Notice how landlords drive a beat-up Honda while sitting on millions in equity?
Your wealth is literally trapped in walls.
Your duplex might be worth $500K with $300K in equity.
But equity doesn't pay for your kid's college tuition.
You can't take your kids on vacation with appreciation.
The only way to unlock that equity is to take on more debt or sell.
Fixed costs rise every year: insurance, property taxes, utilities, roof/hvac replacements, etc.
Interest rates have been eating up any remaining cash flow.
While costs go up, rents are unable to keep pace.
There’s a limit to how much rent people are willing to pay.
This is why landlords are cash-poor, equity-rich.
The big payday (hopefully) comes when they sell the properties in 10 to 20 years.
Are you willing to wait that long?
Franchise owners, on the other hand, are cash-rich, equity-poor.
A single unit can generate $5k, $10k, $20k+ cash flow per month.
Reinvest that cash flow to buy more units, growing from 1 to 2 to 4 to 10+
The more cash flow you have, the bigger the payroll budget to build your team
The less you’re in the day-to-day grind, the more freedom you have
When it comes to equity, most small franchises are only worth 2.5X to 3.5X earnings when sold.
Maybe up to 5X for a larger deal.
Not a huge payday compared to real estate
Real estate is a long-term equity game.
Franchising is a short-term cash flow game.
Which one do you need right now?
For the last decade, I prioritized one thing: generating consistent cash flow.
That's why I sold almost all my rental properties in 2019 and went all-in on franchises.
I reinvested millions back into acquiring more franchises, going from 2 locations in 2016 to over 50 today, across all our brands.
Best financial decision I ever made.
Want to build your consistent cash flow machine?
Click here to book a call with my team
We'll help you explore franchises, plus provide you with my new Franchise Buyers Toolkit.
This toolkit includes a due diligence checklist, a preferred lenders list, over 40 questions to ask the franchisor & franchisees, spreadsheets, and more. All for free.
Cheers!
Brian
