U15 – Interview with student who bought $200K Business with no money
0:03
OK, hi, everyone, this is John Jay, and one of our members JV’s, was very kind to spend some time with us and talk about what he did to create some more cash flow for himself.
0:14
And I really, this is just a great example because I really wasn’t that involved. It didn’t have to do much, I just kinda pointed in the right direction or in a direction that he was able to work with.
0:24
And you’ll find out that it’s not a simple process all the time, but if you stay with it within a short period of time, you’ll be able to do something really miraculous.
0:34
So Davis, welcome. Appreciate being with us.
0:37
Thanks. Thanks for that.
0:39
Alright, great to be here. So, what about what time do we start talking about this?
0:42
You know, a lot of people call me up and say, Can you help me with creating more some more cash flow, when was that, like, last year sometime?
0:49
Yeah, probably less here.
0:52
I think it was related to kryptos that’s kind of being a little volatile.
0:57
Uh, yeah, as a group, as I was growing up, I had always known to spend money on assets more so than just liabilities, Uh, so, I kind of had that seed planted.
1:14
However, it’s, it’s lonely, it’s not a lot of people think that way.
1:18
So, what I met you and you really reiterated and kind of hit that creative spark to say, hey, you know, it’s a holding world. There’s online businesses that you could look at.
1:31
Or brokers do, who you can put down cash or money and buy an asset that’s already been established so that, you know, that’s what started my journey and that’s how I ended up here.
1:45
You know, there wasn’t a step by step process, but one thing I have learned is, you just, I don’t want to sound woo, woo, but if you, if you just keep adding your persistent even if you don’t know exactly what to do, usually, you end up meeting the right people, Case in point area. Now, that’s a very important thing.
2:03
So I’m going to ask so what, what script where are you following, and who did you call first to get started?
2:09
In terms of scripts, I’ll just say the name. I know when I was a teenager I read the Robert Kiyosaki series.
2:18
But, you know, he, this is from a different time, obviously, and his big thing was real estate.
2:26
I am!
2:27
I’m younger than that generation. However, the goal is still to get physical assets, such as real estate.
2:33
But I’m also a software engineer, so I understand a little bit about that world.
2:38
And that was my critical edge.
2:41
You know, they say it’s good to have an edge if you are an investor or entrepreneur.
2:47
So basically.
2:49
whereas when you kind of pointed me in the direction of online businesses, and I started looking up different brokerages or marketplaces like those, those things exist.
3:00
Um, it’s not it.
3:02
I would say this is very strange, but this is like the new gold rush mmm hmm.
3:09
Yeah, so that being said When did I start?
3:14
I know I’ve met you probably a year ago now, but the other day, I found an old e-mail in mind, my inbox, and it turns out back in 2018, I was looking for gas stations to buy. mm.
3:28
Hmm, and I just remember, the amount of, the return on investment there was, like, guys, are asking for, 230 K, and making, maybe 20,000 profit a year.
3:43
Hmm, hmm, hmm, hmm, hmm, that’s not much, I mean, that may be better than returns in the market, and safer.
3:50
But, I kinda had a tuition that, that wasn’t, that wasn’t the most efficient thing I could put $200,000 into, especially with crypto.
4:00
And a gas station look at all the red tape, you have to get through them in a gas station. You know, all the permitting and things, and to end up with a 20 grand at the end of the year.
4:08
You could literally probably do that, after a few months of preparation, probably do that every month, if you intended to.
4:15
So, yeah, I think, I think what were, our discussion was related to this, this project we’re going to be talking about here is, you didn’t really have a step by step to follow.
4:24
And you kinda didn’t know who to call by, pointing in the direction of, we’ll check out this, what was it? Because I think it’s changed marketplace, right? Exchange market. But, yes, all right, did you, did you work with that broker there?
4:34
So, I did, I started with Exchange Marketplace and there’s a few competitors, such as slip I was already familiar.
4:46
Because when I was in college, I did a little domain slipping by the state exchange marketplace. Button.
4:52
There’s there’s another the one thing I did learn you you typically can find Undervalued things on on the marketplaces.
5:02
However, they are much different then a brokerage firm So, you know, I can listen names here and I’m sure you can have a write-up of the different references that I have on my list a watchlist.
