How to Buy a Business With No Money in 2024
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- Äas pĆidĂĄn 2. 03. 2023
- Want to learn how to buy a business? (Free Consult): contrarianthinking.biz/youtub...
Here's the playbook I use to buy businesses for little cash down: contrarianthinking.biz/buyfor...
Who do you think makes more money post-college: consultants and bankers, or people who buy businesses? You guessed it!
Today I'm going to be telling you the smartest way--hands down--to get to 5 figures of monthly income.
It is the best way to hit $10,000 per month. It has the lowest failure rate (which is especially important in 2023), allows for income on day one, and it's how the largest percentage of people on the Forbes 500 list made their money.
And it all starts with two words that I'm known for (comment below if you know what they are so I can see who's been doing their homework)! It's as simple as buying people's businesses, and using other people's money to pay for it. It's not only possible, it's necessary!
There are way more businesses than buyers, and today I'm going to teach you how to replace your W2 income by buying a business, how to finance a business by using other people's money, and the 4 different ways we can cash flow so you can buy your businesses.
*Get social with us:*
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The BE AN ADULT SECTION đ€
All content on the Codie Sanchez CZcams channel reflects my own opinions and should NOT be taken as legal advice, financial advice, or investment advice. Please seek out the guidance of professionally trained and licensed individuals before making any decisions. Some links in the description may be affiliate links. - ZĂĄbava
Check out the 5 most common business mistakes before buying a business too! contrarian-thinking.ck.page/5-biz-mistakes
The most commonly traded product in our universe is data. When we incorporate more dimensions to what works, we increase the concentration of information through the wave.
You capture air and it becomes water much like a river bank, or rain cloud.
Usually in data transfer we create a filtering mechanism that resources in frequency. Data of course comes in the air (Aether) and this requires transfer (Channels and Streams). What we sell and make sale becomes what we berth and ship. Direct routes work best in any recreated "system" (sister-stem) but the trick is understanding flash floods in currency/ markets. The driver of charge will always equal authority.
@CodieSanchezCT Iâve just subscribed! What websites do you use to find businesses for sale? And does this work only for business located in the same country as yourself? Ie. Iâm living abroad and many opportunities so Iâd like to purchase somewhere in Europe/America etc. How likely is it to succeed running a business from another country? Would you advise against that? Thanks!
Can you buy if you have some debt.
How can I contact you?
Hi CodieâŠnice to meet you. Could you please explain why the seller would pay you the 204k. I thought you meant that you pay nothing, give him/her monthly payment (say $5k while you make the profit of the biz hit $9k/month) for say 4 years. In which case he makes $240k instead of the 224k he originally wanted. Where do I get it wrong? Thanks. And also is there any books or courses that explains these. Thanks.
With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly-which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stock portfolio
As Yuval Eric Brokman is a highly sought-after counsel, he is actually the one who directs me. Nonetheless, you can try your luck. Just leaving his phone number would not be appropriate. he may be lying about, but if you Google his name, you can view his website.
thanks for sharing,found him on the internet.
The way you wrote your question sounds to me like you already know your answer... Liquidate and buy assets that will appreciate in a tumbling market/inflation soaring time
well one of the most effective ways to engage,and boost your sales is creating website and an app to brand your business and am an expert I can help you with this services
â@@maxfranz9232 bro. It's a scam! They're the same people. They ask the question to seem like you or many others on here. Then they offer the answer as someone or some business that helped them get Soo much money. Then they thank them, so on. Planning on someone to think they stumbled onto some secret, special person who takes a little money and gives you a lot if money.
It's a sad ass, loser, with zero life or goals scamming ppl to hook them on the immediacy, and rarity of some obscure person that can make you wealthy.
It's sick! Re read the conversation.
They're all the same.
"I've got a little money, but don't know who to trust, or where to invest it and guarantee wealth"
(Everyone in comment sections)
Then, response:
Oh I was able to turn my pocket lint to 40k in 2 months with Cheryl Diane Jackson Littlefield, shes ultra special awesome and takes your money and copies it ten times giving it to you.
(The lure of "I found a secret special money maker who knows what I don't)
Then, their response:
"Yeah, I've heard of ole cigarette teeth lady, and people say she's incredible, and will sixtupple your portfolio is a single quarter then guarantees 4 time ROI!
THANK YOU SO MUCH!"
