Tyler Joas

Acquiring and building residential service businesses

[Tyler Joas @TylerJoas]

How I made 430% Cash on Cash return in 8 months with my first business acquisition:

In April 2023 we acquired our first company. A residential foundation repair business.

Background: I own a residential construction company so obviously this business had synchronicities and I knew what I was getting myself into, for the most part.

Timeline: I began looking for a company to acquire in August of 2022. Found this business in January 2023 on bizbuysell and began due diligence. Closed April 21st, this business is seasonal so we wanted to wait until the season started before closing, to ensure immediate cash flow. The seller was willing to wait.

The deal:
Foundation repair company
$250k purchase price
$250k SDE
38 years in business
4 employees including a foreman who can run all day to day operations.

Most people would look at this deal and immediately move on thinking they are buying a job.

I knew someone who was qualified to run a business of this size and was willing to work 8 months a year for $50k + commission for sales (total compensation $75k) it took 2 weeks to train them in which required about 30 hours per week of work on my end.

This business had no systems but was generating 50-75 leads per month with an average ticket of $7,300 and a close rate of 32%.

It’s a relatively simple model and we knew we could institute our software and systems to increase efficiency/profitability. Outside of updating softwares and operational systems, we didn’t change anything.

The numbers year 1:

$42k down payment
$58k in assets (tax write off year 1)
$181k net profit after all expenses.

430% cash on cash return year 1 with no marketing. Next year we expect to triple net profit.

The best part: I worked 1-2 hours per week on this business.

Deals like this exist, most people will ignore them because it goes against their investment criteria or “rules”.

Moral of the story: investing rules and criteria are great to have, but if they impede on a home run deal they need to be reworked.

[Tyler Joas @TylerJoas]

@yourealazyfvck I genuinely don’t understand all the hate towards this video and Hormozi. I think most just read the title and don’t watch the video.

[Tyler Joas @TylerJoas]

@joinautopilot The only good advice is: invest in what you know.

[Tyler Joas @TylerJoas]

This sounds very similar to my first acquisition this april.

I owned a residential construction company prior to my first acquisition (a foundation repair company) and it made the transition very smooth.

Safe to say it won’t be my last acquisition.

Interested to hear more about your journey!

[Tyler Joas @TylerJoas]

@nickrgrs Me

[Tyler Joas @TylerJoas]

@nickrgrs This is how to live. Love it

[COACH PRIME @DeionSanders]

Are u ready ? If God gave u what u want right now could u handle & maintain the blessing. This ain't about anybody else or anything else, it's about u. If u ain't ready please get ready. Time is of value. #CoachPrime

[Tyler Joas @TylerJoas]

I disagree, these trade business quotes are largely based on man hours. After a small amount of experience you will have a good understanding of material cost and how fast your crews work.

Really not that complex.

Could likely build out a systemized quote sheet in less than 5 hours.

[Tyler Joas @TylerJoas]

@cbassg16 Are you making money on these luxury flips/spec builds in this economy?

[Tyler Joas @TylerJoas]

@nickrgrs LS

[Tyler Joas @TylerJoas]

There are plenty of wealthy people who attend events and seminars. Have met multiple $100M networth individuals this year alone.

It may not be the majority but they are there.

The best business people are always investing in their network and knowledge. Just might not be the groups you’re familiar with.

[Tyler Joas @TylerJoas]

@ArtemTepler Just did one for a guy in his backyard. Underground and 270 yards.

[Tyler Joas @TylerJoas]

@nickrgrs Trades print.

AND the amount of home service businesses for sale that can run themselves and do close to 7 figures profit + assets is ridiculous.

Most tax advantaged businesses out there

[Tyler Joas @TylerJoas]

Success in every aspect of life can be boiled down to two things:

Discipline (100% in your control)
Skill (100% can be improved)

If you aren’t where you want to be, you only have yourself to blame

[Tyler Joas @TylerJoas]

@pontivflex Those are pretty standard multiples for most types of businesses.

What matters most: does the company run itself without you? If no, how easy is it to replace you?