5:19
one thing I can help others avoid is to have their first business come from just an open marketplace there it that is the wild wild West and Compared to a brokerage firm.
5:34
They will preset the business and make sure they’re, there weren’t any kind of skewed numbers or are our traffic farms.
5:43
So, again, coming back to that edge, software engineer and how the Internet works in the marketplace, you can find people that just know how to spin up a website and then have a bunch of bots and traffic or have a pool of maybe $10000 and it continuously find transactions to that business too.
6:03
Kinda prop up the numbers.
6:05
Yeah, you have to look for that, I guess. Yeah, so, I mean, that’s a thing.
6:10
But that, that exists, but you don’t even, you don’t have to bother with that. So there’s brokerage firms now.
6:17
All they do, John is, um, vet businesses, and I mean, you can have a business from as low as $20,000, all the way up to $5 billion. There’s places called Empire Flippers, that’s the first one I found. There’s FTA International.
6:37
There’s brokers still flow and there’s a few others.
6:41
And you, you know, the audience may be thinking, OK. I have to keep up with all that. Now. You know, there’s one that’s called …
6:49
dot com and what … does is they consolidate maybe 20 different brokerage firms.
6:55
They’re all pre vet their businesses. And they have like, a, it’s like a Google, you just put in, OK, what do I want to spend?
7:02
What’s the profit of the month or annual profit?
7:07
When did this business go and sell?
7:09
And they consolidate everything into a single kind of search engine with, with filters. So some ticket does all of that.
7:19
If, I mean, it couldn’t be any easier, right, That’s more efficient. Well, how do you spell that URL? I’m sure everyone wants to know.
7:25
It’s, it’s C E N T U R, I C a dot com.
7:33
And you, when you put in your parameters, they even do it, do a favor, and say, hey, do you want to save this filter?
7:39
And when something new comes up, we will send you an e-mail, OK? That’s excellent to have that. So you wanna get there when you want someone to bring you deals. Once you find the brokers, instead of spending all your time, they’ll bring you deals based in what you’re looking for.
7:54
And so you want to, there’s a couple of rules I recommend that people follow, which is, the purchase price of a business should typically be able to be paid for by the gross income of the business within one year.
8:07
It doesn’t have to be, but, but it’s up to you.
8:09
But, the standard is, within a year, the gross receipts should equal the selling, asking price, OK? Then, what I’m finding is a lot of them are just within a few months of gross income, you can pay off the business.
8:23
Then, it should be something that you look at in, in your experience.
8:28
You might see some paths to make more money from it to scale it up, to reach out into some new niche markets.
8:34
Were to use that inventory or dropshipping or method or whatever to build something else you are having to have an idea on.
8:41
Instead of, like, for example, I talked to this one woman, where she had to sign up for a multi-level marketing product and she just loved the product. But it was literally one product.
8:49
And so I suggested she do one of these, acquire one of these websites because it already had a shopping cart. They had already had a web presence, had already had customers. And then, all she had to do was add that product into her platform, instead of trying to build a whole platform for one product.
9:02
So, that would be another use of it, that expanding.
9:06
So, what was your experience? I mean, did you contact the exchange marketplace, and you talked to the broker over there?
9:12
Yes.
9:12
So I ended up going through several different, so I just don’t touch on the point too, Yes.
9:20
On the smaller businesses, I would say under six figures, you should definitely buy something. That’s an easy, quick way.
9:27
And you’ll be able to pay it off with the revenue within a few months to a month or two it to a year.
9:34
Now, just because of how my I didn’t go in a straight line I ended up rubbing elbows with people who were doing much larger deals than not than I had expected. they just liked what I was doing.
9:46
So they said, hey, you come in, and you can potentially be our tech guy, can help us negotiate on the nature of the codes.
9:55
Correct, and not gonna blow up on it.
9:58
So, I did find out like the more expensive business is, and the more hands off something.
10:04
Uh, is when, when the sellers are selling, you will tend to get into like they will start charging anywhere from 2 to three X annual problem. Yeah. Right. I mean, that gets up into life.
10:17
Real estate deal territory. However, like, so here’s here’s some numbers there.
10:23
If you spend, I don’t know if he, if you spend 200,000 business, it’s probably going to make that into three years’ time.
