How to Buy a Business that Will Cash Flow from Day 1

Can you imagine buying a business that puts in your pocket $20,000 or more of net income per month? Yes! It is possible. And even better buying a business that manages itself so can you really taste what it is like having passive income and not having to work for a living? In today’s video, I’ll discuss in great detail what makes a business worth buying, what is the #1 thing I look at as a business broker when analyzing businesses for sale. #1 think I look for to ensure my buyer won’t be sucked into the business working 12 hrs a day? And much more…
#HowToBuyaBusiness #BusinessesForSale #LeoLandaverde
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Need mentorship to buy a business in 6 months?
See if you qualify for my BUSINESS ACQUISITION MASTERY PROGRAM:
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Download my popular CASH FLOW CALCULATOR FOR BUSINESS PURCHASE TOOL:
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Download my helpful BUYER DUE DILIGENCE CHECKLIST:
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🔻What to Watch Next🔻
💰💰 How to Buy a Business
• Buying a Business NO M...
💰💰 How to Grow a Business
• How to scale your busi...
🏘 How to Finance Your Business
• SBA 7a Loan - The Best...
💰💰 SBA Loans
• SBA 7a Loan - The Best...
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Link to this video: • How to Buy a Business ...
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Hey Leo here, bringing you business tips, business advice and motivation on a weekly basis. If you want to learn how to grow a business or scale a business without sacrificing profit, this is the place for you.
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@leolandaverde

[@LeoLandaverde]

Need mentorship to buy a business in 6 months? See if you qualify for my BUSINESS ACQUISITION MASTERY PROGRAM: qualify.businessacquisitionmastery.com/application286533 Download my popular CASH FLOW CALCULATOR FOR BUSINESS PURCHASE TOOL: calculator.businessacquisitionmastery.com/optin Download my helpful BUYER DUE DILIGENCE CHECKLIST: checklist.businessacquisitionmastery.com/optin458884

[@hitulinspire]

Quality content, thank you Leo

[@LeoLandaverde]

Glad you enjoyed it!

[@michelelewis1541]

Thank you for breaking the deals down. It is very helpful.

[@LeoLandaverde]

Glad it was helpful! Are you looking for businesses to buy?

[@nicklora5015]

Hi Leo, Thank you for the voluble information.

[@LeoLandaverde]

Nick, thank you. Are you looking for a business to buy?

[@Sw1fen]

If I am someone completely new to this industry fresh out of college (was in engineering and may want to look into doing this instead) and without much money, what is the best way to go about learning, buying and securing a successful passive income business?

[@LeoLandaverde]

It will be hard for you to buy a business without management experience and a down payment. At least not the kinds of businesses I advocate. I would encourage you to save at least 50k and gain some operational experience in your field of study

[@renmes2636]

Set-up a corp. Work on your credit and get lines of credit. You want to get a 700. You can partner with one or more people that have 700+ scores. Use that as your down-payment. You should be able to raise $100,000 to $1,000,0000 this way. Apply for SBA funding. You can borrow as much as 90% of the purchase price of a company up to $5,000,000. Get the pre-approval in writing! Use the lines of credit you've applied with, and been approved for in your corp as the down payment to acquire a business up to $5,000,000. Reach out directly via written letters to 100 - 500 letters to business owners in the sector you like. Tell them that you are pre-approved. Tell the business owner that you need the business to have 10%+ in cash on the balance sheet the day you close. Put that on your letter of intent (LOI) and your purchase contract. At closing, you can get investors to front you the 10% since 10% of the value of the business in already in their bank account at closing. I've raised $20,000,000 this way. I know this works.

[@dollyjohnson28]

You made the right financial decision to buy businesses

[@hitulinspire]

​@@dollyjohnson28agree. Qudos not only to look at enterprise Vs employment but acquisition entrepreneurship. All power fella! Eyes on the prize, whatever the route

[@isaacsodora1024]

@@LeoLandaverde can’t you get a loan from the bank instead and leverage the banks money?