Again bro... They're sad sick ppl who will never be, or have anything of value. Just leaches so sad and desperate, they do this all day. Go to ANY financial anything on CZcams to the comments and you'll see it now everywhere!
6:27 seller financing mainly doesn't work out if the seller just wants cash right away. however, many are ok with it because, they really love the business, they want the cashflow but for various reasons they can't operate it themselves anymore. this is with much older businesses. all you really have to do with them, is convince them you love the business pretty much as much as they do, you will grow it and they will receive good compensation whether monthly, quarterly or whatever.
They can owner finance you and then sell the note.
what?@@scottgoodson1964
Helpful insight. Thank you!
Yup people that are retiring
Solid content. The next issue that isn't really addressed is how to find an operator from day one. Most of the businesses I have come across are owner operated. So if the owner is leaving, I can't run an HVAC or plumbing business. So, I would love a series (or even paid course if you must) on that. I feel like actually buying the business is not the hard part. It's figuring out how to run a business as a CEO, not operator, that is holding people back. That's the competitive advantage P.E. has over the 'little guy'.
Yes. đŻ Exactly what I was thinking. Iâm sure Codie addresses this in her course but would love a high level video about this. Good help is hard to find and skilled help willing to work can be tough in these âboringâ industries.
Good question
Was just thinking this
Ok but where do you find these business selling?
You donât need a course.. all the info are out there for free.
If you buy businesses below $1M in net profit most likely is owner operated and little to no management. In this case you are buying a job, either you have experience in the industry or you find an expert and you partner up.
From $2m+ you have a professionally managed business and you can ask the second in command to be your partner and you will fund the deal. In this case you will need cash to close
Can be your cash or investors cash..
forget about 100% seller financing in a professionally managed business.
I'm in real estate so seller financing is something I'm very familiar with. It's a very tough negotiation in the real estate world because people need the money to buy another house usually. However, when I tell my friends about my searching for businesses to buy with no money instead of looking for a job to pay my bills they look at me cross eyed.
This is brilliantly explained and it is something the banks and financial institutions will never publish because they want to hold the keys to wealth.
Thanks Codie!
yea i do it with both, but I prefer the buying businesses then buy to hold for rental. but i have more success buying businesses.
â@@mrbabyhugh Hey, I'd love to talk to you more about this if you have the time to jot down some quick pointers for me. Is Flippa a legit source? What type of biz do you look for? Any help would be appreciated!
Seller financing is hard, tried it to earn some capital
Listen to Codie, she is brilliant. Seen a deal done over a cup of coffee. Do not listen to friends, study the advantages a seller has on taxes. Get yourself an excellent business attorney to structure your deal for you. Get knowledge Michael.
how to you go about to find the business to buy?
100% agree with this! I bought a mid tier lawn company with seller financing and paid it off in 3 years with no interest and the business had plenty of profit to live on and build a savings. Prior to that, I built and sold a pressure washing business, I wish I bought a business earlier, would of save me time, money, and sanity
how much did you have to pay for the business and how much profit were you making the first month after the business came under your operation, did you market it more using online or posters, how did profits grow and how much did the owner want in return for financing you (e.g 20% of profits)? thanks
so who deals with the stress for the company not going to shit? do you have to be there to oversee all the businesses?
Who ran the lawn care business for you? Did the employees stay on after you purchased?
Where do I go to sell business
Love your videos Codie, I left my RN career 2yrs ago after a cancer diagnosis. I started my own fence business and did over 200k my first full year as a business. I was also voted Best Fence Contractor in Jacksonville FL 2022 with just myself. Thank you for post these videos. I am constantly sending your vids and shorts to my wife so we can become financially independent.
That's awesome. Was it a big learning curve getting to know how to run a business?
Hey I'm a nurse too so happy you got out!
Hell ya
I operate a real estate business in Jacksonville. What's the name of your company?
Nurse here as well, looking for the best way to enter the business world! Congrats
How is your monthly payment only $212 per month ($2,544 per year) on $204k. Even with 0% interest, that would take you 80 years to repay. I can't imagine a seller agreeing to an 80 year loan.
Exactly.. I was wondering if am the one who didn't understand this
Yes Codie please clarify
It's interest only with a balloon in 4, 5, 10 or so years most likely.
