How to Buy a Business With No Money in 2024

[@CodieSanchezCT]

Check out the 5 most common business mistakes before buying a business too! contrarian-thinking.ck.page/5-biz-mistakes

[@guyanasun4361]

The most commonly traded product in our universe is data. When we incorporate more dimensions to what works, we increase the concentration of information through the wave. You capture air and it becomes water much like a river bank, or rain cloud. Usually in data transfer we create a filtering mechanism that resources in frequency. Data of course comes in the air (Aether) and this requires transfer (Channels and Streams). What we sell and make sale becomes what we berth and ship. Direct routes work best in any recreated "system" (sister-stem) but the trick is understanding flash floods in currency/ markets. The driver of charge will always equal authority.

[@Knowledge-College]

@CodieSanchezCT I’ve just subscribed! What websites do you use to find businesses for sale? And does this work only for business located in the same country as yourself? Ie. I’m living abroad and many opportunities so I’d like to purchase somewhere in Europe/America etc. How likely is it to succeed running a business from another country? Would you advise against that? Thanks!

[@TheRealUncensoredTravelGuide]

Can you buy if you have some debt.

[@moforgeorgengu2401]

How can I contact you?

[@MagnificoSeven]

Hi Codie…nice to meet you. Could you please explain why the seller would pay you the 204k. I thought you meant that you pay nothing, give him/her monthly payment (say $5k while you make the profit of the biz hit $9k/month) for say 4 years. In which case he makes $240k instead of the 224k he originally wanted. Where do I get it wrong? Thanks. And also is there any books or courses that explains these. Thanks.

[@Hannahbenowitz]

Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[@bartlyAD]

With the US dollar losing value to inflation and other currencies gaining traction, uncertainty looms. Yet, many still trust in the Dollar's perceived safety. Worried about my $420,000 retirement savings losing value, I seek alternative security for my money.

[@FinnBraylon]

With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.

[@HildaBennet]

this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@FinnBraylon]

Her name is Rebecca Noblett Roberts. Hope that helps

[@HildaBennet]

I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.

[@mikewright2965]

Love your videos Codie, I left my RN career 2yrs ago after a cancer diagnosis. I started my own fence business and did over 200k my first full year as a business. I was also voted Best Fence Contractor in Jacksonville FL 2022 with just myself. Thank you for post these videos. I am constantly sending your vids and shorts to my wife so we can become financially independent.

[@jolietia]

That's awesome. Was it a big learning curve getting to know how to run a business?

[@sandralujan1199]

Hey I'm a nurse too so happy you got out!

[@CodieSanchezCT]

Hell ya

[@Michael-vc2cs]

I operate a real estate business in Jacksonville. What's the name of your company?

[@ryanstyleschacon4485]

Nurse here as well, looking for the best way to enter the business world! Congrats

[@kareemmiller8176]

100% agree with this! I bought a mid tier lawn company with seller financing and paid it off in 3 years with no interest and the business had plenty of profit to live on and build a savings. Prior to that, I built and sold a pressure washing business, I wish I bought a business earlier, would of save me time, money, and sanity

[@ohyeahyeah7260]

how much did you have to pay for the business and how much profit were you making the first month after the business came under your operation, did you market it more using online or posters, how did profits grow and how much did the owner want in return for financing you (e.g 20% of profits)? thanks

[@gviblog]

so who deals with the stress for the company not going to shit? do you have to be there to oversee all the businesses?

[@ForevertheYoungs]

Who ran the lawn care business for you? Did the employees stay on after you purchased?

[@jaylenlenear3944]

Where do I go to sell business

[@JackSmith-w1t]

The fact that nobody talks about the forbidden book 25 Money Secrets From Donald Trump speaks volumes about how people are stuck in a trance

[@ayoobi1691]

I checked it out on Amazon. Read through a few pages. I'm tempted to buy it to see where the meat is, because most of the beginning is about his story. I noticed in the beginning he starts a paragraph with 'Don't intimidate people, because you'll never get a straight answer from them.' I guess he means in business dealings, because politically he definitely employs intimidation.

[@JackSmith-w1t]

This book is not on amazon!

[@ayoobi1691]

@@JackSmith-w1t where's it at

[@JackSmith-w1t]

Just google it

[@Michael-vc2cs]

I'm in real estate so seller financing is something I'm very familiar with. It's a very tough negotiation in the real estate world because people need the money to buy another house usually. However, when I tell my friends about my searching for businesses to buy with no money instead of looking for a job to pay my bills they look at me cross eyed. This is brilliantly explained and it is something the banks and financial institutions will never publish because they want to hold the keys to wealth. Thanks Codie!

[@mrbabyhugh]

yea i do it with both, but I prefer the buying businesses then buy to hold for rental. but i have more success buying businesses.

[@mejico2004]

​@@mrbabyhugh Hey, I'd love to talk to you more about this if you have the time to jot down some quick pointers for me. Is Flippa a legit source? What type of biz do you look for? Any help would be appreciated!