10:32
So even if you like, do you finance some of that, you’re making profit very soon. I guess I don’t wanna get into the logistics.
10:42
I’d like cash flow. And, I mean, we just tell us your experience, and, by the way, I’m gonna mentioned there’s a, I think, a standard you all want to consider, is called the rule of 72. How long does it take for you to recover your investment?
10:55
So, just keep that in mind, but what really impressed me about your experience Chavistas, you said, you, you went in there alone, I didn’t. I wasn’t calling with you, You just did it one day, and then you met people.
11:06
Then you’ve got networked into this whole environment, this community, and you made some work, and you ended up with this huge line of credit.
11:13
You ended up acquiring the business after a few tries and a few fails.
11:18
You got one.
11:19
And now, you’re looking at, a few months from now, you’re going to have this stellar credit without any personal liability. And it’s nice cash flow.
11:26
OK, yes, so thanks a chip to rewind a little bit in terms of how did I find out about …
11:34
dot com that came from a seldom go station with one business and the broker reached out to me.
11:39
And I told him, look, I just, she’s asking too much.
11:43
And I don’t think that his business after due diligence done, requires that kind of, that kind of the asking price.
11:51
And the broker said, hey, I understand where you’re coming from, just that, you know, you can use this science center dot com date day.
12:00
Specifically, provide due diligence services for online businesses, and that, that was a Godson, So, yeah.
12:09
The fact that they actually come through the listings and curate a list every week was icing on the cake, I just went through the site.
12:18
Just, no, commission them to help me run due diligence, they do everything that’s leveraging your time. Now, that’s worth gold, because I was going to tell everyone, I mean, if you didn’t have that service, what I would say is, when you’re going through the financials, you would probably have to bring in an accountant and see if these numbers are real.
12:34
And you’d probably have to talk to somebody who can look at the code on the site and see if those are real sales, are from the same IP address, or something like that.
12:42
Enzi, I’ve done that, too, that this next point, I found myself negotiating on behalf of our business by myself.
12:50
I think, I came down at like 2% and I just went to it, a community bank.
12:58
I know, you know, the climate’s may not like banks, but one thing I did learn, you can treat them like, business partners, because really, they want to make money, just like, Sure.
13:08
They won’t let you fail, because they can’t. Exactly.
13:11
So I went to a community bank and like as I just started talking numbers at this point, I had rub elbows with people who are doing seven figure deals, and I just, I learned how to like, talk the game. And So the banker that, he was impressed, introduced me to an accountant that said, Hey, if you let them come on. So make sure you don’t mess up after your participants.
13:36
I brought them in.
13:38
You know, sat them down, we added three person conference downtown where, wherever and, at the end, if I spill, they were there and they did not know that. I mean, they were familiar with real estate.
13:52
They said, I had no idea this was going to the magnitude that it was.
13:59
Acid, yeah, this is this thing.
14:01
And so, basically, the accountant, That’s a good one.
14:08
The accountant was looking at the numbers.
14:10
And, I lost, but, well, they were surprised at what they were surprised, that the X, what you’re looking at, these online businesses that are for sale. Oh, yeah, OK. That was new to them. All right.
14:23
This is, it was needed, and it was making more money than any, any investment vehicle they had ever seen exactly at the bank. Isn’t that amazing at the time.
14:32
I have people talk to me about buying stocks, and I’m like, why would you ever buy stocks? When just, for example, you could buy tax lien certificates. It’s so easy to do that. And now, you go in the bank.
14:42
And they’re used to dealing with these people all the time and they’re looking at what you’re looking at, about buying, and they’re saying, whoa, what’s this all about, that’s way better performance than any of our assets that we’re selling the clients. Exactly and they so they want to land on it. But they are stuck in an antiquated system.
15:01
Yeah, I’m starting like, after doing a deal with the brokerage I’m working with now.
15:07
It’s kind of like, OK, this guy’s real, let’s start shots, and some other things, that are coming across the desk before we put it up.
15:14
So I’m getting to see, I’m getting up behind the doors.
15:20
So. How many times did you think you tried this in the last six months, and it didn’t work before you actually succeeded.