[@halaaldebaran2843]

Thanks for the breakdown - you are awesome

[@LeoLandaverde]

My pleasure! 🔥🔥

[@subirkrishnan]

Hi Leo-Love the videos and the channel. You got a new subscriber. Will be binge watching your videos to learn more about buying businesses.

[@LeoLandaverde]

Welcome aboard!

[@angelastilwell389]

I love this content. I am looking to purchase a cash flowing business. I just don’t know we’re to start. You are awesome! Thank you

[@LeoLandaverde]

Angela, thank you! I would love to help you. Please email me your contact information to [e-mail]. Will send you a short questionnaire and we’ll schedule a call with me.

[@MelodyHowes-wt7nw]

This is very interesting.Thsnk you for sharing 😊

[@LeoLandaverde]

You are so welcome!

[@israelbernardo6529]

Thank you for the information! 🙏🏾

[@LeoLandaverde]

You're so welcome!

[@chrisekigbo7748]

Thank you. This is very helpful

[@LeoLandaverde]

You're welcome!

[@storagepickle]

Thanks Leo, You the man. Saw you on the Storage Rebel

[@LeoLandaverde]

Nice to meet you! Yes, I’m looking into self storage for myself. Have you already invested in self storage?

[@MrMittins123]

Hi Leo, awesome video. I was curious if you have a video on important questions to ask during the seller/owner financing negotiation process. If yes can you please attach the link below, if not I think it would be great content myself and other viewers would love to hear about.

[@LeoLandaverde]

Great suggestion! I don’t believe I’ve done any videos like that. Are you talking about 90% seller financing situation? What kind of seller financing are we talking about?

[@antoniostephano]

Love the information! I am an MBA but have never heard this valuation method.

[@LeoLandaverde]

Thank you very much. What type of business are you looking to buy?

[@carlac843]

Sounds very interesting. I need more information.

[@LeoLandaverde]

Absolutely. I’d be happy to provide more information. Please email me your contact information to [e-mail] and I will respond via email.

[@DamienGoodman-g6f]

This video is extremely beneficial

[@LeoLandaverde]

thank you!

[@arisatu23]

Thank you

[@LeoLandaverde]

Glad I can help!

[@Mr.E.834]

Thank you!

[@LeoLandaverde]

You're welcome!

[@villagequaff7958]

Thank you for sharing this information

[@LeoLandaverde]

Thanks for watching and I hope it was helpful to you

[@1976sweep]

Great content! Thanks for sharing!

[@LeoLandaverde]

My pleasure!

[@JustinNevins]

Great video. Really great content, Leo!

[@LeoLandaverde]

Much appreciated!

[@Pataryee]

Great video, thanks

[@LeoLandaverde]

My pleasure!

[@iamwealth8512]

Thank you for the insights.

[@LeoLandaverde]

My pleasure. Please subscribe to my channel and let me know if you have any questions.

[@lisaolmeda1062]

I just found your channel. Thank you for this info.

[@LeoLandaverde]

Lisa, You are so welcome! Are you up to be looking for businesses to buy?

[@JDRaine]

Super interesting and great content. Thanks Leo!

[@LeoLandaverde]

Glad you enjoyed it!

[@jasonmcgriff6868]

Thanks!

[@LeoLandaverde]

Glad to help!

[@rivertiffany3291]

I am enjoying your content.

[@LeoLandaverde]

Thank you very much!

[@nealhere]

This may be nitpicky, but I’m sure you mean positive cash flow rather than just general cash flow

[@jorgepineda9467]

I’m really learning a lot from your videos! Thanks for taking the time to make them!

[@LeoLandaverde]

Glad to hear! What types of businesses are you looking at?

[@jorgepineda9467]

@@LeoLandaverde i’m interested in businesses that provide services. I would love to connect with you.

[@LeoLandaverde]

Yes, let’s connect. Email me your contact information to [e-mail]. Please make a reference to this comment in KZbin.