[@kinglion6197]

Seller financing is hard, tried it to earn some capital

[@lorraineaguilar9008]

Listen to Codie, she is brilliant. Seen a deal done over a cup of coffee. Do not listen to friends, study the advantages a seller has on taxes. Get yourself an excellent business attorney to structure your deal for you. Get knowledge Michael.

[@adba212]

how to you go about to find the business to buy?

[@Bestchan-h5v]

Solid content. The next issue that isn't really addressed is how to find an operator from day one. Most of the businesses I have come across are owner operated. So if the owner is leaving, I can't run an HVAC or plumbing business. So, I would love a series (or even paid course if you must) on that. I feel like actually buying the business is not the hard part. It's figuring out how to run a business as a CEO, not operator, that is holding people back. That's the competitive advantage P.E. has over the 'little guy'.

[@StephaniRoberts]

Yes. 🎯 Exactly what I was thinking. I’m sure Codie addresses this in her course but would love a high level video about this. Good help is hard to find and skilled help willing to work can be tough in these “boring” industries.

[@790chat1]

Good question

[@Mav0585]

Was just thinking this

[@ambertguez]

Ok but where do you find these business selling?

[@NGSTYLEUK]

You don’t need a course.. all the info are out there for free. If you buy businesses below $1M in net profit most likely is owner operated and little to no management. In this case you are buying a job, either you have experience in the industry or you find an expert and you partner up. From $2m+ you have a professionally managed business and you can ask the second in command to be your partner and you will fund the deal. In this case you will need cash to close Can be your cash or investors cash.. forget about 100% seller financing in a professionally managed business.

[@mrbabyhugh]

6:27 seller financing mainly doesn't work out if the seller just wants cash right away. however, many are ok with it because, they really love the business, they want the cashflow but for various reasons they can't operate it themselves anymore. this is with much older businesses. all you really have to do with them, is convince them you love the business pretty much as much as they do, you will grow it and they will receive good compensation whether monthly, quarterly or whatever.

[@scottgoodson1964]

They can owner finance you and then sell the note.

[@SellerApex]

what?@@scottgoodson1964

[@goodrayoflight9135]

Helpful insight. Thank you!

[@justapseudonym7]

Yup people that are retiring

[@olgageorgsen9654]

With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly-which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stock portfolio

[@user-dl4rr5qs8y]

As Yuval Eric Brokman is a highly sought-after counsel, he is actually the one who directs me. Nonetheless, you can try your luck. Just leaving his phone number would not be appropriate. he may be lying about, but if you Google his name, you can view his website.

[@olgageorgsen9654]

thanks for sharing,found him on the internet.

[@maxfranz9232]

The way you wrote your question sounds to me like you already know your answer... Liquidate and buy assets that will appreciate in a tumbling market/inflation soaring time

[@balex556]

well one of the most effective ways to engage,and boost your sales is creating website and an app to brand your business and am an expert I can help you with this services

[@adamwhitfield5571]

​@@maxfranz9232 bro. It's a scam! They're the same people. They ask the question to seem like you or many others on here. Then they offer the answer as someone or some business that helped them get Soo much money. Then they thank them, so on. Planning on someone to think they stumbled onto some secret, special person who takes a little money and gives you a lot if money. It's a sad ass, loser, with zero life or goals scamming ppl to hook them on the immediacy, and rarity of some obscure person that can make you wealthy. It's sick! Re read the conversation. They're all the same. "I've got a little money, but don't know who to trust, or where to invest it and guarantee wealth" (Everyone in comment sections) Then, response: Oh I was able to turn my pocket lint to 40k in 2 months with Cheryl Diane Jackson Littlefield, shes ultra special awesome and takes your money and copies it ten times giving it to you. (The lure of "I found a secret special money maker who knows what I don't) Then, their response: "Yeah, I've heard of ole cigarette teeth lady, and people say she's incredible, and will sixtupple your portfolio is a single quarter then guarantees 4 time ROI! THANK YOU SO MUCH!" Again bro... They're sad sick ppl who will never be, or have anything of value. Just leaches so sad and desperate, they do this all day. Go to ANY financial anything on KZbin to the comments and you'll see it now everywhere!

[@martinslavik916]

You are rare. You are talking about real money and you are telling the truh. Lots of love for you!

[@Tyler-lt4xh]

Having made offers on hundreds of deals.. sellers do NOT just say “hmm okay yeah sure have it for nothing down just pay me” they all want some sort of lump some. Always. Also, whether she thinks this or not, you can’t just go buy a plumbing or service business and think it will bring you money even if it did in the past. YOU NOW RUN IT. You better know plumbing. Literally nobody, and I mean nobody, owns a business and knows nothing about it. Just gurus making stuff up.

