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And so I ended up selling the gym for one and a half times more than I

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quote, bought it for, right, which I then had the gym pay for it on its own.

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And so I basically acquired a cash flowing asset for nothing and then had just

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acquired a cash flowing asset for no money.

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The wealthiest people in the world see business as a game.

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This podcast, the game, is my attempt at documenting the lessons I've learned on my way to

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build a acquisition.com into a billion dollar portfolio. My hope is that you use the lessons to

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bring your business and maybe someday soon partner with us to get two hundred million dollars

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in beyond. I hope you share and enjoy.

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I got a message from somebody who said, you know, who's dead broke and was like, what do I do?

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All that kind of stuff. So you absolutely just need skills. You can have nothing else in your life

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and a beautiful thing is that no government can take it from you. No person can take your skills

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from you in a divorce. Those are always your own, which is something that I don't know for some

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reason feels magical to me. And so one of the things that I've seen as I've kind of moved up

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and I'm not saying that arrogantly, you know, just developed, progressed, whatever is that the people

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who I surround myself with now have more money than the people that I surround myself when I was

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earlier on in my career. And what's ironic is that these people actually spend less money.

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They have less desire to spend money and they find ways to acquire things for less money at a

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pocket. And that's always really interesting to me. And so right now, I think there's, you know,

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if you were to look at quote, investment opportunities, right, you could invest in buying a house.

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So let's say, let's say you've got, I'll do two scenarios. All right. Let's say you've got

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$50,000. All right. And you're like, okay, I'm thinking about buying a house, right? And I think

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for first house, you might only have to put 10% down. I'm not sure it's 10 or 20. Yeah, I'll remember.

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But anyways, let's just say 10 for sake of whatever. So 500,000 or house, all right. You put 10%

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down and then you get the mortgage, right? You get the liability of the mortgage payment every month.

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And let's say that in order for you to save that, you've been making, I don't know, 60 grand a year

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and you've been saving that for every five years, something like that. Now let's look at an alternative

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scenario where you are still making that same amount of money, 60 and you saved up 50. And instead

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of buying a house, you have a long conversation with your spouse and you say, or maybe you don't

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have a spouse, whatever with yourself. And you say, I wonder how much money I could get for this

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money. Interesting, right? And so you leaf through the businesses that are in your area. And by the way,

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the best way to do this, one, you should contact brokers not necessarily to buy a business, but to

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get an idea of some of the businesses that are in the area and what price ranges look like. But

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if you buy from a broker, you're going to pay retail. You could definitely negotiate a deal. And

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I'll tell you one of the deals that I did that was really good at the end of this. But anyways,

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so let's say you, you know, you reach out to some businesses, things that you like or enjoy,

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you're feeling like you have some specialized knowledge in. And you find out that there's a

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business that's doing, let's say, $250,000 a year in profit, right? And because it's a small

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local owned business and you're not going to pay retail for it, you get it for two and a half

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times earnings, right? Which would be $625,000 is what a business, you might pay for businesses

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doing $250,000 a year in profit. All right? Now, here's where it's interesting, right? So I had

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an early mentor who taught me this negotiation tactic that I've used pretty much throughout my

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entire life since this moment. And I used it in the deal that I'll tell you about in a second,

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which is a ground price, then a ground terms, right? And so when you would go to,

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talk to this business, right? There's the price, which you might say, cool, you know,

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this business 625. And then there's terms, right? And so the terms side, once you've agreed on the

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price, you negotiate down whatever. And then you say, okay, well, I'm going to need you to sell

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our finance, meaning you're not going to pay anything you're going to pay them over time, right?

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I need you to sell our finance three quarters of the deal, all right? And so three quarters of the

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deal, man, I'm doing some math today, but like 430-ish, 437, whatever, $1,000. And you're going to

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finance that for three years. And then on top of that, or five years, you know, you can do it

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every one here. And then what you have remaining, which would be like, in this instance, $200,000,

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then you get a note from the bank, right, or SBA loan, which you have a $200,000 loan for it,

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and you put your $50,000 down, right? So then that would be $200,000, super 50, which would be

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25% of $200,000. So I'm going to recap this. $625 is the cost of the business. You know,

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437, you get seller finance, meaning you can pay that over time, and then you've got $200,000

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that you get a loan from the bank. So what you put $50,000 for it. So if you're thinking about this,

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the guy who's selling the business, he sells for $625,000, but he's only getting $200,000 upfront.

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You're only putting $50,000 of that $200, and you're taking a loan for the rest of it, right?

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And so when you're looking at this, you've now acquired this business that makes $250,000 a year,

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right? So you upgraded your income from $60,000 to $250,000, right? And within 24 months,

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all of that income will be yours, and maybe hopefully you'll grow it, or you'll probably try and

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work extra hard and take over some of the other positions or to cut out some of the waste,

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et cetera, in the business. And so that massively speeds you up in life, right? And if you compare

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that to what it would cost you to start your own business, in terms of investment and like

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existing book of business, client lists, all the knickknacks you have to buy that you don't even

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think of zoning permits and all the fees and licenses, it's actually pretty decent deal.

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We'll click wise. You guys already know that I don't run any ads on this, and I don't sell anything.

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And so the only ask that I can ever have are you guys that you help me spread the words we

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cannot more entrepreneurs, make more money, feed their families, make better products, and have

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better experiences for their employees and customers. And the only way we do that is if you can

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rate and review and share this podcast. So the single thing that I have to do is you can just leave

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review, but take 10 seconds or one type of the thumb, it means the absolute will to me, and more

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importantly, it may change the world to someone else. I'll tell you one of the deals that I did that

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was pretty good. So I had four locations at this point, this is one of the gyms, and I opened

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a fifth location. So the first two locations, I opened the first one I think for 40,000 dollars.

