Brandon Laughridge
@laughridge
Followers
20K
Following
15K
Media
856
Statuses
9K
I buy and manage small multifamily in Kansas City (1500 units) 🏙 Invest in micro PE with an emphasis on self funded search w/ SBA debt.📈DMs open. 📩
Kansas City, MO
Joined May 2008
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:.
238
802
8K
Closed on 23 units today. Going to be fun to breathe a little new life into this place!
39
3
504
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:.
20
22
495
I’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).
76
7
405
@KevinEthering10 TLDR: buy something that doesn’t suck, borrow all the money, pay it off. Not as fun when I shorten it.
5
7
385
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. 💸🤑 .
11
29
394
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.
54
1
364
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:.
9
21
318
Fypon is the bomb. This trim came in a kit and only cost like $200 🤤
22
8
302
Key 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.
14
4
283
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. 🤯.
9
18
282
@LeverSellOut Single, 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’.
7
0
265
Find a small company to acquire before you turn 40 (ideally way before but honestly way after is fine too. who really cares?).
6
3
224
@CRE_retail The easiest was is the public listing sites like bizbuysell and bizquest. The best way is reaching out to small business owners, express interest in their industry, and ask if they’ve considered their succession plan and the notion of selling their business.
2
8
221
Deal closed!. The Jewell Lofts 💎 . 15 units in downtown KC’s historic garment district . Already nicely updated, we just get to come in and do some fun upgrades!
36
0
210
Had a beer with a multifamily group that funds all deals via senior debt and 80-100% of the equity via fixed coupon debt/preferred equity from HNW individuals. Built a portfolio of 1000s of units. Beautiful structure.
22
4
205
Good acquisition entrepreneurship story: . Issa Brothers come from humble beginnings in working class England. Bought first gas station in 2001 and now have acquired their way to 6000 locations! . $0 to $24 billion/year in revenue in 20 years 💸🤑💰.
5
9
204
A fact I’ve learned from property management: the more a person points to how reasonable they are, the less reasonable they are. There are no exceptions.
13
10
195
So close to putting biggest real estate deal of my career under contract. First to crack 8 figures. Partner on it has been working it regularly for almost a YEAR.
21
0
192
Someone needs to make a Billions or Succession style show out of NYC commercial real estate.
17
6
186
PE badass: Graeme Hart worked in a body shop and junk hauling biz as a young dude, got an MBA at around 30 and did a thesis on the subject of building an acquisitions centric hold co. Went out and did it, building a $13 Billion fortune by 65! 🤑💰
4
11
180
Recently had a potential client ask me to call him “Mr. Last Name.”. Decided not to work with him and that was a fairly significant factor in my decision tbh. What are the odds someone says “you have to call me Mr” and respects you as a partner?.
55
1
178
I own a rental in an HOA community. I no longer look at deals with an HOA component. 🤦♂️
26
2
163
This almost couldn’t be more half-baked so. take it with a grain of salt. If someone were to organize an SMB buyer/investor conference (a la @moseskagan and REconvene) would you travel to attend?.
63
1
168
To recap, you’re out of pocket $0 and own 85%+ of a pretty legit small company (with lots of leverage. there’s no totally free lunch). Between salary and cash flow, you should pull down $250k+/year in personal earnings depending on terms with your equity investor.
3
0
155
Update: I’m starting a lambda school for buying small companies with SBA loans. You can earn 10x a programmer so the cap on my ISA is $300k 😉.
11
4
161
I have a (very attainable) goal of investing in at least one self-funded search in 2021. I would love to hear from anyone that’s planning to buy a $1-5M enterprise value business with an SBA loan this year — even better if you have a target already identified. DM me!.
19
3
162
Closed! . Cool 16 unit Midtown KC building that’s going to get some TLC over the next couple of years! Gonna be fun to make this beautiful. 🤩
19
1
150
But I don’t have $200-400k to kick in so this isn’t for me? 😢 Not true, you can easily raise this from investors and retain majority ownership in the business. 😍.