Having made offers on hundreds of deals.. sellers do NOT just say âhmm okay yeah sure have it for nothing down just pay meâ they all want some sort of lump some. Always. Also, whether she thinks this or not, you canât just go buy a plumbing or service business and think it will bring you money even if it did in the past. YOU NOW RUN IT. You better know plumbing. Literally nobody, and I mean nobody, owns a business and knows nothing about it. Just gurus making stuff up.
+nods+ Thanks for your insight, Tyler
Nor does anyone ever sell a multiple of 2 times earnings lol
yeah... I was watching the video and I'm like... why would someone sell with a multiple of 2? What would be the meaning of that? The fact that Codie does not spend any time talking about that is fishy enough :)
i think the key is what she said about somebody actually looking to get out of the business. something like a death or divorce. you have to find that right business where someone isn't wanting to or can't wait around for a buyer to pop up.
Yes it actually makes some sense after I gave it a second thought.
These are very valuable rules for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $89k now to put in the market.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. I know someone who made over $350k in this recession influenced market, but to the best of my knowledge, it was through a financial advisor.
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2019, and I return at least $21k ROI, and this does not include capital gain.
Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.
I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance wealth managers you could check out. I have been working with âCatherine Morrison Evansâ for about four years now, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.
Thanks for sharing this. I did my own little research, and your advisor looks advanced and experienced. I wrote her and dialed her twice but she didn't pick up so I scheduled a phone call.
I'm confused by these numbers. At the 8 minute mark you're talking about valuing a company at 224k and paying them 212 monthly for it. 212 dollars times 12 months is 2544 dollars paid a year. At that rate it would take 88 years to pay off the 224k value, not counting a dime of interest. So how are you only paying the seller 212 dollars a month for this and they say yes to that?
same
If you were here in person I would give you a big hug. Been trying to buy a business for a long time. Everything you said is exactly what I have been trying to do. I ran into the problem of not having the downpayment, but you addressed that. It is worth a shot to throw a letter of intent at a business if I like it. Thank you so much!!!
Absolutely insane value in this video. Thanks for the breakdown Codie!
Absolutely love the content Codie! This is a huge help!
As someone who digests hundreds and hundreds of hours of financial education through CZcams you are really good. Why were you not suggested earlier!? Thanks for the free education!
You are rare. You are talking about real money and you are telling the truh. Lots of love for you!
Love †You Codie! Because of you I am no longer stuck in the 9 to 5 mentality. You changed my life! đč
Easily one of my favorite videos youâve put out! Love watching your content
Your videos are highly informative and consistently engaging. I appreciate that you covered the topic of seller financing and I am keen to delve further into this area. Would love to see some content related to this topic from you.
Codie, thank you for sharing your time and knowledge with us. I have recently discovered you, and have been watching a ton of your videos and reading your content. This is all so new to me! Robert Kiyosaki said âmost people want to be rich, but most people will never take the time to be rich.â
Thanks to you, my husband and I are looking to now buy a tire company. The owner sighed and said he guess heâll probably have to close it so once we look at the accounting side (thanks to my mom!) we will look into purchasing it! Where we live, there are tons of people retiring but no one to buy. We thought we couldnât because we didnât have capital. Thank you for proving us wrong!
Also, please feel free to explain equity/debt đ
I wish I had found you 10 yrs ago, its very practical and achievable, all the best Codie!
Love your explanation on seller-financed acquisition. I didn't know about that, but it could easily be a win/win for business owners and acquirers.
It honestly just opens up the market more and allows for more of those businesses to actually sell. Crazy how so many businesses go up for sale but are never purchased! So sad that they just end up closing.
This is great but also terrifies me. I have a good job but am exhausted when I get home. The risk of failure or it taking all my time and stressing me out when I have a wife and two kids feels overwhelming.
This seems like you do it the first time and it's scary but gets easier the more you do it... you at least know what you're in for.
Codie you are Amazing!!! great energy you put in this videos..
Thanks for that. I've been looking into this.
I'm with you so far. Now please teach how/where to find these distressed business owners
Your content and methodologies are so fresh and fantastic on all things business. You rock!
Codie you are so freaking phenomenal!!! đđœ Thank you!!!!đđœ
Insane value I took from this Codie,
Thank you! đđŒ
Omg, what a great channel! So useful! I hope you're wildly successful because you're putting so much value into the world. Big ups girl!
hahaha before Codie blew up.. I landed buying my first business using seller finance. It was crazy to think it actually worked. Love Seller Financing!! I wanna do it again hahaha
Did u have to actually take over the business and run it?
