← Action Academy | Millionaire Mentorship For Your Life & Business
Action Academy | Millionaire Mentorship For Your Life & Business
1.8 HOURS Of Everything I Know About Buying $1M-$3M Small Businesses (For Free)
01:43:00
Loading summary
Transcript31 lines
- [00:00]
A
What's up, everybody? Welcome back to another episode of the Action Academy podcast, Corporate America's least favorite podcast. Today's show is a bit impromptu, but what I'm doing today in this episode is giving you guys the answer to every single question that you have about business buying. Yes, it is quite a long episode. Yes. You may need to break this down into multiple sessions while you're taking notes. My one ask is that you guys are okay with this not being the most professional and polished quality. Because if I am doing a Q and A webinar style format on this podcast, we're going to have some pauses sometimes, we're going to have some screen share sometimes, we're going to have people asking questions sometimes. And it's not going to be a perfect flow, a perfect edit for two hours long. What I can promise you guys though, is if you make it to the end of today's episode, whether in one session or multiple sessions, you will have everything that you need to go buy your first small business without paying anyone a dime to learn it. Yes, even me. Please share this episode with somebody that you know that's looking to buy their first small business, because this is information that's normally behind a 15, 000 paywall and we are giving it to you for free. And as always, if you do like what you hear and you are curious about what we do to help you along this process, I'm gonna give you everything you need for free. If you want more actionacademy. Com, just go in the description of this podcast episode and you will see a link to Book a call with our team. We will hop on with you for 30 minutes and answer all your questions about what we do, answer all your questions about your acquisition process, fix any holes that you have, and maybe you see if it's a potential fit alongside our other 436 active action academy members that buy small businesses in commercial real estate. Without any further ado, let's get to today's show. What's up, everybody? We got over a hundred folks on here. That's good enough to get rocking. We'll probably get up to about 160 to 200 people, but sup, I'm a human. I am real. I am not AI for people that are maybe listening or watching this for the first time off of Instagram, but we also have some Action Academy members on here, which we'll be talking about a little bit later here. Because essentially we're just going to do this wild, wacky marketing strategy which is called I'M just going to give you everything that you guys need for free, and you can go do it on your own, or if you want to do it faster, you can pay us money. It's a pretty simple deal. That's the entire webinar. I can come up with some crazy pitch and sequence for y', all, but I think we're all sick of it. So how about I just give you everything for free first, and then if you guys want to stick around, you can stick around, and then we can talk shop. So let's do that, huh? Sounds good. Like a drug dealer. The first one's always free. The first one's always free, man. That's called value add, baby. So let's talk a little bit about business buying, guys, because specifically, what we're talking about today is going to be how to replace a $100,000 income, namely $100,000 salary. So I'm going to do that specific number because it's easier for me to focus on a number alone rather than some generic general advice overall. So if we can just stick to that one avatar. So if you make $87,000. I'm sorry, I hate you. This isn't advice for you. Kidding. It's still the same thing, still the same process. I'm just going to give advice for a hundred thousand. If you make 200,000, you can still apply the same frameworks. 300,000, so forth and so on. I would actually make the argument that the more money that you make, the more that this is required learning and required teaching. Because who on here has some real estate or is actively investing in some real estate most, Right? Because I DM all of you. Like, I know what most people are doing, and it's great. I like real estate. I'll tell you what real estate's real good at. It's building wealth. There's a difference between cash flow and wealth. Cash flow gets you rich. Real estate's what builds your wealth. So rich is income. Wealth is equity. That's a huge distinction that nobody talks about. Rich is income. Wealth is equity. Let's get you rich first, then let's get you wealthy. That's the name of the game. Because I know a lot of people, and you guys may know some, too. It's your favorite influencers online. They've got 5,000 multifamily units. Their equity on the bathroom in Boise, Idaho, doesn't buy them a latte. With all that being said, there's a million ways to make $1 million, and there is no. Just like One size fits all answer. I'm just giving you guys a tool that you could put into your tool belts that used to be reserved for private equity alone, but now you guys are able to have access to all of this material and all of these strategies today. So you can do it today. So somebody put a really cool Instagram comment this morning towards me and they said, I think they were like trying to poke fun at me, but it was actually a wonderful comment. And the comment was, hey, since you used to buy real estate, and I still do, I've got a $14 million new development boutique resort that we're doing in South Florida. So we're still doing real estate. But he said, if you, you did this through real estate, why are you teaching business buying now? And the answer was in 2019, I didn't know anything about any of this. I didn't have these strategies. I didn't have mentors, I didn't have capital partners. I didn't have this information in 2019. I had the blue Bigger Pockets book and I had Brandon Turner talking on the microphone. That is what I had. And I was riding to and from my sales job and I was riding out in rural Georgia and a lot of people think that I had some sexy job, but really my job set me up for today. And a lot of you, that's the first piece of advice that I'm going to give you is the first tangible, tactical thing that you could take away from this freaking webinar is instead of bitching about your job, start looking at different opportunities in your job to pull those skill sets that you can apply in your own company as an owner. Had I done that in the past, I would be significantly further as a business owner and operator. Today I run five companies. Right now we do $6 million a year in top line with about 30 to 40% profit margins. So you can do the math on that because profit's what matters. Revenue is vanity, profit is sanity. Cash flow is king. And now we are under contract and I believe three other companies, so we'll end this year probably at a million dollars a month in businesses. And had I gone back, I can recog those sales skills that I learned and I could recognize riding the box trucks with my service techs at 5 o' clock in the morning to help them deliver shirts and pants to all these blue collar business owners. Going into the factories and seeing how people operated with their people. All of those skill sets and all of those experiences prep me for who I am today and how I am today. So the biggest belief that we got to get out of your head is that you don't deserve to be a business owner, which is bullshit, because secretly, how to do this is pretty simple. We'll go into it here shortly. But how to do it is relatively simple. The main issue is the space between your ears is preventing you from doing it. Because you're saying, who am I to do this? This is for somebody else. I'm here to say, if you guys take out your freaking phone or you take out a piece of paper, I highly recommend doing this. Maybe not right now, but put this as a tool in your tool belt, take out a piece of paper, and you write down all of the professional accomplishments that you guys have, which is why I speak to somebody. That makes six figures. If you make six figures, you are a valuable employee to the marketplace. So you're most likely a high performer. Most of you guys on this call probably make 200,000 plus. And so that means that you have skills. And if you have skills, all you need is a little bit of guidance, a little bit of vision, and a little bit of figureoutability and you guys can have ownership. And when you have ownership is when you reclaim control of your life. That is why we are here. We are not here to buy plumbing companies, H vac companies, service companies, travel companies, kitchen hood cleaning companies. What you want is here, which is to have control of your freaking schedule. That's why we're here. You guys are here at surface level to learn how to buy a business. But at a deep level, you're here to actually take control of your calendar so that you can control what you do with your kids, what you do with your friends, what you do with your spouse when you want to. And that only comes through profits, processes, and people. That yields passivity. There is no passive way to get passive income. Tattoo that on your forehead. That's a Brian Lubin original. Everyone thinks that you can passively get passive income. That is false. You actively grow passive income to the point where passive income can actively support your lifestyle. And then at that point, then that's when the game really gets fun. Rant over. We got 125 people on here. The team's riled up. I'll go a little bit back and forth between slides. No slides. It's going to be a very much like more conversational talk between me and you. I'm going to get you guys involved, ask you questions, have you post in the chat, stuff like that. Because personally, I didn't want to make 87 slides for you guys. So I would rather just ask you about your own, like, unique circumstances and your own unique issues that you're going through and just solve them on the spot once again for free. All right, let's get to work. Six steps to replacing six figures. There is a shit ton of stuff that you guys don't know and it's dangerous because you don't know that you don't know it. That's bad. And every. And I'm not saying that to discourage you, it's just everyone says I want to buy a business, but you don't realize what's truly involved in the acquisition process of purchasing a business, of purchasing real estate, of purchasing anything. You see the idea of it, but you don't actually know what's required. So what you don't know, like having no idea about what you don't know is really bad once you start understanding what you don't know, which is actually the goal by the end of this webinar, so that you guys can see the gaps that you have right now and you can start to fill those in and proactively work on them. Because every single year that you don't know how to make a million dollars cost you a million dollars. That one I took from her Mosey. But it's absolutely true. I am 30 years old. I know how to make a million dollars a year. Take home. And for the rest of my life that skillset compounds on itself all the way until 40, 50, 60, 70, and 80 years old. I'm going to be buying businesses, starting companies and scaling. So it's truly a rush for you guys to learn these skill sets as fast as humanly possible to take advantage of the compounding nature of them over time. Does that make sense? Got it. Let's get to work. In the next 60 minutes, I'm going to show you your three major million dollar gaps. We're going to help you close those gaps on your own, and then we're going to show you a faster path. 10 times faster, actually. I haven't done the math. Probably a hundred, but who's counting? For those of you who value your time, which I hope are all of you. So this isn't about me, but I'm going to feed my ego for a second so that you guys can sit around and actually understand what I'm talking about, rather than me just being somebody that posts on Instagram and you guys are like hot, cute video. So I worked a corporate sales job. I was making a quarter million dollars a year I was number eight out of 5,079. I'm really fucking good at what I do. Whatever I do, I'm really good at it. And I don't do anything else mediocre. Like I tell everybody in our community, don't half ass ten things. Whole ass, one thing. Apologies for the profanity, but this is what we do. Like, Action Academy is for action takers. We're for sprinters. We're not for walkers or joggers. If you want to walk or jog, we are not your people. This is not your tribe. So I've always been a sprinter. And mediocrity always, always repelled me. It makes me allergic. I break out in hives. I hate mediocrity. And I think that most of the people on