14
0
143
Name every permanent capital hold co structured firm you can think of, a la @PermanentEquity. Think it would be fun to put together a list to geek out on. Any size portfolio companies, just operating businesses (not real estate).
33
5
155
I promise I’m not going all guru but this is just so cool that someone took my “buy a biz” thread and took action so quickly. Maybe I can coax him into allowing me to be the anonomyzing outlet sharing his process publicly?
13
1
150
A short story on bids!. Roofer 1: $39k. Roofer 2: $60k. Us: Hey roofer 2, is this (price redacted) scope from roofer 1 the same as yours?. Roofer 2: yep!. Us: Roofer 1 said $39k. Roofer 2: Ok, we will do it for $39k.
18
2
148
Inflation adjusted, Charlie Munger’s net worth when he quit his law practice at age 38 was only $2.7M (2019 $). Obviously he’s a multi billionaire today and that’s after giving away billions. Freakin’ mind blowing.
6
3
145
Paint bid 1: $50k. Paint bid 2: $600k. Same scope of work 🥴.
33
0
144
First dispensary in KC. Not a customer, and hope I remain healthy with no need, but I can sure appreciate the aesthetic. Super smart to go with Açaí and veggie burger vibes as opposed to looking like a head shop with crazy flashing LED signs from Costco.
13
2
144
Awesome Succession line:. “It’s worth what the top bidder will pay”. Roman: “Wow, I wish I went to Harvard Business School like you. It’s intimidating talking to an intellectual giant.”. 🤣.
7
2
136
Click below to sign up for my business buying mastermind group at $60k per year. Limited seats remaining. Psych. Screw those guys. Go buy a biz with your $60k.
6
1
139
What does it look like in 10 years? No growth and your 85% is $3.4M, keep up with inflation - $4.5M, double the company - $6.8M. The scenarios here are fairly endless but all good as long as you slog through the 10 years of SBA pay down.
1
0
129
For argument’s sake, let’s consider a $4M deal (can scale this down to a more comfortable size if desired). Assuming a bargain is foolish so let’s say you pay 5x ebitda for a good business that includes plenty of working capital.
8
0
129
The doc didn’t know what I do a living and jokingly said he was ready to move out of the studio apartment he’s been in for the past 10 mos. Baby August heading home today.
17
0
135
Got new phone. Trying to reconnect with buddies I met in college. Anyone have WB’s cell?
7
1
126
@CMDalluge Recurring service businesses that can be improved upon with basic tech but not easily did intermediated by it. Also, companies that have an enduring brand to some customer base. I have one of each so I’m probably just reinforcing my own bias 🙃.
4
3
127
Having so much fun with all the engagement on twitter this week. One of the cooler things: someone reached out and built a slick yet simple google sheets model of the SBA deal I described. Should be ready to share later today or tomorrow.
7
1
129
I dare you to name something that feels better than deleting a recurring meeting.
16
3
128
Hey @marcuslemonis. I would love to hear how you manage your fairly massive portfolio of investments (bc you seem involved, not passive). How about a little challenge to SMB twitter to raise some $$$ for a cause of your choice and we host a Q&A on said subject?.
6
4
128
Deal closed! Nice townhome community in KC. Rate locked 100+ days ago 🥵
16
1
129
What does the financing look like? You will borrow 70-90% for your SBA lender, 5-25% from the exiting owner, and kick in 5-10% yourself.
7
1
118
You are the proud new owner of a company earning $800k before debt service.
2
0
115
I think $10M is actually a pretty low estimate of the net worth one can build through this strategy if pursued relatively young.
3
2
115
We have started texting our residents at scale and it’s such a game changer. Response times are crazy fast, people are fixing there own little issues like this, and we are saving time and money while making everyone happier.
11
1
117
At that point, take the $500k in annual savings and afford yourself a little lifestyle inflation (meaning $500k+ per year for lifestyle) and invest the rest in more conservative things so your business could die and it wouldn’t crush your net worth.
