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- [00:01]
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Welcome back to the Business of Beers podcast. Your daily dose of strategies, tools and tips to help you build an eight figure business. Today's episode is a clip from one of my YouTube lives. If you'd like to hear the whole thing, there's a link below in the description. Cheers.
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You know, so to find owners that want seller financing, there are a couple different ways. Number one is you just start going through biz by sell. Like there's this slogan. I don't know if it's true or not, but that biz by sell is where businesses go to die. I think it's kind of funny. So on that side of it, knowing that that means you could probably get some deals, right? That if someone has listed their business here that often they've already tried to sell it other ways and that just means there's flexibility on it. And so it just takes going out there and starting these conversations and going through the numbers and, and honestly, like trying to build the relationship with the sellers. Because the only way that seller financing works, at least like at scale and at volume that you probably want to do is when there's trust, right? That the seller is going to trust you because you can sign a little legal docs and they're going to get protected and all that stuff, but the seller doesn't want to have to execute on any of it, right? They don't want to have to chase you for payments, they don't want to have to having legal fees and have the stress of it all. And he said, she said and questioning things and gotchas. And so at the end of the day, if they don't trust you that you are going to make good on your payments without any hassle, without any delays, without any defaults, then you have a much, much higher chance of getting it. And so it works very well in franchising because franchising is a private network in that like, you know, there's no outsiders, right? We all got to like sign our names in blood to be part of a franchise, whether that's automotive, whether that's home services or salons or anything, it doesn't matter what the brand is, it doesn't matter. We're all in the same boat. And so there's inherent trust because we're both fighting the same battle every single day. And thus when people are ready to sell and they're ready to get out, the easiest person to sell to is another franchisee. They're already approved all that stuff. We talked about that a little bit earlier. And so if you Said, hey, I want to execute my strategy. I want to get in here, and I want to start small, one or two locations. I want to take all my money, and I'm going to reinvest and grow it and roll it up, whatever it is. Then a franchise network could be a good option for that, because once you get your foot in the door, you build relationships with the people. You let them know when you want to sell. Hey, I'm going to be your guy. And then, man, the deals happen. I'm telling you. So that would be number one, my first recommendation. If it's an independent business that you're looking to do, then I would be looking to work these angles. If they're generally ones that have been listed longer, lower prices, not much margin, those are gonna be your better options. It's the people who are highly motivated to sell and. And want to get out often, too. I have people all the time that message me. Rich dudes who don't want to get. Don't want to operate the business, but have the money. They want to invest with an operating partner, and they just got to find them. So I'm telling you, the guys are out there. You just got to be able to find those people. And so if you're serious about, hey, I want to grow, start building your own network. Start finding people who are successful entrepreneurs in the places that you live and belong to, the local country clubs and, like, you know, own the local businesses. And a lot of them, like, you know, they want to diversify into other things, but they don't have the time. And so to be partners with some young, hungry, driven person who's, like, going to be all in on making this thing work again. Trust. It all comes down to trust. If they trust that you are going to deliver, then, yeah, like, you have not. No problem, but you will get the deals. So that's what I would do. I think there's a way, too up here. Let me just, like, let me just see if I can get this thing. I think there's a way you can filter it as well that you can go when you're looking for things. If you go biz by sale. All right, Find the best way to owners. I mean, same concept, which is like, a couple ways. I mean, we talked about biz by sell already. I think you can. There's a lot to work there. Some of these deals move really slow, too. I mean, a friend of mine was telling me he'd been contacting an owner for two years, three years. It's taken me Multiple years to land some jobs. So some of these like you'll have these conversations and they just take forever. And so you just gotta like stay on them and stay on them and build a little pipeline. Of all the people you're talking to, like brokers, I mean we have, so we primarily work with real estate brokers and we have one business guy. But the real estate brokers are the ones by side agents, commercial, who are calling, cold calling landlords of target properties for us. So that could be existing, you know, that could be independents, right? That could be corporate locations so like national brands that we would then become their landlord. And depending on when the leases are up, we could possibly like if a lease was up in three years on a, on a building that we would want to occupy, we could buy the building with the lease in place and then not renew the lease and then just take it over, right? Totally, totally valid strategy that we could do. So we're looking for those opportunities. We're also having them call like just, you know, whatever, what I'm going to call conversion retail, which is those. So we're constantly trying to create these conversations every single week we're having them. I mean I have the, you know, one of the reasons I create content is like, you know, I have shop owners that message me all the time, every week almost. Now some of them are in locations that you know, are just too far from me because right now we're just in Pennsylvania, New Jersey. But you know, I got a couple right now that are really good opportunities that we're gonna pursue that are in our market. So that is the best way to find it is you gotta do the work. You can't just sit behind your computer all day. You can't just like, you can't just be biz by sell. Like you gotta get out there, you gotta shake hands. Like we send letters to people. I wanted to buy. I see this next, this next question I'm gonna take is about a car wash. But there was a car wash next to one of my buildings and I had the idea of like buying it was a self service car wash and, and so I found out who owned it and I just like I took a yellow piece of paper, right? Legal pad, yellow paper, and I, you know, I wrote the thing, I wrote the note saying hey, you know, I'm the owner of such and such. You know, I did some research about him, I figured out, you know, some things and whatever. I wrote a personalized note and I mailed it to him. I hand addressed the envelope I put a stamp on manually. And I did get a call. I get a call a couple weeks later from the guy saying, hey, I got your letter. You know, we're not ready to sell yet, but I'll keep you in mind. And then, I don't know, a year later, he messaged me and said, hey, we're listing the business, we're listing the building and the real estate for sale. This is what we're asking. If you want it, this is it. And I didn't pursue. I decided I didn't want it at that point, but it worked. Same thing I bought years ago. I was into real estate. I wanted to buy a rental property that was one of my old neighbors. So, same thing, I wrote a handwritten letter to the executor of her estate, and I own that property now. And so you want to do what other people aren't doing, right? So not many people are out there legit sending handwritten, hand addressed envelopes. They could fake it, but, you know, like, it's pretty obvious when it is. And so that's what I'm trying to do. I'm just trying to do things that people aren't doing. And it's working for me.