluation of an AFH operator’s business model, licensing status, operational readiness, or regulatory compliance. Operators and landlords must use their own legal and professional advisors.
Buyer Qualification Clarification: “Qualification” refers only to general real-estate readiness and financing; DSHS determines licensing suitability and operational eligibility.

7: REAL ESTATE MARKET ANALYSIS AND OUTCOMES

Market Analysis Is Not an Appraisal or Business Valuation

Any AFH Property Review, comparative market analysis (CMA), or pricing guidance is for general real-estate marketing purposes only. It is not:

A certified real estate appraisal
A business valuation
A financial opinion or investment analysis
A guarantee of sale price or market value

For certified valuation, consult a licensed appraiser and/or qualified valuation professional (e.g., CPA or business valuator).

Any complimentary AFH-focused property market analysis is informational only and does not serve as business, financial, or operational advice.

Results & Market Outcomes / No Guarantees

AFH-aware positioning and dual-market marketing (traditional + AFH buyers) may or may not result in:

Additional buyer interest or showings
Faster sale timelines
Higher sale prices or stronger offers
Competitive bidding situations
Any specific outcome or result

No guarantees are made regarding:

Sale price, speed of sale, or buyer interest
Licensing outcomes or approvals
Investment performance or property appreciation
Operator performance or tenant stability
Business continuity, occupancy, or revenue
Any specific result for buyers, sellers, landlords, tenants, or investors

No Tenancy Guarantees:
No tenancy duration, rental outcomes, tenant performance, rental income, or business continuity can be guaranteed. Leasing outcomes depend on operator decisions, market conditions, and other factors beyond real estate brokerage control.

Market Data & Recently Sold Properties

Recently sold property data (including AFH and CHOW sales) are provided strictly for educational and market-context purposes. They:

Include transactions by multiple brokerages
Do not imply representation by Petru Mihaluta
Do not predict or guarantee future pricing, suitability, or licensing outcomes

Past results do not guarantee future results. All data must be independently verified.

8: GENERAL RISK FACTORS

Investing in or operating Adult Family Homes involves significant risk, including the possibility of losing all capital invested.

Risks include, but are not limited to:

Regulatory & Licensing Risk: Denials, delays, CHOW issues, changing regulations, compliance costs, enforcement actions.
Operational Risk: Staffing challenges, resident turnover, quality-of-care demands, emergencies, facility damage.
Market & Financial Risk: Economic downturns, competition, demand shifts, property value changes, interest rate changes.
Personal & Lifestyle Risk: High time commitment, stress, burnout, personal health impacts, family strain.

AFH investment is not suitable for everyone. Many operators and investors face difficulties, and some businesses fail. You should not invest money you cannot afford to lose.

9: MLS AND THIRD-PARTY DATA DISCLAIMER

NWMLS & Advertising Compliance

All advertising and property displays comply with NWMLS Rules and Regulations, including:

Clear Cooperation Policy
Attribution requirements
Display and usage limitations

Any “owner-authorized” or special opportunities are shared only with seller permission and in full compliance with NWMLS rules. No exclusivity or guaranteed access is implied.

MLS Data Accuracy and Status

Property information from NWMLS and other sources is:

Deemed reliable but not guaranteed
Subject to errors, omissions, or changes
Updated periodically but not always in real time

By the time you view a listing, the property may:

Already be under contract or sold
Have changed price or terms
No longer be available

Always verify current status and details with the listing agent or appropriate broker.

Third-Party Data & Links

AFHMarketplace.com may reference or link to data and websites from third parties (DSHS, public records, research firms, etc.). We:

Do not endorse or recommend third-party content
Do not control or verify third-party information
Are not responsible for third-party accuracy, availability, or services

Use third-party resources at your own risk.

10: WEBSITE INFORMATION AND ACCURACY

All information on AFHMarketplace.com is provided “AS IS” for general informational and educational purposes only.

We do not guarantee:

Accuracy, completeness, or timeliness of information
Absence of errors or omissions
That content reflects current market or regulatory conditions

Information may become outdated due to:

Regulatory changes and updated DSHS requirements
Market shifts affecting pricing or availability
Interest rate changes
Property status changes (sold, pending, withdrawn)
Healthcare policy changes

Always verify critical information directly with authoritative sources (DSHS, lenders, listing agents, local authorities, and your own professional advisors) before making decisions.

11: FAIR HOUSING AND NON-DISCRIMINATION

All real estate services and marketing comply with:

Federal Fair Housing Act (42 U.S.C. 3601 et seq.)
Washington’s Law Against Discrimination (RCW 49.60 and RCW 49.60.222)

Services and property access are available to all qualified clients without discrimination based on:

Race or color
Religion or creed
National origin
Sex or gender
Sexual orientation
Gender identity or expression
Familial status (presence of children)
Disability or handicap
Marital status, age, military or veteran status
Any other protected class under federal, state, or local law

If you need accessible housing features or reasonable accommodations in the transaction process, please communicate your needs so we can support you appropriately.

12: COMMUNICATIONS, EMAIL ALERTS, AND MARKETING PLATFORM

Email & Text Communications Consent

When you provide contact information and request follow-up, you may receive real-estate-related email and/or text communications from:

Petru Mihaluta
Windermere Real Estate/South Sound, Inc.

You may:

Unsubscribe from emails using the unsubscribe link in any email
Stop text messages at any time by replying STOP

Standard messaging and data rates may apply.

Email Alerts & Opportunity Notifications

Email alerts and AFH opportunity notifications:

Are provided for informational purposes only
Are based on user-selected preferences and available data
May vary in frequency, timing, and content
Do not guarantee access to any property, listing, or opportunity
Do not create an agency relationship

Opportunities shared may not be exclusively represented by Petru or Windermere. All property details must be independently verified.