Mind-mapping the flow.... I've done this once but it's been a long time and want to jump back in instead of shooting for another start-up. It really is a no brainer solution in regard to aiming for owner financing - Win/win!
I need to watch this a million more time Codie. Great video, thanks. I BADLY want to buy a fuel (or gas (I am from South Africa)) station that has an a-joined two-bedroom apartment, three shop spaces and space for a workshop (used to be operational). I have NO CASH available for it. Her husband passed away and she wants to sell but is in no hurry to sell. OOOOOO man.
Send me an email
This is a video I've been looking for. I'm looking to opening a business. I'm still looking at the pros and cons and what works best for me. Thank you, Codie.
In this video, Codie tells us to buy an existing business. Not open a new business. ;)
@@whitesound625 right , but new to the buyer . i have been noticing these even on craigslist .
Cody, thank you for your valuable advice, I will try to put them into practice
Thank you for posting!
9:36 *raises hand
Prof, it seems the loan pmt is off or Im missing something from the financing terms.
$212 monthly would mean we payout the balance in 80 years without any interest. â€
Monthly pmt would be $1095 if we amortize over 30 yrs at 5% interest.
$8200 monthly net to buyer
$2163/month if we amortize over 10 yrs at 5%
$7170 monthly net to buyer
$3850/month if we amortize over 5 years at 5%
$5483 /month net to buyer
(Still over a 300% return on your cash invested with this option đ)
Good call out. I saw this too, but didn't have the nerve for all this ^. Thanks for taking the time to put that together.
I also got stuck with that but later figured it out! Am not a financial expert so pardon my elementary calcđ
Lets roll:
So the loan period is 4yrs (ie 48months). And the interest (5%) is for the life of the loan (not annual).
Therefore, 204k * 5% Ă· 48 would give you the monthly interest payment to the seller (ie Seller Finance Loan Payment) Omg I nw feel so smartđ
I am curious about this as well. I see the example cited (204k * 5% Ă· 48) makes the math work, but it doesn't make sense to me. I can't imagine pitching a seller that they would receive less than a car payment per month for letting me "have" 204k
I have also been trying to figure this out for a while. Do you ever pay any principal on the "loan"? What am I missing?
â@@JasonLeiter13 I think you paid the balloon payment in 5 years so they basically get the entire thing if it was interest only for the first 5 years. Then you'd have to refinance it but you'd have plenty of time to deal with banks and do that and raise the value of the business
Your videos are eye opening and jam packed with value Codie!! Thank you! How do you run all these businesses and find help? Do you keep the existing staff, find new people, retrain for more productivity toward a higher return? So curious.
Why is equity more expensive than debt
@codi Sanchez you are amazing for teaching these techniques. â€
Always! This content from her empowered me to do it! You cannot stop watching it!!! Thank youâŠ.đđŸ
I find one of the biggest cons for borrowing from friends/family is what if the business fails? I've seen people lose other people's money in business and lucky for them they don't have a conscience. I think it would eat at me.
Hi Codie, thanks for sharing your content - also love the way you present. Just wanted to ask, about the seller financing - is there a 'dark side' to it, so for example, 1) how do you go about deciding on the business you want, and more importantly, 2) what happens, if for example you dont make or cant meet a monthly payment - do you then have to 'hand back' the business - what legal clauses are embedded into the contract to 'protect' the buyer and seller ? Thanks
Pure gold thank you!
Thank you Codie, this was perfect. I was wondering how this actually worked and here it is :). Happy Wednesday
I want to understand why equity is more expensive than debt. Thanks! Love your channel! Keep it rockin!
I imagine it's because debt lasts only through the debt cycle, whereas equity is in perpetuity and therefore loses much more potential profits in the future
It would be awesome for you to go into the numbers more. If I understand correctly, using Seller Financing can close the gap for the purchase costs and what the SBA will provide you, so you have essentially two loans. Could you show us some actual deal numbers so we could see how it all plays out and what the profit would be for a business after you make both loan payments. Even if it is just one loan and the seller finances the entire thing, it would still be great to see. How many years do you set for the deal and interest rate, etc?