[@HippieP629]

+nods+ Thanks for your insight, Tyler

[@gregozzello4688]

Nor does anyone ever sell a multiple of 2 times earnings lol

[@SebastiaoFonseca]

yeah... I was watching the video and I'm like... why would someone sell with a multiple of 2? What would be the meaning of that? The fact that Codie does not spend any time talking about that is fishy enough :)

[@therealfrankrizzo]

i think the key is what she said about somebody actually looking to get out of the business. something like a death or divorce. you have to find that right business where someone isn't wanting to or can't wait around for a buyer to pop up.

[@SebastiaoFonseca]

Yes it actually makes some sense after I gave it a second thought.

[@bullettme]

Codie, something is off at min 8:25 In order to get the remaining 204K in 212 $ a month, the seller would have to wait 962 months, which is 80 years. I doubt anyone who would wait that long. Please explain and help us understand.

[@timothyandersen1533]

As someone who digests hundreds and hundreds of hours of financial education through KZbin you are really good. Why were you not suggested earlier!? Thanks for the free education!

[@ChrisMoSpeaks]

hahaha before Codie blew up.. I landed buying my first business using seller finance. It was crazy to think it actually worked. Love Seller Financing!! I wanna do it again hahaha

[@PanHuiYan]

Did u have to actually take over the business and run it?

[@truthdrone7066]

If you were here in person I would give you a big hug. Been trying to buy a business for a long time. Everything you said is exactly what I have been trying to do. I ran into the problem of not having the downpayment, but you addressed that. It is worth a shot to throw a letter of intent at a business if I like it. Thank you so much!!!

[@jimmymcthrifty]

How is your monthly payment only $212 per month ($2,544 per year) on $204k. Even with 0% interest, that would take you 80 years to repay. I can't imagine a seller agreeing to an 80 year loan.

[@Jeanfranklynofficial]

Exactly.. I was wondering if am the one who didn't understand this

[@godismygeneral]

Yes Codie please clarify

[@JoweeS]

It's interest only with a balloon in 4, 5, 10 or so years most likely.

[@SpaceIT7]

The numbers do not add up. The calculation is not accurate

[@borutouzumaki773]

Ok so I do seller financing on properties and sellers do accept long term payments because they are earning money generationally meaning the business owner passes away their child or grandchild will inherit it and earn money passively without any work for the next 80 years of his life. I mean living half your life in someone else’s work is a no brainer just from one single business now imagine having 5 of these it’s literally work free generational wealth.

[@Ericswenson12]

In the first example you pursued seller financing for about $200k and you’re paying the seller $212/mnth ($2,544/yr.) This wouldn’t even come close to paying the seller back so how is this possible?

[@nicoferaud]

9:36 *raises hand Prof, it seems the loan pmt is off or Im missing something from the financing terms. $212 monthly would mean we payout the balance in 80 years without any interest. ❤ Monthly pmt would be $1095 if we amortize over 30 yrs at 5% interest. $8200 monthly net to buyer $2163/month if we amortize over 10 yrs at 5% $7170 monthly net to buyer $3850/month if we amortize over 5 years at 5% $5483 /month net to buyer (Still over a 300% return on your cash invested with this option 👌)

[@JasonParzych]

Good call out. I saw this too, but didn't have the nerve for all this ^. Thanks for taking the time to put that together.

[@Gozna007]

I also got stuck with that but later figured it out! Am not a financial expert so pardon my elementary calc😁 Lets roll: So the loan period is 4yrs (ie 48months). And the interest (5%) is for the life of the loan (not annual). Therefore, 204k * 5% ÷ 48 would give you the monthly interest payment to the seller (ie Seller Finance Loan Payment) Omg I nw feel so smart😃

[@eagleheart1086]

I am curious about this as well. I see the example cited (204k * 5% ÷ 48) makes the math work, but it doesn't make sense to me. I can't imagine pitching a seller that they would receive less than a car payment per month for letting me "have" 204k

[@JasonLeiter13]

I have also been trying to figure this out for a while. Do you ever pay any principal on the "loan"? What am I missing?

[@Drew-sy2bn]

​@@JasonLeiter13 I think you paid the balloon payment in 5 years so they basically get the entire thing if it was interest only for the first 5 years. Then you'd have to refinance it but you'd have plenty of time to deal with banks and do that and raise the value of the business

[@veronicakaye6097]

Codie, thank you for sharing your time and knowledge with us. I have recently discovered you, and have been watching a ton of your videos and reading your content. This is all so new to me! Robert Kiyosaki said “most people want to be rich, but most people will never take the time to be rich.” Thanks to you, my husband and I are looking to now buy a tire company. The owner sighed and said he guess he’ll probably have to close it so once we look at the accounting side (thanks to my mom!) we will look into purchasing it! Where we live, there are tons of people retiring but no one to buy. We thought we couldn’t because we didn’t have capital. Thank you for proving us wrong! Also, please feel free to explain equity/debt 🙏

[@IceCold2fresh]

Love ❤ You Codie! Because of you I am no longer stuck in the 9 to 5 mentality. You changed my life! 🌹

[@nbgvfcmnbh6226]

I assisted a consulting client with starting a flooring company on the internet. He used distributors and had no inventory but sold everything. He had very little overhead. This can be accomplished with hardwood, tile, carpet and other building materials.