this call probably think the same because you freaking nerds aren't a business buying webinar on a Wednesday night. All right, so we're all high performers on these calls. So I went from my corporate job, I bought some real estate, co living properties, house a year, like a lot of you guys, started up a podcast, built up a side hustle business. So I started a company off of the podcast that was my original $20,000 a month to get out. And then I was an operator in 2022, I was very much so self employed. I was not yet a business owner. I would just. I'll give you guys the distinction in a bit. But in 2022, I made about $200,000 a year. I traveled to 37 countries, and I traveled full time around the world for an entire year. So I lived in Brazil, I lived in Latin America, I lived in Europe, I lived in the Greek Islands for a month. So essentially, I live the existence that all of you guys are aspiring to live. Perhaps one day I did that at 27 years old. So now I'm in the stage of my life where I think about things like an 87 year old where I'm like, what's the meaning to life? What's the meaning to happiness? How can I serve other people at scale? Blah, blah, blah. Fast forward to today. I'm more of a business owner. So there's a key distinction between observer, operator, and owner. So level one is observer. You guys are told where to be, when to be there, and how to do things. So that's you today, have zero control over your schedule. And you're allowed about 27% statistically of your waking adult existence to have friends, go to the gym, have a family, raise kids. 27% of your waking Adult hours. Insane when you think about it in that context with the data. So most of the time you're spending time working jobs that you don't like with people that you don't necessarily respect in careers that aren't really your profession. Right. So operators, so that's observer operators, where you go into your company and you don't understand how business works. So this means that you have this giant window of time and you work 24 freakin 7 and congratulations everybody, you just replace a frickin 40 hour workweek with 100 hour a week hellhole. We don't want that. Giving you guys the tools to buy a small business, but not teaching you how to run a small business is like giving you just the freaking loaded shotgun and ammo and just saying have fun Timmy. Don't blow your head off. So that was me as an operator for the last two and a half years. I've really just busted my tail and I just sacrificed everything for fricking family and country in our business Action Academy today. Not that way. I value peace. I want to start a family of my own. I want to have relationships of my own. I want to be a really good friend. I want to go have fun without thinking about work. So Today we run five companies, we do about $6 million a year. Like I said, got three more under contract and now it's getting to a point where I buy about a business a month. So we're getting up to that trajectory to where I can invest in Action Academy businesses and buy about $1 million company per month that you guys are trying to do for the first time in your life per month. So let's get to work. Oh my God. Who are all these people? Oh yeah, it's just the hundreds of other people that we've helped do this. This isn't theory, this isn't me talking. This is other people that we've done. Bethany's going to be on here. Solely's going to be on here. These are all different little clippings that we took from our group. We have people that close on a distillery, people that close on kitchen hood cleaning, construction companies, laundromats, freaking a hearth company that's around your fireplace, freaking gas stations, a cupcakery. A cup freaking cakery, boys and girls. That is a high credit score business. A cupcakery. I feel wider even saying it out loud. Oh my God. But people, that's cash flow, ladies and gentlemen. That is cash flow. So let's get to the brass tax, shall we? Your $3 million gaps. If you guys just take this away, like this is it. It's lack of knowledge, lack of partners, lack of diligence. So you don't know what, you don't know what we're about to change. You don't know how to partner. And so either you don't have capital partners, you don't have operating partners, or if you do have an operating partner, it's like, hey, Joe, meet Jim. Let's go 5050 on this business and hope that this freaking laundromat pays off. That is the worst thing that you could possibly do. You are doomed for death and destruction and maybe luckily you make it out alive. But you do not know how to form an operating agreement. You don't. You do not know how to put your buyback clauses or buyout clauses or roles and responsibilities. We're going to talk about it. And lastly, lack of diligence. None of you have ever actually taken the time to consider what happens when you get a business. Let's say it happens tomorrow and one of your Lois is accepted and you and your wife or you and your husband are sitting by the kitchen table and you go, God is good. All the time. All the time. God is good. We've got this LOI accepted on a fricking plumbing company for $2 million. Seller likes you. He wants to take a bet on you. Now what? Who do you have to call to actually help you do diligence on this thing? So we're going to help you do diligence. I'm going to teach you the top five ways to do diligence. So here's how I'm going to do it. I'm going to come back to you guys here in a second. So right now it's lack of knowledge. I'm going to talk about lack of knowledge in two different ways. Defining your buy box and defining your roles and responsibilities. I'm going to give you enough to know what the heck your buy box is and to know what your roles and responsibilities are. So I'm going to give you guys some practice like From a the 30,000 foot right here's telescope. And then we'll do microscope where I'm going to call on one or two of you and, and then you can tell me your situation and I will recommend what your buy box and or what your role slash responsibility should be in the business. So buy box. If you guys are taking notes, this is when you take notes. Two types of buy box, qualitative. In a quantitative buy box, we start with qualitative so qualitative buy box is going to be already coming into your roles and responsibilities is what type of business A suits your lifestyle goals, B fits your professional strengths. So your qualitative buy box is what type of business fits your lifestyle goals and fits your professional strengths. An example of this is going to be I'm a sales and marketing guy. I am not going to go buy a company that is already crushing it in sales and marketing and is very much so struggling with operations and scale and processes and bookkeeping. I don't have the skill sets to fix that business. So why would I buy a business and also try to learn new skill sets that aren't already in my tool belt? Does that make sense? So you want to buy a business that's the opposite of what your skill sets and what your strengths are. So there's two different types. I call it a top line operator and a bottom line operator. A top line operator is somebody that's going to bring home the bacon with sales and marketing. A bottom line operator is somebody that's going to be the backend systems and processes. You can do Excel without a mouse and you freaking love cleaning up messes like you love doing the operations of a company. So for you, you would buy a company that's already strong in sales and marketing, lacking in operations. If it's vice versa. For me, I'm gonna buy a company that's strong in operations, needs help with sales and marketing company we just bought last Friday, million dollars a year. They don't do any marketing. It's only word of mouth. Have you heard of a sales rep like double the business overnight? That's the type of business I buy. So that's qualitative. And then does it fit your lifestyle goals? Most of you guys need to be buying a company within 90 minutes of where you live and or 90 minutes of a partner, period. Don't play the game on hard mode. There are some exceptions that may apply, but for the most part, 90 minutes, pretty good three hours, you're going to hate your life and your wife or your husband's going to yell at you because you're gone all the time. Don't do that. So that's your qualitative buy box. Once again, for those of you taking notes, it's going to be lifestyle goals and your professional strengths. Your quantitative buy box is going to be a few things here. So for specifically for somebody that's making $100,000 a year and you want to replace $100,000, you are looking for a business that is going to be doing a profit slash cash flow slash SDE called seller discretionary earnings of about 250 to $300,000. I would aim for $300,000. Let me show you what that looks like. Hold on a second. No, that's my. Sorry. That's my. I've literally got such a muscle memory for checking on my podcast. You guys familiar with this is by sell. All right, cool. I see some head nods. All right, cool. Here you're going to go, for instance, I've got Texas established. And so you're going to go to filters, going to go gross revenue, you're going to want about $1 million. And for cash flow, you're going to want at minimum $200,000. So for your first business, between 1 to 3 million, good sweet spot cash flow, you can just leave that open. Right now this is 933,000. That's more so getting to our buy box. But let me go find something. We don't buy restaurants, we don't buy bars. Here's a hot chicken concept. We don't buy it. All right. All right, cool. We can look at this real quick. Not to say that this is a good business. Right. But we're going to look at it because it fits the buy box. So this is a sale pending. So this one has an LOI accepted. So this is how you're going to find most of your businesses on biz Buy sell off market is for sure a strategy that you can utilize. But in the very beginning, when you don't know what you don't know and you don't really know how to talk the talk, it's you're going to get chewed up and spit out going off market. So for right now, we're looking at this one. It's got about a 3.8 asking price with a cash flow of 8:30. So what we're doing is we're taking that 8:30, taking that 3.8, dividing it by the 8:30. And I said a 4.57 multiple. Most of these businesses are going to sell at a multiple of profit between 3 to 5x. Does that make sense? I don't know how far along in the business buying journey you guys are, but basically businesses are valued off of profit times future profit. The more packaged the business is, the more far in advance that you are buying that profit. So most of the time you were buying a company for about three years eventually in advance profit or five years in advance of profit. So probably the top end that you guys would Buy at is a 5x multiple. So right now this is getting up to a 5x multiple, which means that I need this to be a very packaged business. So we're looking over here, semi absentee towing company, ultra rare find not only known as blah, blah, blah, blah, blah. All right, cool. So we got one physical, two virtual locations. We got 18 employees, we got real estate owned included in the ask price. That means that the actual business itself is gonna be less than this. And here it is right down here. All right, so here we have a gross revenue of the business of 1.3 in an EBITDA profit of 828. So what is that showing us right here? Right, so if we take 1.312 divided by 828, or maybe it's vice versa. Sorry, guys, I'm not the numbers guy in these deals. 