Training & digital business: $2.1M ebitda 37% margin: A-Z solution
Description=== Ideal Buyers ===
* A coaching / training business that offers coaching / training on real estate investing or similar who would like a large existing community to cross sell their services to.
* A coaching / training business that offers real estate services such as lending, brokering or similar who would like a large existing community to cross sell their services to.
* A portfolio owner who wishes to add a highly profitable business that drives 100% of its sales using digital marketing and who also wishes to augment the digital marketing capabilities of its owner portfolio companies.
* A software / SAAS company that’s already selling to real estate investors or high income earners.
* A stock or real estate investor who wants a mostly turnkey business that provides a much higher return on their capital than the returns provided by the S&P 500 or real estate.
=== Overview Of Opportunity ===
This is a great opportunity to acquire a highly profitable business that provides a turnkey solution (training, coaching and marketing) to real estate investors and busy high income earners: the main benefit is generating $1,000 to $3,000 net cash flow per month per property via Airbnb WITHOUT buying the property (this is known as the Lease and Leverage method or LL for short).
This is a proven and fast growing business with over 800 clients and many success stories. The client demographics is highly desirable since the typical client earns over $100,000 per year with a 650 credit score or higher. There is a strong concentration in tech professionals, medical professionals and existing real estate investors.
The success rate with its clients / students is at 96%.
The LL method is superior to the traditional landlord model where the client has to qualify for an investor loan, and each property can generate only $200 - $400 per month. The timing is perfect for the LL method because mortgage rates are at an all time high, and landlords and Airbnb hosts simply cannot afford to buy a rental property using conventional financing.
The business is 100% remote with a healthy 36% net margin, and the sellers will stay on for 6 months to help transition the business.
The firm is the only one that provides an A-Z solution, which includes sourcing the property, negotiating with the current owner, decorating the property and even providing furniture sales (at a high margin through partnerships). The core offer is $8,800 and the client can also hire them to help decorate the property for an additional $13,500 to $20,000 (80% of the customers take this optional paid service).
It has seen explosive growth due the client success stories and its marketing skills. The business is projected to grow to $7M in 2024 ($2.5M EBITDA) and $9M in 2025 ($3M EBITDA).
Each of the 2 owners are working 15 hours a week on the business, and their primary duty is managing the leadership team. They are not involved in the delivery of the business, and the growth of the business is not dependent on the personality of either of the owners.
It has seen explosive growth due the success stories of its clients and its marketing skills. The business is projected to grow to $7M in 2024 (with a $2.5M EBITDA) and $9M in 2025 (with a $3M EBITDA).
Each of the 2 owners are working 15 hours a week on the business, and their primary duty is managing the leadership team. They are not involved in the delivery of the business, and the growth of the business is not dependent on the personality of either of the owners.
=== Why Are They Selling? ===
Both owners are looking at launching new ventures in non competitive niches.
=== Offers & Pricing ===
The main offer is $8,800 and includes the following:
A. Done for you property acquisition
B. coaching calls per week (2 expert coaches run this)
C. Course area
D. Facebook group
E. The firm markets the property for the client to get a short term renters
=== Org Chart ===
55 total team members with a full leadership team.
Number of EmployeesFull-Time: 45
Reason SellingBoth owners are looking at launching new ventures in non competitive niches.
Facilities & Assets- Brand including the website and digital assets
- Staff (see org chart above)
- 20 hours of training on
-- Property acquisition via the LL method
-- Pricing
-- Decorating the house
-- Getting short term renters
-- Making the business a turnkey biz
- FB ads account with $650K spent to train the pixel
- Email list and social media assets
SOPs for
-- Acquiring clients and properties
-- Marketing the properties
- Marketing campaigns for
-- Acquiring clients via FB, YT (Google to be added)
-- Acquiring properties to be used for Airbnb hosting
Support & Training6 months of support and transition
Market & CompetitionThe firm is the only one that provides this level of concierge service, which includes sourcing the property, negotiating with the current owner and even decorating the property.
Growth Opportunities1. Add a referral program to have the existing customers refer others
2. Start running ads to generate outside design clients and scale the design team
3. Start a furniture company to sell furniture pieces to design clients (About $400-500k is being spent on furniture currently by clients for their property)
4. Grow pricing management services to increase LTV per customer and build recurring
5. Add a downsell to customers who can’t afford the flagship program
Financing OptionsSeller financing is available.