15:27
Um, I mean, each, I want to say let’s let’s say two, maybe three times, but but there’s there’s a caveat every failure and and I I can’t believe this happened, but Every failure I learn something and that that thing that I learn made me better for the next negotiate negotiate. And through that whole process, How many people knew people that you’ve never met in your entire life? How many people did you encounter and talk with and learn from?
16:01
I Can’t count. I really like maybe 20.
16:05
At least one, OK. Just in that process, you learn, you met 20 new people, you know, and you failed a couple of times and then you finally got your deal.
16:17
Yes, but it’s even crazy. So, so OK.
16:24
John understand God I’ve told them but I met an underwriter OK and this gets into, like everyone, you can do this without cash in the bank.
16:37
Yeah, here this part, this is what I want to get to.
16:39
So, so, so now, and I haven’t mentioned this yet, but I’ll mention it, the last four deals that I’ve negotiated on, I had no idea how it was going to get. That was kind of doing the whole thing, where I guess, if I put this kind of energy out there, something I, can, I, can, I just hear that again.
16:57
James, I had no money as I was negotiating these deals, and you had no idea where you’re gonna get it from now, but you knew that it was going to be there And you went ahead and work the deal.
17:09
Yes, I hear this every time, but I don’t have the money. Or it’s in your mind, and you don’t say it.
17:14
And that doesn’t matter, because there is money. It really doesn’t.
17:18
And if you read enough books, like, I’ve read some of the grades, and I’m not going to get political or religious. But I’ve read books, people doing the thing that I would like to do in a different domain, maybe real estate or whatever.
17:31
But, um, I find that most of the time, these deals are done.
17:36
And contracts are signed before the banks even brought into the situation.
17:41
Yeah. Once you, once you do one deal, or once you close.
17:44
one thing, it’s not, it’s not even an issue, an issue, right. Because there’s like OK, we’re going to make a return on this deal.
17:53
So, OK.
17:54
So I met, I met an underwriter and the crazy thing is, like I was talking to and saying, like, look, this is where I am, I don’t have a lot of conventional assets. What I do have is Stellar Credit, because that’s just one of the things I was, I was a credit hacker last year, and I thought, OK, figure out how, how it works.
18:19
They turned out, I was able to get, like, really high scores in the course of the month. Now, don’t, don’t let this be an excuse for you all listening to this. Oh, well my credit, it’s not good. Yeah, that’s my, excuse, right.
18:31
Well, yeah, OK, so this this Underwriter three Cs, I said, either have the credit business revenue or, I mean, though, they’ll land on the Linda, I’m pretty much. Don’t lend on revenue.
18:45
Cash flow, yeah. But credit helps, and cash helps and cash flow helps.
18:49
Right, yep, Um, so, but keep in mind, like, you’re right, you don’t have to have credit because what they, before I get down, um, not, I didn’t have the cash. Then.
19:03
So it’s being with the underwriter and basically what they do.
19:08
They, they can hold people’s credit with softballs and calculate how much funding total they can give you before they actually go and do it.
19:19
They have a network of, like, thousands of banks, a lot of credit, because most of the only hear about the big things.
19:27
But keep in mind, credit unions and community banks, they need to have assets as well. Or they, they will, they’ll go under.
19:34
So what they do is they it’s not a shopping approach, is they’ll stagger applications once you go under contract.
19:44
For example, they’ll say, hey, we know that we can get you $2000 based off of itself.
19:50
Do you want us to proceed?
19:52
And you sign a contract, and then they go to work.
19:56
And basically, they act as intermediary between you and the banks.
20:02
So, those set up, like, a lot of communication, And one thing people should know is, like banks, you have to tell them certain things, not because I’ve had a banker the banker himself.
20:16
That was helped me get to one of the numbers.
20:19
And so, you’re saying, I said, look.
20:23
If I give the seller to help me do webinars, the banknote, um, in less than six months, he said, limitations Never pay off in Islam, are the fleets.
20:37
That is a waste of depth.
20:39
Now, now, hold on a second. A banker told you that. a banker told not some guy in Florida named John, Jay.
20:45
It’s the banker, says, I don’t pay off your bank loan early. Yes. And and and because it’s a bad use of capital. Right. Yes. He said the exact He said that exact thing because it’s a battery capital. When you go to buy assets, it isn’t all the different worlds. Just pretend you’re on a different plan. It’s different than buying a house or buying a car. That’s, that’s just totally differently.
