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Jan 25 2023 02:47pm
Quote (BoomTitties @ Jan 25 2023 01:16pm)
thank you for your input. I met with a banker who does loans on businesses last week and he said they will only approve loans that are 2.5x to 3x profit. So you can't overpay. The bank will not let you. So selling a business doesn't sit well with me. I would rather hire someone to run the business.



Just bought a business, opened a business and bought a commercial real estate property. Now I'm listing my rentals.

Was supposed to be a nice post to help the people of d2j learn how rich people get rich and why buying a good business is the way to go.

I think the reason most people don't buy businesses is because they don't understand the number's behind it. It defiantly isn't pushed by financial advisor's but that's understandable because they want you to buy their products.


Too much work…so now you’re gonna hire somebody to run this business you buy and count on them to run it right? Your gonna spend a lot of time going behind him/her making sure things are running correctly… a good business takes alot of time to run and your talking about several …You do know we are in a recession and good help is extremely hard to find… I wouldn’t even consider buying a business I can’t even find good help for the two I started from the ground and I’m working 50-60 hours a week and you say stock returns are low…to that I say you are simply doing it wrong because my stock returns have been through the roof the last 4 years
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Jan 26 2023 06:27am
Quote (BlemBlem @ Jan 25 2023 02:47pm)
Too much work…so now you’re gonna hire somebody to run this business you buy and count on them to run it right? Your gonna spend a lot of time going behind him/her making sure things are running correctly… a good business takes alot of time to run and your talking about several …You do know we are in a recession and good help is extremely hard to find… I wouldn’t even consider buying a business I can’t even find good help for the two I started from the ground and I’m working 50-60 hours a week and you say stock returns are low…to that I say you are simply doing it wrong because my stock returns have been through the roof the last 4 years


Yes, I would count on them to run it. No, I'm not going to be micro managing them. Yes, it takes a lot of time to run a good business but it doesn't mean the owner needs to be doing the work. Yes, to several. Yes, we are in a recession but it's easier to find help in a recession because so many people are laid off. I currently have a list of 21 for my small company. 6 months ago the list was 0. Respect for starting from the ground up. Geezeeeeee. That's hard.

Agreed my stock returns suck and i'm doing it wrong. literally %-90. Agreed. No I can't take that out or touch it because it's not worth it. In my eyes I already lost it so I'm not touching it 10+ years is fine. triple leveraged whole market basically. I will have some money in march-april after tax man get's paid. I have money to invest but I owe him ALOT. Any advice would be appreciated.


The business needs to be profitable enough to hire a CFO and COO. If you can't do that you are buying a JOB. If the business makes 1 million per year and all the owner did was sales and accounting. You just have him stay on for 6-12 months and train you and your COO. It may take a few years to stabilize but that's fine. When it's all said and done your loan is paid off in 3-5 years and your making 800k. Save the money and get ready for another one.


What if you have 2 kids? they split it? What about their kids? They split it?

1 Per kid
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Jan 27 2023 11:13pm
Problem with peer to peer lending or business loans is high risk

My brother does this and you need to have reliable clients to offset the ones that go to zero.

Real estate has its own headaches. Tenets can be a fucking nightmare and you don’t always have timeless recourse
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Feb 1 2023 02:55pm
Real estate is wacky, I'd only get involved if you can be personally hands on. Starting to see sketchy things in the market, specifically with bank owned foreclosures. One nearby recently updated as going to auction and the Zestimate jumped up 15pcnt... In reality, place is worth half the Zestimate with how the bank let it rot for years unconditioned in rust belt. More odd is it outperforms maintained well kept houses somehow.

Anyways, wacky real estate market right now. Cash buyers dream soon.
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Feb 1 2023 02:56pm
Phone double posted

This post was edited by RedFromWinter on Feb 1 2023 02:56pm
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Feb 2 2023 06:47am
Quote (RedFromWinter @ Feb 1 2023 02:55pm)
Real estate is wacky, I'd only get involved if you can be personally hands on. Starting to see sketchy things in the market, specifically with bank owned foreclosures. One nearby recently updated as going to auction and the Zestimate jumped up 15pcnt... In reality, place is worth half the Zestimate with how the bank let it rot for years unconditioned in rust belt. More odd is it outperforms maintained well kept houses somehow.

