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Speaker 1: Welcome to How the Money. I'm Joel and I am Matt,

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Speaker 1: and today we're talking buying existing businesses to make millions

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Speaker 1: with Cody Sanchez. That's right. We are pumped to be

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Speaker 1: talking with baller entrepreneur Cody Sanchez today. But the truth

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Speaker 1: is that it took a while for Cody to get

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Speaker 1: here because years ago, right out of right out of college,

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Speaker 1: Cody was working like seventy hour work weeks for a paycheck,

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Speaker 1: and even though she had a she had a graded education,

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Speaker 1: she had an elite job, she felt like her life

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Speaker 1: was out of control. But now things are different. Cody

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Speaker 1: is financially independent. She owns something like twenty six small businesses,

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Speaker 1: and she's the founder and CEO of Contrarian Thinking, where

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Speaker 1: she basically she's on a mission to free the minds

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Speaker 1: of individuals who are hanging on to traditional careers and

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Speaker 1: they're also hanging onto the common narrative of what it

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Speaker 1: means to be successful, and oftentimes that can be via

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Speaker 1: buying existing businesses. This is more feasible than you might

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Speaker 1: think to achieve. So Cody, we are excited to talk

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Speaker 1: with you today. Thank you so much for joining us.

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Speaker 1: We're excited to talk about all of the things that

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Speaker 1: we just mentioned, plus a whole lot more. I'm thrilled

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Speaker 1: to be here. Thanks for having me, guys. Yeah, we're

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Speaker 1: glad to have you. And I think Matt was actually wrong.

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Speaker 1: I think Cody bought two businesses while you're doing the introduction, Matt,

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Speaker 1: So maybe she's at twenty right now. I don't know

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Speaker 1: who can con who can count anymore? Well, uh, Cody.

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Speaker 1: The first question we ask anybody who comes on the

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Speaker 1: show is what they like to splore John. It helps

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Speaker 1: us learn a little more about them. But Matt and

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Speaker 1: I were being smart with our money, saving and investing

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Speaker 1: for our futures, but we still like to spend a

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Speaker 1: lot of money on a good craft beer. What's your

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Speaker 1: what's something you spoor? John, what's your craft beer equivalent?

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Speaker 1: I got a weird thing, maybe not so weird these

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Speaker 1: days for crystals Texas? Okay, Yeah, very hippy letting that

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Speaker 1: very hippie. You know, if there's like some overpriced gift

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Speaker 1: shops somewhere with some shiny amethysts something or other, I'm

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Speaker 1: gonna probably buy it for two bucks, and my husband's

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Speaker 1: gonna ridicule me mercilessly. So you know, a little bit finance,

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Speaker 1: a little bit uh hippie. Okay. So it makes me

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Speaker 1: think of Hank from Breaking Bad when he was at

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Speaker 1: one point like laid up in bed. He was like,

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Speaker 1: buying all those crystals and stones off the internet. Is

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Speaker 1: that is that you? Yeah, it's basically me. It's like,

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Speaker 1: you know that saw a great me and it was like, God,

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Speaker 1: look at those idiot kids with their light up shoes

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Speaker 1: thinking that they're running faster with them on. And then

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Speaker 1: it's like me buying a crystal and putting it outside

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Speaker 1: so that I, you know, have a healthier week this week.

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Speaker 1: It's that's where we're basically in life. So I did

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Speaker 1: not even know this entirely like this, it's an entire subculture.

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Speaker 1: And recently our family we we hiked up a local

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Speaker 1: mountain and up on top of the mountains were on

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Speaker 1: some of these rocks. There were some crystals set out

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Speaker 1: and I was like, what in the world are these are?

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Speaker 1: Our kids are wanting to play with them. They're like,

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Speaker 1: can we have these? I was like I don't, no,

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Speaker 1: no, no no, no, I think you should leave those alone.

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Speaker 1: I think those are somebody else's. And my wife she

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Speaker 1: filled me in and she's like, actually, we had there

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Speaker 1: was like a special moon recently, and she's like, I

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Speaker 1: think somebody left him out to essentially like recharge overnight.

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Speaker 1: Like wow, that sounds familiar. I don't know, you know,

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Speaker 1: I believe it. I don't know anything about horoscopes or

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Speaker 1: like what crystals actually do. It's just a weird quirk

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Speaker 1: of mine. Um so yes, but I think you know,

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Speaker 1: I was actually reading that the crystal business because that's

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Speaker 1: where I always go to. But basically, crystals, tarot cards,

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Speaker 1: all that nonsense. I had one of the fastest growth

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Speaker 1: rates ever in And in fact, there was in l

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Speaker 1: A this weekend is perfect l A story. And I

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Speaker 1: was walking down um like Venice, the main street whatever

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Speaker 1: that's called Abbot Kenny and there was this crystal store

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Speaker 1: and the crystals were crazily pry all over the place,

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Speaker 1: and there was a sign that said closing sale or whatever,

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Speaker 1: and I'm like, crystal business tough, like, oh no, actually

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Speaker 1: we're opening up three new larger stores street. Yeah, you

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Speaker 1: can imagine. Abbot Kenney is the most expensive, I believe

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Speaker 1: rent per square foot street in the country besides now

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Speaker 1: South Congress in Austin. Holy yeah, I was gonna say

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Speaker 1: other than like Fifth Avenue up in New York or

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Speaker 1: something like that, but I think it's higher. I thought

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Speaker 1: you're gonna make a inflation crystals joke with the business,

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Speaker 1: but no, it seems like they're doing just fine. At

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Speaker 1: the very least, they are pretty uh, And I'm glad

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Speaker 1: that that's something that you that you like to splore. John.

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Speaker 1: We are not going to hate on that at all. Cody,

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Speaker 1: let's talk, okay, because before you were a serial business owner,

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Speaker 1: you were a journalist. You reported from the US Mexico border,

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Speaker 1: and it seemed like that that actually motivated you to

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Speaker 1: pursue a career in finances. Is that right? Um? I

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Speaker 1: would love for you to connect the dots for us

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Speaker 1: for our listeners. Yeah, so, Um. Like lots of young

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Speaker 1: college students, I think I had grandiose plans about changing

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Speaker 1: the world, and I thought that one of the best

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Speaker 1: ways to do that might be to be a journalist,

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Speaker 1: and specifically I wanted to be a conflict journalist along

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Speaker 1: the US Mexico border, dealing with things like human trafficking

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Speaker 1: and drugs smuggling. This was like two thousand voters in

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Speaker 1: six seven eight something like that, and I was writing

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Speaker 1: stories about some some of the horrible things that were

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Speaker 1: happening along the US Mexico border. And I had a

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Speaker 1: grant from the Howard Buffett Foundation, which is Warren Buffett's

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Speaker 1: a kid, actually, and I wrote a couple of stories

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Speaker 1: that were I thought were pretty decent. They got picked up,

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Speaker 1: we want a couple awards me and some of the

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Speaker 1: other journalists that worked on them. And oddly enough, what

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Speaker 1: I realized is that, you know, I had this opportunity

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Speaker 1: to drum up a bunch of awareness about an issue,

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Speaker 1: but nothing actually changed. So all the awareness in the

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Speaker 1: world couldn't change the fact that these terrible things were

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Speaker 1: happening on self. And so I had my little like

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Speaker 1: quarter life crisis at twenty one years old or whatever,

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Speaker 1: and realized, you know, my last name is Sanche's. These

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Speaker 1: people's last name is Sanche's. What's the difference. It's this

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Speaker 1: one thing green and uh. And I wanted to understand

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Speaker 1: the language of money. And that's why I end up

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Speaker 1: going into finance, because I think money is the thing

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Speaker 1: that changes lives. It's not just where you're born, it's

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Speaker 1: not the country that you're in, you know, it's can

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Speaker 1: you understand this language of money. Well, and you're a

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Speaker 1: you're a second generation immigrant, is that correct? That's right?

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Speaker 1: I am. Uh. So, you know, my family is from Spain,

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Speaker 1: and then I have family that's that's from Latin America

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Speaker 1: as well, and so I suppose that seeing my family

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Speaker 1: sort of come over and struggle and strive and grow

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Speaker 1: was a big influence on me getting into where I

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Speaker 1: am today. Also, there's really cool stats for Hispanic heritage. Months.

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Speaker 1: I'm just like how Latino's work in the US and

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Speaker 1: the percentage of workforce that they are. I'm not into um,

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Speaker 1: you know, I think all means are more like than not,

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Speaker 1: but uh, it is cool to look at you know

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Speaker 1: where your heritage is, and I love anybody who loves

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Speaker 1: to labor. Yeah, there's I mean, there's something to the

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Speaker 1: reality that the numbers bear out that second generation immigrants

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Speaker 1: are more successful than the rest of the American population. Right,

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Speaker 1: even if your third, fourth, fifth generation, you've been here

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Speaker 1: a long time, it seems like maybe you have all

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Speaker 1: of the inherent privilege of someone maybe who has you know,

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Speaker 1: deep family connections to this country. But second generation immigrants

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Speaker 1: end up being they make up end up being most

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Speaker 1: successful in business and making more money. Like, why do

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Speaker 1: you think that is? I think you can't teach desire.

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Speaker 1: That's something that my father always said to me. And

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Speaker 1: so a lot of times, what I've found in hiring gosh, now,

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Speaker 1: hundreds of SMO I don't know, maybe thousands, tan gently

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Speaker 1: of people across my career is that there's nothing that

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Speaker 1: you can substitute for desire and curiosity. I will take

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Speaker 1: somebody who wants it and somebody who is curious to

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Speaker 1: learn and iterate and change over somebody who has innate

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Speaker 1: ability or intellect nine times out of ten for the

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Speaker 1: type of businesses that I do. And I found that

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Speaker 1: they say that what makes most people succeed. I think

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Speaker 1: it was Angela Duckworth study from the University of Pennsylvania

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Speaker 1: about grit being the number one, number one indicator for

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Speaker 1: whether somebody would succeed long term and whether it was

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Speaker 1: startups or business in general, I'm not sure, but that

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Speaker 1: I think is the difference is, you know, the desire

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Speaker 1: is really innate in immigrants, because if lack is that

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Speaker 1: close to you, you know, if if you've ever spent time,

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Speaker 1: like really spent time. I'm not talking about going to Cancun,

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Speaker 1: and Alcapulco and going to you know, Meta Gene and Bogata.

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Speaker 1: But if you've spent time in Latin American second and

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Speaker 1: third and fourth tier cities and seeing the just difficulty

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Speaker 1: that is living, then when you're presented with an opportunity

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Speaker 1: to actually really grow something here in the US, you

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Speaker 1: want it badly because you know what the alternative is

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Speaker 1: and you're willing to do a lot to get to it.

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Speaker 1: So I wish I could give everybody a second gen

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Speaker 1: immigrant mentality. Yeah, I mean, and it's true, it's there

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Speaker 1: is something weird too about second gend, because it's not

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Speaker 1: only the fact that second gender are more successful than

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Speaker 1: like maybe say first gend, but even third generation. Right, Like,

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Speaker 1: there's something about It's like there's a scene in Your

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Speaker 1: Parents of seeing your parents sacrifice and the steps that

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Speaker 1: they had to take and probably work two or three

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Speaker 1: jobs in many cases. I think there's, Yeah, there's something

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Speaker 1: really cool, There's something really powerful. Can I harass you

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Speaker 1: on one other point there? Think about they talk about

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Speaker 1: wealth transference with the really really wealthy, So they say,

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Speaker 1: you know, the first generation makes the money, the second

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Speaker 1: generation retains and grows the money, and the third generation

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Speaker 1: loses it, and so I think it's similar with an

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Speaker 1: immigrant mentality. If you're talking about generational wealth, there's a

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Speaker 1: reason why I don't anticipate leaving a ton of our

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Speaker 1: cash to our kids, because I think that's a huge disservice.

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Speaker 1: Typically they need to imagine this, like you graduate from

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Speaker 1: high school and you're given BMW or Mercedes spends, and

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Speaker 1: then you go get a job that is the annual

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Speaker 1: equivalent salary to that car that you were given when

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Speaker 1: you were sixteen years old. Now that car breaks down

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Speaker 1: in the first car that you can buy as a

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Speaker 1: Miata for five thousand dollars like it, just it doesn't

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Speaker 1: make you want to work more when you've started so high,

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Speaker 1: you've got a reverse and then grow again. So I

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Speaker 1: think you're exactly right second gen immigrants, and then you

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Speaker 1: know wealth transferred its being with the first or second generation.