8,28,000 divided by 1.3. There's a reason I'm doing this, by the way. That's showing a 63% profit margin. Anybody see what's wrong with this? Ain't no way this company's doing $828,000 in EBITDA profit. Sorry, this is a fancy word for profit. Cash flow. SDE is how you're going to mostly see it. This is wrong. So there's something immediately, my red flags are up. Normally you guys are looking at about a 20 to 40% profit margin. A 30% is probably where you're going to fall. Any company with a 40% profit margin is gangster. I run an online company. I run a 40% profit margin. No way in God's green earth is this towing company freaking doing a 65% profit margin on towing. Promise you that, especially with 18 employees in real estate. So we can keep going on this, but I'll stop right there. Tracking good so far. All right. Heck, yeah. Let's go, John H. And you can share if you guys don't want to share, like complete salaries and stuff, you can share ranges, you can share stuff like that. I share all my numbers, but it's cool. Like you, I'm a stranger on the Internet. I get it. I respect you. So you can even make up a number if you want. But so for this, in this context of a buy box, like, what income do you need to replace? And then what is your professional strength? So you're more sales, more operations. So I come from a consulting background, so most definitely operations. I make a little less than 200,000, so that would be the number that I need to replace. And I'm Totally new to this. So this is my first introduction into any of this, this call. Am I doing okay so far? Are you so good? I'm tracking. Cool. All right, cool. So you're making about 200K. So we'll just call it an even like 15 to 20 thousand dollars a month. Right. So you're looking at is you're going to be looking for a business that does $400,000 in profit. Just take your take home and just multiply it by 2. Because what margin where you guys mess up when you're not on these calls and you're not listening to this stuff and you're only watching the tech talk videos is somebody makes 200,000 and you think you buy a business that makes $200,000 as profit. That's gonna eat you up, chew you up, crap you out. Because you're not gonna have any margin to hire a manager. And you are the freaking manager. So what we're looking for in these companies is we want. Again, you're looking for $400,000 of profit. So that company is going to give you enough money to make your 200, probably pay another partner a hundred and you're going to be able to have a manager probably for six figures plus profit over overall. Does that make sense? So you want margin, especially on your first deal. Also, don't buy any of this manufacturing crap. That's 10% margin as your first deal. Does that mean it's a bad business? No, but it's just an industry that's so slim that it doesn't have any room for error. And you will mess up, I promise you. Like, business is just continuously messing up and making sure that you mess up less and less as you get better. Okay, cool. So your consulting background. So that means that you need a company that is going to be $400,000 of profit. So if we just do the math that we just talked about, what purchase price do you think that business would be at? John. Freaking Consultants, man. Kidding, buddy. You're on a call with a bunch of strangers. I'm sorry, buddy. All good. 3 to 5x multiple of that profit. So you just multiply 400,000 by 3 to 3 to 5. So I guess minimum, you're looking at 12. Bingo. So you're going to be looking between a. So for 400,000, you're going to be looking at a purchase price of 1.2 million or up to 2 million, most likely. That's what you're looking at. Yeah. And you're going to be looking for a company that's already strong in sales and marketing, which they will be. Most of them will be at that level. And then you can come in on the back, back end and you can really help drive operations, put them on new systems, put them on new scorecards, stuff like that. Because if you go and build a sales system, I know how to build a sales system from scratch, you guys. So again, let's not play the game on hard mode, let's play the game on easy mode. So that makes sense for everyone said. Okay, cool. So how much is that business going to cost? I'll go back to the screen here in a little bit. I'm going to speed up here in a second because I want to be conscious of yalls time and we can go over a little bit. So how much of that business going to be down? Right. So if you're buying a business, good rule of thumb, 10%. Good rule of thumb. Stick that in your back pocket. 10% down, pretty standard. Through the SBA 7A loan, that's what you can expect. That varies. You can buy a business with $0 down, you can buy a business with zero collateral down. But in today's economy, in today's market, lenders and sellers and everybody really want to see 10% down at minimum. So if I was trying to buy a business in today's market, I'm not playing the game of hey brokers, hey sellers, can I get it? 0% down. Seller finance. You're going to get laughed out the room like that crap. It works sometimes, but it's not the standard. The standard is just say, hey, I have capital partners, I have pre approvals, I'm coming in with 10%. Let's frickin do this thing. John, to further prove this point, right now I doubt that most of us are sitting with $200,000 in cash that we could put into a business. This is where you're going to bring in one or two capital partners or maybe one that are going to fund the entirety of the deal and you're going to be the operator of it. You're going to quit your job, you run it, you get the majority of the cash flow and you're going to pay back your operator. I'm going to show you guys how to structure those deals in a second because those are the deals that I'm funding in Action Academy about once a month. So I'm intimate with this, like I'm on the receiving end. So I not only teach you guys how to do it, but I want you to bring me company so I can freaking buy your company for you and you don't even have to put any money in. All right, back to our regularly scheduled program. And I'm on a fricking roll. Also, somebody just said HELOC. Don't do the HELOC. HELOC isn't really going to be. SBA lenders aren't going to like your HELOC. Your SBA lenders are not going to like your 401k portfolio. And any profit that would be in a 401k portfolio or a retirement account is going to. That cash flow goes back to the retirement account. Fun fact. So if you're going to use a 401k to do this, it's like it's a liquidation conversation and paying a 10% pre penalty because nobody talks about this stuff. But even with real estate, if you go buy, I was like, okay, I had $200,000 in my 401k. I was like, if I go buy a house and I cash flow $200 a month, I could spend that on groceries, right? Wrong. It goes back into the 401k. So if you're trying to do it for wealth, I'm doing what's called like a rob structure, which is way too complicated for this call. But then that's tax advantaged and then that's like basically buying it with a. Buying businesses with a 401k. That's too much for right now. It's too much dip on the chip. So I'm going to come back to this. All right, hold on a second. Like partner lack of knowledge, defining your roles and responsibilities. Okay, we went over that in the buy box a little bit. And so I'm going to skip forward here. But everyone feel good with buy box. So for the most part, for a hundred thousand dollars, if you guys are wanting to replace that, you're looking at a $200,000 to $300,000 profit business. You're looking basically at a million dollar business and above. Between 1 to 3 million. Between 300, 200 to 400,000 in profit. Good sweet spot. Also probably 4, 4 to 6 years running in existence would be a good sweet spot. Try not to buy anything new, especially for your first ones. All right, cool. So number two, lack of partners, capital partners and operating partners. I will walk you through how to do this here. Let me see what the rest of my stuff is. Lack of diligence. Let me see how I am on time. I'll walk you through partners fast. It's one of the most Important things. But there's not like that much I can teach you, but I'm going to help you here. So when it comes to partners, it really is just back to old school rules. So you really just want to be a good human, but you need two different people. When you're buying a company, you need your operating partner and you're going to need your capital partner. So we'll start with operating first, then we're going to get into capital. So your operating partner is not your buddy that just happen happens to be randomly looking for a business with you. Your operating partner is a partner that's alongside you, that has a complimentary skill set that makes sense. Back to John's example. He needs a sales and marketing guy or girl to partner with him. Chocolate peanut butter, Reese's cup, right? That's what you want. I don't partner. I want to partner with somebody that's great with numbers. So that's what I'm looking for, baby. I'm looking for somebody that's gave me some sunscreen. I don't want to talk to anybody. Put me in a computer. And those are all my business partners. They freaking rock. And Estefania feels called out right now. So shout out to Estefania. But that's truly what you want. You need somebody that's going to be the back of house and somebody that's the front of house. So somebody on your team needs the talk. And in, in entrepreneurship terms, it's on startup terms. You need a technical co founder and you need the entrepreneur that's going to go out, drive business and sell the company. Good rule of thumb, we do what's called a disc test. You guys can take one online for free. If you join Action Academy, we get, we put you through a $200 one that's really intense. But it's D I S C. Stephanie, if you want to put that in the chat, it's. I don't know what it stands for, I forgot about it. But it's basically shows you what your personality is. And so if you are high I versus low I, high I means you're a people person. Low I means that you're more introverted. High D means that you're a driver and you're super dominant. In type A, low D means go with the flow. Type B, you're cool with anything. S is systems. So in steadiness. So the higher S you are, the more that you like stability and repeatable systems, the lower S the more chaotic you are. And C is control. So you Want to either have a high degree of control or low degree. Go with the flow. Who can guess what mine is? I'm extraordinarily high. 99i, 99d. And my S&C both were like 2. It's on a scale of 0 to 100. My S& my C are like, before they were at like a 10 and now they're both at about a 30. And that's because out of necessity, I had to grow those skill sets to be a business owner. Honestly, that's just the truth. So as I've progressed and matured, systems and processes really get you to scale. So it's a focus of mine. But if you guys are an id, you want to partner with an sc, if you're an sc, partner with an id, Pretty simple. Easiest way to think about it. Where do you meet operating partners? It's a toughie. And if I'm being honest, if I sell you guys anything, I'm not really selling you the secrets. These are the secrets right here. We're just selling you the community of people that are doing this. So it's. You have to go network your fricking tail off. You need to tell everybody under the sun that you're trying to buy a business, and you need to go find people that are like you, which is rarer and harder and more expensive to do as time progresses. And you have to go find those humans and then you have to partner with them and at that point and then go through the entire process. So the reason that community is a masterminds rock and why I don't like online courses is because they have your people there vetted and the other people are paying to be in that room. So that's why Bethany and solely and all these people on here, they're not like, I'm buying a business. They're parts of teams of three or four humans and they've made some of their best friends and no one. Some of these other guys on here are brand new. So it's. That's why community matters. So if I was buying a business, you could go to Facebook groups. You go to. I don't think they have business buying meetups really yet. I can start. I can start making some. But like real estate meetups, you can maybe meet some people. That's what I'd recommend now for capital partners, which is like the main thing because I know how much money the majority of you guys have because we DM400 of you a day. So most of you guys have between 20 to $100,000. Most of you guys are sitting at that 20 to $30,000 spot. And we will send you a podcast episode later about what to invest at each level. But we've done 2,000 intro calls for Action Academy and $30,000 to Sweet Spot to where you're like, okay, I'm saving up money to buy a new house. I got like 30 to 50k. I don't really invest in myself or education or anything, but, like, I've got this saving up for a house. So again, to do the math, back to where we were before, for a million dollar business or 1.2, you need about 100k down. All right, so 100 to $120,000 down, plus a few closing costs, maybe lawyers and stuff like that. So even with 50k, if you have $50,000 in your bank account right now, it's still not going to be enough to do on your own. You're going to need one or two partners. So me as capital partner, I am the guy that you guys are talking to, and I'm going to tell you guys what I like to see. I'll actually show you Stephania. Sorry, guys. Stephanie is half of my brain now. Who was the Action Academy member in my DMs and Facebook? That was, like, wonderful. Who sent me a deal? It was. Hold on a second. This is worth the time. It was so wonderful. She sent me a Facebook message. Bethany. You guys don't remember, do you? Did I mention this on a call before? Oh, my goodness. It was so freaking good.
- [37:50]
B
It was Farah.
