WEBVTT - Buying Existing Businesses to Make Millions with Codie Sanchez #577 0:00:00.080 --> 0:00:02.920 Welcome to How the Money. I'm Joel and I am Matt, 0:00:03.000 --> 0:00:06.960 and today we're talking buying existing businesses to make millions 0:00:07.080 --> 0:00:29.040 with Cody Sanchez. That's right. We are pumped to be 0:00:29.120 --> 0:00:33.160 talking with baller entrepreneur Cody Sanchez today. But the truth 0:00:33.240 --> 0:00:35.559 is that it took a while for Cody to get 0:00:35.600 --> 0:00:37.800 here because years ago, right out of right out of college, 0:00:38.159 --> 0:00:41.199 Cody was working like seventy hour work weeks for a paycheck, 0:00:41.360 --> 0:00:43.400 and even though she had a she had a graded education, 0:00:43.479 --> 0:00:46.200 she had an elite job, she felt like her life 0:00:46.400 --> 0:00:49.400 was out of control. But now things are different. Cody 0:00:49.520 --> 0:00:53.320 is financially independent. She owns something like twenty six small businesses, 0:00:53.840 --> 0:00:58.400 and she's the founder and CEO of Contrarian Thinking, where 0:00:58.640 --> 0:01:00.720 she basically she's on a mission to free the minds 0:01:00.720 --> 0:01:04.240 of individuals who are hanging on to traditional careers and 0:01:04.280 --> 0:01:07.000 they're also hanging onto the common narrative of what it 0:01:07.040 --> 0:01:11.160 means to be successful, and oftentimes that can be via 0:01:11.360 --> 0:01:14.560 buying existing businesses. This is more feasible than you might 0:01:14.600 --> 0:01:17.800 think to achieve. So Cody, we are excited to talk 0:01:17.840 --> 0:01:19.600 with you today. Thank you so much for joining us. 0:01:19.600 --> 0:01:21.680 We're excited to talk about all of the things that 0:01:21.720 --> 0:01:24.039 we just mentioned, plus a whole lot more. I'm thrilled 0:01:24.080 --> 0:01:25.720 to be here. Thanks for having me, guys. Yeah, we're 0:01:25.760 --> 0:01:27.160 glad to have you. And I think Matt was actually wrong. 0:01:27.160 --> 0:01:29.600 I think Cody bought two businesses while you're doing the introduction, Matt, 0:01:29.640 --> 0:01:31.160 So maybe she's at twenty right now. I don't know 0:01:32.920 --> 0:01:35.360 who can con who can count anymore? Well, uh, Cody. 0:01:35.400 --> 0:01:37.560 The first question we ask anybody who comes on the 0:01:37.600 --> 0:01:39.880 show is what they like to splore John. It helps 0:01:39.920 --> 0:01:42.280 us learn a little more about them. But Matt and 0:01:42.280 --> 0:01:44.440 I were being smart with our money, saving and investing 0:01:44.480 --> 0:01:46.720 for our futures, but we still like to spend a 0:01:46.760 --> 0:01:48.840 lot of money on a good craft beer. What's your 0:01:48.920 --> 0:01:51.120 what's something you spoor? John, what's your craft beer equivalent? 0:01:52.160 --> 0:01:54.800 I got a weird thing, maybe not so weird these 0:01:54.880 --> 0:02:01.720 days for crystals Texas? Okay, Yeah, very hippy letting that 0:02:02.160 --> 0:02:05.880 very hippie. You know, if there's like some overpriced gift 0:02:05.920 --> 0:02:10.280 shops somewhere with some shiny amethysts something or other, I'm 0:02:10.320 --> 0:02:13.080 gonna probably buy it for two bucks, and my husband's 0:02:13.080 --> 0:02:16.760 gonna ridicule me mercilessly. So you know, a little bit finance, 0:02:17.560 --> 0:02:20.400 a little bit uh hippie. Okay. So it makes me 0:02:20.440 --> 0:02:22.440 think of Hank from Breaking Bad when he was at 0:02:22.480 --> 0:02:24.840 one point like laid up in bed. He was like, 0:02:25.400 --> 0:02:28.600 buying all those crystals and stones off the internet. Is 0:02:28.600 --> 0:02:31.200 that is that you? Yeah, it's basically me. It's like, 0:02:31.280 --> 0:02:34.160 you know that saw a great me and it was like, God, 0:02:34.360 --> 0:02:36.680 look at those idiot kids with their light up shoes 0:02:36.720 --> 0:02:39.280 thinking that they're running faster with them on. And then 0:02:39.320 --> 0:02:42.840 it's like me buying a crystal and putting it outside 0:02:42.840 --> 0:02:46.040 so that I, you know, have a healthier week this week. 0:02:46.160 --> 0:02:51.040 It's that's where we're basically in life. So I did 0:02:51.120 --> 0:02:54.160 not even know this entirely like this, it's an entire subculture. 0:02:54.400 --> 0:02:57.160 And recently our family we we hiked up a local 0:02:57.160 --> 0:03:00.560 mountain and up on top of the mountains were on 0:03:00.560 --> 0:03:03.119 some of these rocks. There were some crystals set out 0:03:03.200 --> 0:03:05.240 and I was like, what in the world are these are? 0:03:05.400 --> 0:03:06.760 Our kids are wanting to play with them. They're like, 0:03:06.760 --> 0:03:08.639 can we have these? I was like I don't, no, 0:03:08.639 --> 0:03:10.280 no, no no, no, I think you should leave those alone. 0:03:10.360 --> 0:03:12.640 I think those are somebody else's. And my wife she 0:03:12.840 --> 0:03:15.120 filled me in and she's like, actually, we had there 0:03:15.160 --> 0:03:17.280 was like a special moon recently, and she's like, I 0:03:17.320 --> 0:03:21.399 think somebody left him out to essentially like recharge overnight. 0:03:21.639 --> 0:03:24.200 Like wow, that sounds familiar. I don't know, you know, 0:03:24.320 --> 0:03:27.320 I believe it. I don't know anything about horoscopes or 0:03:27.360 --> 0:03:30.640 like what crystals actually do. It's just a weird quirk 0:03:30.720 --> 0:03:34.360 of mine. Um so yes, but I think you know, 0:03:34.400 --> 0:03:38.280 I was actually reading that the crystal business because that's 0:03:38.280 --> 0:03:41.600 where I always go to. But basically, crystals, tarot cards, 0:03:41.600 --> 0:03:43.680 all that nonsense. I had one of the fastest growth 0:03:43.800 --> 0:03:47.720 rates ever in And in fact, there was in l 0:03:47.800 --> 0:03:50.720 A this weekend is perfect l A story. And I 0:03:50.760 --> 0:03:54.600 was walking down um like Venice, the main street whatever 0:03:54.600 --> 0:03:57.680 that's called Abbot Kenny and there was this crystal store 0:03:57.840 --> 0:04:00.920 and the crystals were crazily pry all over the place, 0:04:00.960 --> 0:04:03.480 and there was a sign that said closing sale or whatever, 0:04:03.520 --> 0:04:07.400 and I'm like, crystal business tough, like, oh no, actually 0:04:07.640 --> 0:04:12.960 we're opening up three new larger stores street. Yeah, you 0:04:13.000 --> 0:04:17.000 can imagine. Abbot Kenney is the most expensive, I believe 0:04:17.320 --> 0:04:21.520 rent per square foot street in the country besides now 0:04:21.960 --> 0:04:25.040 South Congress in Austin. Holy yeah, I was gonna say 0:04:25.080 --> 0:04:26.560 other than like Fifth Avenue up in New York or 0:04:26.600 --> 0:04:29.480 something like that, but I think it's higher. I thought 0:04:29.520 --> 0:04:32.960 you're gonna make a inflation crystals joke with the business, 0:04:33.000 --> 0:04:36.000 but no, it seems like they're doing just fine. At 0:04:36.040 --> 0:04:38.120 the very least, they are pretty uh, And I'm glad 0:04:38.120 --> 0:04:39.880 that that's something that you that you like to splore. John. 0:04:39.920 --> 0:04:42.440 We are not going to hate on that at all. Cody, 0:04:42.520 --> 0:04:46.719 let's talk, okay, because before you were a serial business owner, 0:04:47.000 --> 0:04:50.400 you were a journalist. You reported from the US Mexico border, 0:04:50.480 --> 0:04:52.680 and it seemed like that that actually motivated you to 0:04:52.720 --> 0:04:56.080 pursue a career in finances. Is that right? Um? I 0:04:56.120 --> 0:04:58.480 would love for you to connect the dots for us 0:04:58.520 --> 0:05:02.520 for our listeners. Yeah, so, Um. Like lots of young 0:05:02.880 --> 0:05:06.039 college students, I think I had grandiose plans about changing 0:05:06.080 --> 0:05:08.280 the world, and I thought that one of the best 0:05:08.279 --> 0:05:10.159 ways to do that might be to be a journalist, 0:05:10.200 --> 0:05:13.040 and specifically I wanted to be a conflict journalist along 0:05:13.080 --> 0:05:16.240 the US Mexico border, dealing with things like human trafficking 0:05:16.240 --> 0:05:19.400 and drugs smuggling. This was like two thousand voters in 0:05:19.600 --> 0:05:23.240 six seven eight something like that, and I was writing 0:05:23.320 --> 0:05:25.800 stories about some some of the horrible things that were 0:05:25.800 --> 0:05:28.640 happening along the US Mexico border. And I had a 0:05:28.680 --> 0:05:31.640 grant from the Howard Buffett Foundation, which is Warren Buffett's 0:05:31.640 --> 0:05:35.719 a kid, actually, and I wrote a couple of stories 0:05:35.760 --> 0:05:37.920 that were I thought were pretty decent. They got picked up, 0:05:37.960 --> 0:05:40.359 we want a couple awards me and some of the 0:05:40.360 --> 0:05:43.159 other journalists that worked on them. And oddly enough, what 0:05:43.240 --> 0:05:49.480 I realized is that, you know, I had this opportunity 0:05:49.560 --> 0:05:52.160 to drum up a bunch of awareness about an issue, 0:05:52.600 --> 0:05:55.960 but nothing actually changed. So all the awareness in the 0:05:56.000 --> 0:05:59.560 world couldn't change the fact that these terrible things were 0:05:59.560 --> 0:06:01.720 happening on self. And so I had my little like 0:06:01.839 --> 0:06:04.640 quarter life crisis at twenty one years old or whatever, 0:06:04.720 --> 0:06:07.039 and realized, you know, my last name is Sanche's. These 0:06:07.040 --> 0:06:09.880 people's last name is Sanche's. What's the difference. It's this 0:06:10.000 --> 0:06:13.920 one thing green and uh. And I wanted to understand 0:06:13.920 --> 0:06:17.120 the language of money. And that's why I end up 0:06:17.120 --> 0:06:19.120 going into finance, because I think money is the thing 0:06:19.160 --> 0:06:21.880 that changes lives. It's not just where you're born, it's 0:06:21.880 --> 0:06:24.479 not the country that you're in, you know, it's can 0:06:24.560 --> 0:06:29.120 you understand this language of money. Well, and you're a 0:06:29.240 --> 0:06:32.599 you're a second generation immigrant, is that correct? That's right? 0:06:32.880 --> 0:06:35.880 I am. Uh. So, you know, my family is from Spain, 0:06:36.279 --> 0:06:38.599 and then I have family that's that's from Latin America 0:06:38.640 --> 0:06:43.480 as well, and so I suppose that seeing my family 0:06:43.560 --> 0:06:46.559 sort of come over and struggle and strive and grow 0:06:46.760 --> 0:06:49.200 was a big influence on me getting into where I 0:06:49.200 --> 0:06:52.279 am today. Also, there's really cool stats for Hispanic heritage. Months. 0:06:52.360 --> 0:06:55.240 I'm just like how Latino's work in the US and 0:06:55.279 --> 0:06:59.000 the percentage of workforce that they are. I'm not into um, 0:06:59.040 --> 0:07:01.080 you know, I think all means are more like than not, 0:07:01.400 --> 0:07:04.120 but uh, it is cool to look at you know 0:07:04.160 --> 0:07:06.520 where your heritage is, and I love anybody who loves 0:07:06.600 --> 0:07:09.600 to labor. Yeah, there's I mean, there's something to the 0:07:09.640 --> 0:07:13.760 reality that the numbers bear out that second generation immigrants 0:07:13.800 --> 0:07:17.120 are more successful than the rest of the American population. Right, 0:07:17.400 --> 0:07:19.480 even if your third, fourth, fifth generation, you've been here 0:07:19.480 --> 0:07:22.480 a long time, it seems like maybe you have all 0:07:22.520 --> 0:07:27.040 of the inherent privilege of someone maybe who has you know, 0:07:27.080 --> 0:07:30.560 deep family connections to this country. But second generation immigrants 0:07:30.680 --> 0:07:33.040 end up being they make up end up being most 0:07:33.040 --> 0:07:35.920 successful in business and making more money. Like, why do 0:07:35.960 --> 0:07:38.239 you think that is? I think you can't teach desire. 