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Speaker 1: It definitely makes you think twice about passing on wealth

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Speaker 1: to future generations, makes you want to think long and

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Speaker 1: hard before you even start hinting at what you might

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Speaker 1: leave to your kids. Purposefully imposing hardships on your kids,

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Speaker 1: not you know, not making them necessarily like army crawl

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Speaker 1: through the mud, but not giving them everything that you know,

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Speaker 1: you wish maybe you would have had, even like I

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Speaker 1: don't know, I see I see it as building up

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Speaker 1: an ethic in my kids by not giving them the

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Speaker 1: things maybe that we could give them totally. So do

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Speaker 1: you You ended up working on Wall Street. While you

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Speaker 1: were there, you had a couple of you know, like

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Speaker 1: fancy shmancy jobs. You even worked for one of our

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Speaker 1: favorite companies, Vanguard actually um and you know, we're kind

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Speaker 1: of talking smack about some of these big banks, some

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Speaker 1: of these big companies, but like, it wasn't all that bad,

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Speaker 1: wasn't where there's some some pros to being there on

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Speaker 1: Wall Street and learning and working. Of course, if you

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Speaker 1: want to start out and get a free almost free

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Speaker 1: sort of MBA training without having to go get an

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Speaker 1: m b A, I think getting into a training program

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Speaker 1: at a company like Van Vanguard, Deloitte, you know, Goldman,

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Speaker 1: any of the consulting companies like BCG is probably one

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Speaker 1: of the fastest accelerants to your career. Out there, you're

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Speaker 1: learning on somebody else's dime. The interesting part for these

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Speaker 1: big companies is they spend a ton of money on

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Speaker 1: their higher level new hires. So I learned a lot

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Speaker 1: on Vanguard's dime. I learned a lot on Goldman's dime

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Speaker 1: and State Streets dime, and they have a ton of

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Speaker 1: resources for you. I don't think you want to end

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Speaker 1: your career buying large at a huge corporation. I really

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Speaker 1: like the idea of you starting it there. If you're

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Speaker 1: the type of person who's going to take advantage of

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Speaker 1: all of the resources surrounding them. Then the second thing

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Speaker 1: is you know less for Vanguard and more for let's

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Speaker 1: say gold Men. Being around people who are incredibly intelligent,

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Speaker 1: smarter than I was, you know, pretty pedigreed, helped soften

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Speaker 1: some of my edges, given I didn't know much about

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Speaker 1: money coming into this industry at all, and I didn't

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Speaker 1: know about doing deals, and I didn't know, you know,

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Speaker 1: what it was like to be with a bunch of

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Speaker 1: kids that went to Harvard and Stanford and Yale, etcetera,

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Speaker 1: you know, as a public school kid, and so being

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Speaker 1: in these big corporations where they require a lot of

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Speaker 1: edge softening I think has helped me later on. And

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Speaker 1: now I can say, you know, if I want to

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Speaker 1: wear cut off shorts and crop tops, I'll do it.

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Speaker 1: But I know how to dance, you know, in cuff

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Speaker 1: links and suits too. So was that what made you leave?

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Speaker 1: Was it, hey, I want to be able to wear

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Speaker 1: whatever I want? Or what made you leave a place

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Speaker 1: where you feel like you got a good education? The

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Speaker 1: salary was pretty meaningful. What made you say, now it's

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Speaker 1: time to get out and go do my own thing?

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Speaker 1: A wild thing happens once you've had a taste of

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Speaker 1: freedom and work, which is at a certain point, you

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Speaker 1: become unemployable. And that's what happened to me. I became unemployable. Really.

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Speaker 1: I had run a couple of business divisions inside of

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Speaker 1: one of these big companies, and I was doing really

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Speaker 1: well and the business was growing like crazy, and then

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Speaker 1: because of some bureaucracy inside of the business, they basically said, oh,

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Speaker 1: we gotta change it this way, we gotta do it

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Speaker 1: this way. And I said, that makes no sense whatsoever.

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Speaker 1: If our goal is to grow the business and make

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Speaker 1: money in an ethical way that aligns with our company mission,

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Speaker 1: so four parameters that hits all of them, why would

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Speaker 1: we do this asinine thing? And they said, because that's

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Speaker 1: what the company wants to do. They did just have

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Speaker 1: a bunch of consultants come in and so we're actually

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Speaker 1: going to realign this business. And that's when I realized

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Speaker 1: I couldn't really shut up about it. I pushed back

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Speaker 1: about that idea, and I said, I want to go

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Speaker 1: build this myself. And I do think that's what happens

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Speaker 1: after a period. If you're really sort of type A

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Speaker 1: you're meant to run and build businesses, you're going to

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Speaker 1: be at a certain point really hard for somebody else

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Speaker 1: to employ. You became unemployable. I just like that phrase.

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Speaker 1: I think I'm at now that we've been working for

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Speaker 1: ourselves for like a few years, and like how do

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Speaker 1: I go back and work for the man? Like once

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Speaker 1: you get a taste, I mean, this is this is

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Speaker 1: gonna kind of date us a little. We're all kind

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Speaker 1: of old millennials here, but like it makes me think

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Speaker 1: of the matrix. And once you have a taste of

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Speaker 1: what it's actually like outside of the doesn't matter how

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Speaker 1: good the steak taste inside the matrix, you can't go back.

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Speaker 1: You want to be able to fly, But like not

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Speaker 1: everybody can see it that way, you know, Like I'm

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Speaker 1: guessing a lot of folks assume that you're crazy. Once

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Speaker 1: you were like yeah, I'm not gonna do this anymore. Instead,

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Speaker 1: I'm gonna go by this business like a laundromat. Laundromat,

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Speaker 1: and that's what I do now, where people are like, Cody,

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Speaker 1: you're nuts, What are you doing? Why are you throwing

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Speaker 1: it all the way. Oh absolutely, I'm sure you all

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Speaker 1: can relate. But throughout my career, I think I've known

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Speaker 1: I've made the right decision, typically because each time I

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Speaker 1: made a move, somebody said that I was out of

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Speaker 1: my mind. And so you know, when I aft journalism,

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Speaker 1: got some offers from great newspapers that a bunch of

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Speaker 1: other people wanted and said no, I'm going to go

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Speaker 1: into Vanguard's training program, people thought I was nuts. Then

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Speaker 1: when I left Vanguard, good paying job, I was being

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Speaker 1: promoted in all these ways. My mom was basically crying.

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Speaker 1: Then when I left Goldman, you know, cream of the crop,

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Speaker 1: it's the top of the industry. To go to State

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Speaker 1: Street and run a business in Latin America, again, I

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Speaker 1: was crazy. Then when I did it to go to

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Speaker 1: First Trust, and when I went into private equity. I mean,

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Speaker 1: every single time people have basically said the grass is

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Speaker 1: not always greener, be careful, And what I've realized is that,

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Speaker 1: at least for me, the point of life is an

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Speaker 1: accumulation of experiences and skills that build me a really

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Speaker 1: fun life resume that I'm glad to have read at

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Speaker 1: some point in which I go underground. And so I

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Speaker 1: never really worried about if I was making the wrong decision,

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Speaker 1: because I thought the experience on the skill set was

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Speaker 1: really interesting in and of itself, and if the thing

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Speaker 1: that I was going to go do work out awesome.

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Speaker 1: That said, I have never been the type to be

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Speaker 1: able to rip off the band aid and just quit easily.

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Speaker 1: You know. I always had to mentally really ponder it

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Speaker 1: for some time and ensure that that was the right

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Speaker 1: move and how could I d risk it? So sure,

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Speaker 1: everybody thought I was crazy just about every single time.

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Speaker 1: And um, even when I, you know, finally finally left

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Speaker 1: to go build a media company and I rescinded, you know,

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Speaker 1: my partner position and at at a private equity firm

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Speaker 1: of which I was one of the main members, they

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Speaker 1: really thought I was crazy for going to start a

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Speaker 1: quote unquote blog. And doesn't sound great when you put

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Speaker 1: it like that, but oh no, don't. Now people are

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Speaker 1: sort of getting it. But I'm sure like all of

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Speaker 1: us who are creators, they're like, wait, you're gonna you're

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Speaker 1: gonna leave to go talk with your buddy on zoom

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Speaker 1: calls and people are going to listen to that ak

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Speaker 1: A podcast, right, So, yes, every time they thought I

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Speaker 1: was nuts, And I think that's when you know you're

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Speaker 1: doing something interesting. Yeah, for sure. Well, I like how

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Speaker 1: you you've mentioned the word d risk in there, because

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Speaker 1: there's a way you can do it with zero dollars

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Speaker 1: in the bank, and you can make it a really

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Speaker 1: risky endeavor where you might have to go hat in

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Speaker 1: hand back to your old boss two weeks later. But

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Speaker 1: there's a way that you can do it with some runway,

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Speaker 1: some financial runway, so that you actually have a chance

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Speaker 1: to succeed and build that business. But I want to

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Speaker 1: know too, one of the things you've done that you've

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Speaker 1: become very successful doing is buying other people's businesses. So

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Speaker 1: we want to talk about that a lot today. What

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Speaker 1: made you decide that it made sense to start buying

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Speaker 1: other people's businesses that they had created, and when you

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Speaker 1: could have like just started some of these businesses yourself.

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Speaker 1: I'm curious to know, like the value proposition there. I'm

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Speaker 1: a numbers person, and so when I looked at my goal,

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Speaker 1: I want to be a billionaire. I want to create

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Speaker 1: billion dollar empires. Money to me as a game, it's

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Speaker 1: kind of like a scoreboard, and then you can take,

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Speaker 1: you know, the outcome of that game, the money that

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Speaker 1: you've won, and use it as a tool to arcts

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Speaker 1: text the world that you want to see. I like

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Speaker 1: that idea, and so when I thought, Okay, if I

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Speaker 1: want to play billion dollar games, I don't want to

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Speaker 1: play small guy games. I want to play billion dollar

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Speaker 1: games because at the end of the day, they're all

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Speaker 1: the same ones just a level ten activity and one's

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Speaker 1: a level one activity. And so if that's the truth,

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Speaker 1: and then where is more wealth created then anywhere else?

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Speaker 1: And what I would argue is that more wealth is

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Speaker 1: created in private equity than in any other industry. It's

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Speaker 1: created more Forbes billionaires in the other industry. And I

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Speaker 1: mean that loosely defined by people who actually run private

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Speaker 1: equity firms, people who do hold codes Allah Warren Buffettum,

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Speaker 1: people who do acquisition strategies in order to grow their business. Alla.

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Speaker 1: Most of the large companies in the SMP five, including

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Speaker 1: Amazon and Apple and Google and et cetera. And so

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Speaker 1: I realized, wait a second, why are all of the smartest,

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Speaker 1: wealthiest people out there buying businesses? Because the numbers they work.

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Speaker 1: And so I thought, if the game is the same,

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Speaker 1: if they're buying a billion dollar business or a multibillion

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Speaker 1: dollar business, why can't I apply the strategies that I

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Speaker 1: learned in private equity to a small business. Then I

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Speaker 1: don't want to go bankrupt on my first deal. So

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Speaker 1: what business could I buy that I could understand? Probably

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Speaker 1: a hundred percent of the time. That would be what

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Speaker 1: I call a gateway drug business, uh business that's easy

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Speaker 1: to start with that then I could replicate and buy

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Speaker 1: more and more of them and cash full off those

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Speaker 1: businesses and they would act like assets for anything else.

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Speaker 1: And so that's why it's a billion dollar game that's

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Speaker 1: created more billionaires than any other industry. And if you're

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Speaker 1: going to play a game, you might as well pick

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Speaker 1: one that's a level ten. I like it. And that's

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Speaker 1: what we're going to spend the rest of this episode

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Speaker 1: talking about. Specifically, we're gonna dive into how to go

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Speaker 1: about buying somebody else's business, because Cody, we've got a

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Speaker 1: lot of folks listening, and they are looking for more

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Speaker 1: that gateway business, that gateway drug of businesses. Uh. And

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Speaker 1: so we're gonna ask you a bunch of questions pertaining

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Speaker 1: to how exact it to go about that. Right after

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Speaker 1: this break, all right, let's keep rolling. We're talking with

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Speaker 1: Cody Sanchez about buying other people's businesses in order to

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Speaker 1: make serious money. And the one of the coolest things

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Speaker 1: about the strategy, I think Cody, is that it's endlessly replicable.

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Speaker 1: It's not like they're our listeners are competing against you,

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Speaker 1: right unless they live in your neighborhood. Typically there are

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Speaker 1: there are millions and millions of small businesses. So I

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Speaker 1: guess I want to know about demographics for a second.

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Speaker 1: It certainly seems like we're in a time of abundant

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Speaker 1: opportunity for people to more than ever be looking into

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Speaker 1: the strategy of buying other people's businesses in order to

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Speaker 1: make money. Would you say that we're in like a

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Speaker 1: demographic windfall for a lot of people to really think

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Speaker 1: about the strategy. Yes, I am writing a book right

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Speaker 1: now that I'm loosely titling The Three Waves, which basically

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Speaker 1: talks about this idea that there are three corresponding waves

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Speaker 1: that are happening that I think together create a bit

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Speaker 1: of a tsunami. First wave, great resignation. We've all heard this,

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Speaker 1: people our age. They want meaning they don't want to

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Speaker 1: work for the man anymore. They want something to matter

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Speaker 1: after going through a pandemic and a lot of proximity

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Speaker 1: to death. Then we've got the great retirement. Boomers are

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Speaker 1: aging out, and boomers happen to own more small businesses

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Speaker 1: than any other segment. And then simultaneously we've got this

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Speaker 1: great corporatization which I sort of made this term up,

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Speaker 1: which I think means we have big businesses becoming a

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Speaker 1: bigger and bigger portion of our lives and the SMP.

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Speaker 1: And yet we now have this pushback. We don't want

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Speaker 1: to live in these big urban cities anymore. We don't

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Speaker 1: want to really go to McDonald's in Starbucks anymore. We

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Speaker 1: have this feeling of localness and community were more interested

428
00:21:49,040 --> 00:21:52,240
Speaker 1: in because lots of people are moving to smaller communities.