[@toney3229]

Wow, I knew about Seller Financing in Real Estate but I did not know about Seller Financing in buying a Business! Thank You for Sharing the your Knowledge!

[@LS-ih7dg]

How Is Seller financed structured in real estate? How is the Buyer assured that they wont loose the real estate to the seller on Title (in Canada)

[@FunnyAnimalsCrew]

Ok so after I found a person willing to do this seller financing what is next? Like how do I get the paper work part done?

[@apcook34]

This is great but also terrifies me. I have a good job but am exhausted when I get home. The risk of failure or it taking all my time and stressing me out when I have a wife and two kids feels overwhelming. This seems like you do it the first time and it's scary but gets easier the more you do it... you at least know what you're in for.

[@jahimuddin2306]

I am in the same boat. But you know what they say “fortune favors the bold”

[@apcook34]

@jahimuddin2306 with a family depending on you.... there's a lot more to risk tho. If someone wants to do it, great, I wish them all the fortune!

[@blackmediaiptv7950]

Love it Codie, You must be Italian or understand! Napolean Hill concept, to "Think and Grow Rich". - What I want to do is invite those with $100K or More to generate 100% Gross with a Net of 50% to 60% per month for 10 Months without moving the INITIAL INVESTMENT of $100K from the bank. Imagine in your last scenario, a gain to have more than $100K that month from the Business just bought to Investment or place in a separate account to calculate and analyze the Generated History of payments. LMK

[@williepgs4668]

I need to watch this a million more time Codie. Great video, thanks. I BADLY want to buy a fuel (or gas (I am from South Africa)) station that has an a-joined two-bedroom apartment, three shop spaces and space for a workshop (used to be operational). I have NO CASH available for it. Her husband passed away and she wants to sell but is in no hurry to sell. OOOOOO man.

[@brajoe4728]

Send me an email

[@manikh1796]

Thanks Codie. Would please talk about negociation strategy to get the business, how much fund to put down, how much back up cash to pu aside, and what are the risk factors and the exit strategy?

[@Torvull]

It would be awesome for you to go into the numbers more. If I understand correctly, using Seller Financing can close the gap for the purchase costs and what the SBA will provide you, so you have essentially two loans. Could you show us some actual deal numbers so we could see how it all plays out and what the profit would be for a business after you make both loan payments. Even if it is just one loan and the seller finances the entire thing, it would still be great to see. How many years do you set for the deal and interest rate, etc?

[@nebulagaze47]

YES ESPECIALLY BRILLIANT, i have step foot out the door and emailed two sellers who want to sell a company and i will be using this strategy, now lets see what happens and it will take time but patience is always awarded for those who wait

[@jaysteigleder-wl8em]

How do you identify and get in contact with businesses to buy? Also, how do you typically go acquire/validate the financials for companies that may not keep tight records?

[@andrewpaladeniya6475]

I wish I had found you 10 yrs ago, its very practical and achievable, all the best Codie!

[@Courtney-Alice-Gargani]

This is a video I've been looking for. I'm looking to opening a business. I'm still looking at the pros and cons and what works best for me. Thank you, Codie.

[@whitesound625]

In this video, Codie tells us to buy an existing business. Not open a new business. ;)

[@NWforager]

@@whitesound625 right , but new to the buyer . i have been noticing these even on craigslist .

[@reprogrammingable]

I have been thinking about buying a business since 2019 and it was put on hold because of the pandemic, now that i am unemployed it feels alive inside me again. thank you for the info. here i go !

[@nishlan]

Hi Codie, thanks for sharing your content - also love the way you present. Just wanted to ask, about the seller financing - is there a 'dark side' to it, so for example, 1) how do you go about deciding on the business you want, and more importantly, 2) what happens, if for example you dont make or cant meet a monthly payment - do you then have to 'hand back' the business - what legal clauses are embedded into the contract to 'protect' the buyer and seller ? Thanks

[@johnnypunish]

I sold an online job board biz for mid 6 figures. Buyer asked for seller financing over 3 years. Success for both parties. A great deal for all.

[@ejo5294]

I find one of the biggest cons for borrowing from friends/family is what if the business fails? I've seen people lose other people's money in business and lucky for them they don't have a conscience. I think it would eat at me.

[@darrenstango9376]

I'm quite excited to try this method, so for the last few hours I have been researching where to find businesses to buy in the uk

[@ericneff]

I want to understand why equity is more expensive than debt. Thanks! Love your channel! Keep it rockin!

[@dyllanmudrik51]

I imagine it's because debt lasts only through the debt cycle, whereas equity is in perpetuity and therefore loses much more potential profits in the future

[@AgainstAllOddsInc]

You're the goat!😍🙌🏾 this info while it isn't new news to me it will be to so many others and I just appreciate the fact u are giving the quick a-z on this topic for free to the GP very few "gurus" do this and love to sell info..now I know either social media u still make $ off the info but u aren't charging 30k just to help someone learn this n close maybe 1 deal...bless you

[@saeidjones3075]

Tried doing a seller financing deal and the consultant got back to me saying that it was highly unlikely for me to get a deal with 0 down. Any chance I could get past the consultant and straight to the seller?