0:07:38.800 --> 0:07:41.360 That's something that my father always said to me. And 0:07:41.440 --> 0:07:45.560 so a lot of times, what I've found in hiring gosh, now, 0:07:45.680 --> 0:07:48.480 hundreds of SMO I don't know, maybe thousands, tan gently 0:07:48.800 --> 0:07:52.640 of people across my career is that there's nothing that 0:07:52.680 --> 0:07:56.840 you can substitute for desire and curiosity. I will take 0:07:56.920 --> 0:08:00.160 somebody who wants it and somebody who is curious to 0:08:00.280 --> 0:08:04.280 learn and iterate and change over somebody who has innate 0:08:04.440 --> 0:08:07.920 ability or intellect nine times out of ten for the 0:08:07.920 --> 0:08:10.800 type of businesses that I do. And I found that 0:08:11.440 --> 0:08:13.760 they say that what makes most people succeed. I think 0:08:13.760 --> 0:08:16.560 it was Angela Duckworth study from the University of Pennsylvania 0:08:16.560 --> 0:08:19.840 about grit being the number one, number one indicator for 0:08:19.840 --> 0:08:22.240 whether somebody would succeed long term and whether it was 0:08:22.280 --> 0:08:25.360 startups or business in general, I'm not sure, but that 0:08:25.480 --> 0:08:27.360 I think is the difference is, you know, the desire 0:08:27.440 --> 0:08:31.960 is really innate in immigrants, because if lack is that 0:08:32.120 --> 0:08:35.720 close to you, you know, if if you've ever spent time, 0:08:35.800 --> 0:08:38.520 like really spent time. I'm not talking about going to Cancun, 0:08:38.600 --> 0:08:42.679 and Alcapulco and going to you know, Meta Gene and Bogata. 0:08:42.760 --> 0:08:45.240 But if you've spent time in Latin American second and 0:08:45.280 --> 0:08:49.720 third and fourth tier cities and seeing the just difficulty 0:08:49.840 --> 0:08:52.720 that is living, then when you're presented with an opportunity 0:08:52.760 --> 0:08:56.200 to actually really grow something here in the US, you 0:08:56.280 --> 0:08:58.600 want it badly because you know what the alternative is 0:08:59.040 --> 0:09:01.520 and you're willing to do a lot to get to it. 0:09:01.640 --> 0:09:03.880 So I wish I could give everybody a second gen 0:09:03.960 --> 0:09:07.679 immigrant mentality. Yeah, I mean, and it's true, it's there 0:09:07.920 --> 0:09:09.640 is something weird too about second gend, because it's not 0:09:09.679 --> 0:09:12.200 only the fact that second gender are more successful than 0:09:12.240 --> 0:09:14.680 like maybe say first gend, but even third generation. Right, Like, 0:09:14.720 --> 0:09:16.920 there's something about It's like there's a scene in Your 0:09:16.960 --> 0:09:20.120 Parents of seeing your parents sacrifice and the steps that 0:09:20.160 --> 0:09:23.560 they had to take and probably work two or three 0:09:23.640 --> 0:09:26.040 jobs in many cases. I think there's, Yeah, there's something 0:09:26.040 --> 0:09:28.360 really cool, There's something really powerful. Can I harass you 0:09:28.400 --> 0:09:31.440 on one other point there? Think about they talk about 0:09:31.520 --> 0:09:35.160 wealth transference with the really really wealthy, So they say, 0:09:35.320 --> 0:09:38.040 you know, the first generation makes the money, the second 0:09:38.040 --> 0:09:40.920 generation retains and grows the money, and the third generation 0:09:40.960 --> 0:09:44.000 loses it, and so I think it's similar with an 0:09:44.000 --> 0:09:47.440 immigrant mentality. If you're talking about generational wealth, there's a 0:09:47.440 --> 0:09:50.240 reason why I don't anticipate leaving a ton of our 0:09:50.320 --> 0:09:54.480 cash to our kids, because I think that's a huge disservice. 0:09:54.640 --> 0:09:58.240 Typically they need to imagine this, like you graduate from 0:09:58.280 --> 0:10:02.480 high school and you're given BMW or Mercedes spends, and 0:10:02.480 --> 0:10:04.600 then you go get a job that is the annual 0:10:04.640 --> 0:10:07.160 equivalent salary to that car that you were given when 0:10:07.160 --> 0:10:09.440 you were sixteen years old. Now that car breaks down 0:10:09.440 --> 0:10:11.000 in the first car that you can buy as a 0:10:11.280 --> 0:10:14.840 Miata for five thousand dollars like it, just it doesn't 0:10:15.040 --> 0:10:18.320 make you want to work more when you've started so high, 0:10:18.400 --> 0:10:21.240 you've got a reverse and then grow again. So I 0:10:21.240 --> 0:10:24.360 think you're exactly right second gen immigrants, and then you 0:10:24.400 --> 0:10:27.440 know wealth transferred its being with the first or second generation. 0:10:27.800 --> 0:10:31.480 It definitely makes you think twice about passing on wealth 0:10:31.559 --> 0:10:33.760 to future generations, makes you want to think long and 0:10:33.840 --> 0:10:38.559 hard before you even start hinting at what you might 0:10:38.679 --> 0:10:41.800 leave to your kids. Purposefully imposing hardships on your kids, 0:10:41.960 --> 0:10:44.520 not you know, not making them necessarily like army crawl 0:10:44.559 --> 0:10:48.000 through the mud, but not giving them everything that you know, 0:10:48.040 --> 0:10:50.240 you wish maybe you would have had, even like I 0:10:50.280 --> 0:10:52.320 don't know, I see I see it as building up 0:10:52.600 --> 0:10:54.640 an ethic in my kids by not giving them the 0:10:54.679 --> 0:10:56.800 things maybe that we could give them totally. So do 0:10:56.840 --> 0:10:59.040 you You ended up working on Wall Street. While you 0:10:59.320 --> 0:11:01.920 were there, you had a couple of you know, like 0:11:01.920 --> 0:11:04.480 fancy shmancy jobs. You even worked for one of our 0:11:04.520 --> 0:11:07.839 favorite companies, Vanguard actually um and you know, we're kind 0:11:07.840 --> 0:11:09.880 of talking smack about some of these big banks, some 0:11:09.920 --> 0:11:12.200 of these big companies, but like, it wasn't all that bad, 0:11:12.240 --> 0:11:15.360 wasn't where there's some some pros to being there on 0:11:15.400 --> 0:11:19.520 Wall Street and learning and working. Of course, if you 0:11:19.559 --> 0:11:22.600 want to start out and get a free almost free 0:11:22.600 --> 0:11:25.200 sort of MBA training without having to go get an 0:11:25.280 --> 0:11:28.520 m b A, I think getting into a training program 0:11:28.559 --> 0:11:32.760 at a company like Van Vanguard, Deloitte, you know, Goldman, 0:11:33.440 --> 0:11:37.360 any of the consulting companies like BCG is probably one 0:11:37.400 --> 0:11:40.839 of the fastest accelerants to your career. Out there, you're 0:11:40.920 --> 0:11:43.600 learning on somebody else's dime. The interesting part for these 0:11:43.640 --> 0:11:46.439 big companies is they spend a ton of money on 0:11:46.480 --> 0:11:51.760 their higher level new hires. So I learned a lot 0:11:51.920 --> 0:11:54.480 on Vanguard's dime. I learned a lot on Goldman's dime 0:11:54.520 --> 0:11:56.720 and State Streets dime, and they have a ton of 0:11:56.760 --> 0:11:58.960 resources for you. I don't think you want to end 0:11:59.000 --> 0:12:02.320 your career buying large at a huge corporation. I really 0:12:02.360 --> 0:12:05.000 like the idea of you starting it there. If you're 0:12:05.000 --> 0:12:07.040 the type of person who's going to take advantage of 0:12:07.120 --> 0:12:09.960 all of the resources surrounding them. Then the second thing 0:12:10.080 --> 0:12:12.600 is you know less for Vanguard and more for let's 0:12:12.640 --> 0:12:17.160 say gold Men. Being around people who are incredibly intelligent, 0:12:17.320 --> 0:12:21.920 smarter than I was, you know, pretty pedigreed, helped soften 0:12:22.000 --> 0:12:24.400 some of my edges, given I didn't know much about 0:12:24.440 --> 0:12:26.640 money coming into this industry at all, and I didn't 0:12:26.679 --> 0:12:29.280 know about doing deals, and I didn't know, you know, 0:12:29.440 --> 0:12:30.800 what it was like to be with a bunch of 0:12:30.880 --> 0:12:32.960 kids that went to Harvard and Stanford and Yale, etcetera, 0:12:33.000 --> 0:12:35.839 you know, as a public school kid, and so being 0:12:35.880 --> 0:12:38.640 in these big corporations where they require a lot of 0:12:38.760 --> 0:12:40.800 edge softening I think has helped me later on. And 0:12:40.840 --> 0:12:42.480 now I can say, you know, if I want to 0:12:42.480 --> 0:12:44.400 wear cut off shorts and crop tops, I'll do it. 0:12:44.640 --> 0:12:46.840 But I know how to dance, you know, in cuff 0:12:46.920 --> 0:12:49.679 links and suits too. So was that what made you leave? 0:12:49.800 --> 0:12:51.480 Was it, hey, I want to be able to wear 0:12:51.520 --> 0:12:53.560 whatever I want? Or what made you leave a place 0:12:53.559 --> 0:12:55.079 where you feel like you got a good education? The 0:12:55.120 --> 0:12:57.959 salary was pretty meaningful. What made you say, now it's 0:12:58.000 --> 0:12:59.480 time to get out and go do my own thing? 0:13:00.040 --> 0:13:02.160 A wild thing happens once you've had a taste of 0:13:02.240 --> 0:13:06.079 freedom and work, which is at a certain point, you 0:13:06.200 --> 0:13:11.160 become unemployable. And that's what happened to me. I became unemployable. Really. 0:13:11.360 --> 0:13:14.600 I had run a couple of business divisions inside of 0:13:14.640 --> 0:13:17.640 one of these big companies, and I was doing really 0:13:17.640 --> 0:13:20.560 well and the business was growing like crazy, and then 0:13:20.640 --> 0:13:23.880 because of some bureaucracy inside of the business, they basically said, oh, 0:13:23.880 --> 0:13:25.360 we gotta change it this way, we gotta do it 0:13:25.400 --> 0:13:27.920 this way. And I said, that makes no sense whatsoever. 0:13:28.400 --> 0:13:30.720 If our goal is to grow the business and make 0:13:30.760 --> 0:13:34.160 money in an ethical way that aligns with our company mission, 0:13:34.520 --> 0:13:37.360 so four parameters that hits all of them, why would 0:13:37.360 --> 0:13:40.240 we do this asinine thing? And they said, because that's 0:13:40.240 --> 0:13:42.280 what the company wants to do. They did just have 0:13:42.320 --> 0:13:44.000 a bunch of consultants come in and so we're actually 0:13:44.000 --> 0:13:46.520 going to realign this business. And that's when I realized 0:13:46.800 --> 0:13:49.480 I couldn't really shut up about it. I pushed back 0:13:49.520 --> 0:13:51.480 about that idea, and I said, I want to go 0:13:51.520 --> 0:13:55.240 build this myself. And I do think that's what happens 0:13:55.280 --> 0:13:59.000 after a period. If you're really sort of type A 0:13:59.120 --> 0:14:01.800 you're meant to run and build businesses, you're going to 0:14:01.920 --> 0:14:04.760 be at a certain point really hard for somebody else 0:14:04.800 --> 0:14:08.840 to employ. You became unemployable. I just like that phrase. 0:14:08.920 --> 0:14:10.839 I think I'm at now that we've been working for 0:14:10.880 --> 0:14:13.280 ourselves for like a few years, and like how do 0:14:13.320 --> 0:14:15.360 I go back and work for the man? Like once 0:14:15.400 --> 0:14:16.960 you get a taste, I mean, this is this is 0:14:16.960 --> 0:14:19.240 gonna kind of date us a little. We're all kind 0:14:19.240 --> 0:14:21.240 of old millennials here, but like it makes me think 0:14:21.280 --> 0:14:23.520 of the matrix. And once you have a taste of 0:14:23.560 --> 0:14:26.680 what it's actually like outside of the doesn't matter how 0:14:26.680 --> 0:14:29.600 good the steak taste inside the matrix, you can't go back. 0:14:29.600 --> 0:14:31.440 You want to be able to fly, But like not 0:14:31.520 --> 0:14:33.760 everybody can see it that way, you know, Like I'm 0:14:33.760 --> 0:14:36.560 guessing a lot of folks assume that you're crazy. Once 0:14:36.600 --> 0:14:38.560 you were like yeah, I'm not gonna do this anymore. Instead, 0:14:38.600 --> 0:14:42.240 I'm gonna go by this business like a laundromat. Laundromat, 0:14:42.280 --> 0:14:44.520 and that's what I do now, where people are like, Cody, 0:14:44.640 --> 0:14:46.360 you're nuts, What are you doing? Why are you throwing 0:14:46.360 --> 0:14:49.360 it all the way. Oh absolutely, I'm sure you all 0:14:49.400 --> 0:14:51.760 can relate. But throughout my career, I think I've known 0:14:51.800 --> 0:14:54.720 I've made the right decision, typically because each time I 0:14:54.800 --> 0:14:57.360 made a move, somebody said that I was out of 0:14:57.360 --> 0:15:01.040 my mind. And so you know, when I aft journalism, 0:15:01.240 --> 0:15:04.160 got some offers from great newspapers that a bunch of 0:15:04.200 --> 0:15:05.880 other people wanted and said no, I'm going to go 0:15:05.920 --> 0:15:09.400 into Vanguard's training program, people thought I was nuts. Then 0:15:09.400 --> 0:15:11.840 when I left Vanguard, good paying job, I was being 0:15:11.840 --> 0:15:14.760 promoted in all these ways. My mom was basically crying. 