[0:00]All right, today I'm going to show y'all how you can easily print over $500,000 per year. You don't have to build a personal brand, you don't have to do any of these gimmicks online. You don't have to learn how to drop ship or run ads. It's really simple and honestly, everything's already done for you. Again, don't judge me for my dad's office setup. We'll be in Miami in less than a week. So I'm already working on a business acquisition. I'm in the process of finalizing the APA. It's been taking forever. This is just the name of the game. It is hurry up and wait for months for the business brokers to do anything. I swear to God. But regardless, once you actually get the business in your hands, you start cash flow in the first month. You can even flip it if you want, but not a lot of people like to do that because that might be a little bit more risky, but that's what I like to do because it's more money up front. But here is how to print $585,828 per year buying boring businesses. Now, you might be asking yourself, why would I buy a business when I can just create my own? And isn't that super complicated? Don't I want to just have a business where I can sit on my ass on the couch or in my bed every single day and just post it online or have other people post it and it sells on Tik Tok shop or something? That seems like the easiest thing. Well, not exactly. So why would you buy a business over starting one? Lish is run through broad statistics that you can find yourself on Google or ChatGPT. Only 30 to 50% of startups actually are profitable in your one. And by profitable, that means probably making $1. On the other hand, 70 to 90% of acquired small businesses, meaning somebody bought it are profitable in year one. So, already it's a less risky proposition than even starting your own business. Additionally, only 1 to 5% of small business startups hit $100,000 in profit in year one. So if you start up a business, you're likely not going to be making over $100,000 in general, but also you're definitely not going to be making most likely in the first year. So it's a hard grind and I know it because I've done it before, but I've also bought businesses and maybe more than that in a matter of months. Whereas when you buy a business, 60 to 80 plus percent of acquired small businesses generate $100,000 or more profit in year one. So not only is it less risky, you make more money the first year two, which tells me why would I ever try to start a business when I can just buy one from an old retired guy. But now you might be asking yourself, how do I even find that deal? And as with most things, the best deals are found where no one else looks. Specifically, I I found this on the business brokers of Florida website, which is where a lot of the businesses that aren't listed on biz by sell yet, which is the main marketplace for businesses are listed and typically have better prices because it's really just a brokerage website. So brokers are trying to sell to other brokers, seller to buyer before they actually hit the open market. And they just want a fast transaction and so they lower the price. Now, what I do on this website is pretty much the same thing that I do on biz by sell with my filters. I set a specific location, the industry, although it's not as needed because typically on the business broker website, it's all service-based businesses, which is what I look for. I set the minimum cash flow and sometimes I'll work with the price, but really it just has to make over $300,000 a year that is for me to be interested. And then my goal is to get a business under a 3X multiple. As a reminder, the multiple is just price divided by annual cash flow. So, if it's $900,000 as the price, divided by $300,000 of cash flow every single year, the multiple is 3X and I like to get underneath that so I can sell it for a 3X or higher. So if we go to search businesses for sale on this website, I live in Miami, so I'll search within the three counties near me and that I'm in, so that would be Broward, Miami Dade, Palm Beach. I'll set the minimum discretionary earnings, same thing as cash flow, to $300,000 or more. Start search.