- [37:52]
A
It was who? Farah. How do I spell? Oh, Farah. Yes, wonderful. All right, here, I'm gonna pop this up. Thank you. You guys rock. Look at that. I am not an organized person. All right, cool. I don't know how to really do this without showing you guys, like, my entire Facebook. Oh, look, a Wednesday win of somebody doing millions of dollars in Action Academy. All right, can you guys see my screen in the bottom right corner? Is that big enough or do you need me to. Is that big enough? I can see Logan and Cat. Good to read. Okay, cool. So she posted and she goes, I have a deal. And I go, awesome. Walk me through this deal. And she sends me. I'm going to read it to you guys at a super fast and high level, but as a capital partner, this is what I want to freaking see. So she gives me the high level recruit recruiting firm, blah, blah, blah. And then she says, we're why they're selling. We have two VPs in place and solely Taking on more responsibilities, clear pathway for growth. And then she says what her experience is. I can add in an HR advisory arm which is freaking sick. Then she gives me the purchase price. 2.7. 25% seller finance, 10% down in the rest SBA. She wrote it at a 2.11. DSCR for underwriting. This is just put this in your notes. We're not going to talk about it today. DSCR means debt service coverage ratio and it's the number one thing that your lender is going to look like look at for a business. So anything over a 1.7 is good. Anything under a 1.7 is a pass. So DSCR means how much does your profit monthly cover? The loan payment that you're taking out for the business. Plain and simple. So in this deal the profit is paying double what the loan is. So that's a very safe and secure business to buy. I paid was 9.2 average SDE. So that's the profit word we're looking at. Remember 924 with 40% margin after debt there's around 487 left over annually. Seller said it's been around seven years. And then she puts why they're selling it other really great aspects to the business. Revenue about 1.5 declined. This is a freaking Facebook message. And I said, literally I said this is a master class on how to deliver this info. Told me everything I need to know. So then I reached out to her, I said tell me what you need for me to fund this business for you. All right, so where is my second. I did not mean to click that random freaking ad. Stop share. There it is. So when you're looking for a capital partner you need to have your documents in order bonus points if you have a really nice presentation put together and what you want to do most likely is you're probably going to give away 10 to 15% of the deal. Easy, easy. Rule of thumb. So for my people taking notes, 10 to 15%. When I'm coming into a company, I'm not looking for real estate returns. You guys are first time operators and I need a risk adjusted return. So that's called rar. The higher risk, the higher return I should get. The cash on cash I'm looking for as a capital partner is going to be probably 25 to 30% plus on yalls first deal. If you're an experienced operator and you've done multiple deals then I may say okay cool. I'm cool with maybe like a 15 to 17% cash on cash but for someone brand new, I'm looking for 30% cash on cash, which means that I'm probably taking, I'm putting 10% down for the down payment and I'm probably taking 12 to 15% equity in the business. Now there's million different ways that you can structure this. The better the deal, the more negotiable I'm going to be. But for you guys that are getting started and you're really nervous about a capital partnership relationship, a very simple rule of thumb that's a no brainer, stupid simple offer that almost nobody would say no to is if you said, hey, I've got a million dollar company, does $300,000 in profit, I need a hundred thousand dollars down and I'm going to give you 10% profit share of this company or 12% profit share of this company. It's almost a no brainer for anybody to take on as a capital partner, if that makes sense. So if you do that like capital partner, like raising capital for a small business is even easier than real estate because out the gate, yes to Estephani's point, that's why you need margin. Margin is so important because then you can bring this capital partner in. I'm right now funding $150,000 down payment for somebody while I'm funding another $50,000 down payment for another person in an $80,000 down payment for another person. So these are all 10% down at the same time, the ones that I'm under contract on and I'm getting 12%, 12% and 15% on those. So if you guys do that, what does that mean for you? Come all the way back full circle. You are buying a million dollar company for $0 down out of pocket. Maybe you spend $10,000 some odd and now you've got a million dollar company that's printing you $300,000 of cash flow net take home annually, which to John's point, after paying a manager and everything, you just replaced a freaking quarter million dollar salary in one freaking deal. One deal. We've seen it happen over and over again. I just had two guys, Tyler and Mike on the podcast today from Action Academy here in Austin, Texas. They bought a company for $850,000 and they both put, they negotiated it down for the purchase price. For the down payments they both put in about $30,000 each. And when it appraised for 1.1.2 at closing, they manufactured like $300,000 of equity at the closing table. Banana land. So they basically put down $30,000 and each gained $160,000 in equity at the closing table, plus gaining about a hundred thousand dollars in salary for each of them in the company. That's salary. Not even profit. That's freaking salary, dude. That's why business buying rock. Sorry, let me get off my Facebook, because I can hear it frickin popping off in the background. All right, cool. We still have everybody in here, so I'm going to keep going over and I don't think any of you guys are going to mind it at this point, because we have. Okay, we've lost one person. Thanks. Guy Just fricking left. Ruined it for me. Oh, my God. I'm not even adding any value to these people. All right, cool. Back to this business buying webinar. Everybody good with capital partnership? Oh, operating partnership. Last thing. Your operating agreement is the most important document that you are ever going to have in your entire life. You do not want to do an operating agreement where you say, hey, Logan. Hey, Connor. I'm going to do. Let's partner 50. 50. What you're going to do is you're going to have a list of roles and responsibilities for each of you. Logan's going to say, I'm responsible for this and this. Conor is responsible for that, that, that, and that. And if Conor decides to F off and be a dickhead, sorry, Connor, to pick on you. You are not a dickhead. If he decides to, though, you need to have the terms in the document about what valuation you're buying him out at. Does that make sense? Because I had a friend whose business partner 50% after three years decided, I don't really feel like working anymore. And that can happen. That can freaking happen. And so what you want to do is you want to make sure in your operating agreement that you have a price that you can buy them out at that's going to be comparable and agreed upon for all the different members. Here's Stephanie. Can you mute someone, please? I don't know who it is. On a second. It's like a scavenger hunt. It's like, Where's Waldo? Stephanie will find him. All right, cool, cool, cool. Sorry, one second. Get off of here. And we'll go over to the next one. Diligence. We're going into diligence next here. Hold on a sec. Sorry. You are talking. They can't realize it. We're scrolling through. We're trying to find. It's louder and louder, dude. Okay, cool. I think we're good now. Sweet. So let's go into diligence. So there's five different parts of diligence to look out for. I'm going to walk you through it super quick. I don't need any notes or slideshows. So for diligence, what you're looking for are five different risks. So diligence is, congratulations, I've got an loi accepted. And what we're going to go over here, I'm going to keep it tight. Probably another like maybe 10, 15 minutes over. I promise we're not going to go too long. And then if any of you want to stay for questions, you can stay for questions. But the process looks like you start looking for a deal within 90 days. Ish. You should expect to start sending offers. LOI letter of intent. Once an LOI is signed, then you go into diligence. And diligence is 90 days, typically. And diligence is where you break apart the deal and you're trying to figure out where all the bodies are buried, because there are bodies that are buried. And if anyone tells you that there aren't bodies buried and they don't tell you what's wrong with the business, that means that there's twice the amount of bodies buried. No bueno, no me gusta nada. We hate that. We want the. We want to have good rapport with the sellers. So we can just say, dude, let me know, girl, let me know. What am I getting into here? So the five risks that you're going to find in diligence, number one is called key man risk. This is. These are all writer downers for the note takers. Key man risk. Key man risk is the number one risk in business, and it's the number one thing that you guys try to buy without help. And I see it completely destroy your lives because you don't know what you don't know and you buy a freaking job. So key man risk means that the company is dependent on the owner. It's an owner operator company, and the business can't run without the owner. In my company today, action academy, I have keyman risk. If I disappear tomorrow, it would not impact renewals for current members, but it would impact and destroy our complete marketing channel. So I have key man risk in my company today. Therefore, my company is not sellable. So you can do this in the inverse. For anybody of you that have a company and you want to make it sellable, you can do the inverse and use these as ways to make your company package to sell. So key man risk is number one. Industry risk is number two. I pass on a Company that does manufacturing for multifamily properties. Why? Because I don't like the space right now. Like the industry itself, I don't love right now. We're going into a lot of loan defaults and a lot of bridge debts come and do. And I don't like development right now when it comes to the multifamily space, especially companies that are dependent on that for running, essentially no bueno. So that's industry risk. You do not want to buy a newspaper company when AI and ChatGPT exist, if that makes sense. So don't pop by declining industry and don't buy in declining markets as well. Another one is customer concentration risk. This is another one that gets you guys left and right. The three things that you guys do without help is number one, you buy a business that's too freaking small. So you go buy you a 300 to $500,000 company because you think that you need to use your money to buy a company. Don't do that literally, partner just for the sake of partnering. Because then there's two brains working on problems and there's two sets of shoulders to handle stress. Don't play the game on hard mode. Play the game on easy mode. Get you a partner. Number one, you buy a business that's too small. Number two, you buy a job. So you buy something that's owner operator that you didn't realize. And number three is you buy a company that has customer concentration risk, which means that you have a small handful of customers that make up 80% of the revenue. Worst thing ever. Worst idea ever. You want to make sure that your customers are spread out across different industries or not across different industries, across different categories. Just make sure that you don't have one or two accounts that you're dependent on. Because what does this mean? What will happen is you guys are going to come in and you're going to try to buy this business, and then the owner is going to go take you to his biggest customers and he's going to say, hey, this is. Let's see, let's pick on somebody else. This is Brian. Or this is Joanna. Nice to meet you. They're taking over the company. And then I am Mr. CEO on the other side. And I said, oh, hi, Joanna. So nice to meet you. Oh, my God. I think we want to negotiate our contract. That's not anything against Joanna. That's not anything against anyone. I'm just a smart business owner because I understand that I have leverage. Because the last thing that you want to do is lose Me, that's the last thing you want. And every single big customer that has leverage, they're going to know it and they're going to come at you. So that's a way to freaking kick your legs out from under you before you even get going. So if you have a company that has a lot of big accounts that are called sharks, you want to have an equal amount of minnows. Big accounts are good. Just make sure you have a bunch of minnows, which are smaller S and B accounts like up, down the street that are comparable to it. So every shark maybe have 10 minnows. And so you can still go shark hunting and that's still fun. We call them target accounts, key accounts, whatever have you. But you want to have enough small accounts to keep the lights on, so that's what you want to do. And then, guys, if you have questions, throw them in the chat. And then I'm going to get you guys right after this. So I'm going to try to wrap this up and answer these questions. Cool. So that's customer concentration, risk data rich. So SBA is going to be slightly better. It's going to be longer process, but I would recommend that you guys go through sba. It's going to be hell on earth. But I recommend you go through SBA because they're just. You're going to have that business underwritten in 27 different languages. If you're off market, they are not packaged for sale. They're going to be very poor, unaudited financials, and you're going to be freaking flying blind. So if you are competent enough in your ability as an operator to take that on, feel free to. You can. Those are the deals you can negotiate. $0 down or seller carry for getting almost paid back to do it. Don't do that for your first deal. There's no point. Stop playing the game on hard mode. Play the game on. Play the game on easy mode. That's what you want to do. So those are the different big risks that you're going to find in diligence. Again, I'm going to give you guys a timeline here. And again, yeah, keep posting the questions. I can see the questions coming in. I'm going to answer them one by one and get with you guys here shortly. But real quick, I'm going to go over a deal timeline so that you guys can understand how long this takes. Because who wants to close a business this year? All right, cool. So most of the people on the call, which is why you're on the call. You don't know what you don't know about deal timeline. So I'm going to literally show you a deal timeline, like best case scenario that you guys can do so that you close in November. Because a December close. Tattoo this on your forehead. A December close is a January close always. And we all know that from corporate too. Like a December close is a January close. Because they are going to find some way to cram their books or dump their books or push it over to the next fiscal year or they're going to have some tax thing or holidays come up. You want to close in freaking November. So we're going to walk through a deal timeline of November really quickly. So again, keep posting the questions. This is the hero's journey. We won't go over that. That's literally a freaking hour long keynote that I can give you guys. I don't have time for that because I want to take your questions. Who knows the secret to knowing that you're finally ready to buy a business? When you say, hey, you know you're really ready. When you say, I'm not. Huh? That's a really good quote. That's actually a writer downer for later. But right now we don't have time. So again, the 3 million dollar gaps, lack of