AFHMarketplace.com Platform & Compensation

AFHMarketplace.com is an AFH-focused marketing and information platform owned and operated by Petru Mihaluta. It is not a third-party referral, lead-generation, or matching service.

Compensation:

Petru does not receive any compensation, referral fees, kickbacks, or other payments from any third-party professionals, vendors, or service providers he may mention or to whom clients are referred (including but not limited to lenders, inspectors, AFH consultants, attorneys, CPAs, and contractors).
Any compensation Petru receives is for real estate brokerage services only, paid through Windermere Real Estate/South Sound, Inc., consistent with RESPA and applicable real estate laws.

Referrals are provided as a courtesy only and do not constitute endorsements or guarantees of any third-party services.

13: PRIVACY AND CONFIDENTIALITY (RCW 70.02)

RCW 70.02 — AFH Resident Information

Adult Family Home operators are responsible for complying with RCW 70.02 regarding privacy and confidentiality of resident health information.

Real estate services:

Do not include privacy compliance reviews, HIPAA/RCW 70.02 consulting, or handling of protected health information (PHI).
Do not manage or advise on AFH resident records, charts, or medical data.

Client information shared for real-estate purposes is handled in accordance with real estate law, NWMLS rules, and your Privacy Policy, but AFH resident health privacy compliance remains the operator’s responsibility.

For full details on how website visitor data is collected and used, please review the site’s Privacy Policy.

14: NO WARRANTIES OR GUARANTEES

This website and all information, services, and content are provided “AS IS” and “AS AVAILABLE”, without any warranty of any kind, express or implied.

We specifically disclaim:

Warranties of accuracy, completeness, or currency
Warranties of merchantability or fitness for a particular purpose
Warranties of non-infringement or quiet enjoyment
Any warranties arising from course of dealing or usage of trade

We do not guarantee or promise:

Investment returns, profitability, or business success
Licensing or CHOW approval or any regulatory outcome
Property availability, transaction completion, or specific pricing
Financing approval or specific loan terms
Occupancy levels, rental income, or revenue performance
Tenant or operator performance or continuity
Any particular timeline or outcome from services provided

To the fullest extent permitted by law, Petru Mihaluta, AFHMarketplace.com, and Windermere Real Estate/South Sound, Inc. are not liable for:

Investment losses or financial damages
Business failures or operational difficulties
Regulatory actions, licensing denials, or CHOW issues
Property defects or undisclosed conditions
Inaccuracies or omissions in information provided
Third-party actions or failures
Market changes, economic conditions, or force-majeure events
Any indirect, consequential, incidental, special, or punitive damages

Your sole remedy for dissatisfaction with the website or services is to discontinue use.

You acknowledge and agree that:

You are solely responsible for your investment and business decisions.
You will conduct (or have conducted) independent due diligence.
You will consult appropriate professional advisors.
You understand the risks involved in AFH investment and operations.
You are not relying solely on this website or Petru’s services for decision-making.

15: REQUIREMENT TO CONSULT QUALIFIED PROFESSIONALS

MANDATORY: You must consult appropriate licensed professionals before making any AFH investment, purchase, sale, lease, or business decision.

Professional Advisors You Must Consult

Legal Counsel (Washington-licensed attorney) for:

Purchase and sale agreement and lease review
Business entity formation and structure
Licensing and regulatory compliance questions
Employment law, staffing agreements, and risk management
AFH-specific lease terms and use permissions
Any disputes, litigation, or complex legal issues

Financial Advisors / Certified Financial Planners (CFPs) for:

Investment suitability and risk tolerance
Capital allocation and portfolio strategy
Long-term financial and retirement planning

Certified Public Accountants (CPAs) / Tax Professionals for:

Tax implications of AFH ownership and sale
Business entity tax structure and reporting
Financial statement analysis and business valuation
Tax planning, preparation, and compliance

AFH Consultants / Operational Experts for:

Licensing feasibility and application support
Operational planning and staff modeling
Regulatory compliance systems and processes
Business plan development and operational best practices

Healthcare Consultants / Clinical Professionals for:

Care delivery models and clinical standards
Staff training and competency verification
Risk management in resident care

Property Inspectors & Technical Specialists for:

General home inspection
Structural, systems, and environmental assessments
Accessibility and code compliance evaluation

DSHS and Local Authorities for:

Current AFH licensing requirements and processes
CHOW procedures and timelines
Zoning, land use, and local permitting

Independent Verification Requirement

You must independently verify:

Property condition, zoning, and code compliance
AFH licensing history, status, and compliance record
Financial records, revenue, and expense figures
Operational performance claims
Market conditions and competition

Information and services provided on AFHMarketplace.com do not replace professional advice specific to your situation.

Failure to consult qualified professionals significantly increases your investment and business risk.

16: QUESTIONS, LICENSING, AND CONTACT INFORMATION

If you have questions about these legal disclosures or need clarification on any terms, please contact:

Petru Mihaluta
REALTOR® | Certified AFH Administrator
Windermere Real Estate/South Sound, Inc.

Office: 33455 6th Ave S, Ste 1-A, Federal Way, WA 98003
Phone: (425) 505-0595
Email: Petru@AFHMarketplace.com
Website: www.AFHMarketplace.com

Languages: English | Romanian | Russian | Ukrainian

For additional legal terms and policies, please also review:

Terms of Service
Privacy Policy
Accessibility Statement

COPYRIGHT NOTICE

Petru Mihaluta
Washington State REALTOR® License Number: 22035924

Windermere Real Estate/South Sound, Inc.
Washington State Brokerage License Number: 18513