Anyways, wacky real estate market right now. Cash buyers dream soon.


that's crazy. I wonder what it will actually sell for...

Quote (Bazi @ Jan 27 2023 11:13pm)
Problem with peer to peer lending or business loans is high risk

My brother does this and you need to have reliable clients to offset the ones that go to zero.

Real estate has its own headaches. Tenets can be a fucking nightmare and you don’t always have timeless recourse


why are business loans high risk?

Wouldn't it depend on the business you purchase?

I wouldn't buy anything that isn't cash flowing and has been in business 10 plus years. It should also have an amazing person that runs the business.

If you are getting the loan from a bank they aren't going to let you do a shit deal.
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Feb 2 2023 08:11am
Quote (BoomTitties @ Feb 2 2023 06:47am)
that's crazy. I wonder what it will actually sell for...



why are business loans high risk?

Wouldn't it depend on the business you purchase?

I wouldn't buy anything that isn't cash flowing and has been in business 10 plus years. It should also have an amazing person that runs the business.

If you are getting the loan from a bank they aren't going to let you do a shit deal.


If the business is that sound they shouldn’t need help getting a minimal interest loan in the first place

Peer to peer lending is generally higher risk

Banks many times do not cover peer to peer loans and u will just take a personal loan. Current personal loans are around 9-10%. So you will need to charge 15% + for a profit worthy your time

What sound up and coming profitable business will take a 15% loan
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Feb 2 2023 09:32am
Quote (Bazi @ Feb 2 2023 08:11am)
If the business is that sound they shouldn’t need help getting a minimal interest loan in the first place

Peer to peer lending is generally higher risk

Banks many times do not cover peer to peer loans and u will just take a personal loan. Current personal loans are around 9-10%. So you will need to charge 15% + for a profit worthy your time

What sound up and coming profitable business will take a 15% loan


No peer to peer lending for me. To your point it's high risk and even a %15 return sounds like shit. By the time I pay taxes i'm down to ~%10. So you risk 100k to make 10k. I would probably go broke doing that. It make take several years but I'm pretty sure I would go bankrupt.

Don't some house flippers want loans to be like %10 non annualized and only a few months. Then you could do 3-4 in a year and make %10 per transaction.

I'm not sure. I never got educated on peer to peer lending.
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Feb 2 2023 09:51am
Exactly so you wouldn’t be doing 15% u would be loaning the people that can’t get loans, since they can get it for around there anyway through banks

U will get the clients who are higher risk , can’t get loans , and then demand higher margins in your own side. Business equity , etc

Can be profitable but fuck it sounds stressful to me
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Feb 2 2023 06:02pm
Quote (BoomTitties @ Feb 2 2023 07:47am)
that's crazy. I wonder what it will actually sell for...



Same, says bank bought it at foreclosure auction for 133k in 2022. I tried to buy it for 140k short sale in 2020 but same bank kept rejecting my offer even though it was over the FHA constraints. F*** shady Banks

It was following market Zestimate trend for the region until September, then it either held its valuation or would slightly trend up beating all odds. Then last week, went up another ~12k USD when listing now says its going to auction. Start bid 30k, anything over 90k USD and you've lost money on this thing TBH.

I'm wondering if it matters that it is not livable? Hasn't had heat/air-conditioning since 2019/2020, hydronic heating system burst, plumbing burst, garbage all over property. Broken windows, locks and doors. Toxic waste leeching into well. Abandoned cars and boats littered about. Zestimate a strong 200-250K though. Roof needed replaced 10 years ago, siding missing all over, moldy food in fridge and basement. Wood burner not properly vented, soot all over a room and ceiling. Undisclosed secondary well, barn that is partially sunk into mud. Oldschool electrical wiring and only 100A service. Somehow this is a gem of a property though, up ~10% while rest of area down ~10% in same timeframe.

This post was edited by RedFromWinter on Feb 2 2023 06:05pm
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