🎙 Passive Cash Flow Podcast | BUY a Business with ONLY 10% Down?
In this episode of the Passive Cash Flow Podcast, host Aaron Fragnito sits down with finance expert, entrepreneur, and investor George Otel of US Business Funding. If you’ve ever wondered how to buy a cash-flowing business like a laundromat with just 10% down, this episode breaks down everything you need to know—from SBA loans to how to optimize your business for sale.
George has helped 400+ companies secure funding and has structured over $50 million in business loans. Whether you’re trying to buy a gas station, car wash, or scale a plumbing business, this episode will show you how to access capital and grow strategically.
📌 Don’t miss the walkthrough of an actual laundromat deal example—and how YOU can do the same.
🧠 Topics Covered:
0:00 – How to Buy a Laundromat with SBA Loan
1:00 – Welcome George Otel
3:00 – George’s Background & US Business Funding
6:00 – How to Prep Your Business for Sale or Funding
8:00 – Buying a Business with Only 10% Down
11:00 – What Makes a Business Lendable?
13:00 – Best Types of Businesses to Buy
17:00 – Car Washes, Contractors & Service Businesses
22:00 – Hiring & Scaling with VAs and Systems
26:00 – Why Every Business Owner Needs a Playbook
29:00 – How to Sell for a Higher Multiple
32:00 – Wrap Up + How to Reach George Otel
📘 About George Otel
George Otel is an entrepreneur, investor, and mentor who has been active in real estate and business finance for over a decade. He’s participated in hundreds of transactions including commercial real estate, partner buyouts, business sales, and SBA lending. As the founder of US Business Funding, George has helped secure over $50M in funding for entrepreneurs nationwide.
📬 Contact George Otel:
🌐 Website: www.usbizfunding.net
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Learn more at https://www.peoplescapitalgroup.com/
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⚠️ Disclaimer:
This is not a solicitation for funds, tax advice, or legal advice. This is not intended to be, and must not be construed to be in any form or manner a solicitation of investment funds or a securities offering. Peoples Capital Group LLC is NOT a United States Securities Dealer or Broker nor U. S. Investment Adviser is a Consultant/service provider and makes no warranties or representations as to the listener or viewer. All due diligence is the responsibility of the investor.
Transcript:
00:00:00:02 – 00:00:20:04
Aaron Fragnito
Let’s say I wanted to buy this laundry mat. They’re asking $300,000 for it. It’s making 150 grand a year net. At least on the numbers the broker sent me. So how do I go about getting an SBA loan for something like that? You know, I bet $8 million net worth of real estate, a decent credit score. You know, I have experience operating businesses.
00:00:20:04 – 00:00:23:14
Aaron Fragnito
How do I go about acquiring this laundry mat?
00:00:23:16 – 00:00:30:05
George Otel
Yeah. So, you call me, and then I, guide you through.
00:00:30:07 – 00:00:50:18
Aaron Fragnito
All right, ladies and gentlemen, welcome back to the Passive Cash Flow podcast. I’m your host, Aaron Fred Nieto, and we have an interesting guest here today who has bought and sold many businesses, who’s, created, hundreds of millions of dollars of funding for businesses as well. We have George Hotel on the show. How are we doing today, George?
00:00:50:20 – 00:01:11:23
George Otel
Doing all right, Aaron, thanks for, creating this opportunity for, entrepreneurs, business owners to to learn, to grow, to evolve. And, I always, salute the, the hard work of, entrepreneurs that are willing to give back because you take time from your busy schedule to provide, quality value.
00:01:12:00 – 00:01:34:00
Aaron Fragnito
Oh, sure. Yeah. Listeners do. Thank you. George, I appreciate that. We’ve been doing this about six years now, the Passive Cash Flow podcast. And by the way, while we’re on that note, if you are enjoying this content to our listeners and viewers on YouTube, hit that like and subscribe button, and share it with a colleague or friend or spouse who you think would, gain value from these episodes.
00:01:34:00 – 00:01:58:13
Aaron Fragnito
In this episode, we’re going to talk about how to prepare, a business for sale, or how to prepare it for funding to get a loan. Different types of loans as well. But, you know, I just spoke with the business owner, I know from a mastermind group, and he was saying how he prepared his company for sale for, like, seven years, and he got, like, an amazing equity multiple on it and, much higher than industry standard.
00:01:58:13 – 00:02:32:03
Aaron Fragnito
And he said the the secret to that was having a very well organized business and essentially running your business to prepare it for sale. And that’s kind of how I look at my business a lot of times, too. I think, you know, how how can I prepare this business? Not that I’m looking to sell anytime soon, but for sale, you know, that someone could step in and take advantage of an organized, well-run, well-oiled machine and that you can just, really churn out some income for them and someone can take advantage of a well organized business, and therefore, you could sell for a higher equity, multiple, higher price.