429
00:21:52,520 --> 00:21:55,440
Speaker 1: And so the idea that I have is, what if

430
00:21:55,800 --> 00:21:58,960
Speaker 1: by buying small businesses, what you can do is you

431
00:21:59,000 --> 00:22:01,800
Speaker 1: can actually take advant edge of these three waves. You

432
00:22:01,800 --> 00:22:04,919
Speaker 1: can have an immediate impact upon your community, and you

433
00:22:04,920 --> 00:22:07,840
Speaker 1: can have more corner stores than Walmart's. Wouldn't that be

434
00:22:07,880 --> 00:22:11,000
Speaker 1: an incredible trend? And I think that's what's happening right now,

435
00:22:11,160 --> 00:22:14,400
Speaker 1: an ability to buy businesses because they're being transitioned out

436
00:22:14,840 --> 00:22:17,440
Speaker 1: do good while you're doing it, become an owner and

437
00:22:17,720 --> 00:22:21,919
Speaker 1: cash flow, and there's obviously something incredibly fulfilling and gratifying

438
00:22:22,040 --> 00:22:26,719
Speaker 1: about supporting these mainstream businesses and not only funneling your

439
00:22:26,720 --> 00:22:29,520
Speaker 1: dollars towards towards Wall Street. I'm sure that's a huge

440
00:22:29,600 --> 00:22:31,440
Speaker 1: part of like I guess, like the lifestyle side of

441
00:22:31,480 --> 00:22:33,439
Speaker 1: it that makes you feel really good about what it

442
00:22:33,520 --> 00:22:35,640
Speaker 1: is that you're doing as well. Right, that's exactly right.

443
00:22:36,080 --> 00:22:40,240
Speaker 1: I don't think it serves anybody by having such a

444
00:22:40,240 --> 00:22:43,240
Speaker 1: small percentage of the population owned so much of the

445
00:22:43,280 --> 00:22:46,359
Speaker 1: business that we touch every day, the businesses that we

446
00:22:46,400 --> 00:22:49,280
Speaker 1: touch every day, And that is increasingly what happens, and

447
00:22:49,320 --> 00:22:53,199
Speaker 1: it's a skill and knowledge deficit, and so you know,

448
00:22:53,240 --> 00:22:57,119
Speaker 1: we're seeing right now, I think commoditization or easy access

449
00:22:57,520 --> 00:23:01,320
Speaker 1: to buying businesses in a way that we saw twenty

450
00:23:01,400 --> 00:23:04,280
Speaker 1: years ago with real estate, you know, before Zillo, Red Finn,

451
00:23:04,320 --> 00:23:07,800
Speaker 1: before MLS, it wasn't so easy to go and buy

452
00:23:08,240 --> 00:23:11,800
Speaker 1: single family homes and understand what the market was for that.

453
00:23:12,359 --> 00:23:14,760
Speaker 1: I think in the future it will be perhaps not

454
00:23:14,880 --> 00:23:18,160
Speaker 1: as easy, but it will be much easier to buy businesses.

455
00:23:18,200 --> 00:23:20,560
Speaker 1: And we're already seeing a bunch of technology that supports

456
00:23:20,600 --> 00:23:23,040
Speaker 1: that thesis. Well, yeah, I talk to us about you

457
00:23:23,040 --> 00:23:24,760
Speaker 1: know what it takes to find a business that makes

458
00:23:24,800 --> 00:23:28,080
Speaker 1: sense to buy? Like, where should listeners be looking if

459
00:23:28,119 --> 00:23:30,879
Speaker 1: they are interested in buying a business? Like you said,

460
00:23:31,359 --> 00:23:33,320
Speaker 1: everybody knows to go to Zillo if you're looking to

461
00:23:33,560 --> 00:23:35,760
Speaker 1: buy a home or red fin something like that. Where

462
00:23:35,760 --> 00:23:38,000
Speaker 1: do you go if you're looking looking to buy a business?

463
00:23:39,280 --> 00:23:41,199
Speaker 1: The best place to buy a business right now is

464
00:23:41,240 --> 00:23:44,320
Speaker 1: not on the internet similar to a hip pocket listing

465
00:23:44,920 --> 00:23:47,800
Speaker 1: or you know, an off market deal. That is the

466
00:23:47,800 --> 00:23:49,600
Speaker 1: best place to buy a business. And the way that

467
00:23:49,640 --> 00:23:53,000
Speaker 1: I teach people to buy a business is all about proximity.

468
00:23:53,040 --> 00:23:55,560
Speaker 1: So let's say that we are going to buy a

469
00:23:55,560 --> 00:23:58,800
Speaker 1: business for Joel and Matt. What would Joel and Matt's

470
00:23:58,840 --> 00:24:03,640
Speaker 1: perfect business be. It's going to be different than Cody exactly.

471
00:24:03,960 --> 00:24:06,080
Speaker 1: It's going to be different than Cody's business. And I'll

472
00:24:06,119 --> 00:24:08,359
Speaker 1: use an example of this guy named j K who's

473
00:24:08,400 --> 00:24:10,760
Speaker 1: relatively public. He's kind of like a Twitter growth guy.

474
00:24:10,960 --> 00:24:13,800
Speaker 1: He was tweeting about stuff on the internet frequently and

475
00:24:13,880 --> 00:24:16,359
Speaker 1: doing consulting right, so it's making you know, a couple

476
00:24:16,320 --> 00:24:19,000
Speaker 1: of thousand bucks a month off each client telling them

477
00:24:19,000 --> 00:24:21,639
Speaker 1: how to grow on Twitter. Well, he started using this

478
00:24:21,760 --> 00:24:23,600
Speaker 1: tool that I'll leave the name off of it, but

479
00:24:23,960 --> 00:24:27,480
Speaker 1: a Twitter growth tool, and that Twitter growth tool, he realized,

480
00:24:27,480 --> 00:24:29,680
Speaker 1: what's growing so fast? But he really liked it, and

481
00:24:29,720 --> 00:24:31,800
Speaker 1: he thought that his suggestions could make the tool better.

482
00:24:32,040 --> 00:24:33,679
Speaker 1: So he reached down to the owner of the business

483
00:24:33,720 --> 00:24:35,520
Speaker 1: and said, Hey, I think I could grow your business

484
00:24:35,560 --> 00:24:37,680
Speaker 1: because I know about Twitter growth. I could get you

485
00:24:37,720 --> 00:24:40,240
Speaker 1: a bunch of other people, but I want part equity

486
00:24:40,280 --> 00:24:42,439
Speaker 1: in the business. Can I give you some cash matched

487
00:24:42,480 --> 00:24:45,080
Speaker 1: with the growth that I will give you through new

488
00:24:45,119 --> 00:24:47,919
Speaker 1: clients and own a meaningful percentage of the business and

489
00:24:47,920 --> 00:24:50,399
Speaker 1: we could do it together. That I think is a

490
00:24:51,040 --> 00:24:53,359
Speaker 1: there's like sort of four tiers to business. Mind. That

491
00:24:53,440 --> 00:24:56,399
Speaker 1: is a level for or a tier four way to

492
00:24:56,440 --> 00:24:59,200
Speaker 1: buy a business, which is you're using your unfair advantage

493
00:24:59,600 --> 00:25:03,800
Speaker 1: unique in an area in which you have some personal expertise.

494
00:25:04,359 --> 00:25:06,399
Speaker 1: And then there's the tier one way to do it,

495
00:25:06,400 --> 00:25:08,920
Speaker 1: which would be the lowest, most entry level way to

496
00:25:08,960 --> 00:25:11,080
Speaker 1: do it. Then that would be by going to sites

497
00:25:11,200 --> 00:25:16,040
Speaker 1: like bis By, cell Loop, net Flip, e commerce, Flippers,

498
00:25:16,119 --> 00:25:19,119
Speaker 1: Quietlight Brokerage, all of which would be the equivalent to

499
00:25:19,200 --> 00:25:22,240
Speaker 1: a red fin or Zillo for buying a business, just

500
00:25:22,880 --> 00:25:24,840
Speaker 1: not as good because none of these sites are are

501
00:25:24,920 --> 00:25:28,320
Speaker 1: great at this stage. And that's just straight up dollars

502
00:25:28,440 --> 00:25:31,679
Speaker 1: for a business that is showing a certain amount of income,

503
00:25:31,760 --> 00:25:33,520
Speaker 1: and so you have to kind of take what you

504
00:25:33,520 --> 00:25:36,679
Speaker 1: can get. You're looking at pickings that are publicly available,

505
00:25:37,000 --> 00:25:39,720
Speaker 1: and whereas you're talking about the level four is it

506
00:25:39,720 --> 00:25:43,200
Speaker 1: seems like there's more of a network effect involved there,

507
00:25:43,280 --> 00:25:45,320
Speaker 1: right that, So I guess, like my question is how

508
00:25:45,359 --> 00:25:48,360
Speaker 1: important is networking in this process? And maybe I don't

509
00:25:48,359 --> 00:25:50,160
Speaker 1: know what suggestions do you have for folks to grow

510
00:25:50,200 --> 00:25:53,160
Speaker 1: their network to increase their chances of success as they're

511
00:25:53,200 --> 00:25:56,720
Speaker 1: like interested in buying a business and you said proximity

512
00:25:56,800 --> 00:26:00,320
Speaker 1: so likely local to where they live, right, So it's

513
00:26:00,400 --> 00:26:02,879
Speaker 1: up to you. The bigger your network has and the

514
00:26:02,960 --> 00:26:07,440
Speaker 1: more you are willing to specialize in your search, probably

515
00:26:07,440 --> 00:26:09,720
Speaker 1: the better deal you'll get with the higher return. If

516
00:26:09,720 --> 00:26:12,560
Speaker 1: you want to just buy something that's on market, like,

517
00:26:12,640 --> 00:26:15,640
Speaker 1: let's say a laundromat in your local area. I think

518
00:26:15,680 --> 00:26:18,600
Speaker 1: it's pretty easy to do the thing that most people

519
00:26:18,720 --> 00:26:21,800
Speaker 1: don't do, which is go around to local laundromats and

520
00:26:21,800 --> 00:26:23,840
Speaker 1: try to get in touch with the owners and start

521
00:26:23,880 --> 00:26:25,879
Speaker 1: talking to them about their business and tell them that

522
00:26:25,920 --> 00:26:28,640
Speaker 1: you're looking to buy one. And I would pretty much

523
00:26:28,640 --> 00:26:30,480
Speaker 1: guarantee you that after you talk to twenty of them,

524
00:26:30,520 --> 00:26:33,359
Speaker 1: you're gonna find one to five that are interested in selling.

525
00:26:33,680 --> 00:26:36,879
Speaker 1: Someone's tired of owning a laundromat out there, you know, Yes,

526
00:26:37,280 --> 00:26:39,760
Speaker 1: there's a lot of people who have, you know, think

527
00:26:39,760 --> 00:26:41,600
Speaker 1: about it this way. Most people like, why would somebody

528
00:26:41,600 --> 00:26:44,480
Speaker 1: sell a business for two to three x profit that

529
00:26:44,880 --> 00:26:47,280
Speaker 1: you know is kind of passive and making them a

530
00:26:47,359 --> 00:26:49,560
Speaker 1: hundred K a year. Nobody's ever going to sell that.

531
00:26:50,080 --> 00:26:52,800
Speaker 1: And then I ask them, are you going to keep

532
00:26:52,840 --> 00:26:56,040
Speaker 1: your job for forty years, the same job that you

533
00:26:56,119 --> 00:26:58,639
Speaker 1: have today. You will not be promoted, you will not

534
00:26:58,880 --> 00:27:02,240
Speaker 1: change positions, your title remain the exact same. Will you

535
00:27:02,320 --> 00:27:04,560
Speaker 1: keep it for forty years? And the answer is no.

536
00:27:04,920 --> 00:27:07,879
Speaker 1: We've seen as a society two to five years, increasingly

537
00:27:07,960 --> 00:27:10,720
Speaker 1: more like three to four, and so it's the same

538
00:27:10,720 --> 00:27:12,840
Speaker 1: for business owners. At some point you're like, all right

539
00:27:13,000 --> 00:27:15,400
Speaker 1: around the laundromat. It was cool. I added a few

540
00:27:15,480 --> 00:27:17,359
Speaker 1: on that was cool. Now I'm gonna sell it to

541
00:27:17,400 --> 00:27:19,359
Speaker 1: somebody else. I got this other business that I want

542
00:27:19,400 --> 00:27:22,440
Speaker 1: to start. It's a progression, just like you don't stay

543
00:27:22,480 --> 00:27:25,040
Speaker 1: in the same house your entire life either, And so

544
00:27:25,080 --> 00:27:27,679
Speaker 1: there's plenty of people that want to sell for what

545
00:27:27,720 --> 00:27:34,639
Speaker 1: are called the five d s, So you know, death, divorce, disaster, despair,

546
00:27:34,800 --> 00:27:37,520
Speaker 1: just meaning like something going wrong in the business, et cetera.

547
00:27:38,080 --> 00:27:41,840
Speaker 1: Or the fifth D is something goes sideways in the business,

548
00:27:41,880 --> 00:27:44,520
Speaker 1: but I can't remember what the exact D is, so like, um,

549
00:27:44,560 --> 00:27:49,920
Speaker 1: your business has a disgruntled partnership issue or something like that.