0:15:15.080 --> 0:15:19.160 Then when I left Goldman, you know, cream of the crop, 0:15:19.240 --> 0:15:21.600 it's the top of the industry. To go to State 0:15:21.600 --> 0:15:23.960 Street and run a business in Latin America, again, I 0:15:24.000 --> 0:15:26.000 was crazy. Then when I did it to go to 0:15:26.120 --> 0:15:28.560 First Trust, and when I went into private equity. I mean, 0:15:28.600 --> 0:15:31.720 every single time people have basically said the grass is 0:15:31.760 --> 0:15:35.200 not always greener, be careful, And what I've realized is that, 0:15:35.480 --> 0:15:38.400 at least for me, the point of life is an 0:15:38.400 --> 0:15:42.000 accumulation of experiences and skills that build me a really 0:15:42.080 --> 0:15:45.120 fun life resume that I'm glad to have read at 0:15:45.160 --> 0:15:49.600 some point in which I go underground. And so I 0:15:49.720 --> 0:15:53.440 never really worried about if I was making the wrong decision, 0:15:53.520 --> 0:15:56.120 because I thought the experience on the skill set was 0:15:56.200 --> 0:15:58.880 really interesting in and of itself, and if the thing 0:15:58.920 --> 0:16:00.720 that I was going to go do work out awesome. 0:16:01.200 --> 0:16:04.000 That said, I have never been the type to be 0:16:04.040 --> 0:16:07.040 able to rip off the band aid and just quit easily. 0:16:07.480 --> 0:16:12.360 You know. I always had to mentally really ponder it 0:16:12.480 --> 0:16:15.160 for some time and ensure that that was the right 0:16:15.200 --> 0:16:17.400 move and how could I d risk it? So sure, 0:16:17.480 --> 0:16:20.040 everybody thought I was crazy just about every single time. 0:16:20.560 --> 0:16:24.000 And um, even when I, you know, finally finally left 0:16:24.280 --> 0:16:27.320 to go build a media company and I rescinded, you know, 0:16:27.360 --> 0:16:30.520 my partner position and at at a private equity firm 0:16:30.560 --> 0:16:33.680 of which I was one of the main members, they 0:16:33.720 --> 0:16:35.680 really thought I was crazy for going to start a 0:16:36.000 --> 0:16:41.640 quote unquote blog. And doesn't sound great when you put 0:16:41.640 --> 0:16:44.680 it like that, but oh no, don't. Now people are 0:16:44.680 --> 0:16:47.040 sort of getting it. But I'm sure like all of 0:16:47.120 --> 0:16:49.160 us who are creators, they're like, wait, you're gonna you're 0:16:49.160 --> 0:16:52.080 gonna leave to go talk with your buddy on zoom 0:16:52.080 --> 0:16:53.720 calls and people are going to listen to that ak 0:16:53.920 --> 0:16:56.880 A podcast, right, So, yes, every time they thought I 0:16:56.920 --> 0:16:58.920 was nuts, And I think that's when you know you're 0:16:58.960 --> 0:17:01.200 doing something interesting. Yeah, for sure. Well, I like how 0:17:01.240 --> 0:17:03.480 you you've mentioned the word d risk in there, because 0:17:03.480 --> 0:17:06.400 there's a way you can do it with zero dollars 0:17:06.400 --> 0:17:07.960 in the bank, and you can make it a really 0:17:08.200 --> 0:17:10.480 risky endeavor where you might have to go hat in 0:17:10.520 --> 0:17:13.760 hand back to your old boss two weeks later. But 0:17:13.800 --> 0:17:16.040 there's a way that you can do it with some runway, 0:17:16.160 --> 0:17:18.720 some financial runway, so that you actually have a chance 0:17:18.760 --> 0:17:20.720 to succeed and build that business. But I want to 0:17:20.720 --> 0:17:22.800 know too, one of the things you've done that you've 0:17:23.000 --> 0:17:26.600 become very successful doing is buying other people's businesses. So 0:17:27.200 --> 0:17:29.120 we want to talk about that a lot today. What 0:17:29.280 --> 0:17:32.480 made you decide that it made sense to start buying 0:17:32.520 --> 0:17:35.679 other people's businesses that they had created, and when you 0:17:35.680 --> 0:17:38.560 could have like just started some of these businesses yourself. 0:17:38.920 --> 0:17:41.920 I'm curious to know, like the value proposition there. I'm 0:17:41.920 --> 0:17:46.640 a numbers person, and so when I looked at my goal, 0:17:46.920 --> 0:17:49.679 I want to be a billionaire. I want to create 0:17:49.840 --> 0:17:52.920 billion dollar empires. Money to me as a game, it's 0:17:53.000 --> 0:17:55.560 kind of like a scoreboard, and then you can take, 0:17:55.920 --> 0:17:58.159 you know, the outcome of that game, the money that 0:17:58.200 --> 0:18:00.000 you've won, and use it as a tool to arcts 0:18:00.000 --> 0:18:02.320 text the world that you want to see. I like 0:18:02.480 --> 0:18:05.639 that idea, and so when I thought, Okay, if I 0:18:05.640 --> 0:18:08.040 want to play billion dollar games, I don't want to 0:18:08.040 --> 0:18:10.640 play small guy games. I want to play billion dollar 0:18:10.720 --> 0:18:12.720 games because at the end of the day, they're all 0:18:12.760 --> 0:18:14.960 the same ones just a level ten activity and one's 0:18:14.960 --> 0:18:17.679 a level one activity. And so if that's the truth, 0:18:17.760 --> 0:18:20.760 and then where is more wealth created then anywhere else? 0:18:21.480 --> 0:18:24.560 And what I would argue is that more wealth is 0:18:24.560 --> 0:18:27.119 created in private equity than in any other industry. It's 0:18:27.160 --> 0:18:30.919 created more Forbes billionaires in the other industry. And I 0:18:30.960 --> 0:18:33.919 mean that loosely defined by people who actually run private 0:18:33.920 --> 0:18:38.400 equity firms, people who do hold codes Allah Warren Buffettum, 0:18:38.600 --> 0:18:42.720 people who do acquisition strategies in order to grow their business. Alla. 0:18:42.920 --> 0:18:47.080 Most of the large companies in the SMP five, including 0:18:47.200 --> 0:18:50.119 Amazon and Apple and Google and et cetera. And so 0:18:50.359 --> 0:18:53.080 I realized, wait a second, why are all of the smartest, 0:18:53.800 --> 0:18:59.119 wealthiest people out there buying businesses? Because the numbers they work. 0:18:59.560 --> 0:19:02.760 And so I thought, if the game is the same, 0:19:03.400 --> 0:19:06.440 if they're buying a billion dollar business or a multibillion 0:19:06.480 --> 0:19:08.840 dollar business, why can't I apply the strategies that I 0:19:08.920 --> 0:19:11.399 learned in private equity to a small business. Then I 0:19:11.440 --> 0:19:13.560 don't want to go bankrupt on my first deal. So 0:19:13.680 --> 0:19:17.159 what business could I buy that I could understand? Probably 0:19:17.160 --> 0:19:19.480 a hundred percent of the time. That would be what 0:19:19.560 --> 0:19:23.560 I call a gateway drug business, uh business that's easy 0:19:23.600 --> 0:19:27.600 to start with that then I could replicate and buy 0:19:27.640 --> 0:19:29.520 more and more of them and cash full off those 0:19:29.560 --> 0:19:32.800 businesses and they would act like assets for anything else. 0:19:33.200 --> 0:19:35.800 And so that's why it's a billion dollar game that's 0:19:35.840 --> 0:19:38.680 created more billionaires than any other industry. And if you're 0:19:38.680 --> 0:19:40.240 going to play a game, you might as well pick 0:19:40.280 --> 0:19:42.600 one that's a level ten. I like it. And that's 0:19:42.640 --> 0:19:44.080 what we're going to spend the rest of this episode 0:19:44.080 --> 0:19:47.040 talking about. Specifically, we're gonna dive into how to go 0:19:47.119 --> 0:19:49.960 about buying somebody else's business, because Cody, we've got a 0:19:50.000 --> 0:19:52.800 lot of folks listening, and they are looking for more 0:19:52.880 --> 0:19:56.720 that gateway business, that gateway drug of businesses. Uh. And 0:19:56.800 --> 0:19:58.960 so we're gonna ask you a bunch of questions pertaining 0:19:59.000 --> 0:20:01.560 to how exact it to go about that. Right after 0:20:01.640 --> 0:20:12.399 this break, all right, let's keep rolling. We're talking with 0:20:12.440 --> 0:20:15.639 Cody Sanchez about buying other people's businesses in order to 0:20:15.720 --> 0:20:19.080 make serious money. And the one of the coolest things 0:20:19.160 --> 0:20:23.440 about the strategy, I think Cody, is that it's endlessly replicable. 0:20:23.480 --> 0:20:26.240 It's not like they're our listeners are competing against you, 0:20:26.359 --> 0:20:28.880 right unless they live in your neighborhood. Typically there are 0:20:29.320 --> 0:20:31.800 there are millions and millions of small businesses. So I 0:20:31.800 --> 0:20:34.320 guess I want to know about demographics for a second. 0:20:34.359 --> 0:20:39.040 It certainly seems like we're in a time of abundant 0:20:39.040 --> 0:20:42.399 opportunity for people to more than ever be looking into 0:20:42.480 --> 0:20:45.600 the strategy of buying other people's businesses in order to 0:20:45.640 --> 0:20:47.199 make money. Would you say that we're in like a 0:20:47.240 --> 0:20:49.439 demographic windfall for a lot of people to really think 0:20:49.440 --> 0:20:53.199 about the strategy. Yes, I am writing a book right 0:20:53.240 --> 0:20:56.359 now that I'm loosely titling The Three Waves, which basically 0:20:56.359 --> 0:20:59.720 talks about this idea that there are three corresponding waves 0:20:59.720 --> 0:21:02.200 that are happening that I think together create a bit 0:21:02.240 --> 0:21:06.000 of a tsunami. First wave, great resignation. We've all heard this, 0:21:06.320 --> 0:21:09.080 people our age. They want meaning they don't want to 0:21:09.080 --> 0:21:12.119 work for the man anymore. They want something to matter 0:21:12.240 --> 0:21:15.080 after going through a pandemic and a lot of proximity 0:21:15.119 --> 0:21:18.200 to death. Then we've got the great retirement. Boomers are 0:21:18.320 --> 0:21:22.240 aging out, and boomers happen to own more small businesses 0:21:22.240 --> 0:21:25.480 than any other segment. And then simultaneously we've got this 0:21:25.600 --> 0:21:29.280 great corporatization which I sort of made this term up, 0:21:29.720 --> 0:21:33.639 which I think means we have big businesses becoming a 0:21:33.680 --> 0:21:36.280 bigger and bigger portion of our lives and the SMP. 0:21:36.880 --> 0:21:39.520 And yet we now have this pushback. We don't want 0:21:39.520 --> 0:21:42.680 to live in these big urban cities anymore. We don't 0:21:42.720 --> 0:21:45.679 want to really go to McDonald's in Starbucks anymore. We 0:21:45.760 --> 0:21:49.000 have this feeling of localness and community were more interested 0:21:49.040 --> 0:21:52.240 in because lots of people are moving to smaller communities. 0:21:52.520 --> 0:21:55.440 And so the idea that I have is, what if 0:21:55.800 --> 0:21:58.960 by buying small businesses, what you can do is you 0:21:59.000 --> 0:22:01.800 can actually take advant edge of these three waves. You 0:22:01.800 --> 0:22:04.919 can have an immediate impact upon your community, and you 0:22:04.920 --> 0:22:07.840 can have more corner stores than Walmart's. Wouldn't that be 0:22:07.880 --> 0:22:11.000 an incredible trend? And I think that's what's happening right now, 0:22:11.160 --> 0:22:14.400 an ability to buy businesses because they're being transitioned out 0:22:14.840 --> 0:22:17.440 do good while you're doing it, become an owner and 0:22:17.720 --> 0:22:21.919 cash flow, and there's obviously something incredibly fulfilling and gratifying 0:22:22.040 --> 0:22:26.719 about supporting these mainstream businesses and not only funneling your 0:22:26.720 --> 0:22:29.520 dollars towards towards Wall Street. I'm sure that's a huge 0:22:29.600 --> 0:22:31.440 part of like I guess, like the lifestyle side of 0:22:31.480 --> 0:22:33.439 it that makes you feel really good about what it 0:22:33.520 --> 0:22:35.640 is that you're doing as well. Right, that's exactly right. 