Firmly believe the most certain path to building a high net worth ($10M plus) is buying a small business at a relatively young age. Here’s a model:
Brandon Laughridge
8,825 posts
Brandon Laughridge
@laughridge
I buy and manage small multifamily in Kansas City 🏙 Invest in micro PE with an emphasis on self funded search w/ SBA debt.📈DMs open. 📩
Kansas City, MO
Joined May 2008
- Closed on 23 units today. Going to be fun to breathe a little new life into this place!
- Great to meet all of you today. Didn't expect such a huge reception to my early morning rant but glad to see it resonated. For those of you totally new to the world of biz buying, here's a thread of resources:
- Replying to @laughridgeI’m practicing what I preach - my wife and I both run small companies we purchased essentially as outlined above (one started a bit smaller and has no investors).
- Replying to @KevinEthering10TLDR: buy something that doesn’t suck, borrow all the money, pay it off. Not as fun when I shorten it.
- Here is the awesome micro buyout model built by @bschaf12. Make a copy, edit the blue input fields, and let your mind run wild with the possibilities. 💸🤑
- My “lamba school for” tweets were not really serious. Serious one: would you subscribe to “morning brew for entrepreneurial wealth building”? Newsletter with stuff like the Todd Boehly profile and SBA thread plus tools like the small buyout model. Free of course.
- Here’s an alternative path to building some wealth that’s similar to buying a business from a financing perspective. Less risk but still nice upside:
- Fypon is the bomb. This trim came in a kit and only cost like $200 🤤
- Replying to @laughridgeKey is to look at opportunities under ~$7M in total capitalization. Why? SBA loans are the govt’s gift to individuals that can endure a paperwork decathalon and stomach a few years of a PG. Said loans have a $5M limit but w/ equity and seller paper, $7M deal (or more) is doable.
- Great profile piece on private equity badass Todd Boehly. He runs an insanely interesting holding company funded by a KS based life insurance company he owns. In short, bought a lender to lend to himself and avoid LPs in his PE biz. 🤯
- Replying to @LeverSellOutSingle, capital M guy here but I have my reasons. If one uses mm then for thousands you must use m and that doesn’t make sense to most people in the real world so K, M and B it is. At this point it’s like double space after a period or an Oxford comma. Times are a changin’
- Replying to @laughridgeFind a small company to acquire before you turn 40 (ideally way before but honestly way after is fine too...who really cares?).
