Knowing how to buy a business is a lot like knowing how to buy a rental property. First, you’ll need to know the price of the asset, then the cash flow, followed by expenses, and finally the structure. Because buying real estate is perceived as “simpler” than buying a business, most investors decide to go the real estate route—but they could be missing out. Codie Sanchez saw this opportunity when she was working in venture capital and decided to try out the business buying route herself, just on a smaller scale. Codie can be perceived as your classic “value-add” investor, which much of the real estate investing community can relate to. She finds a business that has a strong foundation but lacks the tech or marketing to grow faster or increase its profits. When a business has a strong underlying value, just like a rental property, it’s easier than most people think to “renovate” it into something that will sell for far higher. Codie stresses that buying businesses isn’t so different from buying real estate. She also categorizes which businesses real estate investors should buy if they’re looking to maximize their cash flow and minimize their expenses. With some help from Codie, you could be relying on much more than just rent checks soon!  In This Episode We Cover What a “value-add business” looks like and how to find undervalued businesses  Evaluating and analyzing a business purchase and which key metrics to calculate before making an offer Buying off-market businesses and why most business owners never consider selling (until you ask) The three questions every investor MUST ask before buying a business  Buying instead of building and how trying to build a business can cost you much more than just money Becoming the business owner, not the operator, and outsourcing everything you can  And So Much More! Links from the Show BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast David’s YouTube Channel Hear Codie’s Interview on The BiggerPockets Business Podcast How to Use the DISC Profile to Communicate Effectively in Business “Contrarian Thinking” Newsletter Quiet Light BizBuySell Empire Flippers Connect with David: David’s Instagram David’s BiggerPockets Profile Connect with Rob: Rob's Youtube Rob's Instagram Rob's TikTok Rob's Twitter Rob's BiggerPockets Profile Connect with Codie: Codie's Twitter Codie's Instagram Codie's TikTok Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-614 Learn more about your ad choices. Visit megaphone.fm/adchoices