21:08
When the bank knows that buying assets, they’ll tell you, you know, you use all that money to mix business, or the investment doesn’t care wonder.
21:17
And then pay us back.
21:18
When you sell an aside, I could’ve taken off your upside.
21:22
Another thing, like a business, you could buy business for 100 grant and improve their revenue, one to $2000.
21:29
For someone like me, I can do that with just, I’m making, switching the service to a company that I have a special relationship, that, one to $2000, an extra profit, to make $100,000, because it’s good to learn.
21:43
Million dollar business in less than six months. one of the, one of the businesses that I had come across with, this is, that exact exam.
21:53
So, so you had, you qualify for some loan money. You acquired the asset, What kind of business is it?
21:58
So this is, this is a software as a service.
22:04
So I don’t want to get your team set numbers.
22:07
But I say, OK, the sellers, there’s a technical and marketing seller that they just had a change of heart. They want to do more humanitarian, political, military type skills.
22:21
So, they are willing to let the business go for less than what it was valued at.
22:26
OK, So I’m coming, but now and here’s here’s another kind of icing on the cake a deal right before this built through.
22:35
I was out bed by other people, But this guy has an ending relationship What to do Who actually wants to partner with the business technology? They’d like it that much mm, hmm. Hmm, OK.
22:50
And I’ve just like, Why are you, why are you leading? It’s like, it really is is the mindset We just we don’t want to do this Yeah, and they’re out there.
22:59
You just have to shop around and to get the deal that works, and that one seems to be a home run And Yeah, it sounds like this could turn into like a multi-million dollar income.
23:08
Sounds like in less than a year, If you want to do a follow up we can I tell like I’m bringing out a buddy of mine LA.
23:18
Millimeter, I said, Look, we could sell, I’m OK with that because I have a better understanding of topics.
23:26
Yeah, I’m not afraid of that. And now like now it’s, it’s hard for me to see. This is all just that win-win.
23:33
So one of the things I would like for your clients to note is this, my Underwriter said look.
23:40
Just a little tidbit of information that I had, she’s a credit hacker as well. She said, hey, I do this to actually just an Iraq there that they’re looking for.
23:52
See, just bought two serious brands.
23:56
doing the same thing, Great, not one, but two.
24:00
But yeah, Yeah, because when you’re using other people’s money. Now, you didn’t You didn’t come off all your savings, right for this deal.
24:07
You finally got what did, how did you pay for it?
24:12
I did, I use none of my money.
24:15
Now, that’s amazing, so what, OK, what’s this asset worth? What’s it producing for you?
24:21
Let’s see.
24:21
So it’s worth I will I will pay.
24:25
I’ve negotiated to put about 60% down.
24:30
I’m holding back the rest of it and then I I, I negotiated that.
24:36
I’ll pay so total compensation for about $2000.
24:43
But, how much? OK, but I’m only put in 148 down, you’re putting 140 down, but that’s not coming out of your pocket the right. No service, the underwriter.
24:52
They can once you sign a contract, you will see that finds hit your account within 2 to 3 days. OK, so the bank helps you with the down payment and the seller finance any of that.
25:03
Um, yes. So I did, a six month old backwards, just means I want to wait six months, put some of the risks back onto the seller, and also I have negotiated terms to say, Hey, I’ll give you the final six or final day.
25:22
Once the revenue is 30% greater than what it was close, and we’re looking to close actually a weekend. So that makes him bet on himself. And good seller will say Yeah. I guess I’ll do that. Sure he will. He wrote really flinched that much. Well it’s actually and I learned this rubbing elbows with other other business owners said, if they don’t, they feel uncomfortable doing that and they don’t have faith in their own, right? Yes.
25:47
So, even if you don’t even need that, the whole back deal asked for it, to see what his reaction is going to be. It’s kinda like playing poker. He says, yeah.
25:55
And I did, I just, I kind of also, I think the lucky part is, he wants to succeed.
26:02
So, one of the contingencies is this, we’re signing, we’re going to sign a sign with Amazon within 2, 2 months of closing.
26:12
And that’s going to be great, Ridiculous.