550
00:27:50,000 --> 00:27:53,800
Speaker 1: So for all those reasons, people are constantly wanting to

551
00:27:53,800 --> 00:27:56,439
Speaker 1: sell their business. It's just are you finding the right

552
00:27:56,480 --> 00:27:59,000
Speaker 1: person at the right time. Makes a ton of sense. Also,

553
00:27:59,320 --> 00:28:02,360
Speaker 1: side tangent oodie, did you happen to watch everything everywhere,

554
00:28:02,359 --> 00:28:04,960
Speaker 1: all at once takes place within a laundro matte? It

555
00:28:05,000 --> 00:28:08,520
Speaker 1: kind of gives you an inside look how soul sucking

556
00:28:08,560 --> 00:28:11,280
Speaker 1: that my that industry might actually be. But well, as

557
00:28:11,280 --> 00:28:13,199
Speaker 1: an entrepreneur, you can make money running on it was

558
00:28:13,280 --> 00:28:16,720
Speaker 1: the Yeah, the basis of the entire movie kind of

559
00:28:16,720 --> 00:28:19,600
Speaker 1: surrounded this laundroy mate, that this family, and also just

560
00:28:19,640 --> 00:28:22,399
Speaker 1: a fantastic movie. It's a really trippy, out there kind

561
00:28:22,440 --> 00:28:24,480
Speaker 1: of movie. I think you might like it's one of

562
00:28:24,520 --> 00:28:29,960
Speaker 1: those films. Um sorry, but uh okay. So, once you

563
00:28:30,119 --> 00:28:33,040
Speaker 1: found a business that you think could make you some money,

564
00:28:33,080 --> 00:28:35,280
Speaker 1: that that might run well, Like, how do you know

565
00:28:35,800 --> 00:28:37,000
Speaker 1: that is a good one? Like, how do you know

566
00:28:37,080 --> 00:28:38,680
Speaker 1: that it's gonna make sense? Is there a is there

567
00:28:38,720 --> 00:28:40,640
Speaker 1: an easy way to crunch the numbers for folks who

568
00:28:40,720 --> 00:28:44,000
Speaker 1: might be used to running their own books right, Like

569
00:28:44,040 --> 00:28:47,640
Speaker 1: they're good at running you know, Joel lars Guard LLC.

570
00:28:47,840 --> 00:28:49,720
Speaker 1: Joel is really good at his own money, but it

571
00:28:49,760 --> 00:28:52,560
Speaker 1: takes a little extra when it comes to running a business.

572
00:28:52,600 --> 00:28:55,640
Speaker 1: What are some things folks should be looking at? First

573
00:28:55,680 --> 00:28:57,840
Speaker 1: of all, I think you should really spend the first

574
00:28:57,960 --> 00:29:00,440
Speaker 1: thirty to sixty days learning how to do act positions

575
00:29:00,480 --> 00:29:03,640
Speaker 1: before you do them. It's not necessary. But the last

576
00:29:03,640 --> 00:29:05,360
Speaker 1: thing that you want to have happened is have your

577
00:29:05,360 --> 00:29:07,720
Speaker 1: first deal be a bad deal, because then you're gonna

578
00:29:07,720 --> 00:29:10,000
Speaker 1: think buying businesses is a bad idea and you're not

579
00:29:10,000 --> 00:29:11,840
Speaker 1: going to realize no, no no, no, you just made a

580
00:29:11,840 --> 00:29:13,840
Speaker 1: mistake and how you did it the first time. So

581
00:29:13,920 --> 00:29:17,080
Speaker 1: my caveat would be it really should be for anything

582
00:29:17,080 --> 00:29:18,800
Speaker 1: in life. But it's very easy to go in place

583
00:29:18,800 --> 00:29:21,240
Speaker 1: a trade on Robinhood right. You don't really have to

584
00:29:21,320 --> 00:29:23,240
Speaker 1: learn too much about it. You can go read a

585
00:29:23,280 --> 00:29:26,320
Speaker 1: couple analysts reports. No problem with buying a business. There's

586
00:29:26,320 --> 00:29:29,560
Speaker 1: more complexity, which means that there's more opportunity because there's

587
00:29:29,600 --> 00:29:32,600
Speaker 1: a barrier to entry with that same thought, though, like

588
00:29:32,640 --> 00:29:34,880
Speaker 1: you can go to Unconventional Acquisitions dot com. We have

589
00:29:34,920 --> 00:29:37,520
Speaker 1: a blog of a bunch of free tools on how

590
00:29:37,520 --> 00:29:40,000
Speaker 1: do you analyze a business? How do you break down

591
00:29:40,000 --> 00:29:41,480
Speaker 1: if a business is worth it or not? How do

592
00:29:41,520 --> 00:29:44,640
Speaker 1: you hire an operator? All the things that you would

593
00:29:44,680 --> 00:29:47,360
Speaker 1: probably think of as objections or reasons why you wouldn't

594
00:29:47,360 --> 00:29:49,840
Speaker 1: do it, we try to talk about in our free blog,

595
00:29:49,880 --> 00:29:51,800
Speaker 1: and there's a weekly newsletter that comes out. You can

596
00:29:51,840 --> 00:29:54,479
Speaker 1: get on the list. But quick, down and dirty. If

597
00:29:54,520 --> 00:29:57,440
Speaker 1: you only do three things, it would be this one.

598
00:29:57,680 --> 00:30:00,800
Speaker 1: You want to look at historical tax return in tandem

599
00:30:00,800 --> 00:30:02,600
Speaker 1: with their P and L, so you just want to

600
00:30:02,600 --> 00:30:05,520
Speaker 1: make sure that what they're telling you in their profit

601
00:30:05,520 --> 00:30:08,200
Speaker 1: and law statement is what's on their tax return. So

602
00:30:08,280 --> 00:30:12,480
Speaker 1: are the numbers real? To businesses? In my opinion sub

603
00:30:12,600 --> 00:30:16,560
Speaker 1: five million dollars in revenue typically trade at a profit

604
00:30:16,680 --> 00:30:20,400
Speaker 1: multiple of two to let's give it like six x.

605
00:30:20,800 --> 00:30:23,520
Speaker 1: So if I make it a hundred k in profit

606
00:30:23,720 --> 00:30:26,760
Speaker 1: in my pocket in a business, I should be selling

607
00:30:26,760 --> 00:30:29,040
Speaker 1: that business for anywhere from let's call it two hundred

608
00:30:29,200 --> 00:30:31,360
Speaker 1: six hundred thousand dollars. So now you've got kind of

609
00:30:31,400 --> 00:30:35,080
Speaker 1: a rough valuation. And then the third thing is you

610
00:30:35,120 --> 00:30:39,480
Speaker 1: have to understand there's usually in every business, like of

611
00:30:39,520 --> 00:30:43,360
Speaker 1: the numbers drive of the return. Meaning if I have

612
00:30:43,400 --> 00:30:45,920
Speaker 1: a laundromat, I really want to understand what the leases

613
00:30:45,960 --> 00:30:49,520
Speaker 1: and how long I'm locked in because it's expensive to

614
00:30:49,720 --> 00:30:51,960
Speaker 1: put in the pipe being and all the washing machines

615
00:30:52,040 --> 00:30:55,080
Speaker 1: or whatever. You need a long waist if I'm a laundromat, Also,

616
00:30:55,360 --> 00:30:58,840
Speaker 1: what are going to be my biggest expenses my equipment certainly,

617
00:30:59,080 --> 00:31:02,200
Speaker 1: and then you till the water and electricity for washing

618
00:31:02,360 --> 00:31:04,400
Speaker 1: and drying. So like you need to get to the

619
00:31:04,440 --> 00:31:07,720
Speaker 1: meat of whatever it is that you're buying, and that's

620
00:31:07,760 --> 00:31:10,800
Speaker 1: where you can do risk the most. There's probably like

621
00:31:10,840 --> 00:31:13,320
Speaker 1: twenty or thirty other main things you should be looking at,

622
00:31:13,600 --> 00:31:16,479
Speaker 1: but these top three will get you quite far. It's

623
00:31:16,520 --> 00:31:17,760
Speaker 1: kind of like you don't want to be buying the

624
00:31:17,840 --> 00:31:21,040
Speaker 1: expensive baseball team when all of the contracts of the

625
00:31:21,040 --> 00:31:23,800
Speaker 1: biggest stars are set to expire, and you're like, you

626
00:31:23,880 --> 00:31:26,120
Speaker 1: might have just bought the crappiest baseball team now that

627
00:31:26,160 --> 00:31:28,720
Speaker 1: they're all like set the walk or or set to

628
00:31:28,720 --> 00:31:30,840
Speaker 1: get paid a lot more. Right, Um, I guess let's

629
00:31:30,840 --> 00:31:33,760
Speaker 1: talk about negotiating, because yeah, you said there's this sweet

630
00:31:33,760 --> 00:31:36,760
Speaker 1: spot somewhere between two x or six x the earnings.

631
00:31:36,800 --> 00:31:40,040
Speaker 1: But yeah, how do you go about negotiating a fair

632
00:31:40,080 --> 00:31:42,320
Speaker 1: price and figuring out what that is? I'm sure a

633
00:31:42,360 --> 00:31:45,600
Speaker 1: lot of that is relational, but there have to be

634
00:31:45,680 --> 00:31:47,840
Speaker 1: like standards to that you can point to in order

635
00:31:47,880 --> 00:31:50,720
Speaker 1: to kind of push for a better price for you

636
00:31:51,000 --> 00:31:53,920
Speaker 1: for the business. You want to buy a lot of

637
00:31:54,160 --> 00:31:59,160
Speaker 1: meat here. So I think one of the most important

638
00:31:59,200 --> 00:32:01,400
Speaker 1: things or valuable things for your career you could do

639
00:32:01,640 --> 00:32:04,520
Speaker 1: is learned to negotiate. If you can learn to negotiate,

640
00:32:04,560 --> 00:32:06,640
Speaker 1: it will be aplical on everything you do in life,

641
00:32:06,640 --> 00:32:09,600
Speaker 1: and you'll just make more money period. If you spend

642
00:32:09,680 --> 00:32:12,160
Speaker 1: time learning how to do what I call deal making,

643
00:32:12,240 --> 00:32:14,880
Speaker 1: or of the people called negotiation. So let's just say

644
00:32:14,920 --> 00:32:18,160
Speaker 1: that first, if you needed to spend some time on that,

645
00:32:18,680 --> 00:32:21,440
Speaker 1: I would read, like you know, Chris Voss never split

646
00:32:21,480 --> 00:32:25,320
Speaker 1: the difference. I would actually read some of Trump's books.

647
00:32:25,360 --> 00:32:27,720
Speaker 1: He has that one book that I can't remember what

648
00:32:27,800 --> 00:32:29,520
Speaker 1: the name of his. I know people don't like him

649
00:32:29,520 --> 00:32:33,040
Speaker 1: as human, but what he's really good at is that, uh,

650
00:32:33,360 --> 00:32:37,120
Speaker 1: he's really good at dealing with discomfort and negotiation, which

651
00:32:37,120 --> 00:32:39,480
Speaker 1: is an incredibly important part of it. And then I

652
00:32:39,480 --> 00:32:42,280
Speaker 1: would also go and read as many case studies as

653
00:32:42,320 --> 00:32:45,520
Speaker 1: I could about negotiation. So if you've done those three things,

654
00:32:45,880 --> 00:32:48,680
Speaker 1: then I think beyond that. The next step is basically

655
00:32:49,040 --> 00:32:52,200
Speaker 1: where most people screw up in negotiating businesses is don't

656
00:32:52,240 --> 00:32:54,360
Speaker 1: don't get caught up on the price in the beginning.

657
00:32:55,040 --> 00:32:58,560
Speaker 1: In any negotiation for buying a business, there's two main

658
00:32:58,680 --> 00:33:02,240
Speaker 1: factors price. In turn, everybody focuses on price. What you

659
00:33:02,240 --> 00:33:05,280
Speaker 1: should really focus on is terms. Think about it this way,

660
00:33:05,560 --> 00:33:07,680
Speaker 1: Joel and Matt. I'm going to buy your podcast for

661
00:33:07,720 --> 00:33:11,600
Speaker 1: a billion dollars. Do you want Yes, I'll take it.

662
00:33:11,880 --> 00:33:14,520
Speaker 1: You'd say yes. What if I changed it and said okay, great,

663
00:33:14,520 --> 00:33:17,160
Speaker 1: You've said yes, we signed the paperwork, but the terms

664
00:33:17,160 --> 00:33:21,000
Speaker 1: are I'm gonna pay you a billion dollars five cents

665
00:33:21,000 --> 00:33:23,920
Speaker 1: a day over the lifetime of that billion dollars. I'm

666
00:33:23,920 --> 00:33:26,640
Speaker 1: never going to get this money coding. Just focus on

667
00:33:26,680 --> 00:33:30,240
Speaker 1: the price turns right. So now Joel has done a

668
00:33:30,240 --> 00:33:33,160
Speaker 1: bad deal. Bad job, Joel. And so what you really

669
00:33:33,200 --> 00:33:35,760
Speaker 1: have to focus on is you can say in the beginning.

670
00:33:35,760 --> 00:33:38,520
Speaker 1: I usually set the tone so that the seller doesn't

671
00:33:38,520 --> 00:33:42,160
Speaker 1: get crazy with their expectations of saying, Hey, businesses that

672
00:33:42,320 --> 00:33:45,360
Speaker 1: do what you do typically sell for around two to

673
00:33:45,480 --> 00:33:49,680
Speaker 1: six x, depending on how clean the balance sheet is,

674
00:33:49,960 --> 00:33:52,600
Speaker 1: what the s ops are inside the business, how much

675
00:33:52,640 --> 00:33:54,680
Speaker 1: revenue you guys do. I just want to set the

676
00:33:54,680 --> 00:33:58,000
Speaker 1: tone that's typically what businesses like this sell for now.

677
00:33:58,920 --> 00:34:00,959
Speaker 1: I don't really want to talk about price in the beginning,

678
00:34:00,960 --> 00:34:03,360
Speaker 1: because I want to get into a partnership with whoever

679
00:34:03,480 --> 00:34:06,200
Speaker 1: selling me this business. You know this is this will

680
00:34:06,240 --> 00:34:09,000
Speaker 1: be a relationship that we will have for at least

681
00:34:09,000 --> 00:34:10,920
Speaker 1: a few months, if not years. So we need to

682
00:34:10,960 --> 00:34:12,239
Speaker 1: make sure that we do this in a way that

683
00:34:12,320 --> 00:34:14,719
Speaker 1: makes sense. So I kind of set the tone, which

684
00:34:14,800 --> 00:34:16,960
Speaker 1: is called primings. You're gonna prime them that they're not

685
00:34:17,000 --> 00:34:19,280
Speaker 1: going to get ten x their revenue for a business,

686
00:34:19,320 --> 00:34:22,640
Speaker 1: it's just not gonna happen simultaneously. And you're setting the range.