0:22:36.080 --> 0:22:40.240 I don't think it serves anybody by having such a 0:22:40.240 --> 0:22:43.240 small percentage of the population owned so much of the 0:22:43.280 --> 0:22:46.359 business that we touch every day, the businesses that we 0:22:46.400 --> 0:22:49.280 touch every day, And that is increasingly what happens, and 0:22:49.320 --> 0:22:53.199 it's a skill and knowledge deficit, and so you know, 0:22:53.240 --> 0:22:57.119 we're seeing right now, I think commoditization or easy access 0:22:57.520 --> 0:23:01.320 to buying businesses in a way that we saw twenty 0:23:01.400 --> 0:23:04.280 years ago with real estate, you know, before Zillo, Red Finn, 0:23:04.320 --> 0:23:07.800 before MLS, it wasn't so easy to go and buy 0:23:08.240 --> 0:23:11.800 single family homes and understand what the market was for that. 0:23:12.359 --> 0:23:14.760 I think in the future it will be perhaps not 0:23:14.880 --> 0:23:18.160 as easy, but it will be much easier to buy businesses. 0:23:18.200 --> 0:23:20.560 And we're already seeing a bunch of technology that supports 0:23:20.600 --> 0:23:23.040 that thesis. Well, yeah, I talk to us about you 0:23:23.040 --> 0:23:24.760 know what it takes to find a business that makes 0:23:24.800 --> 0:23:28.080 sense to buy? Like, where should listeners be looking if 0:23:28.119 --> 0:23:30.879 they are interested in buying a business? Like you said, 0:23:31.359 --> 0:23:33.320 everybody knows to go to Zillo if you're looking to 0:23:33.560 --> 0:23:35.760 buy a home or red fin something like that. Where 0:23:35.760 --> 0:23:38.000 do you go if you're looking looking to buy a business? 0:23:39.280 --> 0:23:41.199 The best place to buy a business right now is 0:23:41.240 --> 0:23:44.320 not on the internet similar to a hip pocket listing 0:23:44.920 --> 0:23:47.800 or you know, an off market deal. That is the 0:23:47.800 --> 0:23:49.600 best place to buy a business. And the way that 0:23:49.640 --> 0:23:53.000 I teach people to buy a business is all about proximity. 0:23:53.040 --> 0:23:55.560 So let's say that we are going to buy a 0:23:55.560 --> 0:23:58.800 business for Joel and Matt. What would Joel and Matt's 0:23:58.840 --> 0:24:03.640 perfect business be. It's going to be different than Cody exactly. 0:24:03.960 --> 0:24:06.080 It's going to be different than Cody's business. And I'll 0:24:06.119 --> 0:24:08.359 use an example of this guy named j K who's 0:24:08.400 --> 0:24:10.760 relatively public. He's kind of like a Twitter growth guy. 0:24:10.960 --> 0:24:13.800 He was tweeting about stuff on the internet frequently and 0:24:13.880 --> 0:24:16.359 doing consulting right, so it's making you know, a couple 0:24:16.320 --> 0:24:19.000 of thousand bucks a month off each client telling them 0:24:19.000 --> 0:24:21.639 how to grow on Twitter. Well, he started using this 0:24:21.760 --> 0:24:23.600 tool that I'll leave the name off of it, but 0:24:23.960 --> 0:24:27.480 a Twitter growth tool, and that Twitter growth tool, he realized, 0:24:27.480 --> 0:24:29.680 what's growing so fast? But he really liked it, and 0:24:29.720 --> 0:24:31.800 he thought that his suggestions could make the tool better. 0:24:32.040 --> 0:24:33.679 So he reached down to the owner of the business 0:24:33.720 --> 0:24:35.520 and said, Hey, I think I could grow your business 0:24:35.560 --> 0:24:37.680 because I know about Twitter growth. I could get you 0:24:37.720 --> 0:24:40.240 a bunch of other people, but I want part equity 0:24:40.280 --> 0:24:42.439 in the business. Can I give you some cash matched 0:24:42.480 --> 0:24:45.080 with the growth that I will give you through new 0:24:45.119 --> 0:24:47.919 clients and own a meaningful percentage of the business and 0:24:47.920 --> 0:24:50.399 we could do it together. That I think is a 0:24:51.040 --> 0:24:53.359 there's like sort of four tiers to business. Mind. That 0:24:53.440 --> 0:24:56.399 is a level for or a tier four way to 0:24:56.440 --> 0:24:59.200 buy a business, which is you're using your unfair advantage 0:24:59.600 --> 0:25:03.800 unique in an area in which you have some personal expertise. 0:25:04.359 --> 0:25:06.399 And then there's the tier one way to do it, 0:25:06.400 --> 0:25:08.920 which would be the lowest, most entry level way to 0:25:08.960 --> 0:25:11.080 do it. Then that would be by going to sites 0:25:11.200 --> 0:25:16.040 like bis By, cell Loop, net Flip, e commerce, Flippers, 0:25:16.119 --> 0:25:19.119 Quietlight Brokerage, all of which would be the equivalent to 0:25:19.200 --> 0:25:22.240 a red fin or Zillo for buying a business, just 0:25:22.880 --> 0:25:24.840 not as good because none of these sites are are 0:25:24.920 --> 0:25:28.320 great at this stage. And that's just straight up dollars 0:25:28.440 --> 0:25:31.679 for a business that is showing a certain amount of income, 0:25:31.760 --> 0:25:33.520 and so you have to kind of take what you 0:25:33.520 --> 0:25:36.679 can get. You're looking at pickings that are publicly available, 0:25:37.000 --> 0:25:39.720 and whereas you're talking about the level four is it 0:25:39.720 --> 0:25:43.200 seems like there's more of a network effect involved there, 0:25:43.280 --> 0:25:45.320 right that, So I guess, like my question is how 0:25:45.359 --> 0:25:48.360 important is networking in this process? And maybe I don't 0:25:48.359 --> 0:25:50.160 know what suggestions do you have for folks to grow 0:25:50.200 --> 0:25:53.160 their network to increase their chances of success as they're 0:25:53.200 --> 0:25:56.720 like interested in buying a business and you said proximity 0:25:56.800 --> 0:26:00.320 so likely local to where they live, right, So it's 0:26:00.400 --> 0:26:02.879 up to you. The bigger your network has and the 0:26:02.960 --> 0:26:07.440 more you are willing to specialize in your search, probably 0:26:07.440 --> 0:26:09.720 the better deal you'll get with the higher return. If 0:26:09.720 --> 0:26:12.560 you want to just buy something that's on market, like, 0:26:12.640 --> 0:26:15.640 let's say a laundromat in your local area. I think 0:26:15.680 --> 0:26:18.600 it's pretty easy to do the thing that most people 0:26:18.720 --> 0:26:21.800 don't do, which is go around to local laundromats and 0:26:21.800 --> 0:26:23.840 try to get in touch with the owners and start 0:26:23.880 --> 0:26:25.879 talking to them about their business and tell them that 0:26:25.920 --> 0:26:28.640 you're looking to buy one. And I would pretty much 0:26:28.640 --> 0:26:30.480 guarantee you that after you talk to twenty of them, 0:26:30.520 --> 0:26:33.359 you're gonna find one to five that are interested in selling. 0:26:33.680 --> 0:26:36.879 Someone's tired of owning a laundromat out there, you know, Yes, 0:26:37.280 --> 0:26:39.760 there's a lot of people who have, you know, think 0:26:39.760 --> 0:26:41.600 about it this way. Most people like, why would somebody 0:26:41.600 --> 0:26:44.480 sell a business for two to three x profit that 0:26:44.880 --> 0:26:47.280 you know is kind of passive and making them a 0:26:47.359 --> 0:26:49.560 hundred K a year. Nobody's ever going to sell that. 0:26:50.080 --> 0:26:52.800 And then I ask them, are you going to keep 0:26:52.840 --> 0:26:56.040 your job for forty years, the same job that you 0:26:56.119 --> 0:26:58.639 have today. You will not be promoted, you will not 0:26:58.880 --> 0:27:02.240 change positions, your title remain the exact same. Will you 0:27:02.320 --> 0:27:04.560 keep it for forty years? And the answer is no. 0:27:04.920 --> 0:27:07.879 We've seen as a society two to five years, increasingly 0:27:07.960 --> 0:27:10.720 more like three to four, and so it's the same 0:27:10.720 --> 0:27:12.840 for business owners. At some point you're like, all right 0:27:13.000 --> 0:27:15.400 around the laundromat. It was cool. I added a few 0:27:15.480 --> 0:27:17.359 on that was cool. Now I'm gonna sell it to 0:27:17.400 --> 0:27:19.359 somebody else. I got this other business that I want 0:27:19.400 --> 0:27:22.440 to start. It's a progression, just like you don't stay 0:27:22.480 --> 0:27:25.040 in the same house your entire life either, And so 0:27:25.080 --> 0:27:27.679 there's plenty of people that want to sell for what 0:27:27.720 --> 0:27:34.639 are called the five d s, So you know, death, divorce, disaster, despair, 0:27:34.800 --> 0:27:37.520 just meaning like something going wrong in the business, et cetera. 0:27:38.080 --> 0:27:41.840 Or the fifth D is something goes sideways in the business, 0:27:41.880 --> 0:27:44.520 but I can't remember what the exact D is, so like, um, 0:27:44.560 --> 0:27:49.920 your business has a disgruntled partnership issue or something like that. 0:27:50.000 --> 0:27:53.800 So for all those reasons, people are constantly wanting to 0:27:53.800 --> 0:27:56.439 sell their business. It's just are you finding the right 0:27:56.480 --> 0:27:59.000 person at the right time. Makes a ton of sense. Also, 0:27:59.320 --> 0:28:02.360 side tangent oodie, did you happen to watch everything everywhere, 0:28:02.359 --> 0:28:04.960 all at once takes place within a laundro matte? It 0:28:05.000 --> 0:28:08.520 kind of gives you an inside look how soul sucking 0:28:08.560 --> 0:28:11.280 that my that industry might actually be. But well, as 0:28:11.280 --> 0:28:13.199 an entrepreneur, you can make money running on it was 0:28:13.280 --> 0:28:16.720 the Yeah, the basis of the entire movie kind of 0:28:16.720 --> 0:28:19.600 surrounded this laundroy mate, that this family, and also just 0:28:19.640 --> 0:28:22.399 a fantastic movie. It's a really trippy, out there kind 0:28:22.440 --> 0:28:24.480 of movie. I think you might like it's one of 0:28:24.520 --> 0:28:29.960 those films. Um sorry, but uh okay. So, once you 0:28:30.119 --> 0:28:33.040 found a business that you think could make you some money, 0:28:33.080 --> 0:28:35.280 that that might run well, Like, how do you know 0:28:35.800 --> 0:28:37.000 that is a good one? Like, how do you know 0:28:37.080 --> 0:28:38.680 that it's gonna make sense? Is there a is there 0:28:38.720 --> 0:28:40.640 an easy way to crunch the numbers for folks who 0:28:40.720 --> 0:28:44.000 might be used to running their own books right, Like 0:28:44.040 --> 0:28:47.640 they're good at running you know, Joel lars Guard LLC. 0:28:47.840 --> 0:28:49.720 Joel is really good at his own money, but it 0:28:49.760 --> 0:28:52.560 takes a little extra when it comes to running a business. 