00:02:32:03 – 00:02:43:18
Aaron Fragnito
So, let’s dig into that, George. You know, first of all, maybe talk a little bit about your background of helping people buy and sell and fund businesses and just how you got into that to get started.
00:02:43:20 – 00:03:06:19
George Otel
Yeah. So, I started working with someone in, real estate, basically the financing side of real estate. We were doing, short sales. The my mentor was, flipping, 40 to 50 houses a year, basically buying from the bank, updating them and eventually selling them. And, I, through the, through his mentorship, I met one of his partners.
00:03:06:19 – 00:03:31:08
George Otel
He had, private equity company. They were buying and selling businesses and commercial real estate. And that’s when, my, life started getting interested because I, I like to. I’m I’m a person interested in creating, putting the deals, structuring the deals when it comes to business and commercial real estate. And, starting 2018, I start, U.S business funding.
00:03:31:08 – 00:04:02:20
George Otel
We, we do started with the equipment financing, working capital, and now we do as B loans as well and commercial real estate. So that’s kind of the idea and I think from basically equipment to commercial real estate, we get it done. The the beautiful thing about our current situation that, I have this on my screen, it’s like $10 trillion worth of baby boomers going to retire, and they’re going to have their businesses for sale.
00:04:02:22 – 00:04:26:11
George Otel
So, this is going to be our, once in a lifetime opportunity for a younger generation to learn to study how to participate in those transactions, because transaction going to happen. The question is, are you going to be part of those transaction? What are is just going to say everything was bad. So that’s my background.
00:04:26:12 – 00:04:53:22
George Otel
It’s I love working with business owners. I own a logistic company prior to 2015 and helped multiple companies to scale, to grow, to exit, to finance buyouts and also to buy. So we have a couple of business acquisitions right now in the pipeline. So we we do everything nationwide basically.
00:04:53:24 – 00:05:16:04
Aaron Fragnito
Okay. So you know, I majored in entrepreneurship around university. I actually recently wrote and taught a course called Real Estate Entrepreneurship, at Rowan University. And so I’ve always had an interest in entrepreneurship. Now, admittedly, so I, you know, I started this company 11 years ago and I’m, I guess, you know, some days I feel more like a business owner than an entrepreneur, right?
00:05:16:04 – 00:05:35:05
Aaron Fragnito
I, I true entrepreneur is really buying and selling businesses now. I do a lot of real estate transactions. And you could argue every time I buy an apartment building, it’s almost like starting. We are starting a new LLC, right? We are getting funding. We’re doing our due diligence. We’re lining up investment capital. You know, we’re we’re operating the business, which happens to be an apartment building.
00:05:35:05 – 00:05:51:15
Aaron Fragnito
So it’s kind of like I start little businesses, you know, every six months or so and I buy a building, but, and then I sell them over time. But, you know, I got an email the other day from one of my, brokers I work with, and he’s selling a laundromat, not far from here in Somerset, new Jersey.
00:05:51:17 – 00:06:10:15
Aaron Fragnito
And I’m looking at the numbers, you know, email. I say, send me the numbers on this because I like the idea of, you know, low, time investment businesses like a laundry mat. You know, it’s like you’re running a landscaping business or something, you know, it’s like pretty low intensity, care, you know? And for the most part, you can have a manager or an operator kind of just, you know, operate the business.
00:06:10:15 – 00:06:31:15
Aaron Fragnito
And it’s pretty low, investment of time. But the cash flow on it was like they’re asking 300,000, and it was netting like 150,000 a year. And I gotta say, you know, I’m laying in bed at night. I’m like, man, like the part of it is like, but I do not make, you know, 50% cash flow, you know, divide that by ten.
00:06:31:15 – 00:06:50:07
Aaron Fragnito
And, you know, that’s the way you are, you know, North Jersey, part Middle East. But, so I’m like, am I in the wrong business? What am I doing? I, I’ve heard people say, you know, cash flow, heavy businesses, time intensity, low time intensity businesses are the way to go. Like laundry mats, you know, that you can kind of buy at a discounted price.
00:06:50:07 – 00:07:08:20
Aaron Fragnito
So let’s say I wanted to buy this laundry mat. It’s. They’re asking $300,000 for it. It’s making 150 grand a year net, at least on the numbers. The broker sent me. So take it with a grain of salt. But even if they’re 10 or 20% off, it’s still not bad. How do I go about getting an SBA loan for something like that?