[@nikkilindsay9149]

Thank you for this good information.

[@LeoLandaverde]

So nice of you! Happy to hear.

[@chanpreetsingh648]

Nice work Thank you

[@LeoLandaverde]

Awesome, thanks for watching!

[@lion4yeshua1]

Great video. Helpful tips

[@LeoLandaverde]

Glad you think so! What kind of business are you looking to buy?

[@samiemalsaad514]

Hi Leo, how to become a business broker.

[@LeoLandaverde]

It depends on the state that you’re in, what city and state are you in?

[@samiemalsaad514]

@@LeoLandaverde Peoria, Az

[@samiemalsaad514]

I’m also interested into buying a biz.

[@LeoLandaverde]

That’s excellent that you want to become a Business Broker and buy a business. What type of business are you interested in?

[@azymodares4672]

what grantee franchise have from franchisor not to raise the supply any time they want that we have to buy from them and cut your profit

[@LeoLandaverde]

It really depends with each franchise or in the agreement signed with franchisor. The larger the franchise, the more they control the supply chain.

[@lawncarelegends6745]

The company often wouldn't do that, it'd damage their international reputation

[@lh5567]

Great video!

[@LeoLandaverde]

Glad you enjoyed it

[@anthonywrightnetwork357]

Thanks Leo for this video!!!

[@LeoLandaverde]

Anthony, glad it was helpful!

[@SN-eh9im]

Great video!

[@LeoLandaverde]

Glad you enjoyed it

[@GregSaucier]

Great content! I’m looking to buy my first business currently and this is fantastic info!

[@LeoLandaverde]

Glad it was helpful! What type of business are you looking to buy? What’s your price range?

[@GregSaucier]

@@LeoLandaverde Looking to buy in home services sector or engineering. Manufacturing is of interest also. 1-2M range depending on cash flow and EBITDA. 1.5-2.5X multiple range.

[@GregSaucier]

Subscribing to your channel. Hope you will do likewise. :)

[@LeoLandaverde]

Excellent. Lower Middle Market. My favorite space. If you need help, connect with me by sending me your contact info to [e-mail]

[@GregSaucier]

@@LeoLandaverde I just messaged you.

[@_victormelendez_]

Great video

[@LeoLandaverde]

Glad you enjoyed it.

[@tulio3571]

Thank you.

[@LeoLandaverde]

Glad to help. Looking to purchase a business?

[@tonyweems271]

How to know if the business is passive

[@LeoLandaverde]

You really don’t know if a business is passive until you understand the involvement from the seller. Sometimes it’s not obvious.

[@HandiNap]

Leo your videos are inspiring and very helpful, just subbed and will be watching many more videos. I did have a question, is there anything wrong with buying into "cheaper" businesses? what I mean by this is, as a younger buyer with around $20k I'm looking into businesses I can put the 10% down for using the SBA 7A and was looking to use from $9k-$15k (so looking at businesses from $90k-$150k). I know this is on the smaller scale of things but is there anything inherently wrong with these less expensive businesses? as long as I factor in the discretionary earnings, risk, etc then things should be fine? thank you for your amazing content Leo

[@LeoLandaverde]

I appreciate the feedback on my videos and thanks for subscribing to my channel. :) There is nothing wrong with buying a less expensive business so long as you purchase it at the right price. A less expensive business does not mean a bad business decision but rather a decision within your budget.

[@nicolecarter152]

Good info

[@LeoLandaverde]

Glad you think so!

[@MartinLopez-nj3qz]

Great video Leo!

[@LeoLandaverde]

Thanks Martin! I appreciate you. Thanks for watching my videos. Hope it was helpful to you 🙏

[@craighunter615]

Thank God I found you 😊

[@LeoLandaverde]

I'm so glad!

[@SouthsideDee]

Just helping the algorithm 👍🏽

[@LeoLandaverde]

Thank you! It does help.. :)

[@LincolnFelix-s4z]

Investments are the roots of financial security; the deeper they grow, the stronger your future will be."