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I mean, I put, I didn't, I put as little as I possibly could in this thing. And it happened to

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have been an old gym. So there was like turf already in, the flooring was already in, it was

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painted. There was a bunch of things I didn't have to pay for. So I lucked out there. And, but the

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second one, because I thought I was smarter, I put 200, we put 250,000 into the second location.

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And here's the fun thing. It made no more money than the first location debt, which I always

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think is hilarious. So like, to the undecciplined, everything looks like a spending opportunity.

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And so I pretty much would empty my bank account. And so on my fifth location, my next two locations

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were corporate locations to actually pretty cheap, which was pretty cool. Those are good deals.

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But the fifth location that I did, I had a gym that went out of business or not out of business.

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He wanted to uproot because he got divorced or he had some family crisis.

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And so he was looking for someone to buy his gym. And so it was beautiful. It had all this

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equipment that was really expensive in it. And I was like, man, this is like a dream come true.

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And so I agreed on price, because I had my mentor talk me through this. I agreed on price,

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which I think was 40,000. I think it was 40,000. It was 40 or 50. I think it was bit. So that's

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what I agreed. And then I was like, cool. I'll pay you over the next year. And he was like, fair enough.

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And so I mean, he didn't say like that we negotiated in the 12 months is what we came to. And so I mean,

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I tried to go for 24 months, but he agreed on 12. And so the beautiful thing with that was I didn't

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put any money out of pocket. So my first gym, I put 50 grand in, second gym, I put 250,000

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dollars in, fifth gym, smarter, more experienced me, puts no money in. And in the first 30 days,

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we did 51,000 in sales. So this gym in the first 30 days literally paid for itself, period.

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And so this thing is now kicking off profit every month during this whole period of time.

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And then 12 months later, I ended up meeting Russell and telling him how I was doing this stuff.

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And he's like, you should be teaching other people how to do what you're doing now. And so I ended

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up selling the gym for one and a half times more than I, quote, bought it for, right? Which I then

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had the gym pay for it on its own. And so I basically acquired a cash flowing asset for nothing

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and then had just acquired a cash flowing asset for no money. And so I think about that in light of

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the original thing that I mentioned was just like, I get people who message me all the time, like,

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what happens if I don't have any money? I don't know what to do. You always have to just get

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skills. Or this is just my opinion is that because there's no one who can take them from you.

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There's no divorce. There's no government. There's no revolution. There's no financial crisis

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that can ever take your skills from you. And that's why when entrepreneurs hit zero,

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they can usually bounce back. I've done it. I had $1,100 in my bank account at one point,

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at my lowest point after I had six gyms, right? After this. So even when I had this experience,

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and it sounds cool, like I messed up. And that's why I think I love this saying you only

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should only have to get rich once. And that's why people who are wealthy are more risk averse

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because the downside risk of losing everything is always bigger, right? Like you can reverse 30 years

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of great decisions with any number multiplied by zero, any number multiplied by zero. You could

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have a billion dollars if you make a bad investment, it goes to zero, right? And so that's why when people

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are like, I don't know why you're motivated. And I don't know why they're like it's just there's

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just always things that can happen. You know what I mean? And so just being risk averse is what I

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have noticed from the people who have the most money is that they actually have way lower risk

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tolerances than the people who have no money, which is hilarious because it's like the people who

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have the least amount of money, then go buy lottery tickets, which are literally the worst investment

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you could possibly make. And they consistently invest their money in a terrible investment that has

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all the downside risk of going to zero, whereas the richest people in the world find things

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that could never go to zero and they buy them for zero. So think about that for a second.

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People are using their money, poor people use their money to buy things that have virtually guaranteed

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risk of going to zero, right? With tiny risk of upside, right? Whereas rich people buy stuff for

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zero dollars that have upside potential, but that doesn't have a billion dollar upside potential.

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They would rather have a guaranteed small return with no risk than a potential for

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huge return with guaranteed risk. Think about that. And it's not like you can shift your

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perspective on this overnight. It took me a long time and I still am doing it now and shifting

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how, like, as I still get excited about, I see these, you know, these cryptocurrencies,

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20 hexing and stuff, you know, in like a month and I'm like, man, that's crazy. But then I also think,

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well, the downside risk of me going to zero is far more upsetting to me than me getting 20 times

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more on some tiny investment that I would make. And so I don't do it. And so anyways, I say all

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this to say, agree on price, agree on terms, try and get something for nothing. See if you're going

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to, if you're going to make an investment in any kind or you're trying to start a business,

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there's usually a business that's already for sale or has a motivated seller, an owner who

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doesn't want to do it anymore, who almost give it to you for free. And that's the thing is when

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you're new, you're getting so excited, but you're not patient. That's why you have to have the

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character traits of being successful before you will see the success because if you have that

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character trait, you'll look and you'll say, I can take six months because in the next decade of my

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life, there's no rush. But me making a good deal or a bad deal of should I put all my investment

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in this thing or should I be able to get something that makes four times more money for free? You can

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do that. You can do that. And I'm telling you, I talk to business owners every day. I mean,

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guys making a million, two million, four million dollars a year, who literally have told me they're

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like, dude, if someone came today and offered me, like guys who are making a million dollars a year

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in profit, like if someone had offered me 200 grand right now, I would take it. I just am so tired

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of this business. So like, there are opportunities. They're just not listed anywhere. You just got to

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look for them, right? And that's the thing. No one will do it because it's work. So, but the good

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news is that if you have a little little work ethic, you can make a tremendous amount of money

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with very little risk and do it the way the rich people that I know do it. So otherwise,

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have an amazing day. Keep being awesome. I'm going to catch you guys something. Bye.