2022. Okay, great. And so what was this? Who slid into your DMS there, Jake, about this buy. Buy my business, which is, by the way, an interesting approach to, to selling a business.
Acquiring Minds
Stacking Small Acquisitions to $5m in Revenue
Excerpts · 327 segments · ~1:14:49 long
Short excerpts only — hear the full conversation on the publisher's site.
It was this guy that was, you know, asking to have coffee for a while and I just, you know, I just didn't have time. And then he sent me a dm is like, hey, I'm in, I'm in a tough spot and I'm looking to just get rid of my business, property management business.
And we met and I think within a couple of weeks we had documents signed and we dove in a property management headfirst. So we're going to, I know this story. We're not going to spend too much time on it because it's, it's just one step toward where you now are, which is where we want to spend most, most of our time.
But give us the, the quick three minute version of this first adventure because it's kind of crazy. The fast forward version of it is we went out to dinner.
The guy told us about his property management company and it was a small company, he had 115 total units and he was bringing in like 15 or 18k a month of total revenue of all of his management fees. And he had, I think two secretaries, a brand new truck A building office, two or three in house maintenance. His expenses exceeded his management fees by like 5 or 6k a month.
So he was essentially just bleeding out day by day. And we asked him like, so what do you want for the business? And he said, and he said 50k.
We both just kind of looked at each other and were like, we'll give you. You remember what the number was? I don't. 5K or 8k was not, not a large number.
Yeah, it was, it was pretty, it was, I felt bad saying it, but it was just of a Hail Mary. And we came to an agreement, we moved forward. We started to find some, some things that just were not adding up.
Maybe some fraudulent stuff going on. And so we, you know, we, and I, I just, the, you know, with property management there's tenants, of course, but even more than that, more of a headache is the owners, to be completely honest.
Sure. Well, they're the client. Right. Exactly right. And can be definitely unreasonable as well.
And so we were, we were annoyed and frustrated with the purchase and we're like, dude, what the heck? And he was like, you guys didn't even ask these questions or do any due diligence. So at this point we're, and I think on the transition over, we lost 30 doors or something.
We were down to like 80 doors by the time this thing actually closed and we kind of needed to pull the, pull the plug and get out of here. And so we actually reached out to a really large local property management company and said, hey, we got 80 units. Want to bring over with us.
Want what comes before or after? Hear the full episode on the publisher's site ↗