00:07:08:20 – 00:07:19:22
Aaron Fragnito
You know, I about $8 million net worth of real estate, a decent credit score. You know, I have experience operating businesses. How do I go about acquiring this laundry mat?
00:07:19:24 – 00:07:43:22
George Otel
Yeah. So, you call me, and then I, guide you through. So eventually the idea is, You’ll you need 10% down payment, the cash. So basically 30,000. The only thing is we try to stay higher than 500,000 for a loan amount because it’s, it’s a lot of work. And, you know, not too many banks willing to go.
00:07:43:22 – 00:08:19:04
George Otel
Go something lower. That’s, But the idea is, like you, you need to have 300, basically 10% of the the price, then, preferably 690, 700 plus credit score. And basically the whole, underwriting is going to be around the business and you’re just going to be the person guarantor. So we’re going to look at the, your BFF’s personal financial statement, last two years of taxes and then everything else from the, from the business, PNL balance sheet, that schedule and last three years of taxes.
00:08:19:04 – 00:08:40:15
George Otel
So that’s how you do the underwriting and takes some five, 5 to 7 days, sometimes faster. So you get the term sheet with, with the lender. And, it depends on how messy is the deal, as you mentioned, because it’s important how clean the paperwork and how everything is aligned. Around 45 or 60 days to close.
00:08:40:15 – 00:08:47:16
George Otel
Sometimes you can close in 30 days, but it’s all depends. So I’ll say 30 to 60 days to buy the business.
00:08:47:18 – 00:08:56:14
Aaron Fragnito
Okay, that’s not bad because I’ve heard SBA loans can take much longer to close. But I guess in this particular type of SBA loan we’re talking about can close in 60 days.
00:08:56:16 – 00:09:16:01
George Otel
Yeah, yeah. And it takes longer because, look, I mean, it’s all depends how fast to send me the docs and how ready is the seller to to do it. Because. Right. You know, it can take a year. I mean, the, I had the deal. I closed in 30 days from purchase, the purchase agreement signed. So to closing to getting funded 30 days.
00:09:16:01 – 00:09:33:09
George Otel
That was commercial real estate. But my client was my friend, and he was like super, super systems and very solid client. And I mean, I asked and I received that in 30 minutes, everything. So that’s the kind of consistency.
00:09:33:11 – 00:09:42:24
Aaron Fragnito
Sure, sure. Well, that’s the idea. Yeah. I guess we’re buying a distressed business. But this seemed like, you know, there’s a broker involved. So I’d imagine there’s some organization to the paperwork, you know, broker probably knows that. Any buyer.
00:09:42:24 – 00:09:43:14
George Otel
Yeah, yeah, yeah.
00:09:43:14 – 00:10:02:24
Aaron Fragnito
You’re probably going to get a loan. They’re going to need all the PNL balance sheet, you know, bank statements, things like that for the business. Right. So they probably, hopefully are already working on getting that together. All right. So, you know, decent credit score, 10% down. Sounds pretty similar to, a loan for, an apartment, you know, in fact, even better, leverage what?
00:10:02:24 – 00:10:23:13
Aaron Fragnito
Interest rate? Let’s say, you know, 750 credit score. You know, strong net worth, no experience managing or owning a laundromat, by the way. You know, and, I do my own laundry, if that helps. But, I don’t know how many points that’s worth, but what? You know, it’s the bank going to say. Well, you, bro, you can’t own a laundromat.
00:10:23:13 – 00:10:24:09
Aaron Fragnito
You don’t know what you’re doing.
00:10:24:15 – 00:10:48:05
George Otel
So it’s, Yeah, you’re going to provide, like, a history of your owning multiple businesses, and you’ll have, like, someone, like, being an executive for your own companies that show something. And at the same time, I, I have many clients just call me every three, six months asking what’s going on, what’s in the market. And I kind of suggest them, you’re looking to buy something that you can hire, like a manager.
00:10:48:05 – 00:11:10:11
George Otel
So you. It’s cash flow. Enough to pay someone a salary. So you’re not going to be heading with, all the operations because it’s more efficient this way. So if you’re going to hire someone, it’s, you know, it’s basically you having multiple businesses. And, I have an idea of what’s going on. It’s because every business is the same.
00:11:10:11 – 00:11:22:01
George Otel
It’s the same process. It’s sales, marketing people and, you know, making a profit. So it’s it’s simple. If you have experience with other businesses, most likely you’re going to qualify.
00:11:22:03 – 00:11:25:24
Aaron Fragnito
You know, I actually do have experience in laundromats. We have laundry in a lot of our apartments.