687
00:34:22,680 --> 00:34:24,359
Speaker 1: So maybe the range you even says two to three

688
00:34:24,360 --> 00:34:26,800
Speaker 1: acts instead of two to six sex. You've now allowed,

689
00:34:26,840 --> 00:34:29,480
Speaker 1: You've you've narrowed their aperture. But the next thing you're

690
00:34:29,520 --> 00:34:31,120
Speaker 1: gonna do is say, but, but, but but I don't

691
00:34:31,120 --> 00:34:32,880
Speaker 1: want to talk about price. No, no no, no, no, I

692
00:34:32,880 --> 00:34:34,560
Speaker 1: don't want to talk about price. I want to talk

693
00:34:34,600 --> 00:34:36,319
Speaker 1: about you and your business. We'll get to all that

694
00:34:36,360 --> 00:34:39,160
Speaker 1: stuff later. And so the big thing you should do

695
00:34:39,239 --> 00:34:42,200
Speaker 1: up front is not over index on what is the cost?

696
00:34:42,280 --> 00:34:44,520
Speaker 1: It's totally different than real estate, and which cost is

697
00:34:44,520 --> 00:34:49,920
Speaker 1: the only question. Okay, so you're telling us to downplay costs,

698
00:34:49,960 --> 00:34:52,839
Speaker 1: focus on the terms. What about folks said? There might

699
00:34:52,840 --> 00:34:54,400
Speaker 1: be a lot of folks listening who are thinking, all right,

700
00:34:54,400 --> 00:34:57,040
Speaker 1: this this all sounds awesome. I don't have the cash

701
00:34:57,080 --> 00:35:00,840
Speaker 1: on hand. Uh that does regardless of what a business

702
00:35:00,880 --> 00:35:04,120
Speaker 1: might be selling their business for, how can I actually

703
00:35:04,120 --> 00:35:06,480
Speaker 1: go about making that purchase happen? Like, what are some

704
00:35:06,520 --> 00:35:08,680
Speaker 1: of the different creative ways I guess that that folks

705
00:35:08,719 --> 00:35:11,840
Speaker 1: can think about purchasing some of the different businesses that

706
00:35:11,880 --> 00:35:15,360
Speaker 1: are out there. I use something called the get rich tripod,

707
00:35:15,400 --> 00:35:17,120
Speaker 1: which is an awful name that I came up with,

708
00:35:17,160 --> 00:35:20,520
Speaker 1: but you know, clickbait. But basically the idea is, there's

709
00:35:20,560 --> 00:35:23,600
Speaker 1: three legs to a tripod, right. The way to do

710
00:35:23,680 --> 00:35:26,640
Speaker 1: a deal and get financing is to use one of

711
00:35:26,640 --> 00:35:29,480
Speaker 1: the three legs, if not all three. So the legs

712
00:35:29,480 --> 00:35:33,719
Speaker 1: are time, expertise, money. So let's say somebody listening and

713
00:35:33,800 --> 00:35:36,839
Speaker 1: wanted to go and buy a car wash, and they

714
00:35:36,880 --> 00:35:40,360
Speaker 1: have time, but they have no experience on car washes,

715
00:35:40,680 --> 00:35:42,600
Speaker 1: and they have no money. How do you get that

716
00:35:42,680 --> 00:35:45,759
Speaker 1: deal done? Well? You? If if I was you, I'd

717
00:35:45,800 --> 00:35:47,719
Speaker 1: say you focus on the time factor. So you do

718
00:35:47,760 --> 00:35:50,400
Speaker 1: the due diligence on the deal. You understand the industry,

719
00:35:50,520 --> 00:35:53,120
Speaker 1: You put together a business plan on why to buy it.

720
00:35:53,960 --> 00:35:57,400
Speaker 1: Then you go find somebody who has cash. That somebody

721
00:35:57,440 --> 00:36:00,839
Speaker 1: could be the sp A Small Businesses Association would get

722
00:36:00,840 --> 00:36:04,200
Speaker 1: through scales loans to small business buyers. Because you have

723
00:36:04,280 --> 00:36:08,400
Speaker 1: a business plan and a valuation that you think is

724
00:36:08,440 --> 00:36:10,120
Speaker 1: reasonable for the business, You're going to take it to

725
00:36:10,200 --> 00:36:11,759
Speaker 1: basically the s b A and say will you give

726
00:36:11,840 --> 00:36:14,440
Speaker 1: me money? Will you loan me money for this? You

727
00:36:14,440 --> 00:36:16,719
Speaker 1: can also do what's called seller financing, which is put

728
00:36:16,800 --> 00:36:19,760
Speaker 1: together that same thing and say to the owner, hey,

729
00:36:19,880 --> 00:36:22,680
Speaker 1: I'm going to run this business. I will put up

730
00:36:22,800 --> 00:36:27,520
Speaker 1: some percentage of the total purchase price, let's say tenent,

731
00:36:27,920 --> 00:36:31,360
Speaker 1: but the other X percent I want you to carry

732
00:36:31,480 --> 00:36:35,040
Speaker 1: in a seller's financing note over a two to three

733
00:36:35,080 --> 00:36:37,719
Speaker 1: to five year period, which basically means, if I'm going

734
00:36:37,760 --> 00:36:40,200
Speaker 1: to buy your business for two K, I might put

735
00:36:40,280 --> 00:36:42,799
Speaker 1: down a hundred K, let's say, and then tell you

736
00:36:42,840 --> 00:36:46,520
Speaker 1: I'm going to pay you back the next hundred kt

737
00:36:47,040 --> 00:36:51,600
Speaker 1: kt dollars a year over a two year period from

738
00:36:51,800 --> 00:36:55,160
Speaker 1: the profits of the business. And the way to do

739
00:36:55,280 --> 00:36:59,400
Speaker 1: those two is interesting because six small businesses are sold

740
00:36:59,440 --> 00:37:03,760
Speaker 1: with some type of seller financing, meaning that the sellers

741
00:37:03,760 --> 00:37:06,879
Speaker 1: are relatively used to the ask that, Hey, if I'm

742
00:37:06,880 --> 00:37:09,360
Speaker 1: gonna buy your business, I expect you to carry some

743
00:37:09,520 --> 00:37:12,840
Speaker 1: of my risk in the purchase price. It's pretty normal.

744
00:37:13,360 --> 00:37:15,640
Speaker 1: And so that's one leg of the tripod. The other

745
00:37:15,640 --> 00:37:17,520
Speaker 1: two you just flip it. If you have money, you

746
00:37:17,640 --> 00:37:20,759
Speaker 1: use that, use somebody else's time and expertise. If you

747
00:37:20,800 --> 00:37:23,160
Speaker 1: have expertise, you find somebody else with time and money,

748
00:37:23,480 --> 00:37:25,760
Speaker 1: and so that business owner it is kind of actually

749
00:37:25,760 --> 00:37:28,440
Speaker 1: expecting you to not have all the cash and to

750
00:37:28,520 --> 00:37:32,759
Speaker 1: maybe have to to wait to get back to get

751
00:37:32,800 --> 00:37:35,080
Speaker 1: some of your investments. Um as you take over and

752
00:37:35,160 --> 00:37:37,319
Speaker 1: round the company for a certain period of time. I

753
00:37:37,320 --> 00:37:39,160
Speaker 1: guess too. We're talking about we've talked about some physical

754
00:37:39,160 --> 00:37:41,800
Speaker 1: businesses yere, We've talked about laundromats, you mentioned car washes.

755
00:37:42,200 --> 00:37:44,600
Speaker 1: Are are there like non physical businesses that you can

756
00:37:44,600 --> 00:37:46,719
Speaker 1: do this sort of things thing with that maybe might

757
00:37:46,760 --> 00:37:48,719
Speaker 1: even cost less. I mean you mentioned the Twitter growth tool,

758
00:37:48,719 --> 00:37:51,239
Speaker 1: are like, what about websites or blogs or buying other

759
00:37:51,239 --> 00:37:55,520
Speaker 1: people's online businesses? Is that something that you've worked in

760
00:37:55,640 --> 00:37:58,279
Speaker 1: or that you encourage other people to check out? Absolutely?

761
00:37:58,280 --> 00:38:01,680
Speaker 1: I buy a lot of online businesses. Is so, Um,

762
00:38:01,719 --> 00:38:04,920
Speaker 1: no real difference between online and brick and mortar businesses.

763
00:38:04,960 --> 00:38:07,719
Speaker 1: The only difference is they're a little bit more competitive

764
00:38:07,760 --> 00:38:11,560
Speaker 1: to buy because people can buy them anywhere. Um. They

765
00:38:11,640 --> 00:38:15,359
Speaker 1: also are typically a little bit more de risked in

766
00:38:15,480 --> 00:38:19,160
Speaker 1: some ways because the API right into their financials. So

767
00:38:19,600 --> 00:38:22,440
Speaker 1: you know, if you guys tell me we have a website,

768
00:38:22,560 --> 00:38:24,520
Speaker 1: it does a hundred thousand views a month and it

769
00:38:24,560 --> 00:38:27,840
Speaker 1: makes teno dollars. I can literally look in the history

770
00:38:27,920 --> 00:38:30,360
Speaker 1: of your website and your stripe account and see that

771
00:38:30,480 --> 00:38:34,400
Speaker 1: all rolling right in right. Small businesses typically have a

772
00:38:34,440 --> 00:38:37,800
Speaker 1: percentage that's cash. They don't have very clean books. You

773
00:38:37,840 --> 00:38:40,120
Speaker 1: don't know where the actual moneys come from, so you

774
00:38:40,160 --> 00:38:42,439
Speaker 1: have to do more what's called due diligence on on

775
00:38:42,760 --> 00:38:47,600
Speaker 1: hard asset businesses. Then you do these online businesses, but

776
00:38:47,640 --> 00:38:51,120
Speaker 1: the process is relatively similar. The way they value online

777
00:38:51,160 --> 00:38:54,719
Speaker 1: businesses is by month, not years. So you'll say, while

778
00:38:54,760 --> 00:38:58,400
Speaker 1: this is selling for you know, uh, twenty four x,

779
00:38:58,800 --> 00:39:01,719
Speaker 1: and what they mean is like four months of revenue.

780
00:39:02,280 --> 00:39:05,520
Speaker 1: And so there's some differences between the two. But I

781
00:39:05,520 --> 00:39:08,200
Speaker 1: would say the most competitive sites sell pretty quickly because

782
00:39:08,239 --> 00:39:10,319
Speaker 1: smart buyers really know what they're doing. And again that

783
00:39:10,400 --> 00:39:14,800
Speaker 1: industry has been a little bit more commoditized. Although a

784
00:39:14,920 --> 00:39:18,760
Speaker 1: business to you and Joel could be a lot different

785
00:39:18,920 --> 00:39:22,319
Speaker 1: than a business to me. And you could say, hey,

786
00:39:22,360 --> 00:39:24,640
Speaker 1: we have this podcast, and look there's this tool that

787
00:39:24,719 --> 00:39:28,239
Speaker 1: helps podcasters I don't know reach out to guests. That

788
00:39:28,280 --> 00:39:31,040
Speaker 1: business only makes ten dollars a year, so it's probably

789
00:39:31,080 --> 00:39:34,759
Speaker 1: only worth let's call it thirty two fifty K or

790
00:39:34,840 --> 00:39:37,640
Speaker 1: something like that, but to us it's actually worth a

791
00:39:37,680 --> 00:39:40,440
Speaker 1: hundred K because we're paying somebody to do that right now,

792
00:39:40,440 --> 00:39:42,640
Speaker 1: and this tool would save me for that too. And

793
00:39:42,680 --> 00:39:44,040
Speaker 1: so that's where you want to get a little bit

794
00:39:44,080 --> 00:39:47,359
Speaker 1: more into what's your unfair advantage? Got Yeah, yeah, we've talked.

795
00:39:47,600 --> 00:39:48,840
Speaker 1: We didn't talk about that, but that's one of the

796
00:39:48,880 --> 00:39:51,239
Speaker 1: things you've discussed too. So maybe I don't know. Could

797
00:39:51,239 --> 00:39:52,719
Speaker 1: you give us a quick take on on what you

798
00:39:52,719 --> 00:39:56,680
Speaker 1: mean by unfair advantage and how how do we figure

799
00:39:56,719 --> 00:40:00,880
Speaker 1: out what are unfair advantages? There is a rate quote

800
00:40:01,160 --> 00:40:05,759
Speaker 1: from one of the partners at KKR and he says,

801
00:40:06,440 --> 00:40:11,240
Speaker 1: no conflict, no interest, And I loved that quote because

802
00:40:11,239 --> 00:40:14,960
Speaker 1: it's how smart, smart dealmakers do deals. KKR is a

803
00:40:15,040 --> 00:40:17,839
Speaker 1: multi multi multibillion dollar private equity firm, and what he's

804
00:40:17,840 --> 00:40:20,200
Speaker 1: basically saying is if I don't have a conflict, I

805
00:40:20,239 --> 00:40:22,640
Speaker 1: don't have an interest. And what he means by conflict

806
00:40:22,680 --> 00:40:25,240
Speaker 1: is if I don't have an unfair advantage and unfair

807
00:40:25,320 --> 00:40:30,160
Speaker 1: insight into this industry, deal, entrepreneur, sector, whatever, I'm not

808
00:40:30,200 --> 00:40:33,200
Speaker 1: going to do it because I want outsized returns. So

809
00:40:33,280 --> 00:40:35,800
Speaker 1: let me give you an example. Let's say that Warren

810
00:40:35,840 --> 00:40:39,760
Speaker 1: Buffett was going to go and buy his railroad company,

811
00:40:39,800 --> 00:40:43,160
Speaker 1: which was BNSF. When he went to go buy BNSF,

812
00:40:43,200 --> 00:40:45,120
Speaker 1: a lot of people thought he was nuts for buying

813
00:40:45,160 --> 00:40:48,719
Speaker 1: that railroad. But what did Warren Buffett probably know that

814
00:40:48,880 --> 00:40:52,960
Speaker 1: is allowed in public deals Before he purchased that company.