[@DaedalusCreative]

Is there a marketplace where these businesses are listed or are they word-of-mouth deals?

[@LeoLandaverde]

Yes, this one of the topics I teach my mastermind. What kind of business are you trying to buy?

[@Scapone2001]

Can you provide some examples of types of small business that meet this criteria?

[@LeoLandaverde]

any service delivery type business whether B2B or B2C if cash flow positive would be a good candidate. What types of businesses are you looking at?

[@donaldlyons17]

@@LeoLandaverde That is most businesses right? B2B are amongst themselves and B2C is like dealing with the public.... so not anything simple.

[@LeoLandaverde]

You are correct on the B2B vs B2C

[@youseffarahat1011]

Leo, wonderful video and info. Would you be open to sharing the name of the software you mentioned that’s used for comparison of similar businesses? 6:43

[@LeoLandaverde]

Hi Yousef, I use multiple software platforms not just one depending on the deal size. What is the sales price of the businesses you're looking at?

[@youseffarahat1011]

@@LeoLandaverde thanks for your reply. I’m looking at deals in between $1M - $10M range.

[@LeoLandaverde]

All the software I use is trade secret. I’d be happy to have a conversation over the phone with you to learn more about your situation. If you’re willing to do that, please email me at [e-mail] and will take the conversation off-line.

[@Active-gm9gg]

Leo, I've been watching your videos. Great content. Let me ask should I get funding secured before looking for a business? Or should I worry about the funding after evaluating business. I see similarities between buying real estate and buying a business, however I know when it comes to real estate most people won't even work with you without a proof of funds or loan commitment letter

[@LeoLandaverde]

Good question. My opinion is you should know buying power before shopping for a business. So, getting pre-qualified is priority. There is a process I put my students through that has proven very successful. If you want to know more, reach out to me to [e-mail]

[@fsnole98]

Hi Leo. I’m interested in getting prequalified. I sent you an email yesterday.

[@LeoLandaverde]

What’s your name? I got lots of emails everyday so I want to look for you specifically

[@edgalarza2657]

I would like to buy a gas station where can I get financing for this type of business

[@LeoLandaverde]

Some SBA Lenders still do it some have pulled out of the market. Do you have at least 10% of the purchase price for down payment?

[@Specialagentbryan]

great video!

[@LeoLandaverde]

Glad you enjoyed it

[@michaelstanic928]

great, easy to follow video, thank you. I would like to purchase a business or two, and am interested in discussing this with you.

[@LeoLandaverde]

Michael, thank you! Would love to chat with you. Please email me your contact information, including ph# to [e-mail] and let’s set up a time to chat.

[@karenat121]

great information

[@LeoLandaverde]

Thank you so much! Anything in particular that I stood out to you from the Content?

[@karenat121]

@@LeoLandaverde yes, I really didn’t understand how the 7a loans worked and now I have a better understanding. I assuming this type of Loan would work if I was buying an already established laundromat?

[@LeoLandaverde]

Yes, this type of loan would work for the purchase of an existing business so long as the cash flow from the business can support the debt.

[@alpz1599]

great videos, keep it up !!!

[@LeoLandaverde]

Thank you! Any particular section that stood out to you?

[@alpz1599]

@@LeoLandaverde I just wanted to ask if you need a thumbnail designer for this channel?

[@LeoLandaverde]

Yes, I do. My video editor does them and he is awesome.

[@alpz1599]

I can send you some thumbnails I have made and maybe you want to hire me to do thumbnails then?

[@balwn4127]

Hi Leo, Thanks for the great vid. I'm in the market for a business. Do you do paid consultations on behalf of the buyer? Please let me know. thanks

[@LeoLandaverde]

Thank you very much. And thanks for watching my videos. Yes, I’d be happy to consult with you. Please email your contact information to [e-mail] and we’ll set up a time to chat next week.