0:28:52.600 --> 0:28:55.640 What are some things folks should be looking at? First 0:28:55.680 --> 0:28:57.840 of all, I think you should really spend the first 0:28:57.960 --> 0:29:00.440 thirty to sixty days learning how to do act positions 0:29:00.480 --> 0:29:03.640 before you do them. It's not necessary. But the last 0:29:03.640 --> 0:29:05.360 thing that you want to have happened is have your 0:29:05.360 --> 0:29:07.720 first deal be a bad deal, because then you're gonna 0:29:07.720 --> 0:29:10.000 think buying businesses is a bad idea and you're not 0:29:10.000 --> 0:29:11.840 going to realize no, no no, no, you just made a 0:29:11.840 --> 0:29:13.840 mistake and how you did it the first time. So 0:29:13.920 --> 0:29:17.080 my caveat would be it really should be for anything 0:29:17.080 --> 0:29:18.800 in life. But it's very easy to go in place 0:29:18.800 --> 0:29:21.240 a trade on Robinhood right. You don't really have to 0:29:21.320 --> 0:29:23.240 learn too much about it. You can go read a 0:29:23.280 --> 0:29:26.320 couple analysts reports. No problem with buying a business. There's 0:29:26.320 --> 0:29:29.560 more complexity, which means that there's more opportunity because there's 0:29:29.600 --> 0:29:32.600 a barrier to entry with that same thought, though, like 0:29:32.640 --> 0:29:34.880 you can go to Unconventional Acquisitions dot com. We have 0:29:34.920 --> 0:29:37.520 a blog of a bunch of free tools on how 0:29:37.520 --> 0:29:40.000 do you analyze a business? How do you break down 0:29:40.000 --> 0:29:41.480 if a business is worth it or not? How do 0:29:41.520 --> 0:29:44.640 you hire an operator? All the things that you would 0:29:44.680 --> 0:29:47.360 probably think of as objections or reasons why you wouldn't 0:29:47.360 --> 0:29:49.840 do it, we try to talk about in our free blog, 0:29:49.880 --> 0:29:51.800 and there's a weekly newsletter that comes out. You can 0:29:51.840 --> 0:29:54.479 get on the list. But quick, down and dirty. If 0:29:54.520 --> 0:29:57.440 you only do three things, it would be this one. 0:29:57.680 --> 0:30:00.800 You want to look at historical tax return in tandem 0:30:00.800 --> 0:30:02.600 with their P and L, so you just want to 0:30:02.600 --> 0:30:05.520 make sure that what they're telling you in their profit 0:30:05.520 --> 0:30:08.200 and law statement is what's on their tax return. So 0:30:08.280 --> 0:30:12.480 are the numbers real? To businesses? In my opinion sub 0:30:12.600 --> 0:30:16.560 five million dollars in revenue typically trade at a profit 0:30:16.680 --> 0:30:20.400 multiple of two to let's give it like six x. 0:30:20.800 --> 0:30:23.520 So if I make it a hundred k in profit 0:30:23.720 --> 0:30:26.760 in my pocket in a business, I should be selling 0:30:26.760 --> 0:30:29.040 that business for anywhere from let's call it two hundred 0:30:29.200 --> 0:30:31.360 six hundred thousand dollars. So now you've got kind of 0:30:31.400 --> 0:30:35.080 a rough valuation. And then the third thing is you 0:30:35.120 --> 0:30:39.480 have to understand there's usually in every business, like of 0:30:39.520 --> 0:30:43.360 the numbers drive of the return. Meaning if I have 0:30:43.400 --> 0:30:45.920 a laundromat, I really want to understand what the leases 0:30:45.960 --> 0:30:49.520 and how long I'm locked in because it's expensive to 0:30:49.720 --> 0:30:51.960 put in the pipe being and all the washing machines 0:30:52.040 --> 0:30:55.080 or whatever. You need a long waist if I'm a laundromat, Also, 0:30:55.360 --> 0:30:58.840 what are going to be my biggest expenses my equipment certainly, 0:30:59.080 --> 0:31:02.200 and then you till the water and electricity for washing 0:31:02.360 --> 0:31:04.400 and drying. So like you need to get to the 0:31:04.440 --> 0:31:07.720 meat of whatever it is that you're buying, and that's 0:31:07.760 --> 0:31:10.800 where you can do risk the most. There's probably like 0:31:10.840 --> 0:31:13.320 twenty or thirty other main things you should be looking at, 0:31:13.600 --> 0:31:16.479 but these top three will get you quite far. It's 0:31:16.520 --> 0:31:17.760 kind of like you don't want to be buying the 0:31:17.840 --> 0:31:21.040 expensive baseball team when all of the contracts of the 0:31:21.040 --> 0:31:23.800 biggest stars are set to expire, and you're like, you 0:31:23.880 --> 0:31:26.120 might have just bought the crappiest baseball team now that 0:31:26.160 --> 0:31:28.720 they're all like set the walk or or set to 0:31:28.720 --> 0:31:30.840 get paid a lot more. Right, Um, I guess let's 0:31:30.840 --> 0:31:33.760 talk about negotiating, because yeah, you said there's this sweet 0:31:33.760 --> 0:31:36.760 spot somewhere between two x or six x the earnings. 0:31:36.800 --> 0:31:40.040 But yeah, how do you go about negotiating a fair 0:31:40.080 --> 0:31:42.320 price and figuring out what that is? I'm sure a 0:31:42.360 --> 0:31:45.600 lot of that is relational, but there have to be 0:31:45.680 --> 0:31:47.840 like standards to that you can point to in order 0:31:47.880 --> 0:31:50.720 to kind of push for a better price for you 0:31:51.000 --> 0:31:53.920 for the business. You want to buy a lot of 0:31:54.160 --> 0:31:59.160 meat here. So I think one of the most important 0:31:59.200 --> 0:32:01.400 things or valuable things for your career you could do 0:32:01.640 --> 0:32:04.520 is learned to negotiate. If you can learn to negotiate, 0:32:04.560 --> 0:32:06.640 it will be aplical on everything you do in life, 0:32:06.640 --> 0:32:09.600 and you'll just make more money period. If you spend 0:32:09.680 --> 0:32:12.160 time learning how to do what I call deal making, 0:32:12.240 --> 0:32:14.880 or of the people called negotiation. So let's just say 0:32:14.920 --> 0:32:18.160 that first, if you needed to spend some time on that, 0:32:18.680 --> 0:32:21.440 I would read, like you know, Chris Voss never split 0:32:21.480 --> 0:32:25.320 the difference. I would actually read some of Trump's books. 0:32:25.360 --> 0:32:27.720 He has that one book that I can't remember what 0:32:27.800 --> 0:32:29.520 the name of his. I know people don't like him 0:32:29.520 --> 0:32:33.040 as human, but what he's really good at is that, uh, 0:32:33.360 --> 0:32:37.120 he's really good at dealing with discomfort and negotiation, which 0:32:37.120 --> 0:32:39.480 is an incredibly important part of it. And then I 0:32:39.480 --> 0:32:42.280 would also go and read as many case studies as 0:32:42.320 --> 0:32:45.520 I could about negotiation. So if you've done those three things, 0:32:45.880 --> 0:32:48.680 then I think beyond that. The next step is basically 0:32:49.040 --> 0:32:52.200 where most people screw up in negotiating businesses is don't 0:32:52.240 --> 0:32:54.360 don't get caught up on the price in the beginning. 0:32:55.040 --> 0:32:58.560 In any negotiation for buying a business, there's two main 0:32:58.680 --> 0:33:02.240 factors price. In turn, everybody focuses on price. What you 0:33:02.240 --> 0:33:05.280 should really focus on is terms. Think about it this way, 0:33:05.560 --> 0:33:07.680 Joel and Matt. I'm going to buy your podcast for 0:33:07.720 --> 0:33:11.600 a billion dollars. Do you want Yes, I'll take it. 0:33:11.880 --> 0:33:14.520 You'd say yes. What if I changed it and said okay, great, 0:33:14.520 --> 0:33:17.160 You've said yes, we signed the paperwork, but the terms 0:33:17.160 --> 0:33:21.000 are I'm gonna pay you a billion dollars five cents 0:33:21.000 --> 0:33:23.920 a day over the lifetime of that billion dollars. I'm 0:33:23.920 --> 0:33:26.640 never going to get this money coding. Just focus on 0:33:26.680 --> 0:33:30.240 the price turns right. So now Joel has done a 0:33:30.240 --> 0:33:33.160 bad deal. Bad job, Joel. And so what you really 0:33:33.200 --> 0:33:35.760 have to focus on is you can say in the beginning. 0:33:35.760 --> 0:33:38.520 I usually set the tone so that the seller doesn't 0:33:38.520 --> 0:33:42.160 get crazy with their expectations of saying, Hey, businesses that 0:33:42.320 --> 0:33:45.360 do what you do typically sell for around two to 0:33:45.480 --> 0:33:49.680 six x, depending on how clean the balance sheet is, 0:33:49.960 --> 0:33:52.600 what the s ops are inside the business, how much 0:33:52.640 --> 0:33:54.680 revenue you guys do. I just want to set the 0:33:54.680 --> 0:33:58.000 tone that's typically what businesses like this sell for now. 0:33:58.920 --> 0:34:00.959 I don't really want to talk about price in the beginning, 0:34:00.960 --> 0:34:03.360 because I want to get into a partnership with whoever 0:34:03.480 --> 0:34:06.200 selling me this business. You know this is this will 0:34:06.240 --> 0:34:09.000 be a relationship that we will have for at least 0:34:09.000 --> 0:34:10.920 a few months, if not years. So we need to 0:34:10.960 --> 0:34:12.239 make sure that we do this in a way that 0:34:12.320 --> 0:34:14.719 makes sense. So I kind of set the tone, which 0:34:14.800 --> 0:34:16.960 is called primings. You're gonna prime them that they're not 0:34:17.000 --> 0:34:19.280 going to get ten x their revenue for a business, 0:34:19.320 --> 0:34:22.640 it's just not gonna happen simultaneously. And you're setting the range. 0:34:22.680 --> 0:34:24.359 So maybe the range you even says two to three 0:34:24.360 --> 0:34:26.800 acts instead of two to six sex. You've now allowed, 0:34:26.840 --> 0:34:29.480 You've you've narrowed their aperture. But the next thing you're 0:34:29.520 --> 0:34:31.120 gonna do is say, but, but, but but I don't 0:34:31.120 --> 0:34:32.880 want to talk about price. No, no no, no, no, I 0:34:32.880 --> 0:34:34.560 don't want to talk about price. I want to talk 0:34:34.600 --> 0:34:36.319 about you and your business. We'll get to all that 0:34:36.360 --> 0:34:39.160 stuff later. And so the big thing you should do 0:34:39.239 --> 0:34:42.200 up front is not over index on what is the cost? 0:34:42.280 --> 0:34:44.520 It's totally different than real estate, and which cost is 0:34:44.520 --> 0:34:49.920 the only question. Okay, so you're telling us to downplay costs, 0:34:49.960 --> 0:34:52.839 focus on the terms. What about folks said? There might 0:34:52.840 --> 0:34:54.400 be a lot of folks listening who are thinking, all right, 0:34:54.400 --> 0:34:57.040 this this all sounds awesome. I don't have the cash 0:34:57.080 --> 0:35:00.840 on hand. Uh that does regardless of what a business 0:35:00.880 --> 0:35:04.120 might be selling their business for, how can I actually 0:35:04.120 --> 0:35:06.480 go about making that purchase happen? Like, what are some 0:35:06.520 --> 0:35:08.680 of the different creative ways I guess that that folks 0:35:08.719 --> 0:35:11.840 can think about purchasing some of the different businesses that 0:35:11.880 --> 0:35:15.360 are out there. I use something called the get rich tripod, 0:35:15.400 --> 0:35:17.120 which is an awful name that I came up with, 0:35:17.160 --> 0:35:20.520 but you know, clickbait. But basically the idea is, there's 0:35:20.560 --> 0:35:23.600 three legs to a tripod, right. The way to do 0:35:23.680 --> 0:35:26.640 a deal and get financing is to use one of 0:35:26.640 --> 0:35:29.480 the three legs, if not all three. So the legs 0:35:29.480 --> 0:35:33.719 are time, expertise, money. So let's say somebody listening and 0:35:33.800 --> 0:35:36.839 wanted to go and buy a car wash, and they 0:35:36.880 --> 0:35:40.360 have time, but they have no experience on car washes, 0:35:40.680 --> 0:35:42.600 and they have no money. How do you get that 0:35:42.680 --> 0:35:45.759 deal done? Well? You? If if I was you, I'd 0:35:45.800 --> 0:35:47.719 say you focus on the time factor. So you do 0:35:47.760 --> 0:35:50.400 the due diligence on the deal. You understand the industry, 0:35:50.520 --> 0:35:53.120 You put together a business plan on why to buy it. 0:35:53.960 --> 0:35:57.400 Then you go find somebody who has cash. That somebody 0:35:57.440 --> 0:36:00.839 could be the sp A Small Businesses Association would get 0:36:00.840 --> 0:36:04.200 through scales loans to small business buyers. Because you have 0:36:04.280 --> 0:36:08.400 a business plan and a valuation that you think is 0:36:08.440 --> 0:36:10.120 reasonable for the business, You're going to take it to 0:36:10.200 --> 0:36:11.759 basically the s b A and say will you give 0:36:11.840 --> 0:36:14.440 me money? Will you loan me money for this? You 0:36:14.440 --> 0:36:16.719 can also do what's called seller financing, which is put 0:36:16.800 --> 0:36:19.760 together that same thing and say to the owner, hey, 0:36:19.880 --> 0:36:22.680 I'm going to run this business. I will put up 0:36:22.800 --> 0:36:27.520 some percentage of the total purchase price, let's say tenent, 0:36:27.920 --> 0:36:31.360 but the other X percent I want you to carry 0:36:31.480 --> 0:36:35.040 in a seller's financing note over a two to three 0:36:35.080 --> 0:36:37.719 to five year period, which basically means, if I'm going 0:36:37.760 --> 0:36:40.200 to buy your business for two K, I might put 0:36:40.280 --> 0:36:42.799 down a hundred K, let's say, and then tell you 0:36:42.840 --> 0:36:46.520 I'm going to pay you back the next hundred kt 0:36:47.040 --> 0:36:51.600 kt dollars a year over a two year period from 0:36:51.800 --> 0:36:55.160 the profits of the business. And the way to do 0:36:55.280 --> 0:36:59.400 those two is interesting because six small businesses are sold 0:36:59.440 --> 0:37:03.760 with some type of seller financing, meaning that the sellers 0:37:03.760 --> 0:37:06.879 are relatively used to the ask that, Hey, if I'm 0:37:06.880 --> 0:37:09.360 gonna buy your business, I expect you to carry some 0:37:09.520 --> 0:37:12.840 of my risk in the purchase price. It's pretty normal. 