1
1
106
My 4 yo son has started saying things like “When a person wants to do something, you just let them do it. Let me do what I want.”. They reading this kid Ayn Rand at preschool or what?.
11
1
105
Here goes (maybe literally) nothing! Putting myself out there with a blog or newsletter (format tbd). You absolutely shouldn’t listen to anything I say but maybe you’d have some fun coming along for the grind? 🤑⤵️
8
1
114
The terms on your SBA note and seller note will be relatively similar on a monthly basis (maturities might vary). Generally, 10 year am at 6%. So, ~$500k in total debt service with $800k in EBITDA.
3
1
107
Guy posted a duplex for sale in my target area. Not that into duplexes but it’s a great area and perfect refi and roll. Ad says “call, do not email or text.”. I call. He’s super irritated that I called, wouldn’t schedule anything and gave me a specific time to call later.
9
1
112
Seems like a lot of the painful stuff in small business gets easier over time. Getting a resignation notice from a great employee is not one of those things.
10
1
100
More I look at big MF deals, the more I realize that ideal model for me is to remain focused on being a big fish in the sub $10M space. Don’t graduate up to bigger deals, instead focus on better personal economics and operational advantages that are impossible to compete against.
7
2
102
Those 10 years are still at a pretty damn good pay for the record. 💰.
1
0
100
Start to finish on whole plan? 20+ years. So, best to start before 40 (or as early as possible). However, someone as old as 55 or 60 could do this on an accelerated basis and still have enough time to enjoy the spoils.
3
0
100
Deal Case Study 3 - 50 units purchased in 2018 from operator that outgrew asset size. Off market bargain at $2.25M / $45k per door. More details ⤵️.
11
3
98
Let’s assume you only need $200k (5%). You should be able to part with 15% or less of the equity depending on structure.
6
0
93
House hacking is a big thing but I think SMB buyers should be thinking about business hacking. Simple idea: buy a business, use it to buy CRE, create value in the CRE by renting some portion out, pay off some or all of business acquisition.
5
5
99
I’m 20 min in to this episode with @robdyrdek and I think he might be my new hero. Holy shit this is good. cc @theSamParr @ShaanVP .
7
6
92
Multifamily with a list price and a strike through to reduced price like it’s some jeans at kohl’s. Wow.
12
2
93
Biggest multifamily exit of my career today. Celebrating with a cheeseburger with the fam (for now…). Funny how things get inverted — I guarantee I will be more psyched on the day we tip past my Google reviews goal then I am today.
8
0
93
Little man looking like he’s about to give me his take on interest rates.
4
0
90
Another niche box:. Buy SMB with real estate, ideally rented below market. Structure so real estate is >50% of 7a loan therefore 25 year am. Paydown debt and grow. Refi entire purchase 7a into a green 504 and improve facility. OpCo delevered and SBA elibility replenished.
2
3
92
Back at the Ozarks and playing a drinking game. For every Biden sign I’m pounding a bottle of jack. For every Trump sign I’m taking a breath. I’m sober as a judge and, frankly, getting a little worn out from all the breathing.
5
1
87
Tax nerds: Biden’s proposal is to eliminate 1031’s for incomes over $400k?. Assuming RE pro status stays in tact, doesn’t this just make it even more advantageous to be a RE pro and build a depreciation snowball and get below 400? . Seems like some weird incentives could develop.
8
2
94
SMB milestone: letting a client know today that it’s best that we part ways. So hard to turn down revenue for small business owners like me but making the decision when you know it’s just not worth it is an instant relief.
13
0
89
I’ve seen some draft bill text that says the SBA limit will be raised from $5M to $10M for one year. Going to be interesting to see what comes out tomorrow (if anything).
9
2
90
Billion dollar idea: lambda school for trades. Does this exist?.
30
4
92
A rolling fund but for self funded searchers using SBA loans. Good idea?. Bad idea?. Why?.
27
1
87
Bankers: how valuable are deposits in a negotiation with a community bank lender?. Ex: you’re a lender at a $500M-$2B bank and making a $2M loan. What sort of deposit level gets you excited and might move the needle on terms?.