00:11:25:24 – 00:11:27:14
George Otel
Yep yep yep yep yep.
00:11:27:16 – 00:11:40:14
Aaron Fragnito
Just got through a three hour meeting with our management department here. And you know, they manage our buildings day in and day out. And so just like that, you know, you ideally have a weekly or monthly meeting, you know, with their management. Right. And
00:11:40:17 – 00:11:47:00
George Otel
See the effect of working with, professional, asking you the right question and then, suggesting, you know, the, the right insights.
00:11:47:06 – 00:11:55:13
Aaron Fragnito
There you go. There you go. Yeah, I like that. I like that. And, what are your thoughts on laundromats? Is it a dying, business or is it good?
00:11:55:13 – 00:12:20:10
George Otel
No, it’s. Look, it’s, the whole concept of something is dying is wrong, because people are gonna use that. Then it’s like. I mean, there’s a lot of a lot of demand for those things. That all stands for how you operate any business, how you operate this business. Because, I mean, if they were still using I mean, let’s say you were writing something and then using I.
00:12:20:10 – 00:12:37:22
George Otel
But there’s no way. Yeah, for laundry or something. So it’s it’s still going to be here and people are going to still use it. Then it’s, there’s some business that they’re going to stay longer than people expect. And, the change is not going to happen that fast because it’s.
00:12:37:24 – 00:12:38:04
Aaron Fragnito
What.
00:12:38:04 – 00:13:01:11
George Otel
Comes to technology and stuff. Yeah, but those are right. So gas stations, gas stations are so the gas stations are, cash cows as well, if you know how to operate them. And they have like 30, around 30, 30, 40% margin on, on just, salads inside because, those are convenience store. Those are not, the margin is made not just on the gas.
00:13:01:11 – 00:13:17:21
George Otel
It’s just convenience. Stop being and just getting whatever. So let’s say we’re going to be electric cars is going to be Tesla plugs and convenience store. It’s a convenience store. It’s selling convenience. It doesn’t sell gas. So that’s the whole idea to optimize that. So yeah, I.
00:13:17:23 – 00:13:23:00
Aaron Fragnito
Mean the door. Right. But then yeah, I often use those a $4 pack of gum, you know.
00:13:23:00 – 00:13:45:03
George Otel
Yeah. Yep. Yeah. Those, businesses, they use 70 the loans over from SBA, it’s seven A is for ten years usually. And a lot of them, they have no prepayment penalty. Some some lenders though have like three to 1 or 5 where it’s all depends because you I just I work with many lenders. I have over a thousand lending sources.
00:13:45:03 – 00:14:09:12
George Otel
So we do private the SBA, conventional family offices rates. So I have multiple options when it comes to SBA. I have multiple SBA options. So I’m running through two different filters. So see how much you got because like we’re looking for lower interest or. Well, close faster. What is what is the most important for you. So it’s yeah, it all depends.
00:14:09:12 – 00:14:11:22
George Otel
Not just one, one option.
00:14:11:24 – 00:14:38:04
Aaron Fragnito
Okay. Okay. That’s interesting. Yeah. I like that. What are some other businesses that you see as as good investments? You say, you know, gas stations, laundromats could be a good example. What you know, that that I is, is a real concern, right. Like, if you are, creating like an image creation company or something, you’re in trouble, you know, now, even if there are robots from Tesla, they still need to do their laundry somewhere.
00:14:38:04 – 00:14:50:06
Aaron Fragnito
So if you don’t have laundry in your apartment, why could you afford a robot? Okay, that scenario makes no sense. Yeah, but anyway, what are some other good, businesses you think that are? You have.
00:14:50:08 – 00:14:56:11
George Otel
Service businesses? A lot of plumbing companies. The branding is hard right now. Plumbing landscape.
00:14:56:13 – 00:14:57:03
Aaron Fragnito
Yeah.
00:14:57:05 – 00:15:31:18
George Otel
And, what else? We have some, spots right now. Spots for, you know, have some doctors. We’ll look into that. And, a lot of businesses, it’s whatever, you know, because, some people go out of business. Manufacturing is hot right now. You can buy a manufacturing company with the building and everything, and just, you know, optimize that, because as you mentioned earlier for, for multifamily, you’re limited in, in how you optimize that, you just increase rent and add a couple things to, to get to.
00:15:31:19 – 00:15:49:12
George Otel
But, I know I am with businesses, you can do upsell, cross-sell, do new services. And, you know, look, there’s so many things you can, scale the company. And just doing the small adjustments to increase the, the profit.