815
00:40:53,400 --> 00:40:57,640
Speaker 1: He knew that pipelines were going to start shipping energy

816
00:40:57,800 --> 00:41:00,280
Speaker 1: or oil around the country, and b n S stuff

817
00:41:00,280 --> 00:41:02,480
Speaker 1: was going to get some contracts for that deal. So

818
00:41:02,560 --> 00:41:04,840
Speaker 1: he did that deal because he had a conflict. He

819
00:41:04,880 --> 00:41:08,040
Speaker 1: had an unfair insight into the industry in the same

820
00:41:08,040 --> 00:41:12,440
Speaker 1: way that you, Joel and Matt might know. Man, podcasters

821
00:41:12,480 --> 00:41:14,880
Speaker 1: over the next ex period of time are going to

822
00:41:14,920 --> 00:41:17,799
Speaker 1: do this thing that nobody else realizes. So I'm going

823
00:41:17,840 --> 00:41:20,960
Speaker 1: to buy this business in advance. Or I'm an accountant

824
00:41:21,280 --> 00:41:25,640
Speaker 1: and I know that it's really brutal for other accountants

825
00:41:25,960 --> 00:41:29,160
Speaker 1: to hire X type of person, So I'm going to

826
00:41:29,200 --> 00:41:32,320
Speaker 1: buy this outsourcing accountant firm. You want to use whatever

827
00:41:32,360 --> 00:41:35,960
Speaker 1: the industry is that you have unique insight into, and say, Man,

828
00:41:36,239 --> 00:41:40,319
Speaker 1: I want to leverage my expertise for an unfair deal.

829
00:41:40,680 --> 00:41:42,520
Speaker 1: The last thing I'll say is, like a good example

830
00:41:42,560 --> 00:41:44,000
Speaker 1: of this right now would be if I was a

831
00:41:44,000 --> 00:41:47,080
Speaker 1: realtor and I saw that last month open door lost

832
00:41:47,120 --> 00:41:50,839
Speaker 1: forty lost money on of all deals that they did,

833
00:41:51,600 --> 00:41:55,240
Speaker 1: and that generally across the ecosystem, real estate is coming

834
00:41:55,320 --> 00:41:59,120
Speaker 1: down in cost. I would probably be thinking, huh, I

835
00:41:59,120 --> 00:42:00,920
Speaker 1: bet I'm not to do as well this year in

836
00:42:00,960 --> 00:42:03,080
Speaker 1: real estate as I did last year. How could I

837
00:42:03,160 --> 00:42:06,200
Speaker 1: offset the return that I'm making on real estate this

838
00:42:06,280 --> 00:42:09,200
Speaker 1: year through an acquisition? So I might say I'm going

839
00:42:09,239 --> 00:42:12,919
Speaker 1: to buy a property management company because people will still

840
00:42:12,960 --> 00:42:15,919
Speaker 1: have to have their property managed during a downturn, even

841
00:42:15,960 --> 00:42:18,480
Speaker 1: if they're not buying or selling. I make money no

842
00:42:18,480 --> 00:42:23,520
Speaker 1: matter who owns it. Great, that is your unfair advantage. Yeah, yeah,

843
00:42:23,520 --> 00:42:24,719
Speaker 1: I like it. You've got to find out what that

844
00:42:24,760 --> 00:42:27,520
Speaker 1: is so that you can exploit it and that edge.

845
00:42:28,000 --> 00:42:30,600
Speaker 1: You can't succeed in everything, Right, You've got to kind

846
00:42:30,600 --> 00:42:32,440
Speaker 1: of pick your niche, and that's how you're going to

847
00:42:32,520 --> 00:42:35,480
Speaker 1: be able to kind of get those abnormal returns you're

848
00:42:35,480 --> 00:42:37,120
Speaker 1: talking about. All right, Cody, We've got We've got a

849
00:42:37,160 --> 00:42:39,319
Speaker 1: couple more questions we want to get to, including the

850
00:42:39,360 --> 00:42:42,560
Speaker 1: power of people and and also like where you're doing business,

851
00:42:42,560 --> 00:42:44,120
Speaker 1: how you might need to move in order to get

852
00:42:44,120 --> 00:42:46,680
Speaker 1: a better advantage. We'll discuss a couple of those things, right,

853
00:42:46,719 --> 00:42:57,760
Speaker 1: after this all right, we are back from the break

854
00:42:57,840 --> 00:43:02,640
Speaker 1: talking with Cody Sanchez and Cody. Essentially, what we're talking

855
00:43:02,640 --> 00:43:04,880
Speaker 1: about here is passive income, right, and so I'm curious

856
00:43:04,920 --> 00:43:08,319
Speaker 1: if you have like an overarching philosophy when it comes

857
00:43:08,320 --> 00:43:10,600
Speaker 1: to passive income, because I feel like that phrase, it

858
00:43:10,680 --> 00:43:15,040
Speaker 1: gets thrown around a lot, certainly sounds amazing, but it's

859
00:43:15,080 --> 00:43:17,840
Speaker 1: also not nearly as easy, you know, as the phrase

860
00:43:17,920 --> 00:43:20,160
Speaker 1: might make it sound. I would love to hear you

861
00:43:20,239 --> 00:43:23,799
Speaker 1: talk about just your general take on passive income. One

862
00:43:23,840 --> 00:43:27,719
Speaker 1: of my favorite mentors, David Osborne, said a word to

863
00:43:27,760 --> 00:43:29,919
Speaker 1: me that I think makes all the difference. He calls

864
00:43:29,960 --> 00:43:34,759
Speaker 1: it horizontal income instead of passive income. Basically, what this

865
00:43:34,880 --> 00:43:38,680
Speaker 1: means is that this is these aren't types of income

866
00:43:38,719 --> 00:43:43,560
Speaker 1: streams like investment stocks, differentiated businesses from your main salary

867
00:43:43,680 --> 00:43:47,000
Speaker 1: that keep making you money regardless of your day to

868
00:43:47,080 --> 00:43:50,160
Speaker 1: day income and your main vein which so I almost

869
00:43:50,160 --> 00:43:52,480
Speaker 1: see it like a chart, like vertical income goes up

870
00:43:52,520 --> 00:43:56,200
Speaker 1: and down, that's your earned salary. Horizontal income gets layered

871
00:43:56,360 --> 00:43:58,239
Speaker 1: over whatever it is you're doing on a day to

872
00:43:58,320 --> 00:44:00,759
Speaker 1: day basis. You only have so many hours in a

873
00:44:00,840 --> 00:44:03,520
Speaker 1: day vertically, right, and you could maybe take up eight

874
00:44:03,560 --> 00:44:06,680
Speaker 1: of those hours with something, but horizontally, you could add

875
00:44:06,719 --> 00:44:08,920
Speaker 1: as many as you want, right because they just continue

876
00:44:08,960 --> 00:44:12,560
Speaker 1: to stack. I like that because passive income is a misnomer.

877
00:44:13,040 --> 00:44:17,000
Speaker 1: Unless you're investing in funds, you know, some sort of

878
00:44:17,040 --> 00:44:21,440
Speaker 1: commingled vehicle, the stock market, somebody else's deal, you're going

879
00:44:21,520 --> 00:44:23,440
Speaker 1: to be involved in some way, shape or form. And

880
00:44:23,520 --> 00:44:25,680
Speaker 1: even for those deals, you're going to be involved in

881
00:44:25,680 --> 00:44:28,040
Speaker 1: the beginning by at least making sure that the due

882
00:44:28,040 --> 00:44:30,759
Speaker 1: diligence is right or that you should do this deal.

883
00:44:30,800 --> 00:44:33,400
Speaker 1: But it's a good deal. So I don't love that

884
00:44:33,520 --> 00:44:36,200
Speaker 1: term passive income. What I like to think about is

885
00:44:36,480 --> 00:44:40,840
Speaker 1: having horizontal income streams that stack, and that is something

886
00:44:40,840 --> 00:44:43,920
Speaker 1: that these businesses can do over time. You know, I

887
00:44:43,920 --> 00:44:47,000
Speaker 1: always debate people about this because some people say you

888
00:44:47,000 --> 00:44:49,040
Speaker 1: should go all in on your main thing, and I

889
00:44:49,080 --> 00:44:53,120
Speaker 1: think that is true for some people. I do not

890
00:44:53,200 --> 00:44:55,919
Speaker 1: think that is true for everybody. There are just some

891
00:44:56,200 --> 00:45:00,319
Speaker 1: outliers out there who should, no matter what the gets

892
00:45:00,480 --> 00:45:03,000
Speaker 1: hard on the one thing that they're supposed to do

893
00:45:03,400 --> 00:45:06,280
Speaker 1: because they're going to be the one to ten percent

894
00:45:06,320 --> 00:45:12,920
Speaker 1: that survives in business. But most people numerically categorically are

895
00:45:12,960 --> 00:45:17,160
Speaker 1: not that and they should have diversified income streams because

896
00:45:17,360 --> 00:45:20,560
Speaker 1: you need something to fall back on. And I do

897
00:45:20,640 --> 00:45:25,400
Speaker 1: not think that we should proselytize or make it seem

898
00:45:25,440 --> 00:45:29,040
Speaker 1: amazing that we're sleeping on floors to achieve our dreams.

899
00:45:29,120 --> 00:45:32,000
Speaker 1: I don't think that's necessary, And I think you could

900
00:45:32,000 --> 00:45:34,520
Speaker 1: do it away. That causes a lot less stress for

901
00:45:34,640 --> 00:45:37,480
Speaker 1: you and your families and your bodies through having horizontal

902
00:45:37,480 --> 00:45:39,719
Speaker 1: income streams. Yeah, I like that. And like you said,

903
00:45:39,840 --> 00:45:42,520
Speaker 1: over the years, it doesn't happen over and over the overnight.

904
00:45:42,560 --> 00:45:46,320
Speaker 1: But as you're stacking up some of those horizontal income streams,

905
00:45:46,680 --> 00:45:49,880
Speaker 1: they can start to look close to the vertical income

906
00:45:49,920 --> 00:45:53,000
Speaker 1: stream and eventually replace it, which which is really cool.

907
00:45:53,160 --> 00:45:55,799
Speaker 1: But yeah, take take some time, take some intentionality. I

908
00:45:55,800 --> 00:45:58,040
Speaker 1: guess one of my questions too, when you're talking about

909
00:45:58,040 --> 00:46:00,839
Speaker 1: maybe some of the physical busines this is that you've

910
00:46:00,880 --> 00:46:04,080
Speaker 1: bought they don't run themselves, right, So you buy a laundromat,

911
00:46:04,400 --> 00:46:07,680
Speaker 1: but Cody Sanchez isn't going in there and unlocking the

912
00:46:07,719 --> 00:46:10,160
Speaker 1: doors at six am to make sure people can come

913
00:46:10,160 --> 00:46:12,360
Speaker 1: in and wash their clothes, like and and some of

914
00:46:12,360 --> 00:46:15,640
Speaker 1: these businesses are more labor dependent than others, So how

915
00:46:15,680 --> 00:46:17,960
Speaker 1: do folks need to think through the putting the right

916
00:46:18,000 --> 00:46:20,800
Speaker 1: people in place part of the equation when they're purchasing

917
00:46:20,880 --> 00:46:23,560
Speaker 1: a business so that they're not stuck being the person

918
00:46:23,560 --> 00:46:26,879
Speaker 1: who now just got a new job that requires forty

919
00:46:26,880 --> 00:46:30,080
Speaker 1: hours a week of their time. It's the difference between

920
00:46:30,160 --> 00:46:35,040
Speaker 1: operators and investor owners. An investor owner is somebody who

921
00:46:35,080 --> 00:46:39,400
Speaker 1: takes money, or structures a deal, or does something that

922
00:46:39,440 --> 00:46:43,400
Speaker 1: has infinite return on time. Ak, my dollars do not

923
00:46:43,480 --> 00:46:47,240
Speaker 1: have a time construction and invest that in a business

924
00:46:47,680 --> 00:46:50,200
Speaker 1: where then your operator is the person who day to

925
00:46:50,239 --> 00:46:53,040
Speaker 1: day runs it. So I don't want to turn this

926
00:46:53,080 --> 00:46:57,600
Speaker 1: into a Cinderella fantasy land. For your first deal, you

927
00:46:57,719 --> 00:47:00,839
Speaker 1: probably are not qualified to be an investor owner. You know,

928
00:47:01,080 --> 00:47:03,319
Speaker 1: you need to get some reps under your belt. You

929
00:47:03,400 --> 00:47:05,279
Speaker 1: might have to open the door on your first long

930
00:47:05,320 --> 00:47:07,680
Speaker 1: termat because you've never done this type of deal before.

