A thread on how to turn $100 into a lot more:

People are spending a lot of money on their homes right now. Its time to go get some of that money and help out some of these people.

Sound silly? Good.

It really is this simple sometimes.

Lets go 👇
Get on your computer and buy a web domain.

Get a freelancer (upwork or fiverr) to make you a logo/flyer and get $45 worth of flyers printed at your local print shop.

Buy a box of sidewalk chalk if you really want to grind and get gritty.
Go downtown with the sidewalk chalk and write “pressure washing and home cleaning 888-555-1234” as many times as you can in high traffic areas.

Go to a middle class or high end neighborhood and hand out flyers on porches and wherever else.
Get creative. You might get ran off but its low risk. Target those with dirty payment.

Your cell phone will start ringing. Book all of the jobs for Saturday.

Rent a power washer Saturday morning with the other $50 and go make $300 in one day.
Do the same thing the next weekend and then buy a power washer. Then put $200 into a website and nurture a Google My Business location.

Get reviews, upload photos, make it look nice. 50% of your biz will come through here.
Make sure you pre-treat the concrete with a bleach mixture. It makes the job 2x as easy. Get some $1 gallons of bleach and cut it 1:5 with water in a 5 gallon backpack sprayer for $60 on Amazon.

Ask the customers nicely to use their water. Borrow Gma's Prius to haul the washer.
Make a youtube video introducing yourself and put your town and power washing in the title. Link to your website.

Make posts on Facebook Marketplace (this one is key).

Within a few weeks you'll be bringing in $1,000 every weekend.
When you hit $4k in a month its time to quit your job and get serious.

“On demand” is going to be your competitive advantage so you can charge a higher price. Make sure you can offer next day service or same day service. As soon as you get too busy to do that its time to hire.
Make sure that person is presentable and clean cut. Get a business polo shirt made at your local embroider.

Target students at first because they work hard and are reliable. They have summers off which is your busiest time.
Provide amazing customer service. Answer the phone every time and be in a super eager positive mood.

This along with the “on demand” nature will put you ahead of 99% of your competitors.
Make friends with realtors in town or watch the MLS and visit homeowners the week before an open house. A home looks a lot newer with a clean driveway.

Use google maps to measure concrete area and provide instant quotes over the phone. Put out yard signs with your logo.
Eventually buy a cargo van and have your own generator and water tank inside so you can be mobile and do more jobs and charge more money.
Grow from there. Start power washing entire parking lots for shopping centers.

Get the contract to do it twice a year for $15,000 per service.

You can get one of those big ride on power washers eventually and start doing larger commercial jobs.
As your company grows launch a branch in a neighboring city with a management hire. Then another city.

Sell the company or just cash the checks and sit on the beach with your family. You’ll likely get bored and end up building another business.
Side note:

I hired one of these guys to wash the exterior doors and walls at my Pittsburgh facility two months ago.

1 out of the 10 that I called could bring their own water.

3 weeks later he showed up with a crew of 2 folks. Took them 1.5 hours. Billed me $1,000. I was happy.

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More from @sweatystartup

24 Oct
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There are two types of CPAs:

1. Those who act like they work for the IRS.

2. Those work and fight for their clients.

I’ve fired number 1s and I pay good money for number 2s.

What I’ve learned:
You want a tax planner who gets aggressive, develops strategies for you to emplement, and is prepared to take on the IRS.

You pay them good money for this.

You pay them to WORK FOR YOU.

But let’s think about the motivating factors:
Taking this approach is more work for the CPA. Bad CPAs don’t like doing work.

I had arguments with my first CPA about depreciation. He said getting aggressive was a bad idea because recapture taxes are significant.

He didn’t want to do the extra work.

I fired that CPA.
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AND have the courage to interact with them...

You can learn A LOT really fast.
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Is it because they also see it for what it is?

The greatest self-help tool and win-win networking tool on the planet?
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It can be a double edged sword from this perspective:
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I want you to think about it 2 hrs later.

This is work for me and it’s paying huge dividends.
I take notes all day in my tweet “draft” section.

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Everybody hates Dunning-Kruger assholes with closed minds.

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The “buy low, sell high” mentality in real estate is NOT the way to generate serious wealth.

Yes, you can get rich. And yes its SEXY and that exit IRR looks great on pitch decks and resumes.

But it’s a TERRIBLE way to build long term, low risk, passive wealth.

A thread:
Sam Zell made bank. I know.

Chamath makes money investing in unicorns while the avg guy with “VC” in his twitter bio doesn’t.

Day traders make $ too. So do house flippers.

Until a lever gets pulled somewhere in the fragile system and something out of their control happens.
And taxes and transaction costs.

The gov takes 15% of your nut. The brokers take 5% of overall transaction which can be 10 or 15% or your nut. Closing costs, transfer taxes, the list goes on.

Every time you sell 30%+ of your nut is EVAPORATES.
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My most popular tweets on real estate, self storage and entrepreneurship.

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A thread on how most real estate folks structure deals with outside investors.

Most GPs utilize the "preferred equity" structure when they raise money from outside investors. They "syndicate" deals.

Here's the basics:
The person (or team of people) putting the deal together is the "sponsor". Also called general parter. Referred to on twitter as the GP.

They find the property, do all the work, hire the management company and take fees. They often co-sign debt and always secure the financing.
The investor is generally passive, doing no work and putting in cash. This is the "limited partner". Referred to on twitter as the LP.

They don't co-sign debt. They simply read reports and ask the sponsors questions and cash checks every month (if the deal is going well).
Read 31 tweets

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