Sold an HVAC co to a 56yo guy for $570K 5 years ago w/an SBA loan. He improved and grew it. Now I'm under contract to sell it for him for $1.2M 5 years later. It's not all Holdcos and Whale Sharks Sometimes it's a skilled tradesman setting himself up better for retirement.
@ClintFiore High return on equity, but sounds like a pretty low return on brain damage & risk (given personal guarantee), particularly after transaction costs & capital gains tax.
@moseskagan Wins are different for different people with different ages and skills. Twitter is a weird success bubble and twists our perceptions. I can't think of a much smarter thing this guy could have done the last 5 years knowing his age, personal financial details, skills, etc.
@ClintFiore @moseskagan It’s like if you didn’t have a 100 Million Dollar exit in 3-5 years you ain’t did nothing! I love the statement: Wins are different for different people!
@TyronMcDaniel @ClintFiore Fwiw I’m in favor of small-scale entrepreneurship (I’m a small-scale entrepreneur!). Just thinking through amount of $$ made after taxes w effort & risks run to make it. (The fact that he’s selling to take a six figs job tells me something abt how he viewed the biz.)
@moseskagan @ClintFiore For sure… but to Clint’s point, for the average guy/gal this is a WIN all things considered! 5 years and $700k minus taxes not including any money you made over the 5 year period you owned it, ain’t bad! It’s not a 10 bagger but you can’t go broke making a profit 💪🏾
@TyronMcDaniel @ClintFiore Actually is a 10 bagger on his down payment! I just try to evaluate decisions based on the spread of potential outcomes, not just the one that actually happened. And I guess I think that the downside of being a BK 60 year-old is really large.
@moseskagan @ClintFiore I like to put myself in the shoes of the person and try and see things from their perspective and not mine! I see this guy leaving the closing table headed to Florida in a new F250 to his bungalow blocks away from the beach he paid cash for! Maybe I’m wrong…
@TyronMcDaniel @moseskagan F350 Platinum. Owns warehouse and will rent to Buyers and sell down the road. Has some power toys. Will retire debts with this deal. Minimal living expenses. And a good paying job as long as he wants it. Total W just diff life from a twitter finance bro.
@ClintFiore @TyronMcDaniel @moseskagan F350 platinum with power toys but minimal expenses? Those are opposites :) I enjoyed this back and forth between you three.
@J_Turnbow @ClintFiore @moseskagan Not opposites, plenty of people pay cash for those things