26:16
Also, notice they do, they do webinars in the webinars alone, probably bring in like 50% of the business value, that we can, that they run webinars, and I’ve already mentioned them to do a webinar every other month or at least eight. So it’s like it’s going to be painful. That is fantastic, OK. So, so, a couple of questions.
26:38
All right, you had, you had use your credit, you went through this whole process, and then you were saying on our call previously, uh, whoever was involved with the financing aspect of it, said to you that she could set you up with a line of business credit in six months, that’s worth a lot of money that you can expand. What was that?
26:57
OK, and so this, this company, which your class will have access to They, what she does is look also?
27:07
Oh, I gotta push for this a little bit about it, if you don’t know about it, um, I don’t know go that route, but this is an option.
27:15
Basically, regardless of what I put down, the money that I spent, the revenue of this business probably brings in about 10 to $13,000 a month, and it runs at 8% margins.
27:30
So, it’s, it’s, it’s pretty healthy.
27:32
I’m already, but in six months they can also set up to have about think the last somebody close up to half a Mil and business credit lines, that don’t have a PG or personal guarantee for those.
27:47
Right. Exactly, OK. So, you start out with the personal guarantee. You get it going, and then you rifai out of that. So, now it’s all on the business, and you’re not the personal guarantor anymore.
27:56
Exactly.
27:57
And I, and there’s all, I mean, before you even get to that point, there’s other could. so with that. If you tried to do that at the bank, it’s going to take 45 day process.
28:06
But places there’s places online before you can get to this underwriter abhijit, where they just, they connect to your bank account and just look at the past three months of revenue. Yup.
28:19
And they only need to see $4500 in revenue, Not even just revenue before they asked any income, right?
28:26
So if you’re just, you set up a corporate account and you put five grand a month in there, And what if you just if you spend it, does that matter? They just want to see deposits.
28:34
They just wanted to see deposits now I’ll say this when whenever you go to buy the business, and in today’s age.
28:40
This is easy, Make Sure You’re not like spinning up a new Stripe account a lot of these bits, right? Yeah, right?
28:48
What you should do is say, Hey, I want all the financial history so I want to take over your stripe account. Yes, I don’t I don’t actually advocate buying a business that’s less than a year old.
29:01
I think it should be for business credit purposes and all that. Yeah, it makes sense.
29:05
But, um, so what they’ll do is like, Oh yeah, we you will own the Stripe account or whatever account and you just switch your e-mail address and switch where the payment, what’s bank the payments are, right?
29:17
So then once you close, you can then immediately go to, know these new boutique business credit lending firms online like Cabbage or Glue Buy and then immediately know and say, hey, here’s my Business Scrap account Or my PayPal account what can you do in terms of credit line?
29:35
Like I said, it’s launching. So they’ll look at the account that’s already been there for a year, two years, and say, Yeah, you’re good to go. Here’s $200,000 more better.
29:43
So you, and mind you, if you put pushes into an LLC, what you should do immediately upon closing on buying a business like this, Adding, adding a 100 to $200,000 in business credit to a business means that you can immediately go and resell that on Empire Flippers or life, 40 to 50%, more than what you just bought.
30:07
That’s another thing, that’s the secret. That is so amazing. Do you think, OK? Do you think it’s easier to buy a business now that you’ve gone? You have the experience, so let’s just say you have this experience now.
30:18
Now.
30:19
What’s your attitude about buying the next business compared with the difficulty of buying a house?
30:26
I mean, so far, the business easier.
30:28
It’s easier because the banks want you to, they want you to have the, they want you to buy an asset. Because they’re going to make money, it’s an asset.
30:35
They don’t mean they’re going to sell you. They’re gonna help you buy a house, too, but they know that your your revenue is not coming from the house is coming from your job.
30:44
But the business, yeah, it seems like it would be easier.
30:48
I think something really clicked for me. It was maybe two months ago.
30:53
I I used to work at Rackspace as a pretty big posting.
30:57
That’s the developers left when I did.
31:00
And I reached out to them and said, Hey, what do you do, analyze your company. What this job actually, demand.
31:07
I just bought it for a few stores.
31:09
He still, he still works.
31:11
Yeah. It’s a big tech firm, and I had no idea even thinking about doing something like this.
31:17
I just bought this, this an E grocery store in West Texas, and I went into a grocery store, at least the spinning up a website to go along with some other things. He’s keep leveraging this software engineers.