931
00:47:08,080 --> 00:47:09,680
Speaker 1: You might have to get in the back end of

932
00:47:09,719 --> 00:47:12,120
Speaker 1: your website for the first website that you buy. But

933
00:47:12,239 --> 00:47:14,960
Speaker 1: the goal is is that you do bigger and bigger

934
00:47:15,000 --> 00:47:17,880
Speaker 1: deals which have more and more free cash flow in

935
00:47:17,920 --> 00:47:20,600
Speaker 1: them that allows you to hire people with that free

936
00:47:20,640 --> 00:47:23,680
Speaker 1: cash flow. So your first deal, you're probably kind of

937
00:47:23,719 --> 00:47:26,480
Speaker 1: you know, you're probably really involved, or at least kind

938
00:47:26,520 --> 00:47:28,759
Speaker 1: of involved. And then the more deals you do, the

939
00:47:28,800 --> 00:47:31,239
Speaker 1: more infrastructure you can build so you don't have to

940
00:47:31,280 --> 00:47:35,160
Speaker 1: be involved. And that's how Warren Buffett runs businesses that

941
00:47:35,200 --> 00:47:38,440
Speaker 1: do tens or hundreds of billions of dollars in revenue

942
00:47:38,760 --> 00:47:42,520
Speaker 1: with a team of thirty five people, because they are

943
00:47:42,680 --> 00:47:47,160
Speaker 1: overseeing all of their operators inside of those businesses they

944
00:47:47,200 --> 00:47:49,960
Speaker 1: are they have a early Monger has an amazing quote,

945
00:47:50,000 --> 00:47:52,600
Speaker 1: which is or it might have been Tarling Mungiger's mentor.

946
00:47:53,000 --> 00:47:56,319
Speaker 1: He says, when you get a dog, you let it

947
00:47:56,360 --> 00:47:59,520
Speaker 1: do the barking, and so it's the same with hiring.

948
00:47:59,719 --> 00:48:01,920
Speaker 1: You know, you hire an operator, you let them do

949
00:48:02,480 --> 00:48:06,759
Speaker 1: the operating. And that's the difference between the two. I

950
00:48:06,800 --> 00:48:08,920
Speaker 1: like it too well. Matt and I were mom and

951
00:48:09,000 --> 00:48:12,080
Speaker 1: pop landlords, right, and it just makes me think that

952
00:48:12,200 --> 00:48:15,719
Speaker 1: the first property that I bought, I was I was

953
00:48:15,760 --> 00:48:18,680
Speaker 1: fixing everything. I was mowing the lawn, I was self managing.

954
00:48:18,719 --> 00:48:21,759
Speaker 1: I was doing all the above in order to make

955
00:48:21,840 --> 00:48:24,279
Speaker 1: sure that my bottom line was solid so that I

956
00:48:24,280 --> 00:48:26,040
Speaker 1: could have more money to invest in the next deal.

957
00:48:26,360 --> 00:48:29,160
Speaker 1: And I just for the first time, hired someone to

958
00:48:29,320 --> 00:48:32,399
Speaker 1: manage some of my properties, and it's it's like, I'm

959
00:48:32,480 --> 00:48:34,359
Speaker 1: I feel like I'm fine at that point, and now

960
00:48:34,360 --> 00:48:36,960
Speaker 1: that I'm eight doors into real estate investing, like as

961
00:48:37,000 --> 00:48:39,840
Speaker 1: it grows, you have more opportunity to be able to

962
00:48:39,920 --> 00:48:42,960
Speaker 1: hire those things out. Whereas the first deal you're gonna

963
00:48:43,000 --> 00:48:45,200
Speaker 1: need to be more involved, but every successive deal you

964
00:48:45,200 --> 00:48:48,480
Speaker 1: can be just a little more, a little further away

965
00:48:48,480 --> 00:48:51,560
Speaker 1: from the operating of of that business. Yeah, and Coudy,

966
00:48:51,600 --> 00:48:54,160
Speaker 1: it seems like that you're not buying and holding forever

967
00:48:54,600 --> 00:48:56,839
Speaker 1: when it comes to these different businesses that you have.

968
00:48:57,200 --> 00:48:59,440
Speaker 1: What is it that makes you want to sell a

969
00:48:59,440 --> 00:49:01,799
Speaker 1: business that you currently own? Are you just kind of

970
00:49:01,800 --> 00:49:04,920
Speaker 1: taking advantage of a business that's not valued exactly where

971
00:49:04,920 --> 00:49:07,279
Speaker 1: it should be? Right? Like so the arbitrage you quoted

972
00:49:07,320 --> 00:49:09,880
Speaker 1: Warm Buffet a bunch that he calls those the cigar butts.

973
00:49:10,120 --> 00:49:12,759
Speaker 1: Are you doing that or are you looking for some

974
00:49:12,840 --> 00:49:16,200
Speaker 1: different businesses that can provide you that cash flow over time?

975
00:49:16,680 --> 00:49:19,279
Speaker 1: I think the cigar Butts strategy, which basically was like

976
00:49:19,360 --> 00:49:22,000
Speaker 1: can you take the last polls off of business that

977
00:49:22,040 --> 00:49:24,840
Speaker 1: people aren't thinking about? Like is there something left in

978
00:49:24,960 --> 00:49:28,200
Speaker 1: something that people think is dead? Is actually a really

979
00:49:28,239 --> 00:49:31,520
Speaker 1: tough strategy to do if you are not super skilled.

980
00:49:31,800 --> 00:49:34,920
Speaker 1: An analogy to this is there's something called a turnaround company,

981
00:49:34,960 --> 00:49:37,800
Speaker 1: which is basically you buy a company that's not doing

982
00:49:37,840 --> 00:49:39,920
Speaker 1: well right now and you're like, I'm the white Night,

983
00:49:40,040 --> 00:49:42,040
Speaker 1: I'm the savior. I'm coming in and turn this bad

984
00:49:42,080 --> 00:49:44,640
Speaker 1: boy around and we're going to make it profitable again.

985
00:49:44,960 --> 00:49:46,880
Speaker 1: Those I think are not great for new beats. And

986
00:49:46,920 --> 00:49:50,440
Speaker 1: here's why because whenever, and you guys know this is

987
00:49:50,520 --> 00:49:55,360
Speaker 1: property managers. Have you bought a house that's a fixer upper,

988
00:49:55,840 --> 00:49:59,760
Speaker 1: gone into construction for it, fixed up the fixer upper,

989
00:49:59,800 --> 00:50:03,319
Speaker 1: and on it under budget and faster than you value

990
00:50:03,360 --> 00:50:06,560
Speaker 1: would right? Doesn't happen? Doesn't happen? Right? The same thing

991
00:50:06,560 --> 00:50:08,600
Speaker 1: for a business. It's just going to take longer and

992
00:50:08,640 --> 00:50:11,400
Speaker 1: be more expensive than you anticipate. So start with buying

993
00:50:11,440 --> 00:50:14,440
Speaker 1: the nice house on a great street that you understand

994
00:50:14,520 --> 00:50:17,879
Speaker 1: and think you can help appreciate or cash flow off

995
00:50:17,920 --> 00:50:20,839
Speaker 1: of as is as opposed to a turnaround. The main

996
00:50:21,040 --> 00:50:23,840
Speaker 1: you know, strategy that I use to decide if I

997
00:50:23,840 --> 00:50:25,880
Speaker 1: want to buy keep a business or if I want

998
00:50:25,920 --> 00:50:29,200
Speaker 1: to sell a business is just is the business worth it?

999
00:50:29,840 --> 00:50:33,080
Speaker 1: From a an R O I perspective? So you know,

1000
00:50:33,200 --> 00:50:36,799
Speaker 1: for my businesses, if the business will do at least

1001
00:50:36,880 --> 00:50:39,480
Speaker 1: a hundred thousand dollars in free cash flow to me

1002
00:50:39,960 --> 00:50:42,400
Speaker 1: and I don't have to spend time on the business,

1003
00:50:42,719 --> 00:50:46,279
Speaker 1: I'll keep it. But that number keeps creeping up, and

1004
00:50:46,320 --> 00:50:48,480
Speaker 1: the more they ask of me and the more I

1005
00:50:48,520 --> 00:50:50,400
Speaker 1: have to do within the business. If it's not one

1006
00:50:50,440 --> 00:50:52,920
Speaker 1: of my main ones, I'll probably divest or I'll sell

1007
00:50:52,960 --> 00:50:55,880
Speaker 1: it and I'll let somebody else go take that perfectly

1008
00:50:55,880 --> 00:50:58,160
Speaker 1: sized business for them and run it. And then I'll

1009
00:50:58,160 --> 00:50:59,839
Speaker 1: take that money and I'll put it into a bigger deal,

1010
00:51:00,080 --> 00:51:01,680
Speaker 1: just like you would tend thirty want to exchange a

1011
00:51:01,680 --> 00:51:04,080
Speaker 1: piece of real estate. Yeah, it makes sense that the

1012
00:51:04,080 --> 00:51:06,960
Speaker 1: fundamentals need to be solid. You can't just decide to

1013
00:51:07,000 --> 00:51:09,080
Speaker 1: come in there and just your magic touch, Like you're

1014
00:51:09,080 --> 00:51:10,520
Speaker 1: not gonna have the Mnus touch and be able to

1015
00:51:10,760 --> 00:51:15,279
Speaker 1: necessarily turn something around, especially as a nube. Yeah, exactly. Well,

1016
00:51:15,320 --> 00:51:17,719
Speaker 1: I plays chuckle too with like the year olds. They're like,

1017
00:51:17,719 --> 00:51:20,279
Speaker 1: I'm gonna buy this plumbing company. I'm going to take

1018
00:51:20,280 --> 00:51:24,480
Speaker 1: it to ten million dollars dollars right now. I'm like,

1019
00:51:24,600 --> 00:51:27,719
Speaker 1: have you ever managed plumbers? Have you ever been in

1020
00:51:27,760 --> 00:51:29,960
Speaker 1: a plumbing job. Do you know anything about the industry?

1021
00:51:29,960 --> 00:51:32,200
Speaker 1: And it's okay to not know all that stuff, but

1022
00:51:32,360 --> 00:51:35,239
Speaker 1: come in with no hubrist be like, this business is

1023
00:51:35,280 --> 00:51:39,239
Speaker 1: doing X, I think I believe X, and I can

1024
00:51:39,280 --> 00:51:43,040
Speaker 1: continue X if we can add more to it. Awesome.

1025
00:51:43,280 --> 00:51:45,839
Speaker 1: Well let's just make sure that we understand it as

1026
00:51:45,960 --> 00:51:48,560
Speaker 1: is first. Yeah, that's a good point, or else you

1027
00:51:48,600 --> 00:51:50,760
Speaker 1: could lose a lot of money if you if you're

1028
00:51:50,760 --> 00:51:53,960
Speaker 1: shooting for the moon when in all likelihood that plumbing

1029
00:51:53,960 --> 00:51:56,080
Speaker 1: company you're not going to be able to like fifty X.

1030
00:51:56,280 --> 00:51:58,880
Speaker 1: That's that's a tough endeavor. But Cody, this has been

1031
00:51:58,920 --> 00:52:01,080
Speaker 1: an awesome conversation. Thanks so much for joining us. And

1032
00:52:01,120 --> 00:52:03,759
Speaker 1: where can our listeners find out more about you and

1033
00:52:03,800 --> 00:52:06,040
Speaker 1: what you're up to? I think the best place for

1034
00:52:06,040 --> 00:52:08,080
Speaker 1: that is probably contrain Thinking dot com. We have a

1035
00:52:08,120 --> 00:52:11,759
Speaker 1: free newsletter on there all about different ways to cash

1036
00:52:11,760 --> 00:52:16,080
Speaker 1: flow and interesting um industries, et cetera. Same with unconventional

1037
00:52:16,120 --> 00:52:20,000
Speaker 1: acquisitions dot com. Apparently we like vowels and then uh

1038
00:52:20,200 --> 00:52:23,080
Speaker 1: anywhere on the social's Cody Sanchez, I'm all over them,

1039
00:52:23,160 --> 00:52:25,520
Speaker 1: you know, TikTok in Instagram and whatever we do on

1040
00:52:25,560 --> 00:52:27,960
Speaker 1: the internet. I love it awesome. Thank you and yeah,

1041
00:52:28,000 --> 00:52:30,520
Speaker 1: your newsletter is a must read for anybody who wants

1042
00:52:30,520 --> 00:52:32,560
Speaker 1: to like deep dive even further into these topics and

1043
00:52:32,600 --> 00:52:35,760
Speaker 1: get specific examples on a weekly basis of cool stuff

1044
00:52:35,760 --> 00:52:38,600
Speaker 1: you could be doing that increase your income. So yeah,

1045
00:52:38,600 --> 00:52:40,960
Speaker 1: I love the space your end, the ability that you

1046
00:52:41,000 --> 00:52:43,719
Speaker 1: have to open folks minds as to what's possible. I

1047
00:52:43,800 --> 00:52:47,560
Speaker 1: think that's the biggest takeaway as folks are hopefully considering

1048
00:52:48,320 --> 00:52:51,319
Speaker 1: what owning their own business might look like, it doesn't

1049
00:52:51,360 --> 00:52:53,640
Speaker 1: necessarily have to look like the the job that they've

1050
00:52:53,640 --> 00:52:56,359
Speaker 1: had for the past five to fifteen years. I think

1051
00:52:56,400 --> 00:52:58,279
Speaker 1: you're doing a great job with that. Cody, thank you

1052
00:52:58,320 --> 00:53:01,000
Speaker 1: so much for joining us, saying on the on the podcast,

1053
00:53:01,400 --> 00:53:03,080
Speaker 1: this is a blast. As you me, it's super easy.

1054
00:53:03,080 --> 00:53:05,600
Speaker 1: Thanks for having me, all right, Matt, I love that conversation.

1055
00:53:05,640 --> 00:53:08,040
Speaker 1: I feel like I'm totally picking up what Cody's putting down.

