614: The Cash-Flow Boosting Businesses that Savvy Real Estate Investors Own

<p>Knowing <a href="https://www.biggerpockets.com/blog/biggerpockets-business-podcast-40-brit-foshee" rel="noopener noreferrer" target="_blank"><strong>how to buy a business</strong></a> is a lot like knowing <a href="https://www.biggerpockets.com/blog/2014-03-08-buy-rental-property" rel="noopener noreferrer" target="_blank"><strong>how to buy a rental property</strong></a>. First, you’ll need to know the price of the asset, then the<strong> cash flow</strong>, 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 <strong>could be missing out</strong>. <a href="https://www.biggerpockets.com/blog/biggerpockets-business-podcast-105-codie-sanchez" rel="noopener noreferrer" target="_blank">Codie Sanchez</a> saw this opportunity when she was <strong>working in venture capital</strong> and<strong> decided to try out the business buying route herself</strong>, just on a smaller scale.</p><p>Codie can be perceived as your classic<strong> “value-add” investor</strong>, which much of the real estate investing community can relate to. She finds a business that has a strong foundation but lacks the<strong> tech or marketing to grow faster or increase its profits</strong>. 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.</p><p>Codie stresses that <strong>buying businesses isn’t so different from buying real estate</strong>. She also categorizes which businesses real estate investors should buy if they’re looking to <strong>maximize </strong>their <a href="https://www.biggerpockets.com/blog/cash-flow" rel="noopener noreferrer" target="_blank"><strong>cash flow</strong></a> and<strong> minimize </strong>their <strong>expenses</strong>. With some help from Codie, you could be relying on much more than just rent checks soon!&nbsp;</p><p><strong>In This Episode We Cover<