[@prednosttrake]

Seller Carry exists, but typically for a broken business. Have to weigh if starting new or trying to save is worth the time. Seller Carry could ask foe PCG (parent co. guarantee) - how is your reputation? SBA and affiliate banks will require collateral - what is the working capital. Ie (AR can be financed 80-100%, finished goods at 50%). If buying a service, not much collateral. So possible, but rare that you can find a profitable business that can be acquired with seller carry in an industry where you can replace the owner to continue the business without disruption.

[@gunjanmodi3701]

Your videos are highly informative and consistently engaging. I appreciate that you covered the topic of seller financing and I am keen to delve further into this area. Would love to see some content related to this topic from you.

[@Qrp_international]

Having a good reputation and history must help a TON with making deals like this. Just hearing this method is super inspiring! Thank you!!

[@Almandar]

I believe the overall theory and advice is solid but the math does not add up... @8:00 Valuation 224,000 - downpayment 22,000 = 202,000 instead of 204,000. Also with 5% compound interest for 4 years the monthly interest amount is $444 and not $212. It is only 212 if the 5% is a one time flat rate ($10,100) spread out for 4 years monthly payments of $212 but ... this does not seem like a fair deal for the seller.

[@nicholasklugh1755]

Omg you are the absolute best! Can you explain a little more on how seller financing plays out? What happens to the 7% interest (SBA) or 10% bank interest? Would the seller wrap that into the pricing instead?

[@Ai_LeadBots]

I'm with you so far. Now please teach how/where to find these distressed business owners

[@davidshave7892]

Great insight, Codie. I used seller financing to purchase my restaurant because the banks scoffed at me. Once the deal was done, the banks were falling over themselves to try and help me out. Apparently I was now a "big deal" :D Great advice and direction from you. Thanks for sharing this with us all!

[@TylerLeber]

Love your explanation on seller-financed acquisition. I didn't know about that, but it could easily be a win/win for business owners and acquirers. It honestly just opens up the market more and allows for more of those businesses to actually sell. Crazy how so many businesses go up for sale but are never purchased! So sad that they just end up closing.

[@keyto5526]

How do you know whether the small business is profitable and no some old owner trying to get rid of money losing business with debt or the rent lease will suddenly shot up this year? One advise is do not buy business that need the owner to be in shop all the time otherwise you just replace the owner rather than getting an employee since there must be reason why the owner cannot get an employee to run the small business in the first place and you will need to reestablish with the vendors for any contract renewals.

[@teshbrady]

Absolutely insane value in this video. Thanks for the breakdown Codie!

[@David-iq1kd]

Except that the math doesn't add up ..

[@cgrant]

I’m missing something, this is saying you only pay $212 for the debt (which is only the interest) and infers that $9,121 is profit. Wouldn’t you need to pay off the seller note? Over 3 years that would be $6,434/month. That would still net the buyer $2,899 but the COC is much less. Am I missing something??

[@brettpayton6286]

I love seller financing. Curious of how Cody would do this. If you wanted to find stuff in your given area or a 100 mile range, how would you go abouts that? Thanks keep up the great work

[@JstylesJ]

Have you guys tried yet?

[@Trinitta]

Hi Codie. The video really motivates me to start this. What do you think about a dementia daycare club? Asking Price: £27,199 Turnover: £500K - £1M Net Profit: £250K - £500K, They are doing seller financing with "0" down payments and also provide 3 weeks of training to run the operations.

[@AnnAndNala]

Wow, that sounds great! Would love to hear if you purchased the business! If so, I hope you're doing fantastic!

[@Trinitta]

@@AnnAndNala i haven't purchase that one, i got another one instead. Just finalising the last details to start from 1st of October 🥳 Wishing you all the best

[@christopherhodges1189]

I bought my restaurant through owner finance. I ran around asking family and friends for money. Only 2 people helped. I just paid my car off, so I took a loan out on it. I also refinanced my house, then saved saved and saved until I had 100g down-payment, and then the seller financed the rest 4 yrs later, and he is paid off. Now I make really good money. Actually, I've been making good money this whole time, even with paying a monthly payment to the seller. The only thing that sucks for me is that I'm still operating the business myself. The restaurant business can be very difficult, but I enjoy it most of the time it's hard to find a good operator. Good luck, everyone. Don't be scared of hard work. If this shit was easy, everyone would do it.

[@HippieP629]

Hey Chris. You're operating it as in you've hired staff, etc.? This is prob a duh question, sorry =)

[@christopherhodges1189]

@Mark P yes honestly I lead the kitchen every day from 530 to 2 and then 4 to 9. It's a busy restaurant, so I'm there to help and lead. I get a paycheck like everyone else

[@leslieschmitt7749]

Codie, I would like to understand why equity is more expensive than debt!! Thank you for all you do for the “regular guy!!”