This opened up a whole new train of thoughts for me... thank you
I loved the way you edited this video. The transitions and music really helped keep me engaged from start to finish.
Thank you. Great video! I'm in the process of figuring out the sellers finance process to break out of my military capacity. Just took Hannah Ingram's blueprint masterclass. I'm literally your example 2 with some of the businesses that I'm looking at.
How it's going so far
Wow, I knew about Seller Financing in Real Estate but I did not know about Seller Financing in buying a Business! Thank You for Sharing the your Knowledge!
How Is Seller financed structured in real estate? How is the Buyer assured that they wont loose the real estate to the seller on Title (in Canada)
I love the way you look at things it aligns with my profile and mindset. Practical, data-driven, objective. Success is doing great financially working the least amount of hours possible.
Boring businesses are awesome!
Codi, you kill it every time., love you and your flow! thank you for all the help. Is there a method you could do an explainer on Seller Financing, going deeper on it?
Love your stories on successes. Also curious about fails. If any.
Have shared a couple of these with my wife. She is intrigued.
She currently manages a hardware store. Would like to find a business that she is willing to work and yet semi retire somewhere other than the SF bay area. I'm DONE here.
Like the idea of your books.
How do you identify and get in contact with businesses to buy? Also, how do you typically go acquire/validate the financials for companies that may not keep tight records?
Thank you for giving forward...
Cody this is Gold!!!!!!!đđŒđđŒđđŒđđŒ
Great vid. I've done this with real estate (as a licensed agent), and following that...retired out of licensed real estate, etc., as an entrepreneur (private). STARTED a business with only $50 (high tech), years ago...it flopped finally, because of divorce...
Great tips, and I KNOW you're NOT "selling BS....because I've DONE it, too...thinking seriously about it, again.....hmmm.
All the best, Codie (and "Smooth Seas...to your husband... & you...soft wind, to your back....Anchors A weigh).
Could you please tell me how seller financing works in real estate. Here in Canada who ever is on title is the owner. Is there a "Charge" put on Title to protect the buyer?
@@LS-ih7dg Canada WILL have different rules & laws, but will work in similar manner to US...
We're talking about a "Contract-for-Sale" (Google that...). The seller maintains ownership during time the buyer is making (accumulated) payments...until such time as the contract is satisfied (fully paid off)... And THEN the seller presents the buyer with a DEED (of sale)...real estate, AND "chattel" (items included in the sale of the business REAL ESTATE, which make the business function AS A BUSINESS,, a notorized copy of which YOU then file with your local government records department....,you may (or may NOT) be required to publish this info (newspaper, etc), locally....depending on your local laws/rules etc
What you referred to in your question (to protect the buyer's interest in the agreement) is usually handled in this manner... Consult your local legal representative for necessary details, expenses etc.
--- Best wishes for your ventures !!!
Most sellers are not open to it at all. When they are, they almost always want a huge amount down with very short terms (1-2 years). 100% seller financing is such a risky bad deal for sellers.
The Business Purchases Queen đ Thanks Codie
I appreciate your videos, youâre the best!!
When she said 60% of small businesses are sold seller finance my mind went straight to Anchor Man âtheyâve done studies, 25% of the time it works every time â
I feel like the Business Breakdowns are slightly misleading. Take the first one for example. You will not get paid $9,121 monthly because you have to pay the seller out of monthly profits. So on a debt of $204,000 and given three years to pay back the seller, you would have to pay $5,666 to the seller every month. Leaving you with only $3,454. That's great if you don't have to operate the business, but if you have to find an operator on top of that you're in the negative.
I still am convinced seller financing is the way to go. I'm just not sure these deals you showed are that good of a deal.
this is exactly what I was curious about, thanks
Having a good reputation and history must help a TON with making deals like this. Just hearing this method is super inspiring! Thank you!!
You're the goat!đđđŸ this info while it isn't new news to me it will be to so many others and I just appreciate the fact u are giving the quick a-z on this topic for free to the GP very few "gurus" do this and love to sell info..now I know either social media u still make $ off the info but u aren't charging 30k just to help someone learn this n close maybe 1 deal...bless you
I love seller financing. Curious of how Cody would do this. If you wanted to find stuff in your given area or a 100 mile range, how would you go abouts that? Thanks keep up the great work
Have you guys tried yet?