knowledge, lack of partners, lack of diligence. So here's your timeline. You can screenshot this or write this down. It's pretty simple. You don't really need a screenshot it to be completely honest with you. Yeah. So Right now is May 14th. So if you're doing this by yourself, feel free to. You can do it like you guys are smart. You can figure it out. Promise you that's just gonna be a hell of a lot harder. If you wanna close the business this year. That is what we do. We have done this hundreds and hundreds of times and this is our specialty. And when I wake up in the morning and when I go to bed at night, this is what we think about. And I've got a million dollars of payroll to people that literally their job in the morning is to help you get close on a business. All right. Also real estate. So this is a realistic timeline. Best case scenario, may you learn how to do this stuff and you start meeting people to partner. So you're mixing and mingling in May and you're learning how to do this stuff. So you guys need to learn how to find a deal, how to underwrite a deal. Oh, by the way, two things on underwriting. So number one, this website's your Best friend Chat GPT over here. This is little bonus points. So you can come over here and you can create what's called a custom GPT. And so for these custom GPTs, you can feed them a bunch of financial information. And so I've uploaded a significant amount of financial information. So this is Keith, my underwriting GPT. And Keith is an asshole. Keith's not a fun guy to be around. Keith is the one that's going to tell you all the reasons that a deal is going to go south, going to go wrong. And anytime I have a deal, I put it into Keith here. And then Keith will be the, the other side of the equation. I'm the optimist, he's the pessimist, and he's going to destroy the deal for me. We don't have time for this, but you can literally go into Chat GPT like here, or you can go into here and just say, hey, chat, I want to practice underwriting small businesses between 1 to 3 million dollars. Act like a broker and let's have a dialogue to teach me how to do this. Another one that you can do is say this and you say, give me the best prompt to yield this result. Here we go. Cheat code. By the way, if you guys are doing anything in Chat GPT, literally just ask it, what's the best. What's the best prompt? And then I just take the prompt and I just go in here and I just repro. We do redo it. All right, cool. Look at this. Here's the deal to analyze niche commercial cleaning, Charleston, South Carolina 1.9. And it's going to start giving you all these different buy box and deals. And you can literally walk through the process with Chat GPT or you can literally say, let me look at a P and L. Like the. Watch this. Show me trailing three years. P&L. Absolutely. Here's a trailing three year P& L summary for this company. Oh my God. Look at you guys. You could be on the toilet, you could be at lunch, you could be having breakfast and you could practice your underwriting and you can start looking at these numbers and start to understand it things to notice. Revenue grew steadily. And you come in here and you say, help me understand these again. I'm teaching you how to do this for free. So it's going to break down each one of these numbers for you right now. I can keep going on this, but I think that you guys got the point. So two ways that you could practice your underwriting. Number one is Chat GPT. Number two is Rider downer. Do not go to brokers in your local market to practice. Go to brokers in a random market to practice, period. I'm in Austin, Texas. If I want to buy a company in Austin, Texas, and I want to learn and get my first reps in with brokers and get my first underwriting reps in, I'm going to go like Buffalo, New York, or I'm going to go to Pittsburgh or something like that. Because the brokers are going to think that you're a waste of time. No offense, you're not yet. You are in the beginning, but then you get better. So the broker's gonna know that you're brand new, that you're a waste of time for now, and then you're gonna get better and then you're gonna burn the relationship with the broker until you get really good at sending emails and knowing what to do, how to do it, having the templates, talking the talk, walking the walk, knowing your numbers, right? Then you go into your market and then that's when you can really start doing the active deal process, if that makes sense. Huge nuance pro tip right there. I want to get to Yalls questions, but to come all the way back, sorry guys, to the business buying webinar right here. May again, this is if you do Action Academy or not. Most likely. This is if you do Action Academy. If you don't, you're for sure closing next year minimum. So May, you gotta learn how to do underwriting, how to find deals, talk to brokers, reach out to brokers, had a partner do the operating agreements, all this stuff. Then you start outreach around June, July. It's going to probably take you a solid 90 days of outreach to get something under contract. Doesn't mean that's a hard rule of thumb, but maybe you get one on the second week, maybe you get one on the second month. 90 days is a pretty solid amount of time for you guys to do outreach and get something under contract. So you need to also learn what that looks like, how to talk to brokers, how to follow up with brokers, how to go off market, how to browse biz by sell, how to have these, browse biz by selling for sale by owner, Facebook marketplaces, stuff like that. Then hopefully you get an LOI accepted by September. This is the date that you're looking for right now. You need to have an LOI accepted by September to close in November, period. Because that diligence is going to be about 90 days, best case scenario. So you really want your LOI accepted in September. So if you want to close a business this year, it's like right now is when you got to do it. So I'm going to answer a bunch of yalls questions here. Let's see. But this is the. This is what we do. This is Action Academy. I'm going to keep this two minutes and then what I'm going to do is go back to you guys and then I'll bring the screen back up and you guys will receive an email with all of this stuff as well. So don't worry, you're going to have this in a second. So this is what we do full time. We have 436 active members. We have freaking 20 people on our payroll that coach and mentor on all of this stuff. We do small business. Let me see if this is pushing. One second. Yeah. So we help high performers build 10 to $20,000 in monthly cash flow and now it's going on its own. Cool. So essentially what we do. Oh my God, it's cool. So Action Academy, we do mobile home parks. I'm just getting off of this. We do mobile home parks, multifamily self storage, boutique hotels, land and small business. So we teach you how to do all of them. And we've got probably a dozen or two dozen Action Academy members on the call right now. We help you with every single step of this from finding capital partners, operating partners, learning how to do it, doing it, and then eventually, if you guys have a good enough business, I will freaking fund the thing. So what I'll do right now is I will. Let's see if I could just leave that up on the freaking screen. If you guys want to scan that QR code, you will go straight to talking with our current team. Oh my God, Stephanie, I just figure that out, please. We'll figure that out in a second. I'll just answer yalls questions and we'll send you everything. But this is what we do full time. So if you guys want to learn how to do all of this, you can go to actionacademy.com you guys see me talk about it all the time and it's on my Instagram. Book a call, we talk to you for 15 minutes to 30 minutes, see if it's a fit. So let's get to questions. Which one should I answer first? Let's go. Yeah. Javier, this webinar is going to be available later. Kenny, as a salesperson, any specific industries you recommend targeting? Targeting for buying a new business. Sales is every single company. And by the way, Guys, raise your hands if you want to ask any questions and I'll answer any questions that you guys have. So yeah, sales is going to be every single company, dude. But every single company needs sales, every single company needs marketing, every single company needs operations. So you really want to be the person that is guiding it. So again, we don't buy bad companies. We want to buy companies that are already good in spite of themselves and we help them get better. That's what we're aiming for. So you don't buy a bad company and make it good. You buy a good company and you make it great. So hopefully that answered. Okay. Somebody just. Okay, he just said needed to drop. Would you ever hear Mike? I can see you guys posted in the chat. All right, Mike. I don't know which Mike it is, but you want to ask that one about getting your own broker to help find deals. What do you mean? Yeah, if you're wanting to find like off market deals or something that they might be privy to because they operating the space of helping people buy businesses, would you ever buy a broker similar to I guess a real estate agent to buy a broker to help guide you through the process? So that's not how commercial and business brokers work. So they're going to work for the seller. So what you can do is get what's called pocket listings. So that's going to be through developing really strong relationships with your brokers. We have podcast episodes on all of this. But yeah, that's going to be establishing pocket listings. So that means that a broker knows, likes and trusts you and they respect you as a serious candidate to buy a company. And then whenever they have something every single week where you're following up with them, if they have something that fits your buy box, they're going to email it to you before they list it. So that's your best bet. You can also hire and pay for a search firm is what it's called. But you can't like have a real estate agent that you hire to go do this. That's not how the business buying world works necessarily. So you're going to have to like they work for the seller. So that's what you're going to want to have to do. Michael says best industry to buy in right now with economy how it is right now. Yeah, dude. Something that's boring, simple, not sexy and not replaceable by AI. That's what I'm looking for. So trees need to be cut down, chimneys need to be swept, concrete needs to be poured about a company that cleans kitchen hoods, like above a fry cook. Like, you have the vent and it sucks up all the grease in the air. And those are required by law to be cleaned. And I bought the company that cleans them, and then I bought another company that cleans them in the same market. So that was super fun. Keep going, Brandon. Brian, if you yourself joined Action Academy today, what would you do if you still knew everything you know now? All right, Brandon, do you want to phrase that? Can you just say that in your words? Hold on. I'm confused by the question. Brandon's a member too, by the way. Yeah, you're good. I got you. It's relevant for me as well, because I'm switching out of real estate into this again. So welcome to the dark side. Yeah, dude, I'm excited about it. So my question was, if you knew everything that you knew now, so you know, you're the owner, you operate it, but you joined Action Academy today as a new member, what would you do step by step to make the most out of Action Academy? Yeah, dude. How long you been in now? You've been in for about a year, haven't you? Yeah, about a year, but changing asset classes. I'm trying to re. Rewire a little bit and forget that I've been here almost. What were you doing before multi? No, I was doing wholesaling, but I was doing that to get a bunch of money. But I had a deal blow up on me. So I'm like, we're out. I'm done. Gotcha. Yeah. Good. Yeah. So if I were going in again, it completely depends on what you guys want. Like what your vision is, what you're optimizing for. If I was a single guy making a lot of money in my corporate job and I had a disdain for authority, and I'm just speaking from my perspective. I was like, dude, I could do something way better than my manager. I'd buy a business. So back in the day, I think that when I was in Yalls position, I was probably sitting smack where you guys are. I probably had 30 to 40 thousand dollars in cash. And then. So if I had joined Action Academy, I would be going and talking to all the business buyers. I would be negotiating and trying to find which ones are going to be complimentary to me that are more like backend systems and ops I'd be doing. I'd have a goal to hop on, like a certain amount of calls per week with members, and then I'd just be analyzing underwriting small businesses like crazy. So I Would go the small business route. And then once I had profit from that, then I would redistribute that back into real estate. Cool. And would you just learn it through like the portal that you have now? You feel like that's enough to get you going. It gives you enough to be dangerous to go ahead and get rocking. But for me it'd be all relationships. So I do everything. A good example of that right now is I'm doing this new development hotel in Miami or 45 minutes out of Miami. And it's, dude, I don't know anything about hotel construction. So I partnered with people that really know hotel construction. And so I'm learning every single day in that deal. And so that's the same thing I would do here. But for your first business, you guys are going to probably be partnering with somebody else that's new, but just somebody that's complimentary. And then I'd get a really strong operating agreement and get to the closing table. That's what I would do. Thank you. Thanks, buddy. Cool. Rj, what are your thoughts on buying a business without any real estate? What do you mean? Are you asking for with real estate or specifically without real estate? Yeah. So there's a potential opportunity I'm helping local friends out with. They own a mechanic shop, right. So they have a two year lease left on it and they're looking to sell, retire, move back to the island kind of situation. One thing that kind of scares me going into it is, hey, what if the landlord doesn't want to renew this lease? Then I got to up and move. A mechanically. Lease is the most important negotiation tool in a small business deal. Okay. If you have a bad lease, like the deal is dead. So a lot of the times what you'll do is you'll have a business that's trying to sell really fast. And that's why you have to get with that seller and you have to be like, hey, why are you selling? You have to really get into the weeds because especially like laundromats, like that's. Those are a. Yeah. To retool and to move for a laundromat especially, like the lease is the entire deal. Like you need a fresh lease on that thing or you can negotiate that thing all the way down. So it's not a make or break necessarily on a different deal perhaps, but anything that requires like specialty build outs for sure. So if you're doing like a H Vac company or plumbing company at least don't matter. What's the industry? Mechanic, automatic car Shop. Yeah. So it's in between. Like, you need a little bit specialty because you have, like, lifts and stuff. But I would for sure see how comfortable you guys feel with the lease. And then at worst case, if you guys are still moving forward with the deal, use it to negotiate the price, like, way down. That would knock off a multiple or two of profit for me. I'd be like, no. All right, cool. We'll take your problem. But it's now it's either your price, my terms, or my price, your terms. So at that point, you're like, all right, no, now we're doing my price at that point. Diligence. Yeah. Yeah. Christina, I'm just gonna let you guys, like, actually read so I can talk to you as humans. Christina, do you want to do yours? And then I'll go. Jeremy, after partnering with random people, 1. I can still read it, though. Hi.