[@calebbelk7780]

I feel like the Business Breakdowns are slightly misleading. Take the first one for example. You will not get paid $9,121 monthly because you have to pay the seller out of monthly profits. So on a debt of $204,000 and given three years to pay back the seller, you would have to pay $5,666 to the seller every month. Leaving you with only $3,454. That's great if you don't have to operate the business, but if you have to find an operator on top of that you're in the negative. I still am convinced seller financing is the way to go. I'm just not sure these deals you showed are that good of a deal.

[@khorLDW]

this is exactly what I was curious about, thanks

[@MicoLinks]

Thank you, Codie, for sharing such valuable insights on structuring deals creatively! I'm excited to apply what I've learned and put together a strong seller financed pitch. Your guidance has given me the confidence to get out there, negotiate effectively, and secure a great deal. I truly appreciate the clarity you bring to the process it's a game-changer!

[@jimrice4068]

I made my first offer on a business here in Aus recently - 50% upfront , 15% seller financed, and 35% over 3 years based on sales thresholds being met- the seller(or broker) was that offended the broker no longer returns my calls/emails. I don’t think 10% down payment would be accepted in Australia unless it was a very mediocre business…

[@ebizcorey1795]

This. Either a. these businesses are total dogcrap b. she has connections to the seller c. uses her persona has collateral or d. her numbers are fake (most likely).

[@NGSTYLEUK]

This won’t work with a broker.. remember brokers get paid in the transaction.. they don’t want to wait for their money..

[@allywilkeforsenate]

Let them sit in it for a year and then contact them again if it is still available.Chances are they will be more desperate.

[@NGSTYLEUK]

If the biz is still there after a year that’s mean it’s a crap business and no one wants it, and you should move on too.. 75% of businesses don’t sell because they are crap or you are paying for a day job. Desperate owners means desperate biz. You need to find them off market.. best chance!

[@kevinmctarsney36]

In the first acquisition example you only illustrate interest-only payments. The principal would never get paid. There is enough monthly profit to fund it over any number of years above 2, but that effects the COC calculations you showed.

[@kevinhicks9447]

How does the first case scenario end up being seller finance loan of $212 monthly? That doesn't add up and you didn't state the term length? What if the business fails during that term length?

[@syreetamcdonald8669]

OMG! Wish I had this information before I took out student loans! But it's never too late! Thank you Codie for providing the education I should have received in high school!

[@douglasfuqua7082]

Great vid. I've done this with real estate (as a licensed agent), and following that...retired out of licensed real estate, etc., as an entrepreneur (private). STARTED a business with only $50 (high tech), years ago...it flopped finally, because of divorce... Great tips, and I KNOW you're NOT "selling BS....because I've DONE it, too...thinking seriously about it, again.....hmmm. All the best, Codie (and "Smooth Seas...to your husband... & you...soft wind, to your back....Anchors A weigh).

[@LS-ih7dg]

Could you please tell me how seller financing works in real estate. Here in Canada who ever is on title is the owner. Is there a "Charge" put on Title to protect the buyer?

[@douglasfuqua7082]

@@LS-ih7dg Canada WILL have different rules & laws, but will work in similar manner to US... We're talking about a "Contract-for-Sale" (Google that...). The seller maintains ownership during time the buyer is making (accumulated) payments...until such time as the contract is satisfied (fully paid off)... And THEN the seller presents the buyer with a DEED (of sale)...real estate, AND "chattel" (items included in the sale of the business REAL ESTATE, which make the business function AS A BUSINESS,, a notorized copy of which YOU then file with your local government records department....,you may (or may NOT) be required to publish this info (newspaper, etc), locally....depending on your local laws/rules etc What you referred to in your question (to protect the buyer's interest in the agreement) is usually handled in this manner... Consult your local legal representative for necessary details, expenses etc. --- Best wishes for your ventures !!!

[@RanHodos]

hi First, thank you from the bottom of my heart for the inspiration and useful information. I would be happy to receive an answer to a critical question below. In the case of a purchase through the owner, what happens if the business collapses before all payments are made?

[@Raymondjohn2]

These are very valuable rules for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $89k now to put in the market.

[@hermanramos7092]

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. I know someone who made over $350k in this recession influenced market, but to the best of my knowledge, it was through a financial advisor.

[@martingiavarini]

Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2019, and I return at least $21k ROI, and this does not include capital gain.

[@bob.weaver72]

Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.

[@martingiavarini]

I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance wealth managers you could check out. I have been working with “Catherine Morrison Evans” for about four years now, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.

[@bob.weaver72]

Thanks for sharing this. I did my own little research, and your advisor looks advanced and experienced. I wrote her and dialed her twice but she didn't pick up so I scheduled a phone call.

