Video by brianluebben
Brian Luebben · 304 words · 2 min read · EN
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Babe, if I had $100,000 saved and I want my $100,000 to make me $100,000 a year, what should I invest it in? So it sure is how I'm not going to be stocks. It sure is how I'm not going to be real estate. There's only one way to do this, and you can actually probably keep the $100,000 in your pocket and still pull this off,
and that is to buy an existing small business. So yes, you can buy a business that's already doing millions of dollars. It's already been around five plus years. That's what we do. We've done this dozens of times now, actually, this exact strategy. what you do is for every $100,000 that you want to take home, you multiply that by three,
and that's what you're looking for in profit in a business. So to make the math easy, 100 grand take home, 300 grand in profit. So a 300 grand profit business is probably going to be valued at around 1.2 million to $1.5 million, right? So for a business at 1.2 million, it's going to be 10% down, which is $120,000, right? And you got 100. So wait, how the heck
does this happen? What you do now is you go get a capital partner in and then you give them 10 to 15% equity and profit share in that company. You keep 80 to 85% or 85 to 90% of the company and 90% of the cash flow. The capital partner brings the $120,000 in and now you own this
cash flowing asset that already has a manager in place, already has techs, already been operating for years. And now congratulations, you just got $100,000 of cash flow for about $20,000 to $30,000 in legal fees and diligence. That's how you do it.
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