- [69:40]
B
Yeah, that's me.
- [69:41]
A
Hey. All right. After you. So what's your question?
- [69:46]
B
So with that one, I hear you with partnering with people, because more people, more connection, more brains, more eyes. I get it. But at the same time, it's like, okay, everyone on this call, or maybe not everyone, are new to this. And so joining the Academy and then partnering with a seemingly random person. Yes, Vetted. I understand that part. Vetted. And joining the community, isn't that kind of like marrying somebody you don't know.
- [70:11]
A
You want to date before you marry? Let me actually ask. Hey, Bethany, do you mind answering this from your perspective? Because you're somebody that just went through this process, and you're a very calculated individual. I'm much more trusting than you.
- [70:24]
B
Yeah. I'm one of those. If something needs to be done, I can do it better than most. And so it's. It was hard for me to think about, like, how might I work with someone else. I definitely use the flirting, dating, engaged marriage paradigm. So spoke with a lot of people in action. Academy clicked with some. Like, others were just, like, cool to meet you. But I began just asking people when I would underwrite, hey, can you talk through this? Deal with me. What do you think? What are your thoughts? And a lot of times it was just getting good input. But then with some of them, like, we began to click, or they would say, oh, I'm also interested in this. And so another woman in the group, she was like, I found this digital marketing agency. I've got more operational experience, not as much marketing. And we were on a call again. I was like, I've got marketing. And so we decided to just talk about the deal together, no commitments. And then we were like, let's do the broker meeting together and prepared for that together. And the more that we worked together, the more we were like, oh, this is vibing. And we were also building trust and getting to know each other on a deeper level. So I think it's slow and steady. It's not like you just jump in and say, hi, I'm Bethany. Let's be partners. And then as you. And then partnering can look differently. It can just be you're a partner that I talk through things with, but we're not necessarily committed to doing deals with. And all the way through, we're doing a deal together and are going to run the company together.
- [71:45]
A
Did that help a little bit? Yeah.
- [71:48]
B
No, that definitely helps. I think the way I've understood it before is, like, you hop in, you meet somebody, and you're like, okay, everyone here is super trusted not to say they're not.
- [71:57]
A
No, no. But it is a barrier to entry, right? So that's why Action Academy is not, pay us 200 bucks and hop in. Like, people that are in Action Academy, like, we vet, like, hard. So when we do intro calls with y', all, it's not, hey, here's the reasons why you should do Action Academy. Most of the call is probably going to be us, like, coaching you and asking you a lot of questions to even see if it's a fit. Because sometimes it's just we'll just say no because somebody's like, a butthole, like, somebody's a jerk, or somebody's just, like, pretentious, we'll just say no. So our team has full authority to just say no to that. Also, we can sniff it out like an onboarding, because onboarding's super intense and we have a lot of people involved, so we can sniff out a lot. So that's, like, first level of diligence. If I was partnering with somebody here, I can answer this question specifically because I'm partnering with somebody on the $14 million deal, which is big, right? And I just met this guy. So let's talk about it. What did I just do with Ben Wolf? So Ben came on my podcast, and he was this guy that did experiential hospitality. So he does a lot of, like, really cool resorts in Texas that were, like, treehouse resorts and all this stuff. I was like, dude, this is the coolest flipping thing I've ever seen in my life. I was like, I would stay there. And then I had him on the podcast, and then we talked on the podcast. And I was like, wow, you are so interesting. And then we ended up going to dinner together randomly. We met at a group dinner for founders in here in Austin, and then we headed off there, and then we just talked for a few hours. I was like, dude, like, this guy really, like, meshes with me and, like, his vision for things. So the first thing that we do and first thing I do as someone that's a little bit more seasoned is I'm looking for your vision. I'm like, number one. I look for their family, I look at their relationship, and I look at their kids. First thing I look for. I am not going to partner with somebody that can't hold their liquor. So the three ways that kills it on three things that kills an entrepreneur. Ladies, liquor, and leverage. All right, so maybe not the same with Bethany, but ladies, liquor and leverage. So at first. First test that I'm doing is I'm like, all right, can this person hold their liquor? So when we're hanging out together, he's on a drink. Like, oh, really? He's. Yeah. I used to be working the bar industry, and that's not something. Like, I've been sober for five years. Not to say that you need to be sober, but I was like, that's cool. Family man. Cares about his wife, cares about his kids, talks about him all the time. Lock screen of his phone. Good values. He's religious. I like that. It. Maybe it wouldn't make or break a deal for me, but I think that for me, I'm like, same religious values. I was like, okay, cool. I like to have that as well. And then we golf together after that, went on golfed. And then I start looking for nuance. I'm like, okay, we have the same core values. So I'd say, vibe, check. Values, check. Stephania. This is good content, by the way. We should make a video on this. So vibe check. This is by the way. These are how videos are made. We just walk through this stuff until I find words that rhyme with each other. Vibe, check. Values, check. Vision check. Banger. That's a banger right there, baby. Y' all better share that video when I make it. Vibe, check. Values, check. Vibe, check. Values, check. Vision check. And then maybe vehicle check. Bam. There's four V's right there. So in the vehicle would be, do they have experience? And are they bringing something to the table for the vehicle that you guys are buying together? So when I went and I hung out with him and golfed with him, he was, like, obsessing over the Hospitality of the country club that we were at. And he was like, dude, this country club freaking rocks. Look at what they're doing. I want to do this at my properties. I was like, this guy really cares about the details and the small things. And then finally he was like, dude, I think that you and I have really complimentary skill sets, and I want to bring you in on this deal that we're doing. And so I flew down to Miami, met him and the entire team in person, and then that's what made me partner with him. So I'm bringing a million dollars to that deal. So that can answer your question right there? Probably. I think that's probably the best that question could be answered. It just takes time. But it's just being in rooms and communities just makes it faster. That's why I'm not here to pitch you guys as us being the only path, but I can pretty confidently pitch us as being a faster path and one that you can do with really cool, quality, vetted people. So that's what I would say to that. Anybody else have any questions? Because I could start calling on y' all too. Oh, never mind. I see a lot. Oops. Oh my God. All right, sorry, guys. All right, you guys want to just raise your hands. That may be easier. I see David Shianchi. Kianchi, you want to read yours and gang. Gang? Hell yeah, dude. All right, you're next. David, you want to read yours off? And then I say, Alex, my sec too. I think he has to hop off with a screaming baby, but let's do David first. Hey, Brian, how's it going? Like I just said in my message, we Instagram DM'd a couple days ago. I appreciate you getting back to me on that. Currently a full time high school teacher, recently graduated college, got some. I had an internship at a sales job for a while, worked at a restaurant, worked all over a hotel, and right now I operate a short term rental arbitrage business. And I'm looking to potentially pivot into buying businesses because I'd like to just fully replace my salary, really just have my own thing. And I think it's best for my long term goals. Like I said, I got some passion and knowledge, maybe considering side projects in relationships, dreams, food, health, travel, entrepreneurship. And I'm just a bit hesitant where I could come in and provide value for buying a business. Like, I'm young, minimal work experience, and I just don't even know my operational strengths. So I'm wondering, with that given information, what should I be doing? Some introspection on in regards to how can I provide value and how can I be confident in my abilities to just go buy a business and then be able to put in that value somewhere? Got it. You should just give up. No, no, that's a good question. Right? So it's just like, how do you add value in the very beginning? Which is like the big thing that people, when they join Action Academy is like, imposter syndrome. Everyone's, dude, what value do I have to offer? Because you guys join and then you see, like, week one, you got somebody buying a $3 million business and then a $20 million storage facility and then a freaking $20 million strip center. And you're like, what the hell's going on here with these people? Like, we have solely Jeb and Bethany on here that are all, like, members. Like, they've all gone through this process too. So it really is going back to an audit of who you are and, like, really taking the time to sit down and be like, who am I and what am I really passionate about and what are my natural skills skill sets? Because you're a recent college grad, so you haven't really, like, had time to, like, breathe here. So the way that you're going to add value is through grit and hustle and energy. So I have a lot of guys in Action Academy. Like, we had one named Mike that joined. He was like, 22. He's, like, from Yale. He was a Yale grad, and he joined and he went to now become the operations director for a hundred million dollar freaking portfolio company in Action Academy. Because he had really good hustle and he had really good energy. So if you don't know what you bring to the table yet, be the hardest worker in the room and just be a power plant for anybody that's like, talking to you. And then whenever they say something, be like, I'm gonna go do this, like, faster than you've ever seen before. I'm gonna go underwrite this deal for you. Let me know your buy box. I'm gonna go find this for you. And people will talk to you all the time. Problems. I appreciate it. Thank you. Hey, Tom, let's go. Wait, where's gang? Where's gang? Gang. I see. No, I'm here, I'm here. Yeah. Gang. Gang raises hand dude, what's up, dude?
