980: Does Buying a Business Beat Real Estate Investing in 2024?

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 1 July 2024

⏱️ 42 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Today’s guest makes up to $100,000 per year, PER investment, by buying businesses. Yep, you heard that right. We’re not talking about a few hundred bucks a month in cash flow like most rental properties get you. Instead, you can make a living by buying a business “no one wants,” which is exactly what Matt DeBoth is doing. Matt saw the writing on the wall after building up a sizable real estate portfolio. Low interest rates flooded buyers into the housing market, putting those with properties to sell in a great position. So, Matt sold many of his rental properties and wondered where he should put the money into. Over the next year, he spent his days researching businesses to buy, talking to business brokers, and eventually landed on a local pizza franchise. Matt was able to turn it around, and after months of hard work, he’s collecting serious cash flow from a business that only takes a few hours a week to manage! If you want to buy yourself a six-figure income stream and feel like now is the perfect time to take a pause from real estate investing, Matt’s story may be just what you need to get started. He shares how much it costs to buy a small business, how to manage it, what to look for in business investment opportunities, and what you can do TODAY to get started! In This Episode We Cover How to create a six-figure income stream by buying small business franchises Buying the businesses “no one wants” and how to easily spot an investing opportunity Why a poorly run business can mean tremendous potential for you to make more money The low-money-down small business loans that Matt is using to buy businesses How to manage your business the right way so you only need to work a few hours a week Who should (and shouldn’t) buy businesses, and how to pick one And So Much More! (00:00) Intro (01:34) Buying When No One Else Would (04:02) House Hacking an Apartment? (06:09) Selling Off His Rentals?! (13:06) Ditching Rentals to Buy Businesses (15:32) Buying His First Business (17:45) Finding Investment Opportunities (21:07) $100K/Year Income Streams? (24:55) Managing the Businesses (28:28) Who Should Buy Businesses? (30:58) How to Get Started Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-980 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	This show of course is a real estate podcast. We spend pretty much all of our time
0:04.4	breaking down the ins and outs of how to buy real estate and talking about why it's such a powerful asset class.
0:10.7	But the truth is it's not always the time to buy. There are times
0:15.2	when other asset classes or other types of investments may make as much or even more
0:20.7	sense than real estate. For example, say small businesses.
0:25.2	Our guest today is going to share why he has pivoted away from buying real estate
0:29.3	for the time being and what he's doing to build up capital until the market shifts and he's
0:34.3	ready to buy again.
0:37.0	Hey everyone and welcome to the BiggerPockets Real Estate Podcast.
0:43.4	I'm your host today, Dave Meyer, and as we always do, we're kicking off your week with
0:48.0	an investor story.
0:49.4	We're sharing a conversation with an investor who's trying to get ahead just like you.
0:53.4	We're going to unpack how our guest today is making deals work.
0:57.9	And that guest today is a multifamily investor and former US Marine,
1:02.4	Matt DeBoth, and Matt has been investing over 13 years.
1:06.7	He's seen a lot of different market cycles.
1:09.0	He's done a lot of different things in real estate.
1:12.2	But today we're going to hear from him about why
1:14.2	he's shifted to investing in small businesses instead of real estate, when and
1:19.4	why he made that shift, what he looks for in these businesses, and when he plans to buy real estate again.
1:26.5	And of course at the end we're going to get into what you can do if you're interested in some
1:30.3	of the strategies and things Matt talks about, what you can do to get into it as well.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.