How I started my first company, how to delegate, real estate deal breakdown
One quick promo before we jump in:
Tax season is right around the corner and my final income tax bill will be $0 for one main reason – Cost Segregation Studies and bonus depreciation.DO NOT FORGET TO GET COST SEGREGATION STUDIES DONE ON YOUR REAL ESTATE.The folks at RE Cost Seg have already delivered my cost segs this year and the depreciation is mouth watering. Reach out if you’re in the market – the proposal is free.Professional engineering reports you can count on, and they do virtual visits to turn them around even quicker.Not sure what a cost seg is? Check out this thread.–I started my first business in 2011 with this 1997 Cadillac.I could fit the belongings of 3 college students in here.So I picked them up during finals week and stored them in my room.Storage Squad was born.4 years later we were storing items for 7,000 students a year at 25 colleges in 12 states. In 2021 we sold the business for 7 figures.
Nick’s 1997 Cadillac he bought from his Grandma for $5k in 2008.
–I wrote this tweet on how to find and hire employees all over the world:
–Next time you take off from a major airport look down at the city below.Billions of dollars worth of real estate just in your view. There are millions of buildings all around us.Tens of millions of people who own them. Real estate will never be fully institutionalized.There will always be room for the relative mom-and-pop. There will always be good deals because people fail to maintain or manage their properties properly.Being “small” is its own advantage in this game.You don’t need a big team or a big fund. You can be scrappy and do a multimillion dollar deal by yourself.And just one good deal can change your life. This is why I love real estate.–Benjamin’s tweet below is an EXCELLENT framework on how to think about Delegation.Give him a follow:
–I recently looked at a real estate deal in Florida.13,000 rentable square feet. $6,000 per month on the rent roll.It’d cost me $3k to run the thing (property taxes and insurance are heavy).$3k of profit. 12 months per year means $36k of annual net operating income.It’s a small property and it’s rural. For these two reasons most sophisticated buyers aren’t in the market.Therefore I need a better deal. Rural markets are soft right now from a new rental perspective.We have similar deals we bought over a year ago that are sitting at 65% occupancy.That means I can’t raise rents or count on revenue growth right now.A 10 cap means I’d pay $360k for this property.That is $27 a foot. Less than it cost the guy to build it.He wants $1 million.Hard pass.–Here’s a list of 15 accounts you can follow online to get smarter:
–Sales is the key to life.Every single interaction with another human that could possibly move your life forward is a sales interaction.
Convince an attractive person to date youTalk a great employee into working for youGet a partner to start a biz with youCreate friends who want to be around youRaise money for a real estate dealConvince a customer to buy from youGet your boss to give you a raise / opportunityTrying to get a job offer from a new companyBuying something important? You’re selling yourself there too.
Want people to follow you on Twitter? You are selling yourself and your ideas.Literally everything in life that could potentially move you forward as a person is a sales environment. Sales skills aren’t just for cold callers.EVERYBODY needs to embrace this as a necessary part of life and take it seriously.Onward and upward,Nick HuberP.S.If you are interested in selling your business, I can help you.My business brokerage can get you in front of millions of people and hundreds of qualified buyers in your industry.Fill out this form today and we can set up a time to talk.Want to see our deals as we bring them to market? Fill out this buyer form.
I started the Sweaty Startup in December of 2018 because I believe the Shark Tank and Tech Crunch culture is ruining the real spirit of low-risk entrepreneurship.
Nick Huber
Benjamin Surman