[@terryturohostgroup1032]

I am considering retiring & selling my business. I am a senior & looking forward to retiring this fall. My business is profitable and growing rapidly and I’m the only employee I am trying to decide to hire help or sell so that I’ll have time to enjoy retirement. I had the largest 4th quarter yet & worked round the clock from black Friday through Christmas. My health has paid me back since January & forced me to scale back. The business is not related to Turo🎉I let my new vehicle pay me while I wasn’t using it🎉

[@tjmarvin1627]

Your content and methodologies are so fresh and fantastic on all things business. You rock!

[@jonathanc2179]

Normally buying small business are on brokerage websites, which you’re usually dealing with the broker and not the seller directly. how do go around that?

[@natemoothart6967]

In the first scenario you show $212 to the seller and $9,121 to the buyer per month for financing 204k, how is that possible? Even with ignoring the interest on top it would take approximately 80 years for the seller to get all their money. I would love to see more detail on that part because there must be something about that aspect of the deal that's not readily apparent.

[@kgthecultist]

we need answers on how the 204k is paid back, aside from the interest payment ($212) monthly!

[@maestro1168]

Following. Tag me when she answers lol.

[@andystevens8693]

If it was paid off over 5 years, The monthly amount payable to the seller would be $4000 per month. It would not be $9121 profit per month to the buyer of the business, but $5100 instead to the buyer of the business.

[@LiquidMessiahXIIII]

Okay so I’m not the only one killing themselves over the math here 😅

[@Ghost-Ghost-Ghost]

She's not including the principal payment as an expense, because it's not included as a cost on balance sheets. Payments that pay down the principal are 1:1 ratio to equity.

[@vinaytara]

Good info. Thank You. In your first example at 9 min 41 sec.. how is the interest $212 a month? Please explain. Thanks

[@edwardbussey2881]

Easily one of my favorite videos you’ve put out! Love watching your content

[@samehmke3396]

In seller financing it's actually the buyer pays the seller not the other way around.

[@rachaelbiggs7219]

Omg, what a great channel! So useful! I hope you're wildly successful because you're putting so much value into the world. Big ups girl!

[@elisummy379]

My question to you is, how do I determine if it is a business to buy? May it be a business that rent tents out for weddings and like a party store with all kinds of things for weddings? Or anything else? What do you have to go by to know if it is something good to buy

[@ryangeftmangold]

I’m a big fan, @Codie, and hope to take your course later this year. In the meantime, could you explain the the Seller Finance Loan Payment portion of your first deal spreadsheet? It doesn’t seem to make sense that the monthly payment would be just $212 to repay $201,600. At that rate, it takes 79 years to repay… not including interest. What am I missing?

[@jmbzrazo]

I have the same question. Interest payment alone is $850 per month at 5%.

[@godisallaroundus]

This is some of the most value packed information on KZbin right now. That is not my opinion. Simply a fact. Great job I found you a couple weeks ago and I've been recommending you to everyone. Please keep it coming.

[@coolakin]

Why would a business owner accept $212/month instead of a full buyout? Also at $224k valuation paid back monthly at $212 it would take almost 90 YEARS. I must be missing something. No one would take that deal.

[@bigballz32]

You're not missing anything, she doesn't know what she's talking about. She speaks in theory, very little real life experience.

[@ThePursuit83]

Why did I not come across this 3yrs ago? I started my business in 2020. Love what I do, however, I turned 40 in Jan and know building this is a min 10/15 ur play. I will be studying your ways Codie and buying a boring business to add to my portfolio within the next six months. Today is March 31, 2023 🤘🏻. I found you from Andy F. Podcast.

[@StephaniRoberts]

Your videos are eye opening and jam packed with value Codie!! Thank you! How do you run all these businesses and find help? Do you keep the existing staff, find new people, retrain for more productivity toward a higher return? So curious.

[@amritram8624]

Why is equity more expensive than debt

[@nathan6055]

Someone from Europe here, firstly I would like to say that I love your content, and how you explain the steps. You have me sold on buying a boring business, just one simple question. Here in Europe it's super difficult to find employees for any type of business. So what do you do if you want to buy e.g. a plumbing company, but you are not a plumber, and finding quality staff is difficult? How do I make this concept scalable?

[@jjfattz]

Most sellers are not open to it at all. When they are, they almost always want a huge amount down with very short terms (1-2 years). 100% seller financing is such a risky bad deal for sellers.

[@elsavelaz]

This does work, I’ve actually seen my partner do this many times (both buying and selling), and he doesn’t watch these videos nor am I affiliated with Codie Sanchez or anything. Just sayin, this does work, and I’m just a nerd so it was mind blowing to see my partner do so many fewer hours for tons more $ than me, and I do make a good living as a data scientist/ computer scientist / land baroness

[@sallyrodriguez1132]

I apologize if this is a silly question but how do you find those businesses that are likely to sell? Like is there a website or are you literally just looking around town?

[@FloydTaylor]

diverse approach. she has says asks community leaders (small business associations, head priests at churches, for deal flow) she asks owners directly if not for their own business but to keep an eye out for businesses for sale. she has also said she looks on websites. she has openly said she pays people for bringing her deals. and she would also get some deal flow from people watching her videos on social media.

