“I’m Broke… What Should I Do?”
Overview
- Alex received a message from someone who is financially broke and is looking for advice on what to do.
- Alex mentions that he has experienced losing everything in the past and successfully rebuilt his wealth.
- He emphasizes the importance of having skills, which cannot be taken away by anyone.
- Alex shares that the people he surrounds himself with now have more money and spend less than those he knew earlier in his career.
“You can have nothing else in your life, and a beautiful thing is that no government can take [skills] from you, no person can take your skills from you, in a divorce.”
Investment options: House vs. Business
- Alex compares two scenarios: buying a house and starting a business.
- In scenario one, using $50,000 as a down payment, Alex considers purchasing a $500,000 house.
- In scenario two, Alex suggests considering an alternative where $50,000 is used to acquire a business.
- He advises reaching out to businesses in the local area and exploring opportunities to buy an existing business.
“If you buy from a broker, you’re going to pay retail; you could definitely negotiate a deal.”
Acquiring a Cash-Flowing Asset for Nothing
- The fifth location that Alex acquired was a gym that the owner wanted to sell due to personal reasons.
- Alex agreed on a price of $40,000 or $50,000 over 12 months.
- He managed to acquire the gym without putting any money out of pocket.
- In the first 30 days, the gym generated $51,000 in sales, paying for itself.
“I ended up selling the gym for one and a half times more than I bought it for, and the gym paid for itself.”