[3:59]And then I sort by ascending with discretionary, so it gives me the smaller businesses because I can't buy the $10 million businesses just yet. You'll find a lot of loan businesses, handman, contractors for windows and doors. But the one that I found interesting was this underground utilities in Palm Beach because it's making $585,828 and it's only selling for a million dollars. Which means it's under even a 2x multiple. So if we sold for $3x, it would be roughly a little over 1.5 or 1.6 million, so a $600,000 profit if I were to flip it. Now this business might be harder to flip because it's probably a little bit more complicated than something like power washing or a laundry business or a towing company. So it's probably better suited for someone who wants to actually hold this company and just print 500 grand or more every single year. But if we click into this listing, we can see more details and see how much money it's actually made in the last three years plus more of details on what the business actually does. It specializes in underground utility construction, trenchless drilling and infrastructure installation, services likely include installing and maintaining infrastructure for water, sewer and other utilities. What this tells me is that they probably contract with the government a lot or municipalities and building neighborhoods or infrastructure underneath towns and shopping centers. Which if it has managers who already know how to do this, it's probably less deals that you have to worry about unlike if you were to have a drop shipping store selling socks or something where you have to sell 100,000 of them at $5 profit to make the same amount of money. So the business has been established for 33 years, which is good because if a business has been going for 33 years, then it's probably going to keep going for the next five to 10. It has four full-time employees and it has two managers. Let's get into their cash flow. Last year in 2025, they made $585,000, year before that, $535, year before that, $337. And it comes with $115,000 of features, furniture and equipment or whatever. So probably trucks and different machinery that you don't have to pay for. But let's go back to our deal analysis checklist that will tell us if this is an actual business that we should consider. Because the last thing we want to do is have an SBA loan on our hands for like a million dollars and not be able to pay it back or just have a lot of stress on our hands because we bought ourselves a job rather than a business. So, first question is, is it a needed service or product? I would think so, considering it's building the infrastructure underneath shopping centers and cities and whatever. And Florida, especially the South Florida market is growing substantially in the last few years after the whole pandemic won't. So it's definitely a needed service just no one really thinks about it because it's not a sexy business, recurring revenue. That I'm not too sure about because it might be contract-based as opposed to recurring customers that have to go to you every single year, but perhaps we can do maintenance on the infrastructure, pipes and what not underground. So definitely need to look into that more and research into the industry. It's been established for over 5 to 10 years, can it run without the owner? It has two managers, so I assume that they can take on a lot of the load pause. And again, it's been going for 33 years, they definitely have systems and processes already in place. And how much would it make after SBA payments monthly? Usually I use TBT, but this business specifically on the listing has something that will help us out. And can we flip it? I'm not too sure. I don't know if this would be a quick flip. It's not the most simple type of business, but perhaps that's why I'm not necessarily touching it. And again, I'm working on another business acquisition right now. But the most important question, how much would it make after SBA payments monthly and yearly too? So, this listing specifically is actually already lender prequalified, meaning they already contact an SBA lender bank who underwrote it and is actually comfortable with giving out a loan for this business, which already increases or should increase your confidence because if a bank is willing to give you money, then they probably think that it's financially sound and that it's going to continue running for the next 5-10 years. until that loan expires. So, if they're selling a business for $1 million, that would mean that you would have to put down about $100,000, 10%. So the down payment is $112,200, probably for like loan fees, working capital, whatever. And then they break down for you at the very bottom how much your monthly payment would be at a 9.75% interest rate per year. And if the business were to make exactly what it made last year, we can just use a simple calculator. Let me do it on my computer actually. 585,828 divided by 12 and minus whatever the monthly payment would be $13,2518. Your monthly profit on buying a business on a loan would be $35,613.82. If it makes the same amount as it did last year, say it went down 5% in profit because I don't know you lost some deals or just a recession hit or something. You still have a lot of leeway for the business to go down before you're delinquent on any of your loan payments and $35,000 is still probably more than you're making at your job. Now, if we calculate this year, we just multiply this by 12 and after loan payments, you will be making $427,000 per year. And again, you already have employees, you have managers that are going to be running the business. Yeah, you might have to step in and do some things, make executive decisions, but still, you're walking into a business that's almost making a half a million dollars. And in 10 years' time, when the SBA loan is finally paid off, you can sell that business for probably $1.5 million or more. This is the easiest way to become a millionaire if you ask me. Why are more people not doing this? There are so many old farts who are retiring and want to give their business up for pennies on the dollar. Where you're essentially making all your money back that million dollar loan in two years. And for 99.9% of people, there are no start up businesses that they could create where they're going to make the same amount of money. With again, less risk. So what would be the strategy here? It's a stable business play. Again, I don't think this would be a an easy flip because it seems like bigger construction type place. It might be a little bit more complex. You might actually have to get some some construction boots and get in the field and learn the game. But it's still a very low multiple under two X and a super high cash flow after your debt payments. This seems like a no-brainer to at least analyze deeper into. And there are so many other businesses in the US like this where wherever you live, there are retired people trying to get rid of their business for their retirement fund. This is the simplest way to get rich. So with all that being said, it's been your boy Bob Lamb, giving y'all some game. Make sure to like and subscribe for more money and mindset videos every single day. And let me know if you want more deal analysis type videos or philosophy, or even what happened to me in the music industry since y'all seem to like those. I'll catch you all in the next one. Peace.