[@LyricSpencer]

Most businesses in my area are owner operated. They claim buyers are offering 20% down AND 3 months operating costs. If a business is profitable, why would they need to put up 3 months of their own money to operate it?

[@LeoLandaverde]

That makes no sense at all. No educated buyer would ever do that. What kinds of businesses are you looking at?

[@ryanrichard7495]

Hi. My name is Ryan. I am a very motivated person, who is looking to buy a business. However, because of the nature of my disability, I have specific questions. Is there a way I can speak to you one on one or I can possibly Join your mastermind, so that I can get the assistance that I need? Thank you very much.

[@LeoLandaverde]

Hey Ryan, nice to meet you! I would love to chat with you. Please email me your contact information to [e-mail] and make a reference that you found me on KZbin. Let’s connect.

[@100MllzConnect]

How do distance affect purchase and ownership considering living in Africa 🌍 ? Your view will help a great deal 🤝

[@LeoLandaverde]

Distance can be a deal breaker if you’ll be getting an SBA loan. Lenders will want to know how you intend to manage the business from far away

[@bomasydney909]

Can you help me buy a profitable passive income website and also link me up with loans to buy it?

[@LeoLandaverde]

Sure. Let’s chat. Email me your contact information to [e-mail].

[@koroushtaheri7336]

What are the possible reasons an already profitable business, a well established one, would wanna sell their business and not continue it themselves? Apart from the owner wanting to migrate or (s)he is too old and doesn’t have immediate relatives… I think it’s pretty rare to find profitable well-established businesses even being willing to sell a small piece of the business, except at an incredible markup!…

[@LeoLandaverde]

great question. The best reason? Involuntary, meaning seller has no choice but to sell due to illness, divorce, fatigue, no heirs, etc.

[@koroushtaheri7336]

@@LeoLandaverde Thanks for your quick and direct reply! If you don’t mind my next question would be: and how to shop for these kind of situations? I know one good answer is: that’s when you come to the picture as the broker. But if someone doesn’t have anyone like you around?…

[@LeoLandaverde]

I teach this stuff in my master. mind. I teach my students how to find off-market deals. I also teach how to navigate through Business Broker’s and become a go to buyer for them. They’re great source of LEADS I’m on the business brokers. If you want to learn more about it, please email me your contact information to [e-mail] and make reference to this comment in KZbin.

[@obialorchinelo9503]

Hello Leo, I really have followed you for a few Weeks. I appreciate your videos. Especially its practical perspective. I am sure we can have some chat time soon. Keep up the good work.

[@LeoLandaverde]

I appreciate that! Look forward to chatting with you soon! :)

[@FreshAirRainbow]

🔥

[@LeoLandaverde]

🙏💪

[@jvgoldenretrievers]

Hello Leo, How can I give you a call or comunícate for more info.

[@LeoLandaverde]

Absolutely! Would love to schedule a time to chat with you. Please email your contact info to [e-mail] and let's chat on Monday.

[@Itsfernandocorona]

If we’re interested in getting started, can we connect?? I use IG, so going to reach out there.

[@LeoLandaverde]

Hey Fernando. Absolutely! I just replied in IG. Let’s connect. 😊

[@christy42449]

How about on Facebook? Do you respond if I want to connect with you?

[@LeoLandaverde]

Please email me at [e-mail] and let’s connect

[@amarachingwakwe4448]

Great video!

[@LeoLandaverde]

Glad you enjoyed it! Are you looking for businesses to buy right now? If so, what types of businesses?

[@JaylynH541]

Great Information

[@LeoLandaverde]

Thank you Jaylyn, Glad it was helpful!

[@jackie812001]

Thank you

[@LeoLandaverde]

You're welcome! Glad my video was helpful!

[@thawkxx3251]

Good info

[@LeoLandaverde]

Glad you think so!

[@GraysonNathan-v8y]

Investments are the roots of financial security; the deeper they grow, the stronger your future will be."