31:30
That way and you said, Look, I bought this $240,000.
31:38
It makes $11,000 in profit.
31:41
I don’t have to do anything.
31:44
And he actually E went directly through the cell.
31:48
And, OK, the seller actually finance the entire purchase. Oh, my God. He only had to put down actually. I misspoke. He put down 20%.
31:56
So just like buying a house. Yeah. And because we’re saying like, What’s, what’s new? And I said, yeah, I just bought a house, too.
32:03
uh, last year and I spent more than you did, and it’s not paying me. Exactly, exactly, that’s just when it clicked.
32:11
for me, It’s like this is not, it’s not if you should do it.
32:15
It’s, Wow, it’s not, There’s less risk in doing this than trying to put your money in the stock market. And Oh, absolutely! What if you, What if you did this instead of, buy a house, right?
32:29
You buy a business and then use that money to buy the house, would that make better sense?
32:34
So about that, you close your closing the business, because, remember, I now have a lifetime relationship closing, the business, It’s six months.
32:46
You have a choice, You have another half million dots, some people would pay off the personal debt, or pay off the business debt, or, and here’s my plan, there’s also content or blog businesses that you could buy that would be centered. Synergistic relationship, right.
33:08
It does go for less money, but they’re just, they’re just, they just sit there and sure.
33:14
So with, with your extra business credit, what you could do?
33:20
You bought your first business, It’s gone on.
33:22
You should.
33:23
I would add, again, this is by one, or two, or three more businesses, all of which are two years old. They prove themselves to have clients.
33:36
I have a client base.
33:37
With all of that revenue, it doesn’t matter what you needed to buy, quote, unquote, need to buy, right. You will be able to purchase it because you have.
33:46
you got eaten Because e-bay had the revenue to say, hey, yeah, I’ll give you 10% down just about us and you can pretty much make your deal. I mean, they’re going to work with you. And that’s an excellent way to diversify. And I’ve heard, heard people misuse this term so much about, They think, that diversify means spread your money all over the place.
34:07
And that’s not what it means, it means, invest further in the area where you’re already invested.
34:12
So if you bought a business, and then, like you said, you acquire some other ones that are synergistically position two, maybe help that first business out in some way, or partnership, or something, Or it has resources that can be used.
34:24
You would invest in those, as well, And then that would expand your portfolio in that area, and you have knowledge in that area. So that’s how you would diversify.
34:32
Yeah. I agree. And I’ll say this.
34:36
We had extra revenue.
34:37
Time is like encrypted days now.
34:40
I now can, but let’s put another one thousand dollars.
34:43
It doesn’t hurt me, because it’s not my day-to-day job, but, yeah, it’s coming from business and say always that, You can always It’s easier to expand on you have Mitel, Teachable, like, Increase your income first, before you try to lie, get into too many different.
35:03
Well, Davis, thank you so much.
35:04
I don’t want to go more, ’cause I want y’all to listen to this and maybe play it again. Let it digest. Well, in, thankfully, for Jay was he’s willing to do another interview, will probably end up doing that. It’s exciting.
35:14
It’s really exciting to see someone succeed and do so well and On its own and now he’s not on his own.
35:21
And he started out by himself pretty much, and now he’s He’s got a team already. He’s got people. you can call up.
35:26
He wants to So thank you so much, Davis. I appreciate all this information. I hope everyone else does and we are going to if it’s OK with you, Davis, maybe put a list of references if you wanted to.
35:38
Not give out your trade secrets, but, you know, maybe some couple of things people can look at for themselves. And I’m open to that. A lot of people say I share too much sometimes.
35:48
I don’t think it’s a zero-sum game. I agree. Yeah, I agree.
35:53
I share stuff more than people in my partner station and told him that you know, But I feel like, you know, if you want to compete with me, come on, If I’m, you know, so that’s fine.
36:02
But, yeah, we’ll put that up there and we’ll we’ll compile all this data this video, and with the other things, too.
36:09
Sounds good. It’s been a pleasure. Thanks for having me.
36:11
I love the next interview: I’ll probably be saying, hey, I leveraged myself into a few big corporate real estate, it’s so fantastic.
36:23
Straight from Davis. Thanks so much, I’m going to cut off now.