In the first scenario you show $212 to the seller and $9,121 to the buyer per month for financing 204k, how is that possible? Even with ignoring the interest on top it would take approximately 80 years for the seller to get all their money. I would love to see more detail on that part because there must be something about that aspect of the deal that's not readily apparent.
we need answers on how the 204k is paid back, aside from the interest payment ($212) monthly!
Following. Tag me when she answers lol.
If it was paid off over 5 years, The monthly amount payable to the seller would be $4000 per month. It would not be $9121 profit per month to the buyer of the business, but $5100 instead to the buyer of the business.
Okay so Iâm not the only one killing themselves over the math here đ
She's not including the principal payment as an expense, because it's not included as a cost on balance sheets. Payments that pay down the principal are 1:1 ratio to equity.
We †You Codie! Need more people like you in this world đ.
Why did I not come across this 3yrs ago?
I started my business in 2020. Love what I do, however, I turned 40 in Jan and know building this is a min 10/15 ur play.
I will be studying your ways Codie and buying a boring business to add to my portfolio within the next six months.
Today is March 31, 2023 đ€đ».
I found you from Andy F. Podcast.
Damn, this is genius!
Iâm a big fan, @Codie, and hope to take your course later this year. In the meantime, could you explain the the Seller Finance Loan Payment portion of your first deal spreadsheet? It doesnât seem to make sense that the monthly payment would be just $212 to repay $201,600. At that rate, it takes 79 years to repay⊠not including interest. What am I missing?
I have the same question. Interest payment alone is $850 per month at 5%.
This video is a Gem. You're a gem! Thanks!!
THANKS FOR THE INFO IN THIS VIDEO "CODIE" I REALLY APPRECIATE IT!!đđđđ
I made my first offer on a business here in Aus recently - 50% upfront , 15% seller financed, and 35% over 3 years based on sales thresholds being met- the seller(or broker) was that offended the broker no longer returns my calls/emails. I donât think 10% down payment would be accepted in Australia unless it was a very mediocre businessâŠ
This. Either a. these businesses are total dogcrap b. she has connections to the seller c. uses her persona has collateral or d. her numbers are fake (most likely).
This wonât work with a broker.. remember brokers get paid in the transaction.. they donât want to wait for their money..
Let them sit in it for a year and then contact them again if it is still available.Chances are they will be more desperate.
If the biz is still there after a year thatâs mean itâs a crap business and no one wants it, and you should move on too..
75% of businesses donât sell because they are crap or you are paying for a day job.
Desperate owners means desperate biz. You need to find them off market.. best chance!
Tried doing a seller financing deal and the consultant got back to me saying that it was highly unlikely for me to get a deal with 0 down. Any chance I could get past the consultant and straight to the seller?
Codie, you are the best! Only real deal on social media.
I assisted a consulting client with starting a flooring company on the internet. He used distributors and had no inventory but sold everything. He had very little overhead. This can be accomplished with hardwood, tile, carpet and other building materials.
The math went over my head. So on the first example youâre only paying them 212 a month đ§
My same thoughts; I wonder if 5% interest is typical and for how long the term is
Would love to hear about how you hire folks to operate these businesses that you may have no past experience in running and free up your time to go buy up more businesses. Seems like a critical piece of the equation
Indeed.
Intelligent, discernment
Love the content and I apricate your effort! This video has me thinking big and getting creative on my approach to this process with my knowledge of finance and Blockchain technology.
Thank you! Another great video and so helpful!
How does the first case scenario end up being seller finance loan of $212 monthly? That doesn't add up and you didn't state the term length? What if the business fails during that term length?
Love it Codie, You must be Italian or understand! Napolean Hill concept, to "Think and Grow Rich". - What I want to do is invite those with $100K or More to generate 100% Gross with a Net of 50% to 60% per month for 10 Months without moving the INITIAL INVESTMENT of $100K from the bank. Imagine in your last scenario, a gain to have more than $100K that month from the Business just bought to Investment or place in a separate account to calculate and analyze the Generated History of payments. LMK
In seller financing it's actually the buyer pays the seller not the other way around.
I bought my restaurant through owner finance. I ran around asking family and friends for money. Only 2 people helped. I just paid my car off, so I took a loan out on it. I also refinanced my house, then saved saved and saved until I had 100g down-payment, and then the seller financed the rest 4 yrs later, and he is paid off. Now I make really good money. Actually, I've been making good money this whole time, even with paying a monthly payment to the seller. The only thing that sucks for me is that I'm still operating the business myself. The restaurant business can be very difficult, but I enjoy it most of the time it's hard to find a good operator. Good luck, everyone. Don't be scared of hard work. If this shit was easy, everyone would do it.