31
1
83
I want to meet the totally normal guy that confidently strolls into Starbucks and steals a drink from the mobile orders every morning. He must be out there.
19
2
86
At $300k per year in outside investing, you’ll build a quite significant nest egg beyond your business in 10-15 years.
2
0
85
Buy home you’d like to live in. Improve it, cost seg, bonus depreciate, rent it out for a year or two. Move in and enjoy your carry forward from the loss you generated even tho it’s now personal use. Tax geeks, poke a hole in that idea….
16
3
82
Deal closed!. 53 units in Topeka (new submarket for us, 1 hr from our office). Off market 🙏 .Great basis 💵 .Minimal capex 😓 . Simple plan: light value add, move office, and raise rents over the next few yrs. Refi to permanent debt and do it again!
13
0
81
Who told people that an acceptable start to a second message in a cold email stream is “Since I haven’t heard from you. ”. Get these all the time on LinkedIn. I’m no copywriting genius, but unless your goal is to register as a jerk, that’s about the worst thing you can say.
7
0
82
I buy paint. She MAKES paint. Marrying up is the best investment I’ve ever made (and we celebrate 10 years on 10/16/20 🥂).
6
1
73
Workshopped on another thread and not a joke:. I want to get 150 ⭐️⭐️⭐️⭐️⭐️ reviews next year. Hard to get good PM reviews and easy to get bad ones. I’m going to do 30 min of “consulting” per week. Let’s talk real estate. I’ll take payment in reviews if you’re satisfied.
35
1
78
Anybody else get a little hyped up by taking a detour through the toniest neighborhoods in your area? I’m guilty of doing this most days on my way to my office. Side note: when is someone creating an AR app that tells me the occupation of the occupants of said homes? 😉
8
0
73
I cold emailed some dude in Eastern Europe and bought the domain “ for $1k. I flipped it for $20k a week later. Exact match domains were hot in 2008.
What is the strangest thing you’ve ever invested in that returned a great profit? Land, wine, art, collectibles?.
2
1
74
Epic Pass acquired. Planning a BIG ski season this year.
11
0
77
Little man officially in the vending biz (inherited on a recent apt building purchase).
3
2
73
Cool milestone IMO. Lending an employee a little cash to invest in one of our deals. Don’t have every detail figured out in order to make it programmatic, but it’s really exciting to think about incentivizing our team and attracting great people by carving out $ for them.
8
0
75
Fun to see inside a deal. Tech is so odd. $4M cash in play and the $800k investors asked to take a goose egg so it can “work”. ?.
Congrats @Shpigford & @Baremetrics team It's not the 100x exit that you hear about in Tech Crunch but there's nothing wrong with selling a profitable company for $4m. $4m is enough money to last you a lifetime + create generational wealth.
11
0
74
Classy move by this asphalt vendor. Unexpected drone before and after on our new parking lot. 👏👏👏
4
0
70
Woke up feeling kind of shitty. Left the humidifier off…that explains it. Phew! Christmas is a go. Two hours later, feeling funky. Home test confirms it…my luck has run out. Time to do a little hand to hand combat with COVID. Rest of family negative so far 🤞
14
0
72
Welcoming a little 8 unit to the fam. 🫂 . Believe it or not, in our main stomping grounds this is pretty new vintage for us. Walking distance to KC streetcar extension (that’s the part we really love).
7
1
70
Thanks for the recommendation @moseskagan on your podcast with @fortworthchris. Excited to dig in.
4
1
68
Important Sunday evening question: what can scratch my Succession, Billions itch? Any under the radar business shows out there?.
51
2
69
@ALROnHousing Equally compelling business model—pay per view tickets to the annual meetings where 8 fractional owners have to agree on stuff.
2
0
66
Rich just bought a plumbing company. Excited to see these kind of updates from him! Will be fun to follow.
First three days of ownership complete. Solving problems. Getting my hands dirty. Finding the inefficiencies. Getting to know the team. Tired, but haven't felt this satisfied in a long time.
1
2
69