So every week we have a real estate meeting to discuss our current holdings, problems, opportunities, etc.

Today we had some discussion for our 2-5 year timeline, which includes potential acquisitions.

One big problem is I'm not sure what to buy.
Listening to @moseskagan decent MF deals are hard to come by and I'm finding the same in Ohio.

I like Multi Family, but only if the deals are right, and they're not.
Listening to @sweatystartup I want to jump into some storage facilities, but even that market is starting to get super frothy with people fleeing MF, office, and retail.

Also I'd be competing with the current REITs who own a large amount of self storage, and rolling up more.
Listening to @joepohlen, with the right team senior housing could be a great space, especially with baby boomer market tailwinds.

But I know absolutely nothing about what it takes to run any type of senior housing, or even what makes a specific property better than another.
So where do I go?

Niche retail? What is going to do with all the closed Toys R' Us buildings? Do you add a bunch of rage rooms, escape rooms, golf simulators? Food and more entertainment?
Niche Industrial?

Warehouse doesn't look great because e-com, manufacturing, distribution and everyone has flocked there over the last 5 years, not to mention Covid pushing that market higher and higher.
Am I missing something?

Where is the opportunity?

Do I wait a year and stick with MF?

Do I get another RE competency and get into niches?

Am I wrong about anything I've written here?

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More from @WilsonCompanies

8 Apr
I have written 3M in LOIs in the past 30 days across 3 different companies.

2 accepted.

Here's the play by play:
Deal 1: Small plumbing co - tuckin
700k sales
150k NOI
5 Employees
Good contracts (restaurants, recurring backflows)
Good assets (earthmovers, jetter, equipment, clean trucks)

I was into it. I presented 175k SBA. Quick shot down.

Back to drawing board, here's the 2nd round:
I took the weekend and thought about my risk. The big risk was employees leaving so I constructed a deal that mitigated.

New deal:
Seller finance
I subtract 20k per employee that quits, not fired

Seller was into it but ultimately decided to not sell. Hold for next year.
Read 16 tweets
8 Apr
People have been asking me for a while about leasing commercial vehicles and how we scaled our fleet as we grew. Fleet is tough, its one of the biggest barriers to growth for truck based companies.

Great question and there's a lot to it, here's the start:
When I bought my families business we had not been growing so fleet needs were minimal.

Our business always bought used vehicles between 15-20k and put them on the road. They ended up being maintenance heavy and we would ride them until they died.

So they looked terrible.
In 2018 I bought another company and we merged. That company also bought used and rode til they died.

The end result was we had to make a ton of capex in a short period of time to have a usable fleet. We probably had 15-18 or so vehicles at this time.
Read 7 tweets
30 Mar
Just wrapped up a short due diligence seller meeting with a 2.5MM revenue company.

A lot of what I did today is soft skills, I asked about 80 questions, most are simple yes/no answers.
Most of the important words that were spoken today were me educating the seller about the next step in the process, which is...

Purchase Price Allocation
Purchase Price Allocation is basically when you get to split up the tax advantages that come with a business transaction.

This is also one large aspect of a transaction seller's know the least about.
Read 9 tweets
30 Mar
Today we are meeting with one of our target companies, this is a $2.5MM HVAC business that is a great value add for us.

We're going over our 150 due diligence questions.

Here's a few of the big things we're looking for.

1. Skeletons in the closet:

Off-balance sheet loans

Potential staff red flags (ex cons, drug use, etc)

Quick glance at insurance risk profile, workers comp, driving.

Discussion of potential legal issues.
2. Potential Synergies:

Existing org chart - who stays who goes.

Geography overlap - service additions

Back office SOPs
Read 5 tweets
13 Jan
Some discussion last week about promoting techs to managers and why I have never seen it work. A few folks asked for a more in depth look.

Here’s how I look at it:
When a SMB owner realizes they need an Ops/service manager it’s a big deal. They’re making a brave choice to step away from day to day. To trust someone with their business and staff. They're saying, “I take this business seriously and I’m ready to grow”. Time for next level.
If this is your first OPs/Service manager hire then it is one of the most important hires you make in your business. Why on earth would you promote someone who’s qualification is wrench turning and not leading teams?
Read 14 tweets
5 Jan
This is a very long thread. @SamtLeslie asked to give the playbook for service companies so here it is. Follow it and you’ll get to 5M+ in a few years.

This is pure operations playbook.

No leadership, financial or HR discussion. Enjoy.
Doesn’t matter much. @sweatystartup has an awesome list of service industries on his website that will get the job done.
If you are under 3M and in multiple trades you’re doing it wrong. I was there and it was a mess.

Businesses under 3M don’t have good system, managers, effective onboarding, training, hiring practices, or pricing methods. If you did then you’d be bigger.
Read 25 tweets

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