- [79:52]
C
Let me say, man. Yeah, I'm just gonna quickly introduce myself. I'm actually based off in Windsor, Ontario, Canada. My question. Yeah, so my question earlier that I was asking was there probably is a There has to be like a conversion rate compared to let's say a million dollars in USD is quite different than Canadian obviously. And the only reason I say this is because it was actually, I think it maybe have been like an Instagram reel that you made two years ago about buying small businesses and you were talking about Cody Sanchez, which is actually I will say personally when I bought her book and I started like posting, I'm now a video creator on Instagram and then I became her friend afterwards because I had my sister buy this book for me, the mainstream millionaire one, which is really good in my opinion and stuff. But yeah, no, I, I don't even have passport to be honest with you. So I haven't stepped outside of Canada even though I am based off out here. I do have a lot of energy in terms of wanting to pursue into getting business buying and just understanding the education of it all. So then obviously I'm going to make mistakes, right? But throughout the advice and lessons that I've learned from you and people like Cody Sanchez and just knowing that doing a good deal with good people is my number one like mode of operation, basically just the difference between if you're authentic or inauthentic.
- [81:20]
A
Right.
- [81:21]
C
Like I, I've met a lot of inauthentic people in my life and I'm only 25 years old now and I think this is the life that I want to live and this is the people I want to be a part of if I want to get to where I want to be. So basically my only question to summarize is basically what have you learned based off of doing business deals outside of America? If you're doing it with Canada, it's not that much different. But do you think for me, being a person that's not based out of the US that I would have a little bit more difficult time having to deal with the different conversion rates and just overall knowing that I would prefer wanting to do business in the U.S. just because I know that the market there is exponent actually more like higher than a place like Canada, if that makes sense to us.
- [82:17]
A
The answer, yeah, the answer is yes, it's more difficult eat that conversion rate. And I've never bought a business outside of the United States. I only buy you like domestic. So I like.
- [82:29]
C
Okay, have you ever had anyone who was based not from the US like partner with you that's from Canada? Like basically the reverse. And instead of you being the one that's buying businesses outside of Canada, someone from Canada like me is buying from the U.S. have you ever had that kind of conversation or something like that in the past?
- [82:51]
A
Bethany just answered, yeah, her, the somebody in her pod from Canada and buying the business of Canada right now. So yes, you can partner from Canada, you can buy businesses in Canada, you can partner in the US So you're still good.
- [83:04]
C
So hopefully and, and yeah, thank you. And my last question would be if I do like, I do want to join Action Academy, can it be something to where I'd even want to just like meet up or just being able to know that I want to be coachable and just teachable and knowing how to do this for not just months on end, like just like for a career path if that's going to be my choice. Just because I know the excitement I get from just watching your content on Instagram is just, it makes and just people like you, like minded like you. It's just amazing, man. I just want to say thank you for the opportunity that you give for us because this is what the world needs, I believe. Because man, the world is as chaotic as it already is now. So I just want to say thank you for that. For real.
- [83:46]
A
Yeah.
- [83:47]
C
That's all I got to say.
- [83:48]
A
Got great energy, man. Your energy is contagious. That's freaking awesome, dude. I'm a massive fan of you, man. I'm rooting for you. You've got this. And yes, we got many. I think we got probably what, a dozen members in Canada. It's not a primary focus is Canada. It's mostly domestic, but it is possible. I think I saw Alec. I'm going to get to you really quickly. I think I saw Alex Smisek. You had your kid that you had to put down, right? Still here. She's happier with some strawberries right now. So we're still having it. Cool. So you want to ask my questions? Got two questions. So the first, I know you've talked a couple times, like even here today, but also on your podcast about being pre approved as a buyer through the sba. What does that process look like? Where are you going to get that done initially? Cool. So you can go to an SBA approved bank. So that we did a really boring episode on that. It just, it's a boring process. You go to a few different business buying banks. Like we can send you a few as like referrals and then you just. It's like the same process as getting pre approved for a real estate loan. Like they're gonna look at your income, they're gonna look at your stuff, they're Gonna hop on the phone with you, stuff like that, verify everything. Yeah. But an even more important one that you asked is what would your pitch or talk track be to a broker when you're gonna use SBA 7A. So this is a huge one and where a lot of people mess up. So I can't give you. We have like templates and stuff for this that we can send. But for the most part, what you wanna do is like short, sweet, to the point. Hey, Alex, my name's Brian. Me say me and my partners. Always say me and my partners, even before you have partners. This is, let's see, an example. And we do have two episodes with business brokers that literally walk through, say this, don't say this, don't say this. So we'll send them to you. Okay. But it's literally like, hey, Alex, me and my business partners are really interested in this business. This is why we like it. And you can put three bullets. We like the industry. We like this. Would absolutely love to look at more details. And then you can say either we're pre approved through SBA or you're like, we have soft commits of capital all the way up to $2 million or something like that. So there's. You basically have to fake it before you make it a little bit. It's the nature of the beast. And so no one's angry. Unless you're getting an LOI accepted and you're still full of it, then you're going to get burned. But that's why I like in Action Academy. And by the way, like, when I say act, when I tell you guys, Action Academy is coming from somebody that I spend like $200,000 a year on masterminds myself. So I'm a member of GoBundance EO. I'm a member of Tony Robbins Platinum Partners. So I spend like $200,000 a year on masterminds for this sole reason of if I get a deal, I want to make sure that I have communities that know and trust me that I can raise capital from. And so that's how you're doing it. So you're specific. You're saying, hey, like, this is me and my business partner. Here's why we matter, here's why we're specific about this deal. And it's just short, sweet, maybe a paragraph or two and then you're rocking and rolling. So what the broker cares about is they care about. Are you somebody that actually knows what you're talking about? They use words like sde, this is my buy Box. This is what I'm looking for. This business fits my buy box for this reason and this reason. And they care that you capitalize. That's what they care about. So they care that you're specific and that you're capitalized. So if you can prove that out like you're fine. And again this is something that you can practice in chat GPT also. I do. Yeah, I started doing that for sure because I know you've seen on Facebook post that I put up in the group about the daycare business that I've seen and stuff and yeah. Just trying to get there as fast as possible and do it the right way. I appreciate it. Yeah. For the film. All right, let's go. Alec Minkoff, a hell of a name, dude, love your name. Hey, what's up man? I appreciate that. Best compliment today. This was great. So I'd quick the two quick questions. One, so when you're looking at businesses and you don't have any background in them, let's say a tree cutting business for example, I know you use that one. What kind of research do you do into kind of like the skeletons in the closet of that industry to know whether that's the one like the industry you should go after or how much research do you do before analyzing businesses? Yeah. So you want to buy an industry that's idiot proof best you can. So you really want to. So when it comes to this I try to stay away from specialty licenses. So there's a lot of stuff that's figureoutable but like anything like plumbing and H vac or electrical like that made me need some specialty degrees in licensing. So that one I'm going to clear up. Unless I have a partner that I'm bringing in that has experience in that and has the license and then I'm going to have them 5% equity partner on the deal as a board advisor. But for the tree trimming company or something that you said like that you can business is business and they it's bonus points if you have experience in that. But at the worst case scenario you can just go to the broker and be like hey look, I don't have experience per se in tree trimming but I I've taken a company from this to this and your W2 job you can say stuff like we've literally had members say hey I was like the top sales rep at my or I'm a manager of 12 people on my team and stuff like that. So you can use just it's all about packaging. Like you just Want to package it the best way. I would at least get on the phone with the seller. Most of these companies that you guys see are not like, too complex. It's like pretty simple moving parts. That's what I like to see from a service company. Like, I would get something that I couldn't explain to my mom or right on the back of a napkin. Okay. That's kind of what it is. Hey, like, we trim trees, brother. Yeah. Their big thing is going to be labor. Their big things, insurance. So tree trimming companies are gangster. Like, those things are killer. You're just going to pay insurance out the tail and you're going to have like, employment issues. That's it. But for the most part, their. Their employees are highly paid. Okay. Yeah. So I would do some research. But to your point, don't be like, too locked in on your industry when you're getting started. Because like, the guys today, like, they bought a debt collection agency. They didn't wake up in the morning and be like, oh, I'm gonna go buy a. I want to go find a debt collection agency. I didn't. There's not a day of my life that I was looking for a kitchen hood cleaning company. I was just like, you're telling me that I can make $4,000 a month passive from investing $85,000 as a capital partner into a kitchen hood cleaning company? That's required by law. Dude, give me that all day. I take that all day. Got it. So the deal directed your agency. Deal by deal, baby. Deal by deal. Yeah, that makes sense. Okay, awesome. A second question. So tend to be more on like, the operator side. Like, I have experience. Like, I've grown businesses from scratch and ran businesses. So I don't know if what the deal would look like, but let's say I'm more on the operator skill side. What would you put in the operating agreement to not get taken advantage of? I don't know if that happens. In my experience, I've had operating agreements that weren't great. But what advice would you give around that to protect maybe not getting taken advantage of and stuck with pretty much everything on your shoulders kind of situation. Yeah. So you're going to put buyout clauses. So if somebody does this, like, this is how you're going to buy them out, or here's how they're going to get removed from the company and then their equity. You can also do equity clawbacks or earn outs. I don't. You don't necessarily see those as much with, like, business partners, but more so like with a seller, you can