All Forum Posts by: Cliff Benner

Buy than Build by Walker Deibel is a great book for Business purchasing, it talks about structure and evaluating. 

I recommend learning a bit on how to read the financials, but find yourself a great Accountant to help you analyze the financials and tax returns to make sure things make sense and are proper. 

When I do it for me and my clients, we go very conservative to give better expectations of the transition process, than if it goes better, great!

I am an accountant and find a public and private have benefits to learning the back end of real estate. Plus I network a lot with people and hear how things work for them.

Anything deal with managing, either flips/rehabs or properties would be great too.

Maybe an AP/AR Position for an investor, an entry level management position, PM assistant. Jobs like those would allow you to learn more about real estate.

Quote from @Bonnie Low:

I'm excited to see this forum, too, though I hope BP won't stray too far from its roots in RE. I do miss the old Bigger Pockets Business podcast with J Scott. His last interview with Cody Sanchez was mind blowing. If you have a chance, go through old podcast archives and look it up. She's a WEALTH of knowledge about buying and operating businesses. You can also follow her at Contrarian Thinking.

I loved that interview! My wife and I are huge into Business and helping people so we loved that podcast! We helped friends/clients purchase a business that changed their lives and we started doing a podcast talking about aspects of business that are missed, mostly the small items so new entrepreneurs get exposed to those parts, but we have been so busy with our own businesses that we had to put it on the back burner for now, after about 8 months. That podcast inspired us though!

I follow Codie very closely and used her free resources as well as Build not Buy by Walker Hayes for each step of our business purchase. I believe business is now the only way to financial freedom and think that it is best to have a business and move that profit to real estate using both of them to help each other out!

From what I see and my experience, it is a bit hard to find one that is going to Cash Flow positively right away. You will have lots of expenses with the formation of a new LLC, lawyer fees, costs to start up payroll for this company, workers comp, new insurances, immediate repairs, etc. But you will be getting cash inflows that may reduce that burden.

You will have to stabilize the turmoil that comes with drastic change, and changes you implement to increase efficiencies. Where as a Turnkey rental has some of those same charges but can be rented and be a bit more passive, depending on the route you take. 

I would suggest working in your new business 6-12 months before you are able to see trends and find who can properly lead so you can step back from operations and focus on growth. 

Cash flow for businesses require more time which usually means higher returns in $ amount, % of CoC Return is more difficult, and keep in mind your time. my rental takes a hour a month and maybe cash flows $100, $100/hour is nice, but took $60k. My Bookkeeping is $65-$70/hour and but cost $1,000 to make it operational. I spend lots of time to automate and duplicate reports in order to save time to increase my efficiencies that help me increase the use of my time. I can't do anything to my rental to increase efficiencies in creating more income until it is vacant or the market decides I can.

Businesses will require workers, that require leading, and that requires more patience and more hard decisions/conversations to make. But can you find additional revenue sources for a business, yes. Sometimes it's not easy or cheap for Real Estate. 

For finding businesses, I use BizbuySell, Crexi, LoopNet, and Facebook. 

Good luck! I have interest in the Laundromat world too so let me know how this goes for you!

Very excited for this section! 

I think the world is moving towards a need for a person to have to have multiple streams of income even if one wants to buy Real Estate. 

My wife and I started a Coaching company and added Bookkeeping Services to it, in order to grow more.

Then we bought a Candle business using Seller Finance, which wouldn't have happened if it wasn't for BP, and now there is a section to help others learn more about being able to do this!

Can't wait to see how many others benefit from this.

I like Relay and use it for 2 businesses, my Real Estate is under US Bank, but we will move it to Relay when I get more time.

They allow 18 Checking Accounts 2 Savings Accounts, you can pay via CHeck or ACH from their bill pay feature for free too

@Courtney Olson I did this for my candle business but it could work for real estate

Maybe offer Step Up  Payments too, as long as the number works, and hint at it helping wiht inflation and maybe combined it with an interest rate that is above typical inflation.

A combo of something like 4% inflation to keep your same spending power as the years go, and we increase the payment by $25/month every 12 months so your spending power stays the same and you get a bit of a raise every year, then we could do a balloon payment in 10 years to settle the rest.

Something like that could be an option. 

I have a great Roofer/Exterior Contractor and a great Pest Guy. 

Exterior: Dayton Roof and Remodeling - Chuck 

Pest: Free Bee Pest Control - Eric

Please let them know I recommended them!

Quote from @Alecia Loveless:

@Henry T. I willl be consulting with a lawyer about being able to keep the non-permanent dumpster and the parking in the ROW.

My original thought was to fill in the gulley and build a warehouse structure on it to rent out as either an auto shop or larger storage type facility. It’s not quite zoned for actual storage units but I could get away with one bigger building for a single business. Of course Mr. Development has already warned me against filling in the ditch but I hadn’t thought of adding a culvert for the drainage.

 Not sure Zoning, but I have noticed Flex Warehouse Space becoming very popular. Maybe you could build something like that?

@Derek Tuohy I would suggest start working on getting a Bookkeeper on your team and use a software, if you plan to grow it will be easier and cheaper to get into a software now rather than later and have to learn with 20 units rather than learn with the 3 you have.

I agree with @Jake Baker on his bare minimum suggestions. I use QBO for all my clients as well and use the Plus subscription for Real Estate clients, because they need the Class Tracking feature in order to properly prepare for their Tax Return. Plus a Tax Accountant can be invited to it and they would be able to look at all the details.

I set my clients up with a Box account, it is free for the first 10 GB, and allows them to scan receipts into the folder, sign pdfs from it, and other various document tasks to make it easy for them. 

Sounds like you are having some growing pains and you are in the right place to get the best advice for those!