Hey Chris. You're operating it as in you've hired staff, etc.? This is prob a duh question, sorry =)
@Mark P yes honestly I lead the kitchen every day from 530 to 2 and then 4 to 9. It's a busy restaurant, so I'm there to help and lead. I get a paycheck like everyone else
What would happen if you actually manage to get seller financing and end up failing that business ?
Maybe they are selling coz their business isn't going the way they wanted to and I end up not succeeding in doing so as well
Thank you for being so informative
I have been thinking about buying a business since 2019 and it was put on hold because of the pandemic, now that i am unemployed it feels alive inside me again. thank you for the info. here i go !
Codie, You just nailed every point I was thinking on this subject. I just came upon a 75 yr old âboring companyâ for sale for $1.9MM, have met with the owner who will seller finance, but I need help cutting my first deal. Equity for you if you can help, thanks!
DM. I can help....
Maybe I'm missing something in the seller finance examples, but there doesn't seem to be any mention of the actual loan service payments (principle), just the added $212 monthly for interest (the 10% down example). That 204K over 5 years would have $3400 in monthly debt service out of your 9121 monthly profit, netting you $5721 if my math is correct. AM I wrong??? If you're saying the total monthly payment is 212 on 204K, that's like 80 years to pay off.
yeah the numbers do not add up
this was from yesterdays workshop, thanks !
This is some of the most value packed information on CZcams right now. That is not my opinion.
Simply a fact. Great job I found you a couple weeks ago and I've been recommending you to everyone. Please keep it coming.
I don't understand why a successful business with moderate/strong positive cash flow will not be able to find someone to keep it in the family? If something sounds too good to be true, it probably is.....
Disinterest. Lack of knowledge.
I apologize if this is a silly question but how do you find those businesses that are likely to sell? Like is there a website or are you literally just looking around town?
diverse approach.
she has says asks community leaders (small business associations, head priests at churches, for deal flow)
she asks owners directly if not for their own business but to keep an eye out for businesses for sale.
she has also said she looks on websites.
she has openly said she pays people for bringing her deals.
and she would also get some deal flow from people watching her videos on social media.
@@FloydTaylor thank you!
Codie you are amazing thx for all this inf
thank you Codie
What's with this new humble tone of voice and strategy, "you and I are the small guys against the giants who don't want us to know this secret"
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She is just becoming rich by selling content. The suckers will try to implement those methods just to have reality slap on their face.
@@andrebueno2048 Thank you. An expensive and potentially heart-breaking reality slap. I wish people would THINK, reflect, question, and not be so damn gullible. If you're trying to "get rich" you're better off studying and emulating what these people DO instead of blindly listening to what they say (to sell their consulting or services). TF. What do ya'll think this is some kind of altruism? These are sharks....you do NOT have the same business acumen and negotiation skills.
Problem with this strategy is because the biggest chunk of the actual value of most of the small businesses built by Boomers is the âGoodwillâ of the owners. The customers come to this business because of the relationship with the actual owners . When the ownership changes you will lose a lot of the clients the previous owner had or they would try to treat you as another business in town. So your expectation of the revenue the previous owner had would be invalid in reality. In bigger companies this donât have a big impact because there is not much of a personal connection between the owners and customers so customers dont feel the management change as much
All business is problem solving. Calling each and every long time customer personally, explaining the change in management and assuring that you will provide even better service will work wonders
Depends on the business. But if you get seller financing for said business it would be in the previous owner's best interest to not fuck up your cash flow at least until the loan is paid off. But by then you've already established yourself a competent owner and most likely will keep most of the clients.
That is not the meaning of goodwill
Excellent video. Very well explained. LOVE IT!!!
Great information Codie. Youâre awesome!
Good video, I'm new to the world of investments, I've heard a lot about cryptocurrencies, the stock market and other types of investments, and I would appreciate it if someone could guide me to start investing to increase my income
All you need is a mentor
I would be delighted if you could recommend a trusted professional mentor. Thanks
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Use a professional like Catherine if you wish to make good profits in it.
Here is her Whatsapp
+1