0:37:13.360 --> 0:37:15.640 And so that's one leg of the tripod. The other 0:37:15.640 --> 0:37:17.520 two you just flip it. If you have money, you 0:37:17.640 --> 0:37:20.759 use that, use somebody else's time and expertise. If you 0:37:20.800 --> 0:37:23.160 have expertise, you find somebody else with time and money, 0:37:23.480 --> 0:37:25.760 and so that business owner it is kind of actually 0:37:25.760 --> 0:37:28.440 expecting you to not have all the cash and to 0:37:28.520 --> 0:37:32.759 maybe have to to wait to get back to get 0:37:32.800 --> 0:37:35.080 some of your investments. Um as you take over and 0:37:35.160 --> 0:37:37.319 round the company for a certain period of time. I 0:37:37.320 --> 0:37:39.160 guess too. We're talking about we've talked about some physical 0:37:39.160 --> 0:37:41.800 businesses yere, We've talked about laundromats, you mentioned car washes. 0:37:42.200 --> 0:37:44.600 Are are there like non physical businesses that you can 0:37:44.600 --> 0:37:46.719 do this sort of things thing with that maybe might 0:37:46.760 --> 0:37:48.719 even cost less. I mean you mentioned the Twitter growth tool, 0:37:48.719 --> 0:37:51.239 are like, what about websites or blogs or buying other 0:37:51.239 --> 0:37:55.520 people's online businesses? Is that something that you've worked in 0:37:55.640 --> 0:37:58.279 or that you encourage other people to check out? Absolutely? 0:37:58.280 --> 0:38:01.680 I buy a lot of online businesses. Is so, Um, 0:38:01.719 --> 0:38:04.920 no real difference between online and brick and mortar businesses. 0:38:04.960 --> 0:38:07.719 The only difference is they're a little bit more competitive 0:38:07.760 --> 0:38:11.560 to buy because people can buy them anywhere. Um. They 0:38:11.640 --> 0:38:15.359 also are typically a little bit more de risked in 0:38:15.480 --> 0:38:19.160 some ways because the API right into their financials. So 0:38:19.600 --> 0:38:22.440 you know, if you guys tell me we have a website, 0:38:22.560 --> 0:38:24.520 it does a hundred thousand views a month and it 0:38:24.560 --> 0:38:27.840 makes teno dollars. I can literally look in the history 0:38:27.920 --> 0:38:30.360 of your website and your stripe account and see that 0:38:30.480 --> 0:38:34.400 all rolling right in right. Small businesses typically have a 0:38:34.440 --> 0:38:37.800 percentage that's cash. They don't have very clean books. You 0:38:37.840 --> 0:38:40.120 don't know where the actual moneys come from, so you 0:38:40.160 --> 0:38:42.439 have to do more what's called due diligence on on 0:38:42.760 --> 0:38:47.600 hard asset businesses. Then you do these online businesses, but 0:38:47.640 --> 0:38:51.120 the process is relatively similar. The way they value online 0:38:51.160 --> 0:38:54.719 businesses is by month, not years. So you'll say, while 0:38:54.760 --> 0:38:58.400 this is selling for you know, uh, twenty four x, 0:38:58.800 --> 0:39:01.719 and what they mean is like four months of revenue. 0:39:02.280 --> 0:39:05.520 And so there's some differences between the two. But I 0:39:05.520 --> 0:39:08.200 would say the most competitive sites sell pretty quickly because 0:39:08.239 --> 0:39:10.319 smart buyers really know what they're doing. And again that 0:39:10.400 --> 0:39:14.800 industry has been a little bit more commoditized. Although a 0:39:14.920 --> 0:39:18.760 business to you and Joel could be a lot different 0:39:18.920 --> 0:39:22.319 than a business to me. And you could say, hey, 0:39:22.360 --> 0:39:24.640 we have this podcast, and look there's this tool that 0:39:24.719 --> 0:39:28.239 helps podcasters I don't know reach out to guests. That 0:39:28.280 --> 0:39:31.040 business only makes ten dollars a year, so it's probably 0:39:31.080 --> 0:39:34.759 only worth let's call it thirty two fifty K or 0:39:34.840 --> 0:39:37.640 something like that, but to us it's actually worth a 0:39:37.680 --> 0:39:40.440 hundred K because we're paying somebody to do that right now, 0:39:40.440 --> 0:39:42.640 and this tool would save me for that too. And 0:39:42.680 --> 0:39:44.040 so that's where you want to get a little bit 0:39:44.080 --> 0:39:47.359 more into what's your unfair advantage? Got Yeah, yeah, we've talked. 0:39:47.600 --> 0:39:48.840 We didn't talk about that, but that's one of the 0:39:48.880 --> 0:39:51.239 things you've discussed too. So maybe I don't know. Could 0:39:51.239 --> 0:39:52.719 you give us a quick take on on what you 0:39:52.719 --> 0:39:56.680 mean by unfair advantage and how how do we figure 0:39:56.719 --> 0:40:00.880 out what are unfair advantages? There is a rate quote 0:40:01.160 --> 0:40:05.759 from one of the partners at KKR and he says, 0:40:06.440 --> 0:40:11.240 no conflict, no interest, And I loved that quote because 0:40:11.239 --> 0:40:14.960 it's how smart, smart dealmakers do deals. KKR is a 0:40:15.040 --> 0:40:17.839 multi multi multibillion dollar private equity firm, and what he's 0:40:17.840 --> 0:40:20.200 basically saying is if I don't have a conflict, I 0:40:20.239 --> 0:40:22.640 don't have an interest. And what he means by conflict 0:40:22.680 --> 0:40:25.240 is if I don't have an unfair advantage and unfair 0:40:25.320 --> 0:40:30.160 insight into this industry, deal, entrepreneur, sector, whatever, I'm not 0:40:30.200 --> 0:40:33.200 going to do it because I want outsized returns. So 0:40:33.280 --> 0:40:35.800 let me give you an example. Let's say that Warren 0:40:35.840 --> 0:40:39.760 Buffett was going to go and buy his railroad company, 0:40:39.800 --> 0:40:43.160 which was BNSF. When he went to go buy BNSF, 0:40:43.200 --> 0:40:45.120 a lot of people thought he was nuts for buying 0:40:45.160 --> 0:40:48.719 that railroad. But what did Warren Buffett probably know that 0:40:48.880 --> 0:40:52.960 is allowed in public deals Before he purchased that company. 0:40:53.400 --> 0:40:57.640 He knew that pipelines were going to start shipping energy 0:40:57.800 --> 0:41:00.280 or oil around the country, and b n S stuff 0:41:00.280 --> 0:41:02.480 was going to get some contracts for that deal. So 0:41:02.560 --> 0:41:04.840 he did that deal because he had a conflict. He 0:41:04.880 --> 0:41:08.040 had an unfair insight into the industry in the same 0:41:08.040 --> 0:41:12.440 way that you, Joel and Matt might know. Man, podcasters 0:41:12.480 --> 0:41:14.880 over the next ex period of time are going to 0:41:14.920 --> 0:41:17.799 do this thing that nobody else realizes. So I'm going 0:41:17.840 --> 0:41:20.960 to buy this business in advance. Or I'm an accountant 0:41:21.280 --> 0:41:25.640 and I know that it's really brutal for other accountants 0:41:25.960 --> 0:41:29.160 to hire X type of person, So I'm going to 0:41:29.200 --> 0:41:32.320 buy this outsourcing accountant firm. You want to use whatever 0:41:32.360 --> 0:41:35.960 the industry is that you have unique insight into, and say, Man, 0:41:36.239 --> 0:41:40.319 I want to leverage my expertise for an unfair deal. 0:41:40.680 --> 0:41:42.520 The last thing I'll say is, like a good example 0:41:42.560 --> 0:41:44.000 of this right now would be if I was a 0:41:44.000 --> 0:41:47.080 realtor and I saw that last month open door lost 0:41:47.120 --> 0:41:50.839 forty lost money on of all deals that they did, 0:41:51.600 --> 0:41:55.240 and that generally across the ecosystem, real estate is coming 0:41:55.320 --> 0:41:59.120 down in cost. I would probably be thinking, huh, I 0:41:59.120 --> 0:42:00.920 bet I'm not to do as well this year in 0:42:00.960 --> 0:42:03.080 real estate as I did last year. How could I 0:42:03.160 --> 0:42:06.200 offset the return that I'm making on real estate this 0:42:06.280 --> 0:42:09.200 year through an acquisition? So I might say I'm going 0:42:09.239 --> 0:42:12.919 to buy a property management company because people will still 0:42:12.960 --> 0:42:15.919 have to have their property managed during a downturn, even 0:42:15.960 --> 0:42:18.480 if they're not buying or selling. I make money no 0:42:18.480 --> 0:42:23.520 matter who owns it. Great, that is your unfair advantage. Yeah, yeah, 0:42:23.520 --> 0:42:24.719 I like it. You've got to find out what that 0:42:24.760 --> 0:42:27.520 is so that you can exploit it and that edge. 0:42:28.000 --> 0:42:30.600 You can't succeed in everything, Right, You've got to kind 0:42:30.600 --> 0:42:32.440 of pick your niche, and that's how you're going to 0:42:32.520 --> 0:42:35.480 be able to kind of get those abnormal returns you're 0:42:35.480 --> 0:42:37.120 talking about. All right, Cody, We've got We've got a 0:42:37.160 --> 0:42:39.319 couple more questions we want to get to, including the 0:42:39.360 --> 0:42:42.560 power of people and and also like where you're doing business, 0:42:42.560 --> 0:42:44.120 how you might need to move in order to get 0:42:44.120 --> 0:42:46.680 a better advantage. We'll discuss a couple of those things, right, 0:42:46.719 --> 0:42:57.760 after this all right, we are back from the break 0:42:57.840 --> 0:43:02.640 talking with Cody Sanchez and Cody. Essentially, what we're talking 0:43:02.640 --> 0:43:04.880 about here is passive income, right, and so I'm curious 0:43:04.920 --> 0:43:08.319 if you have like an overarching philosophy when it comes 0:43:08.320 --> 0:43:10.600 to passive income, because I feel like that phrase, it 0:43:10.680 --> 0:43:15.040 gets thrown around a lot, certainly sounds amazing, but it's 0:43:15.080 --> 0:43:17.840 also not nearly as easy, you know, as the phrase 0:43:17.920 --> 0:43:20.160 might make it sound. I would love to hear you 0:43:20.239 --> 0:43:23.799 talk about just your general take on passive income. One 0:43:23.840 --> 0:43:27.719 of my favorite mentors, David Osborne, said a word to 0:43:27.760 --> 0:43:29.919 me that I think makes all the difference. He calls 0:43:29.960 --> 0:43:34.759 it horizontal income instead of passive income. Basically, what this 0:43:34.880 --> 0:43:38.680 means is that this is these aren't types of income 0:43:38.719 --> 0:43:43.560 streams like investment stocks, differentiated businesses from your main salary 0:43:43.680 --> 0:43:47.000 that keep making you money regardless of your day to 0:43:47.080 --> 0:43:50.160 day income and your main vein which so I almost 0:43:50.160 --> 0:43:52.480 see it like a chart, like vertical income goes up 0:43:52.520 --> 0:43:56.200 and down, that's your earned salary. Horizontal income gets layered 0:43:56.360 --> 0:43:58.239 over whatever it is you're doing on a day to 0:43:58.320 --> 0:44:00.759 day basis. You only have so many hours in a 0:44:00.840 --> 0:44:03.520 day vertically, right, and you could maybe take up eight 0:44:03.560 --> 0:44:06.680 of those hours with something, but horizontally, you could add 0:44:06.719 --> 0:44:08.920 as many as you want, right because they just continue 0:44:08.960 --> 0:44:12.560 to stack. I like that because passive income is a misnomer. 