do like earn outs where you're like, hey, after you leave, I want to make sure that this percentage of revenue is withheld for 12 months until we pay you back over time. So that's something that you can do. But just really just the oa, you're just going on with the lawyer dude and you're going through piece by piece. You're like, okay, if Alec pisses off and doesn't do anything, here's how he's removed from the company and then here's what his. Here's how his equity is bought out. Got it? That makes sense. That's all from a lawyer man. The OA conversation is not like a fun one. So again, date before you marry, go talk to somebody pretty intimately for a while, go to some dinners, underwrite some deals with them, and then you guys can get a really understand. OA is exactly like a prenup. That's so funny. Yeah. So operating agreements are really should be disagreements because the only time that you can read them is when you're fighting. So it's an operating disagreement. Yeah, that's funny. Cool. Awesome. I appreciate it. Thanks, man. That one's from Gary Keller. I can't take credit for that one. Taylor, what up, dog? Question for you. You have a unique lens of scale throughout the country. Obviously members are everywhere. Are there any markets that you find come up frequently as do not invest in like this, I don't like the market. Or the academy does not like the market. Or for real estate, if you guys are real estate guys, like business buyers, maybe 40% Action Academy, like another half of it to 60%. All real estate are real estate guys and girls, like super anal about markets. Like our land flippers. They're like, I'm going to stay away from this market. Real estate, much more so business, not so much. I would just when I. There's some parameters that you could do. Like market underwriting is a big thing. Like you don't want to buy, oh, I'm going to go buy an H vac company in a town of 27 people. You want to get a one. I call it tertiary market. So maybe not a major metro, but a tertiary market. It's like in Atlanta, you have Woodstock, Marietta, you have Canton, Peachtree City, Snellville, stuff like that. Go find you a tertiary market around like an hour or less out of a major metro. You're pretty good all seconds. Yeah. Cause it gives you access, right? It gives you access and growth opportunity in the primary market or Opportunities to go buy other businesses and create leverage there. But the last thing depends on your lifestyle goals too. Really. It's like where you live. Yeah. Okay, cool. Where do I live or where does a partner live? Because, like, my companies are in Kansas City, and I'm not gonna move to Kansas City. So one of our members lives in Kansas City and he runs the companies. Yeah. Yeah. So 90 minutes. 90 minutes outside of where you're at, pretty good. Rule of thumb, three hours will make you hate your life and your wife will yell at you. Yeah, I hear you. Yeah. Thanks, man. Cool. Sweet. Anybody else got anything? We're hour 40, three minutes deep. Connor, choose you. You're brand new to the game. I am to the game. And I've really just been trying to absorb as much info as possible, which there's a lot of good stuff already. One thing that kind of came to my mind and I've been pondering about how to ask this the whole time is say that you're not looking at or you're looking in your market, but you're not really finding any good deals. And say you don't really have any partners yet. You don't know anybody. What are the best ways to go about finding something that may be out of your market? Or is that even a good idea for someone who's just starting out? So I can give you an answer. I gave you my answer. For me personally, I would go find somebody and look in their market to partner with, especially for your first deal. So you're literally, like, about to join Action Academy. So, like, you just don't have access yet. But you're about to see you get connected with five people a week. Like, we concierge connect you with people, so it's not a problem after a while. But if you have nobody, yeah, I would expand out. Some people find a deal that's so good that they're willing to move for it. So it's completely up to you and your vision of what you want your life to be and stuff like that. We've had people literally up and move. Like, we just had a guy move to Colorado because they bought three companies in one deal. They bought a distillery, they bought a distributor, and they bought a liquor company. And Bethany, are y' all going to that? Are y' all going to Jordan's theme Colorado?
- [95:35]
B
I'm gonna try. The Minnesota one was so good that I'm like, I'm gonna hit all of these.
- [95:39]
A
We just left Minnesota. We just did three days in Minnesota where me, Bethany, and we had 50 people like they were just underwriting deals and we went toward multi family properties and stuff. But yeah, so he moved to Colorado to run the deal. So they, they went out off market and out of state for that one. Again, it just, it depends. With the right deal, 500k in profit, a lot of people are willing to up and leave. So it is what it is. I see Kaylee down there. Kaylee is freaking showtime for Kaylee too. What's up Kaylee? You have any questions from tonight?
- [96:11]
B
Hello, Brian. It's a weird, it's a weird spelling but I am doing really well. Thank you for inviting me to listen in. I just been catching the back end of it so a lot of this is really exciting. I don't have too much context to grasp the depth of the details though I'm aware of a good amount of from the surface level gleaning what you're talking about. But it's very inspiring and very cool.
- [96:40]
A
Cool. I would take that and ride with that high. Thank you so much. Thank you. Let's go. Let's go. Logan. And then Diagnostics. Who's, what's your name? Diagnostics.
- [96:53]
B
I'm Christina. I jumped on late in the game. Struggling to fix the name.
- [96:59]
A
Yeah, we were DMing today, right?
- [97:01]
B
Yes, we were.
- [97:02]
A
Perfect. I'll come to you next. Logan, what's up? I kind of lost my voice. I'm getting cold. Yeah, you've been talking too much on this call, man. Way too much, brother. I just got done with the conference speaking. I'm just taking it all in to be honest. I've been watching you from afar for maybe last six months. Yeah, this is something. My sister on Action Academy at the hell. To be honest, connecting my sister was the one that told me about biz by itself and so I looked into it and then you started talking about it and then it all started to like line up. Yeah, I'm all over the place. My background's in physical therapy. I do business development for a startup currently and then I still do cash based PT and personal training as like my own side business. So. Looking to pivot somewhat in the near future. Yeah. And do one thing that pays you three times all. Yeah, yeah, exactly. Because right now I got three things going on. I have a very flexible schedule though, so that's hard to replace. But this is the collection of the direction I want to go when I get a voice back. Yeah. All good advice for you obviously. Besides like for the millionth time. Oh. Join Action Academy. Freaking duh, dude. Yeah, you should sit down and write out what you want your life to look like over three years. If you could wave a magic wand, like, what's your perfect life? What's your perfect business? What's everything? And then use that as the lens through which you view investing. That's what I always recommend. Because for me, it's like every company that I build, like, I'm in less than a month. I'm going to Europe for the summer. Like, dude, I don't. I'm not buying a company that I have to be in person. Like, I want to be. I want to be. I run Action Academy all summer from Europe, and because I want to. And I get really dark and tan, and I feel like negative 5 version of Brian when I'm pale like this. This is just. So if you guys like me here, you're gonna like me more when I'm darkened, Mediterranean. So much better. Because it's all about the. That's what I'm talking about. Yeah. Oh, man. Welcome, man. I'll let you. I'll let you rest your voice. Let's go. Christina.
- [99:13]
B
Hi. Yeah, I'm in New York. I'm an attorney, and I came across your page recently and saw a lot of the stuff you say about businesses. And to be honest, the real estate in New York is a nightma own and do. So I'm veering. Yeah. Veering away from that. So I really just wanted to gain some more information. And you come across a lot of these pages on Instagram, and yours appealed to me the most. So I had to hop off in the middle for a while for a work call, of course. But it was just very informative, very helpful, and something I'm super interested in.
- [99:48]
A
Cool. All right, I'll see you guys at Action Academy. All right. Do y' all want me to keep yapping, or do y' all want to go to bed? What do we want to do? Do we have any other questions, or do we want to close this thing out? What is this man talking about? Okay. Take a long walk off a short period, Stephanie. All right, so I'll take that as the sun. At almost two hours of talking about business, you guys are officially businessed out. Check out Action Academy. You guys like this? I actually am one of the dumb ones in Action Academy. Seriously, our group is amazing. Bethany and everyone can literally attest for the fact that I serve as the lighthouse that calls the ships to harbor. My job in Action Academy is to make Action Academy known. The real people, and the real value is the people. Like, it's Just really getting in there in the weeds. Like, we laugh together, we cry together, we buy businesses together. If you haven't cried at some point in Action Academy, like, you haven't really done Action Academy yet. So we get really deep with it. All the spouses are involved. So if you have a wife or a husband, they're included for free. We like to see the spouses at the events and in the Dominican and in Costa Rica and in Puerto Rico whenever we go do our international trips. So spouses are all included. And it's just a really freaking fun time. At the end of the day. If I could just go back, give something to anyone. It's just, even ROI aside, it's just so much more freaking fun, dude. It's just more fun. If you guys don't do Action Academy, do something. Go find you a group, find you, find your people. Because at the end of the day, it's like you really just want to find people that are fun to win alongside together. Like this summer, I'm going on Europe trips with a lot of like, people from Action Academy, but also, like, people that are going to help you when you're down. That's where it really matters when you're going through it. You have people that are support systems. Like, we have people that go through crazy life events in Action Academy and they post and they've. It's the one place that you can get support. So I love our people. It's super fun. So I'm gonna go. What kind of questions should one have if they want to prepare for the call? Dude, we ask you all the questions, man. We're gonna ask you about your life, where you are today, where you're trying to get to what your capital position is, what your cash flow is, and then help you create a plan. And sometimes we just tell you that it's not a fit and sometimes it isn't. So cool. All right, Jeffrey, it's 9,500. We're upping it to 12 in June. So we're a little under 10 right now. Upping it to 12 in June. And then going into December, like November, December, Black Friday, we're going to up it to 15 a year, but right now it's 9,500. So you pay 9,500. I would get you a million dollar business. That's our value exchange. We do it over and over again. Okay, thanks, Brian. What's the renewal fee? Yeah, 9,500. It's just per year. So if you go a year and you're like you're good then cool. It's our job to earn the renewal, so we normally have people stay two, three years. Now we have people in their third year of renewal. So it's been super fun and cool going on. We saw 52 people. Thanks, guys. Have a good night. Go hug your family. Bye.