1056
00:53:08,200 --> 00:53:10,839
Speaker 1: I think she is. She is one of the only

1057
00:53:10,840 --> 00:53:13,359
Speaker 1: people that I know of in this space talking about

1058
00:53:13,360 --> 00:53:17,560
Speaker 1: how people can change their lives by buying other people's businesses.

1059
00:53:17,719 --> 00:53:20,800
Speaker 1: And like we talked about for just a second, demographically,

1060
00:53:21,200 --> 00:53:24,160
Speaker 1: there is there is more opportunity than ever to take

1061
00:53:24,239 --> 00:53:27,880
Speaker 1: part in this bonanza that is buying other businesses and

1062
00:53:27,920 --> 00:53:30,720
Speaker 1: being able to yeah, pay your bills and and eventually

1063
00:53:30,800 --> 00:53:33,279
Speaker 1: leave your job. Specifically, there are three ways that are

1064
00:53:33,360 --> 00:53:36,480
Speaker 1: leading to this being a fantastic time to to consider this.

1065
00:53:36,640 --> 00:53:38,040
Speaker 1: For sure. I can't wait to read that book when

1066
00:53:38,080 --> 00:53:40,360
Speaker 1: it comes out. But what was your big takeaway from

1067
00:53:40,360 --> 00:53:42,920
Speaker 1: this combo? Yeah, so, as we were just kind of

1068
00:53:42,920 --> 00:53:45,000
Speaker 1: talking through a lot, I mean, we we kind of

1069
00:53:45,080 --> 00:53:48,279
Speaker 1: dug into a lot of good meat, which I really appreciate, um,

1070
00:53:48,320 --> 00:53:50,200
Speaker 1: but I think there might be some folks who are thinking,

1071
00:53:50,239 --> 00:53:54,160
Speaker 1: holy cow, I feel so incredibly overwhelmed, And how how

1072
00:53:54,200 --> 00:53:56,800
Speaker 1: am I supposed to know if me buying somebody else's

1073
00:53:56,800 --> 00:53:59,480
Speaker 1: business or even being a business owner myself, if that's

1074
00:53:59,480 --> 00:54:01,759
Speaker 1: something that I want to do. And earlier on in

1075
00:54:01,800 --> 00:54:04,040
Speaker 1: the conversation, I can't remember what we were talking about,

1076
00:54:04,080 --> 00:54:07,080
Speaker 1: but she I didn't like someone out or anything. But

1077
00:54:07,120 --> 00:54:09,560
Speaker 1: I can't remember what she was responding to specifically, but

1078
00:54:09,600 --> 00:54:11,759
Speaker 1: she was talking about how of all the people that

1079
00:54:11,800 --> 00:54:16,040
Speaker 1: she's hired, like hundreds, if not thousands, she hires people

1080
00:54:16,040 --> 00:54:18,040
Speaker 1: based on desire. I think that was when we were

1081
00:54:18,040 --> 00:54:20,960
Speaker 1: talking about second generation immigrant? Was that? Yeah? Okay? So

1082
00:54:21,360 --> 00:54:23,080
Speaker 1: like and she said you can't teach that. You can't

1083
00:54:23,120 --> 00:54:26,239
Speaker 1: teach desire, you can't teach curiosity. And so if you

1084
00:54:26,320 --> 00:54:29,120
Speaker 1: have an innate curiosity, if you have a desire to

1085
00:54:29,160 --> 00:54:31,080
Speaker 1: be your own boss, to run your own business, to

1086
00:54:31,239 --> 00:54:33,960
Speaker 1: figure out what it takes to own a business right

1087
00:54:33,960 --> 00:54:36,080
Speaker 1: now in the moment, I wouldn't worry so much about

1088
00:54:36,160 --> 00:54:38,800
Speaker 1: all the specifics of what it takes to find and locate,

1089
00:54:39,120 --> 00:54:41,719
Speaker 1: uh and hone in on a successful business, because those

1090
00:54:41,760 --> 00:54:43,799
Speaker 1: are all things that you can figure out if you

1091
00:54:43,880 --> 00:54:46,000
Speaker 1: have that desire. Though I don't see that as a

1092
00:54:46,000 --> 00:54:49,000
Speaker 1: litmus test that, Okay, you are likely going to be

1093
00:54:49,040 --> 00:54:51,720
Speaker 1: a good candidate for somebody to to purchase the business

1094
00:54:51,800 --> 00:54:53,880
Speaker 1: or to own your own business. But if you're listening

1095
00:54:53,920 --> 00:54:57,360
Speaker 1: to this and maybe you are like, okay, yeah, thinking

1096
00:54:57,400 --> 00:55:00,359
Speaker 1: about all the different things you know, matching up their

1097
00:55:00,360 --> 00:55:02,920
Speaker 1: historical tax returns to the current profit and lost it.

1098
00:55:03,080 --> 00:55:04,680
Speaker 1: Maybe you're thinking through all the nuts and bolts and

1099
00:55:04,680 --> 00:55:06,919
Speaker 1: you're thinking, I got all that, that's that's no big deal.

1100
00:55:07,200 --> 00:55:09,839
Speaker 1: But if you have no desire, if you have no curiosity,

1101
00:55:09,880 --> 00:55:11,880
Speaker 1: you might have all the fundamentals down. But if you

1102
00:55:11,920 --> 00:55:14,520
Speaker 1: don't truly want to do this, then I don't know

1103
00:55:14,560 --> 00:55:16,840
Speaker 1: if this is gonna be good a good opportunity, I

1104
00:55:16,880 --> 00:55:18,680
Speaker 1: don't think this is going to be a good path

1105
00:55:18,719 --> 00:55:20,200
Speaker 1: for you to take. I will say too, I think

1106
00:55:20,200 --> 00:55:22,440
Speaker 1: you can foster some of that curiosity. I don't think.

1107
00:55:22,520 --> 00:55:24,239
Speaker 1: I think sometimes it's innate. There's a lot of that

1108
00:55:24,239 --> 00:55:27,000
Speaker 1: that that is just kind of instinctual. But that is

1109
00:55:27,040 --> 00:55:29,640
Speaker 1: also something that you can prod in yourself if you're

1110
00:55:29,640 --> 00:55:32,359
Speaker 1: if you're interested, if you can personal development, that might

1111
00:55:32,440 --> 00:55:34,680
Speaker 1: lead to you taking some steps and you otherwise wouldn't.

1112
00:55:34,680 --> 00:55:36,720
Speaker 1: If you get an ink to go in that direction,

1113
00:55:36,840 --> 00:55:39,320
Speaker 1: there is work that you can do to kind of

1114
00:55:39,360 --> 00:55:41,799
Speaker 1: push yourself to Like, I've become interested in all sorts

1115
00:55:41,800 --> 00:55:43,520
Speaker 1: of things I never thought I would be interested in.

1116
00:55:43,840 --> 00:55:45,840
Speaker 1: And as I kind of give into that desire and

1117
00:55:45,880 --> 00:55:48,520
Speaker 1: I listen to content or I'm I'm following other people

1118
00:55:48,520 --> 00:55:50,359
Speaker 1: who are doing cool stuff in that space, it gets

1119
00:55:50,360 --> 00:55:53,759
Speaker 1: me excited about maybe participating. So yeah, I think that

1120
00:55:53,760 --> 00:55:56,719
Speaker 1: that that you can find maybe that desire even if

1121
00:55:56,760 --> 00:55:58,160
Speaker 1: you're like I don't know if I see it now,

1122
00:55:58,320 --> 00:55:59,799
Speaker 1: but don't push it. You don't have to go get

1123
00:56:00,000 --> 00:56:01,640
Speaker 1: at it right now even though you don't feel it,

1124
00:56:01,719 --> 00:56:03,680
Speaker 1: but you can foster it along the way and then

1125
00:56:03,719 --> 00:56:05,880
Speaker 1: maybe protect later on down the road. Yeah. I do

1126
00:56:05,920 --> 00:56:08,360
Speaker 1: think there's a difference though, between interest and something and

1127
00:56:08,560 --> 00:56:10,520
Speaker 1: a desire to learn, because I feel like you've always

1128
00:56:10,520 --> 00:56:13,560
Speaker 1: probably had a desire or that curiosity, even though you

1129
00:56:13,640 --> 00:56:16,239
Speaker 1: might stay to yourself, well I've never cared about World

1130
00:56:16,239 --> 00:56:18,440
Speaker 1: War two. But then all of a sudden, because you

1131
00:56:18,440 --> 00:56:21,520
Speaker 1: have that desire because you are curious, you realize, oh, man,

1132
00:56:21,560 --> 00:56:23,799
Speaker 1: this is now something that interests me. I did not

1133
00:56:24,040 --> 00:56:26,080
Speaker 1: used to be interested in this, but now I am.

1134
00:56:26,440 --> 00:56:28,080
Speaker 1: I do hear what you're saying that. I think there

1135
00:56:28,120 --> 00:56:30,320
Speaker 1: are ways for us to kind of cultivate that within ourselves.

1136
00:56:30,360 --> 00:56:32,360
Speaker 1: And I think what Cody was saying is that second

1137
00:56:32,360 --> 00:56:35,399
Speaker 1: generation immigrants kind of naturally have some of this. It's

1138
00:56:35,480 --> 00:56:38,520
Speaker 1: instinctual based on what these kids have seen their parents

1139
00:56:38,600 --> 00:56:40,759
Speaker 1: go through, which makes sense to me. I think my

1140
00:56:40,800 --> 00:56:45,279
Speaker 1: big takeaway was when she said more complexity equals more opportunity,

1141
00:56:45,680 --> 00:56:49,080
Speaker 1: and I think that's completely true. There is there is

1142
00:56:49,120 --> 00:56:53,399
Speaker 1: the potential for outsize returns when you're endeavoring to get

1143
00:56:53,440 --> 00:56:56,400
Speaker 1: into a space that fewer people are interested in getting

1144
00:56:56,400 --> 00:56:58,840
Speaker 1: into at all, Like how many people are talking about

1145
00:56:58,880 --> 00:57:02,000
Speaker 1: buying car washes and laundromats, Like not many people, right,

1146
00:57:02,320 --> 00:57:03,919
Speaker 1: Cody is one of the few people out there talking

1147
00:57:03,920 --> 00:57:06,560
Speaker 1: about this as a viable business strategy. But because there's

1148
00:57:06,560 --> 00:57:08,879
Speaker 1: not a lot of attention there, not everybody is trying

1149
00:57:08,920 --> 00:57:11,400
Speaker 1: to There's not like shows on h G TV endless

1150
00:57:11,440 --> 00:57:13,719
Speaker 1: ones about house there are endless ones about houselping, but

1151
00:57:13,760 --> 00:57:15,640
Speaker 1: there's not endless ones about buying laundromatics, you know what

1152
00:57:15,680 --> 00:57:17,800
Speaker 1: I'm saying. And so because of that, because of the

1153
00:57:17,800 --> 00:57:20,480
Speaker 1: fact that they're more complex or more boring, there is

1154
00:57:20,520 --> 00:57:23,160
Speaker 1: the ability for people to make more money getting into

1155
00:57:23,160 --> 00:57:26,200
Speaker 1: that business. So the numbers can be better, they can

1156
00:57:26,200 --> 00:57:29,160
Speaker 1: work out more to your advantage if you're getting into

1157
00:57:29,200 --> 00:57:31,280
Speaker 1: something that that you have to have a little bit

1158
00:57:31,320 --> 00:57:34,560
Speaker 1: of extra knowledge and a little bit of extra gumption

1159
00:57:34,680 --> 00:57:36,960
Speaker 1: to get into. Totally. Yeah, I love it, man. All right,

1160
00:57:37,040 --> 00:57:39,640
Speaker 1: let's get to the beer. You and I enjoyed an

1161
00:57:39,640 --> 00:57:43,520
Speaker 1: open Space Haze. This is not surprisingly a hazy I

1162
00:57:43,600 --> 00:57:46,200
Speaker 1: p a another beer by Boss Brewing Company. What were

1163
00:57:46,200 --> 00:57:48,600
Speaker 1: your thoughts on this one? Yeah, man, I'm gonna say

1164
00:57:48,640 --> 00:57:51,120
Speaker 1: this one was kind of a classic hazy style here.

1165
00:57:51,200 --> 00:57:53,240
Speaker 1: I feel like it's solid. If it was a six

1166
00:57:53,280 --> 00:57:55,600
Speaker 1: pack version, I could have this semi fridge all the time.

1167
00:57:56,040 --> 00:58:00,640
Speaker 1: It was just very drinkable, but also like nice, sweet, delicious.

1168
00:58:00,680 --> 00:58:02,240
Speaker 1: I p A. Yeah, I couldn't agree more. Man, it

1169
00:58:02,280 --> 00:58:06,200
Speaker 1: didn't have like one of those overly complex, hoppy backbones. Uh.

1170
00:58:06,200 --> 00:58:09,160
Speaker 1: It drank fairly clean for a hazy I p A.

1171
00:58:09,480 --> 00:58:11,520
Speaker 1: Really delicious. I'm glad you and I were able to

1172
00:58:11,600 --> 00:58:13,600
Speaker 1: enjoy this one on the show. We will make sure

1173
00:58:13,640 --> 00:58:16,360
Speaker 1: to link to some of the different resources that Cody

1174
00:58:16,520 --> 00:58:19,240
Speaker 1: mentioned during our interview up in our show notes for

1175
00:58:19,320 --> 00:58:22,160
Speaker 1: this episode up at how the Money dot Com. That's right,

1176
00:58:22,280 --> 00:58:24,240
Speaker 1: but Matt, that's gonna do it. So until next time,

1177
00:58:24,440 --> 00:58:26,640
Speaker 1: best Friends Out, Best Friends Out,