0:44:13.040 --> 0:44:17.000 Unless you're investing in funds, you know, some sort of 0:44:17.040 --> 0:44:21.440 commingled vehicle, the stock market, somebody else's deal, you're going 0:44:21.520 --> 0:44:23.440 to be involved in some way, shape or form. And 0:44:23.520 --> 0:44:25.680 even for those deals, you're going to be involved in 0:44:25.680 --> 0:44:28.040 the beginning by at least making sure that the due 0:44:28.040 --> 0:44:30.759 diligence is right or that you should do this deal. 0:44:30.800 --> 0:44:33.400 But it's a good deal. So I don't love that 0:44:33.520 --> 0:44:36.200 term passive income. What I like to think about is 0:44:36.480 --> 0:44:40.840 having horizontal income streams that stack, and that is something 0:44:40.840 --> 0:44:43.920 that these businesses can do over time. You know, I 0:44:43.920 --> 0:44:47.000 always debate people about this because some people say you 0:44:47.000 --> 0:44:49.040 should go all in on your main thing, and I 0:44:49.080 --> 0:44:53.120 think that is true for some people. I do not 0:44:53.200 --> 0:44:55.919 think that is true for everybody. There are just some 0:44:56.200 --> 0:45:00.319 outliers out there who should, no matter what the gets 0:45:00.480 --> 0:45:03.000 hard on the one thing that they're supposed to do 0:45:03.400 --> 0:45:06.280 because they're going to be the one to ten percent 0:45:06.320 --> 0:45:12.920 that survives in business. But most people numerically categorically are 0:45:12.960 --> 0:45:17.160 not that and they should have diversified income streams because 0:45:17.360 --> 0:45:20.560 you need something to fall back on. And I do 0:45:20.640 --> 0:45:25.400 not think that we should proselytize or make it seem 0:45:25.440 --> 0:45:29.040 amazing that we're sleeping on floors to achieve our dreams. 0:45:29.120 --> 0:45:32.000 I don't think that's necessary, And I think you could 0:45:32.000 --> 0:45:34.520 do it away. That causes a lot less stress for 0:45:34.640 --> 0:45:37.480 you and your families and your bodies through having horizontal 0:45:37.480 --> 0:45:39.719 income streams. Yeah, I like that. And like you said, 0:45:39.840 --> 0:45:42.520 over the years, it doesn't happen over and over the overnight. 0:45:42.560 --> 0:45:46.320 But as you're stacking up some of those horizontal income streams, 0:45:46.680 --> 0:45:49.880 they can start to look close to the vertical income 0:45:49.920 --> 0:45:53.000 stream and eventually replace it, which which is really cool. 0:45:53.160 --> 0:45:55.799 But yeah, take take some time, take some intentionality. I 0:45:55.800 --> 0:45:58.040 guess one of my questions too, when you're talking about 0:45:58.040 --> 0:46:00.839 maybe some of the physical busines this is that you've 0:46:00.880 --> 0:46:04.080 bought they don't run themselves, right, So you buy a laundromat, 0:46:04.400 --> 0:46:07.680 but Cody Sanchez isn't going in there and unlocking the 0:46:07.719 --> 0:46:10.160 doors at six am to make sure people can come 0:46:10.160 --> 0:46:12.360 in and wash their clothes, like and and some of 0:46:12.360 --> 0:46:15.640 these businesses are more labor dependent than others, So how 0:46:15.680 --> 0:46:17.960 do folks need to think through the putting the right 0:46:18.000 --> 0:46:20.800 people in place part of the equation when they're purchasing 0:46:20.880 --> 0:46:23.560 a business so that they're not stuck being the person 0:46:23.560 --> 0:46:26.879 who now just got a new job that requires forty 0:46:26.880 --> 0:46:30.080 hours a week of their time. It's the difference between 0:46:30.160 --> 0:46:35.040 operators and investor owners. An investor owner is somebody who 0:46:35.080 --> 0:46:39.400 takes money, or structures a deal, or does something that 0:46:39.440 --> 0:46:43.400 has infinite return on time. Ak, my dollars do not 0:46:43.480 --> 0:46:47.240 have a time construction and invest that in a business 0:46:47.680 --> 0:46:50.200 where then your operator is the person who day to 0:46:50.239 --> 0:46:53.040 day runs it. So I don't want to turn this 0:46:53.080 --> 0:46:57.600 into a Cinderella fantasy land. For your first deal, you 0:46:57.719 --> 0:47:00.839 probably are not qualified to be an investor owner. You know, 0:47:01.080 --> 0:47:03.319 you need to get some reps under your belt. You 0:47:03.400 --> 0:47:05.279 might have to open the door on your first long 0:47:05.320 --> 0:47:07.680 termat because you've never done this type of deal before. 0:47:08.080 --> 0:47:09.680 You might have to get in the back end of 0:47:09.719 --> 0:47:12.120 your website for the first website that you buy. But 0:47:12.239 --> 0:47:14.960 the goal is is that you do bigger and bigger 0:47:15.000 --> 0:47:17.880 deals which have more and more free cash flow in 0:47:17.920 --> 0:47:20.600 them that allows you to hire people with that free 0:47:20.640 --> 0:47:23.680 cash flow. So your first deal, you're probably kind of 0:47:23.719 --> 0:47:26.480 you know, you're probably really involved, or at least kind 0:47:26.520 --> 0:47:28.759 of involved. And then the more deals you do, the 0:47:28.800 --> 0:47:31.239 more infrastructure you can build so you don't have to 0:47:31.280 --> 0:47:35.160 be involved. And that's how Warren Buffett runs businesses that 0:47:35.200 --> 0:47:38.440 do tens or hundreds of billions of dollars in revenue 0:47:38.760 --> 0:47:42.520 with a team of thirty five people, because they are 0:47:42.680 --> 0:47:47.160 overseeing all of their operators inside of those businesses they 0:47:47.200 --> 0:47:49.960 are they have a early Monger has an amazing quote, 0:47:50.000 --> 0:47:52.600 which is or it might have been Tarling Mungiger's mentor. 0:47:53.000 --> 0:47:56.319 He says, when you get a dog, you let it 0:47:56.360 --> 0:47:59.520 do the barking, and so it's the same with hiring. 0:47:59.719 --> 0:48:01.920 You know, you hire an operator, you let them do 0:48:02.480 --> 0:48:06.759 the operating. And that's the difference between the two. I 0:48:06.800 --> 0:48:08.920 like it too well. Matt and I were mom and 0:48:09.000 --> 0:48:12.080 pop landlords, right, and it just makes me think that 0:48:12.200 --> 0:48:15.719 the first property that I bought, I was I was 0:48:15.760 --> 0:48:18.680 fixing everything. I was mowing the lawn, I was self managing. 0:48:18.719 --> 0:48:21.759 I was doing all the above in order to make 0:48:21.840 --> 0:48:24.279 sure that my bottom line was solid so that I 0:48:24.280 --> 0:48:26.040 could have more money to invest in the next deal. 0:48:26.360 --> 0:48:29.160 And I just for the first time, hired someone to 0:48:29.320 --> 0:48:32.399 manage some of my properties, and it's it's like, I'm 0:48:32.480 --> 0:48:34.359 I feel like I'm fine at that point, and now 0:48:34.360 --> 0:48:36.960 that I'm eight doors into real estate investing, like as 0:48:37.000 --> 0:48:39.840 it grows, you have more opportunity to be able to 0:48:39.920 --> 0:48:42.960 hire those things out. Whereas the first deal you're gonna 0:48:43.000 --> 0:48:45.200 need to be more involved, but every successive deal you 0:48:45.200 --> 0:48:48.480 can be just a little more, a little further away 0:48:48.480 --> 0:48:51.560 from the operating of of that business. Yeah, and Coudy, 0:48:51.600 --> 0:48:54.160 it seems like that you're not buying and holding forever 0:48:54.600 --> 0:48:56.839 when it comes to these different businesses that you have. 0:48:57.200 --> 0:48:59.440 What is it that makes you want to sell a 0:48:59.440 --> 0:49:01.799 business that you currently own? Are you just kind of 0:49:01.800 --> 0:49:04.920 taking advantage of a business that's not valued exactly where 0:49:04.920 --> 0:49:07.279 it should be? Right? Like so the arbitrage you quoted 0:49:07.320 --> 0:49:09.880 Warm Buffet a bunch that he calls those the cigar butts. 0:49:10.120 --> 0:49:12.759 Are you doing that or are you looking for some 0:49:12.840 --> 0:49:16.200 different businesses that can provide you that cash flow over time? 0:49:16.680 --> 0:49:19.279 I think the cigar Butts strategy, which basically was like 0:49:19.360 --> 0:49:22.000 can you take the last polls off of business that 0:49:22.040 --> 0:49:24.840 people aren't thinking about? Like is there something left in 0:49:24.960 --> 0:49:28.200 something that people think is dead? Is actually a really 0:49:28.239 --> 0:49:31.520 tough strategy to do if you are not super skilled. 0:49:31.800 --> 0:49:34.920 An analogy to this is there's something called a turnaround company, 0:49:34.960 --> 0:49:37.800 which is basically you buy a company that's not doing 0:49:37.840 --> 0:49:39.920 well right now and you're like, I'm the white Night, 0:49:40.040 --> 0:49:42.040 I'm the savior. I'm coming in and turn this bad 0:49:42.080 --> 0:49:44.640 boy around and we're going to make it profitable again. 0:49:44.960 --> 0:49:46.880 Those I think are not great for new beats. And 0:49:46.920 --> 0:49:50.440 here's why because whenever, and you guys know this is 0:49:50.520 --> 0:49:55.360 property managers. Have you bought a house that's a fixer upper, 0:49:55.840 --> 0:49:59.760 gone into construction for it, fixed up the fixer upper, 0:49:59.800 --> 0:50:03.319 and on it under budget and faster than you value 0:50:03.360 --> 0:50:06.560 would right? Doesn't happen? Doesn't happen? Right? The same thing 0:50:06.560 --> 0:50:08.600 for a business. It's just going to take longer and 0:50:08.640 --> 0:50:11.400 be more expensive than you anticipate. So start with buying 0:50:11.440 --> 0:50:14.440 the nice house on a great street that you understand 0:50:14.520 --> 0:50:17.879 and think you can help appreciate or cash flow off 0:50:17.920 --> 0:50:20.839 of as is as opposed to a turnaround. The main 0:50:21.040 --> 0:50:23.840 you know, strategy that I use to decide if I 0:50:23.840 --> 0:50:25.880 want to buy keep a business or if I want 0:50:25.920 --> 0:50:29.200 to sell a business is just is the business worth it? 0:50:29.840 --> 0:50:33.080 From a an R O I perspective? So you know, 0:50:33.200 --> 0:50:36.799 for my businesses, if the business will do at least 0:50:36.880 --> 0:50:39.480 a hundred thousand dollars in free cash flow to me 0:50:39.960 --> 0:50:42.400 and I don't have to spend time on the business, 0:50:42.719 --> 0:50:46.279 I'll keep it. But that number keeps creeping up, and 0:50:46.320 --> 0:50:48.480 the more they ask of me and the more I 0:50:48.520 --> 0:50:50.400 have to do within the business. If it's not one 0:50:50.440 --> 0:50:52.920 of my main ones, I'll probably divest or I'll sell 0:50:52.960 --> 0:50:55.880 it and I'll let somebody else go take that perfectly 0:50:55.880 --> 0:50:58.160 sized business for them and run it. And then I'll 0:50:58.160 --> 0:50:59.839 take that money and I'll put it into a bigger deal, 0:51:00.080 --> 0:51:01.680 just like you would tend thirty want to exchange a 0:51:01.680 --> 0:51:04.080 piece of real estate. Yeah, it makes sense that the 0:51:04.080 --> 0:51:06.960 fundamentals need to be solid. You can't just decide to 0:51:07.000 --> 0:51:09.080 come in there and just your magic touch, Like you're 0:51:09.080 --> 0:51:10.520 not gonna have the Mnus touch and be able to 0:51:10.760 --> 0:51:15.279 necessarily turn something around, especially as a nube. Yeah, exactly. Well, 0:51:15.320 --> 0:51:17.719 I plays chuckle too with like the year olds. They're like, 0:51:17.719 --> 0:51:20.279 I'm gonna buy this plumbing company. I'm going to take 0:51:20.280 --> 0:51:24.480 it to ten million dollars dollars right now. I'm like, 0:51:24.600 --> 0:51:27.719 have you ever managed plumbers? Have you ever been in 0:51:27.760 --> 0:51:29.960 a plumbing job. Do you know anything about the industry? 0:51:29.960 --> 0:51:32.200 And it's okay to not know all that stuff, but 0:51:32.360 --> 0:51:35.239 come in with no hubrist be like, this business is 0:51:35.280 --> 0:51:39.239 doing X, I think I believe X, and I can 0:51:39.280 --> 0:51:43.040 continue X if we can add more to it. Awesome. 0:51:43.280 --> 0:51:45.839 Well let's just make sure that we understand it as 0:51:45.960 --> 0:51:48.560 is first. Yeah, that's a good point, or else you 0:51:48.600 --> 0:51:50.760 could lose a lot of money if you if you're 0:51:50.760 --> 0:51:53.960 shooting for the moon when in all likelihood that plumbing 0:51:53.960 --> 0:51:56.080 company you're not going to be able to like fifty X. 0:51:56.280 --> 0:51:58.880 That's that's a tough endeavor. But Cody, this has been 0:51:58.920 --> 0:52:01.080 an awesome conversation. Thanks so much for joining us. And 0:52:01.120 --> 0:52:03.759 where can our listeners find out more about you and 0:52:03.800 --> 0:52:06.040 what you're up to? I think the best place for 0:52:06.040 --> 0:52:08.080 that is probably contrain Thinking dot com. We have a 0:52:08.120 --> 0:52:11.759 free newsletter on there all about different ways to cash 0:52:11.760 --> 0:52:16.080 flow and interesting um industries, et cetera. Same with unconventional 0:52:16.120 --> 0:52:20.000 acquisitions dot com. Apparently we like vowels and then uh 0:52:20.200 --> 0:52:23.080 anywhere on the social's Cody Sanchez, I'm all over them, 0:52:23.160 --> 0:52:25.520 you know, TikTok in Instagram and whatever we do on 0:52:25.560 --> 0:52:27.960 the internet. I love it awesome. Thank you and yeah, 0:52:28.000 --> 0:52:30.520 your newsletter is a must read for anybody who wants 0:52:30.520 --> 0:52:32.560 to like deep dive even further into these topics and 0:52:32.600 --> 0:52:35.760 get specific examples on a weekly basis of cool stuff 0:52:35.760 --> 0:52:38.600 you could be doing that increase your income. So yeah, 0:52:38.600 --> 0:52:40.960 I love the space your end, the ability that you 0:52:41.000 --> 0:52:43.719 have to open folks minds as to what's possible. I 0:52:43.800 --> 0:52:47.560 think that's the biggest takeaway as folks are hopefully considering 0:52:48.320 --> 0:52:51.319 what owning their own business might look like, it doesn't 0:52:51.360 --> 0:52:53.640 necessarily have to look like the the job that they've 0:52:53.640 --> 0:52:56.359 had for the past five to fifteen years. I think 0:52:56.400 --> 0:52:58.279 you're doing a great job with that. Cody, thank you 0:52:58.320 --> 0:53:01.000 so much for joining us, saying on the on the podcast, 0:53:01.400 --> 0:53:03.080 this is a blast. As you me, it's super easy. 0:53:03.080 --> 0:53:05.600 Thanks for having me, all right, Matt, I love that conversation. 0:53:05.640 --> 0:53:08.040 I feel like I'm totally picking up what Cody's putting down. 0:53:08.200 --> 0:53:10.839 I think she is. She is one of the only 0:53:10.840 --> 0:53:13.359 people that I know of in this space talking about 0:53:13.360 --> 0:53:17.560 how people can change their lives by buying other people's businesses. 0:53:17.719 --> 0:53:20.800 And like we talked about for just a second, demographically, 0:53:21.200 --> 0:53:24.160 there is there is more opportunity than ever to take 0:53:24.239 --> 0:53:27.880 part in this bonanza that is buying other businesses and 0:53:27.920 --> 0:53:30.720 being able to yeah, pay your bills and and eventually 0:53:30.800 --> 0:53:33.279 leave your job. Specifically, there are three ways that are 0:53:33.360 --> 0:53:36.480 leading to this being a fantastic time to to consider this. 0:53:36.640 --> 0:53:38.040 For sure. I can't wait to read that book when 0:53:38.080 --> 0:53:40.360 it comes out. But what was your big takeaway from 0:53:40.360 --> 0:53:42.920 this combo? Yeah, so, as we were just kind of 0:53:42.920 --> 0:53:45.000 talking through a lot, I mean, we we kind of 0:53:45.080 --> 0:53:48.279 dug into a lot of good meat, which I really appreciate, um, 0:53:48.320 --> 0:53:50.200 but I think there might be some folks who are thinking, 0:53:50.239 --> 0:53:54.160 holy cow, I feel so incredibly overwhelmed, And how how 0:53:54.200 --> 0:53:56.800 am I supposed to know if me buying somebody else's 0:53:56.800 --> 0:53:59.480 business or even being a business owner myself, if that's 0:53:59.480 --> 0:54:01.759 something that I want to do. And earlier on in 0:54:01.800 --> 0:54:04.040 the conversation, I can't remember what we were talking about, 0:54:04.080 --> 0:54:07.080 but she I didn't like someone out or anything. But 0:54:07.120 --> 0:54:09.560 I can't remember what she was responding to specifically, but 0:54:09.600 --> 0:54:11.759 she was talking about how of all the people that 0:54:11.800 --> 0:54:16.040 she's hired, like hundreds, if not thousands, she hires people 0:54:16.040 --> 0:54:18.040 based on desire. I think that was when we were 0:54:18.040 --> 0:54:20.960 talking about second generation immigrant? Was that? Yeah? Okay? So 0:54:21.360 --> 0:54:23.080 like and she said you can't teach that. You can't 0:54:23.120 --> 0:54:26.239 teach desire, you can't teach curiosity. And so if you 0:54:26.320 --> 0:54:29.120 have an innate curiosity, if you have a desire to 0:54:29.160 --> 0:54:31.080 be your own boss, to run your own business, to 0:54:31.239 --> 0:54:33.960 figure out what it takes to own a business right 0:54:33.960 --> 0:54:36.080 now in the moment, I wouldn't worry so much about 0:54:36.160 --> 0:54:38.800 all the specifics of what it takes to find and locate, 0:54:39.120 --> 0:54:41.719 uh and hone in on a successful business, because those 0:54:41.760 --> 0:54:43.799 are all things that you can figure out if you 0:54:43.880 --> 0:54:46.000 have that desire. Though I don't see that as a 0:54:46.000 --> 0:54:49.000 litmus test that, Okay, you are likely going to be 0:54:49.040 --> 0:54:51.720 a good candidate for somebody to to purchase the business 0:54:51.800 --> 0:54:53.880 or to own your own business. But if you're listening 0:54:53.920 --> 0:54:57.360 to this and maybe you are like, okay, yeah, thinking 0:54:57.400 --> 0:55:00.359 about all the different things you know, matching up their 0:55:00.360 --> 0:55:02.920 historical tax returns to the current profit and lost it. 0:55:03.080 --> 0:55:04.680 Maybe you're thinking through all the nuts and bolts and 0:55:04.680 --> 0:55:06.919 you're thinking, I got all that, that's that's no big deal. 0:55:07.200 --> 0:55:09.839 But if you have no desire, if you have no curiosity, 0:55:09.880 --> 0:55:11.880 you might have all the fundamentals down. But if you 0:55:11.920 --> 0:55:14.520 don't truly want to do this, then I don't know 0:55:14.560 --> 0:55:16.840 if this is gonna be good a good opportunity, I 0:55:16.880 --> 0:55:18.680 don't think this is going to be a good path 0:55:18.719 --> 0:55:20.200 for you to take. I will say too, I think 0:55:20.200 --> 0:55:22.440 you can foster some of that curiosity. I don't think. 0:55:22.520 --> 0:55:24.239 I think sometimes it's innate. There's a lot of that 0:55:24.239 --> 0:55:27.000 that that is just kind of instinctual. But that is 0:55:27.040 --> 0:55:29.640 also something that you can prod in yourself if you're 0:55:29.640 --> 0:55:32.359 if you're interested, if you can personal development, that might 0:55:32.440 --> 0:55:34.680 lead to you taking some steps and you otherwise wouldn't. 0:55:34.680 --> 0:55:36.720 If you get an ink to go in that direction, 0:55:36.840 --> 0:55:39.320 there is work that you can do to kind of 0:55:39.360 --> 0:55:41.799 push yourself to Like, I've become interested in all sorts 0:55:41.800 --> 0:55:43.520 of things I never thought I would be interested in. 0:55:43.840 --> 0:55:45.840 And as I kind of give into that desire and 0:55:45.880 --> 0:55:48.520 I listen to content or I'm I'm following other people 0:55:48.520 --> 0:55:50.359 who are doing cool stuff in that space, it gets 0:55:50.360 --> 0:55:53.759 me excited about maybe participating. So yeah, I think that 0:55:53.760 --> 0:55:56.719 that that you can find maybe that desire even if 0:55:56.760 --> 0:55:58.160 you're like I don't know if I see it now, 0:55:58.320 --> 0:55:59.799 but don't push it. You don't have to go get 0:56:00.000 --> 0:56:01.640 at it right now even though you don't feel it, 0:56:01.719 --> 0:56:03.680 but you can foster it along the way and then 0:56:03.719 --> 0:56:05.880 maybe protect later on down the road. Yeah. I do 0:56:05.920 --> 0:56:08.360 think there's a difference though, between interest and something and 0:56:08.560 --> 0:56:10.520 a desire to learn, because I feel like you've always 0:56:10.520 --> 0:56:13.560 probably had a desire or that curiosity, even though you 0:56:13.640 --> 0:56:16.239 might stay to yourself, well I've never cared about World 0:56:16.239 --> 0:56:18.440 War two. But then all of a sudden, because you 0:56:18.440 --> 0:56:21.520 have that desire because you are curious, you realize, oh, man, 0:56:21.560 --> 0:56:23.799 this is now something that interests me. I did not 0:56:24.040 --> 0:56:26.080 used to be interested in this, but now I am. 0:56:26.440 --> 0:56:28.080 I do hear what you're saying that. I think there 0:56:28.120 --> 0:56:30.320 are ways for us to kind of cultivate that within ourselves. 0:56:30.360 --> 0:56:32.360 And I think what Cody was saying is that second 0:56:32.360 --> 0:56:35.399 generation immigrants kind of naturally have some of this. It's 0:56:35.480 --> 0:56:38.520 instinctual based on what these kids have seen their parents 0:56:38.600 --> 0:56:40.759 go through, which makes sense to me. I think my 0:56:40.800 --> 0:56:45.279 big takeaway was when she said more complexity equals more opportunity, 0:56:45.680 --> 0:56:49.080 and I think that's completely true. There is there is 0:56:49.120 --> 0:56:53.399 the potential for outsize returns when you're endeavoring to get 0:56:53.440 --> 0:56:56.400 into a space that fewer people are interested in getting 0:56:56.400 --> 0:56:58.840 into at all, Like how many people are talking about 0:56:58.880 --> 0:57:02.000 buying car washes and laundromats, Like not many people, right, 0:57:02.320 --> 0:57:03.919 Cody is one of the few people out there talking 0:57:03.920 --> 0:57:06.560 about this as a viable business strategy. But because there's 0:57:06.560 --> 0:57:08.879 not a lot of attention there, not everybody is trying 0:57:08.920 --> 0:57:11.400 to There's not like shows on h G TV endless 0:57:11.440 --> 0:57:13.719 ones about house there are endless ones about houselping, but 0:57:13.760 --> 0:57:15.640 there's not endless ones about buying laundromatics, you know what 0:57:15.680 --> 0:57:17.800 I'm saying. And so because of that, because of the 0:57:17.800 --> 0:57:20.480 fact that they're more complex or more boring, there is 0:57:20.520 --> 0:57:23.160 the ability for people to make more money getting into 0:57:23.160 --> 0:57:26.200 that business. So the numbers can be better, they can 0:57:26.200 --> 0:57:29.160 work out more to your advantage if you're getting into 0:57:29.200 --> 0:57:31.280 something that that you have to have a little bit 0:57:31.320 --> 0:57:34.560 of extra knowledge and a little bit of extra gumption 0:57:34.680 --> 0:57:36.960 to get into. Totally. Yeah, I love it, man. All right, 0:57:37.040 --> 0:57:39.640 let's get to the beer. You and I enjoyed an 0:57:39.640 --> 0:57:43.520 open Space Haze. This is not surprisingly a hazy I 0:57:43.600 --> 0:57:46.200 p a another beer by Boss Brewing Company. What were 0:57:46.200 --> 0:57:48.600 your thoughts on this one? Yeah, man, I'm gonna say 0:57:48.640 --> 0:57:51.120 this one was kind of a classic hazy style here. 0:57:51.200 --> 0:57:53.240 I feel like it's solid. If it was a six 0:57:53.280 --> 0:57:55.600 pack version, I could have this semi fridge all the time. 0:57:56.040 --> 0:58:00.640 It was just very drinkable, but also like nice, sweet, delicious. 0:58:00.680 --> 0:58:02.240 I p A. Yeah, I couldn't agree more. Man, it 0:58:02.280 --> 0:58:06.200 didn't have like one of those overly complex, hoppy backbones. Uh. 0:58:06.200 --> 0:58:09.160 It drank fairly clean for a hazy I p A. 0:58:09.480 --> 0:58:11.520 Really delicious. I'm glad you and I were able to 0:58:11.600 --> 0:58:13.600 enjoy this one on the show. We will make sure 0:58:13.640 --> 0:58:16.360 to link to some of the different resources that Cody 0:58:16.520 --> 0:58:19.240 mentioned during our interview up in our show notes for 0:58:19.320 --> 0:58:22.160 this episode up at how the Money dot Com. That's right, 0:58:22.280 --> 0:58:24.240 but Matt, that's gonna do it. So until next time, 0:58:24.440 --> 0:58:26.640 best Friends Out, Best Friends Out,