[@sallyrodriguez1132]

@@FloydTaylor thank you!

[@SSTR87]

@@FloydTaylorThank you

[@MannyRios_Hybridfit]

Hi Codie you mentioned you've purchased a plumbing company. How do negotiate or structure the state license pre-requisite? Do you hire the former owner and keep him on payroll until you obtain your (RMO) Responsible Managing Officer?

[@ThomasLeonard454]

Love your stories on successes. Also curious about fails. If any. Have shared a couple of these with my wife. She is intrigued. She currently manages a hardware store. Would like to find a business that she is willing to work and yet semi retire somewhere other than the SF bay area. I'm DONE here. Like the idea of your books.

[@MahdiaDubai]

Well, it was perfect information and brilliant idea , but i would like to request you to talk about challenges of post purchase of these businesses & how to run actually to make money. What I think is getting the deal done is just 10% of the job , what about the rest! It looks perfect just to buy a running business and make money but would be perfect if you could mention real challenges we gotta face after ! Thanks to you again ❤

[@stacycomfort5783]

Thank you. Great video! I'm in the process of figuring out the sellers finance process to break out of my military capacity. Just took Hannah Ingram's blueprint masterclass. I'm literally your example 2 with some of the businesses that I'm looking at.

[@marioandultrachap]

How it's going so far

[@estelamorales4979]

The SBA does not make or grant loans and it is not free money. The SBA can guarantee the client as a good risk and they partner with lending institutions. They don't give out free money.

[@DeanDD]

Absolutely love the content Codie! This is a huge help!

[@wesl.2351]

This is great! I followed all your advice and got a business owner who wanted 40% down to start thinking about accepting less as long as we configure the deal to allow him a safety net to take back control if I start to run the business into the ground... Now, I really could use some help with the details.... HELP anyone?

[@robertoreilly6660]

You need a transactional lawyer to paper the deal.

[@jacklyn-b1u]

I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $200k in a savings account that i want to invest in a non-retirement account. Where should I invest it now?

[@CheriFanizza]

Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert

[@randettawolf]

A good number of people discredit the effectiveness of financial advisors in exploring new markets, but over the past 10years I’ve had a financial advisor consistently restructure and diversify my portfolio/expenses and I’ve made over $1.2m in gains… might not be a lot but i'm financially secure.

[@Tommyp-w1b]

I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

[@randettawolf]

My CFA 'Grace Adams Cook' , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@Tommyp-w1b]

I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.

[@jamescooley9284]

Hi Codie i plan to give this a try 50% of something is better than 100% of nothing but you need good communication skills as i see you have Thank you.

[@AmitDangerPatel]

Would love to hear about how you hire folks to operate these businesses that you may have no past experience in running and free up your time to go buy up more businesses. Seems like a critical piece of the equation

[@curtiserecacho1401]

Indeed.

[@Angelface11]

Intelligent, discernment

[@insomnia984]

What would happen if you actually manage to get seller financing and end up failing that business ? Maybe they are selling coz their business isn't going the way they wanted to and I end up not succeeding in doing so as well

[@robertfota4109]

I'm confused by these numbers. At the 8 minute mark you're talking about valuing a company at 224k and paying them 212 monthly for it. 212 dollars times 12 months is 2544 dollars paid a year. At that rate it would take 88 years to pay off the 224k value, not counting a dime of interest. So how are you only paying the seller 212 dollars a month for this and they say yes to that?

[@SellerApex]

same

[@paradymelift]

I think she’s saying that’s the financing cost (interest), not the payment.

[@bettinabrandt2581]

Mind-mapping the flow.... I've done this once but it's been a long time and want to jump back in instead of shooting for another start-up. It really is a no brainer solution in regard to aiming for owner financing - Win/win!

[@zeusmultirotor8479]

When she said 60% of small businesses are sold seller finance my mind went straight to Anchor Man “they’ve done studies, 25% of the time it works every time “

[@terrencebrown2646]

Thank you Iam gonna proceed to get everything my family and my wife and children deserve I come from a entrepreneurship background

[@bringmemykey]

The math went over my head. So on the first example you’re only paying them 212 a month 🧐

[@JAE1324]

My same thoughts; I wonder if 5% interest is typical and for how long the term is

[@marcmalonzo566]

I've done LBO's and I understand that this is an overly simplified conceptual (such as Profit = NOI, EBIDA, ODCF, etc.) However in the example @ 8:31 It's not to clear to me how you derived at $212 (monthly) for the Seller Finance Loan Payment (5%). Could you please clarify? Thanks!

[@vincedenais2612]

Codie, You just nailed every point I was thinking on this subject. I just came upon a 75 yr old “boring company” for sale for $1.9MM, have met with the owner who will seller finance, but I need help cutting my first deal. Equity for you if you can help, thanks!

[@olayinkka]

DM. I can help....