Knowing how to buy a business is a lot like knowing how to buy a rental property. First, you’ll need to know the price of the asset, then the cash flow, followed by expenses, and finally the structure. Because buying real estate is perceived as “simpler” than buying a business, most investors decide to go the real estate route—but they could be missing out. Codie Sanchez saw this opportunity when she was working in venture capital and decided to try out the business buying route herself, just on a smaller scale. Codie can be perceived as your classic “value-add” investor, which much of the real estate investing community can relate to. She finds a business that has a strong foundation but lacks the tech or marketing to grow faster or increase its profits. When a business has a strong underlying value, just like a rental property, it’s easier than most people think to “renovate” it into something that will sell for far higher. Codie stresses that buying businesses isn’t so different from buying real estate. She also categorizes which businesses real estate investors should buy if they’re looking to maximize their cash flow and minimize their expenses. With some help from Codie, you could be relying on much more than just rent checks soon! ~~~~ Join BiggerPockets for FREE: https://www.biggerpockets.com/signup?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Hear Codie’s Interview on The BiggerPockets Business Podcast: https://www.biggerpockets.com/blog/biggerpockets-business-podcast-105-codie-sanchez?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ How to Use the DISC Profile to Communicate Effectively in Business: https://www.biggerpockets.com/blog/disc-profilecommunicate-effectively-meetin-prog?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Our Interview with “Who Not How” Author, Dan Sullivan: https://www.biggerpockets.com/blog/biggerpockets-podcast-423-dan-sullivan?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Join the “Contrarian Thinking” Newsletter: https://contrarianthinking.co/ ~~~~ Business Buying Sites Mentioned in This Episode: Quiet Light: https://quietlight.com/ BizBuySell: https://www.bizbuysell.com/ Empire Flippers: https://empireflippers.com/ ~~~~ Connect with Codie: Twitter: https://twitter.com/Codie_Sanchez or @Codie_Sanchez Instagram: https://www.instagram.com/codiesanchez/ or @codiesanchez TikTok: https://www.tiktok.com/@realcodiesanchez or @realcodiesanchez ~~~~ Connect with Rob (Robuilt) on Youtube, Instagram, Tiktok, and Twitter: Youtube: null Instagram: https://www.instagram.com/robuilt/ TikTok: https://www.tiktok.com/@robuilto Twitter: https://mobile.twitter.com/robuiltchannel ~~~~ Connect with David and Rob on BiggerPockets: David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none Rob: https://www.biggerpockets.com/users/robuilt?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Follow David on Instagram: @davidgreene24 or https://www.instagram.com/davidgreene24/ Episode 614 Show notes at: https://www.biggerpockets.com/blog/real-estate-614?utm_source=youtube&utm_medium=description&utm_campaign=none 00:00 Intro 05:06 Quick Tip 06:12 Value-Add Business Investing 10:17 What Makes a Business Worth Buying? 16:43 Buying Off-Market Businesses 18:18 Be the Owner, Not the Operator 31:50 Understanding Your Team's Personality 36:22 3 Questions to Ask Before Buying 38:04 Buying or Building 43:33 Real Estate-Friendly Businesses to Buy 54:59 Deal Deep Dive 01:00:19 Where to Buy Businesses 01:06:31 Famous Four