00:15:49:14 – 00:16:00:14
Aaron Fragnito
Yeah, yeah. I’ve always like service businesses. I feel like service businesses are a great place to be. You know, we spend so much money on services. It’s crazy. I think, you know, it’s. And it’s really,
00:16:00:16 – 00:16:14:16
George Otel
Cleaning companies, cleaning companies, commercial cleanings. Yeah. What else? Even those, car washes. Car washes towards car washes. It’s like, you know, those do the robots.
00:16:14:18 – 00:16:36:14
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00:16:41:04 – 00:16:42:02
Aaron Fragnito
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00:16:42:04 – 00:16:44:02
George Otel
They need efficient.
00:16:44:02 – 00:17:02:14
Aaron Fragnito
A lot of syndicators switch over from apartment buildings to car washes. And I get it. You know you can do an 80% tax write off as soon, upon acquisition. That’s incredible. If they’re high cash flow, low maintenance types of businesses, they sell for decent equity multiples. A lot of them are kind of maybe mom and pop run and like, yeah, yeah.
00:17:02:14 – 00:17:23:00
Aaron Fragnito
Really executed. And, also like, just general contracting in construction. I mean, we cycle through contractors so much. I mean, we’ll have a good contractor and then maybe they’ll just drop the ball or I just feel like every contractor we hire is so busy, and any good contractor we get, we don’t refer amount to anyone because we don’t want anyone.
00:17:23:01 – 00:17:43:23
Aaron Fragnito
See, it’s so hard to find a good contractor so the problem with contracting is it’s a you kind of need that guy who knows? Like, if I start a contracting business, you don’t want to see my framing work. You know, it’s going to be, like, all tilted in mastery. You know, you basically you gotta know construction. You gotta know cost.
00:17:43:24 – 00:17:50:16
Aaron Fragnito
Yeah. Know I put a bathroom in in tile work and cabinetry. Like, it’s not like a laundry mat. It’s a very particular.
00:17:50:16 – 00:18:12:24
George Otel
Yep, yep. You’ll. Yeah, yeah. Laundry. You’ll basically let me break it down. I mean, you just give me a the question I’m trying to to run it through my filters. So you have the location, you have the equipment, then you have someone running the operations. And you’re going to be happy to enjoy that. So. Right. Let’s some of the things.
00:18:12:24 – 00:18:23:22
George Otel
So it’s as simple as that. It’s you don’t have to updates. There’s it’s it’s much simple because with any business you got to keep it simple. It’s yeah, it’s not easy, but it’s got to be simple.
00:18:23:24 – 00:18:43:11
Aaron Fragnito
Right? Right. I feel like with contractors, if they’re so busy, like writing the quotes and doing the work and managing the workers, you know, it’s a really, management intensive business. These guys, they’re like, working on quotes on, like, a Sunday night or something, you know? So it’s just it’s a lot. And, but the demand is through the roof.
00:18:43:11 – 00:19:08:09
Aaron Fragnito
And I guess what happens is when you start to have a lot of overhead and a back office and like, you know, I always thought to myself, you know, I know how to run and organize a business, but I don’t know what I’m really about construction or contracting. But if I could team up with a contractor who knows the skill set, and then I can handle going out writing up the quote, it seems like they just don’t know enough time to do the quotes.
00:19:08:09 – 00:19:28:18
Aaron Fragnito
And a lot of these guys have, like, no interest in doing the quotes. The problem is to write a good contract and quote, you have to know the business, you know. So it would take some time to to learn it. Now, I, I guess you could kind of take pictures and get information, then circle back to your partner who’s actually a contractor and, you know, but that’s always been my vision.
00:19:28:18 – 00:19:41:11
Aaron Fragnito
You know, to kind of, create a contracting business that was someone that actually knows that part of the business. So you do you see those types of partnerships in contracting? Have you had an experience and.
00:19:41:13 – 00:20:07:19
George Otel
Everything could be optimized, for example, right now? I’m, I’m a finance broker. We have a finance company for basically we finance brokers. So the whole thing I’m optimizing, I’m hiring people to basically take my, my, email and, calendar. So I’m just going to be focusing on, $1,000 an hour work. So for me is like, I’m going to take someone to do 80% of my work.
00:20:08:00 – 00:20:30:15
George Otel
So someone taking 80% of my work, it’s 100% awesome. So I’m going to be focusing on on growing the company. So let’s say for a contractor, you you hire someone that would be lower price obviously because it’s they based on the work they do. So you’re the one that make the decision. So I need the basically the report.
00:20:30:19 – 00:20:57:01
George Otel
You need the pictures and you’re the one running the the reports. