Yeah, it is. I think just, he probably oversimplifies things, but the idea of buying assets that produce cash flow I think was something that was really, you know, mind blowing to me at the time.
Acquiring Minds
Comfortable Concentration for a $800k SDE Business
Excerpts · 358 segments · ~1:23:12 long
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And I think it, it changed my mindset into, from, you know, earning more money at a W2 so that I could spend more money so that I could buy the bigger house and the nicer car and all of that to let's try to build some financial independence and have these assets that can produce cash flow. And so that kind of started me down the real estate rabbit hole. And we bought some long term rentals.
You know, one at a time, we kind of, I dip my toes in, you know, one single family, then two, then three and then, you know, as things, things continue to progress and maybe it wasn't going as fast as I would have liked at that stage. My, one of my good friends tells me, oh, I'm, I'm going to buy a house and turn it into an Airbnb and This was, I think, a newer concept back then, probably around…
Not that Airbnb hadn't been around before that, but that's when it really, I think, exploded during COVID And he's like, you might be making, you know, a couple hundred dollars a month cash flow on these long term rentals, but with an Airbnb, you might be able to make a thousand, two thousand. So I was like, okay, this will get me fast. Get, get me to where I'm trying to go faster.
And so that was exciting. And so we, we dove into that. I learned about short term rentals.
We bought one, we bought a second one. And six months later, and as we're just about ready to get started on the second one, the same friend tells me that, you know, now he's looking at buying a business. And, you know, I'd never heard of this concept at that point, I think.
And, you know, he found this website, Biz Buy Sell. It's got a bunch of businesses for sale listed. And so, so I have this frame of, you know, reference of real estate, you know, multiples being, you know, let's say 10 to 20 times, you know, noi.
And, you know, maybe a good rental Property is making 20, $30,000 in NOI. You know, if it's an Airbnb, maybe it's making 50,000.
A year.
A year. A year. Yeah. And, you know, he tells me that this, we had, we were talking to him about the business and he's like, it's a generator and maintenance and repair and installation company. And you know, so we ask him about the numbers and he's like, it, cash flows $700,000 a year. And I think, you know, the four of the four of us sitting at.
The table, mind exploded.
Yeah, it was definitely a mind explosion.
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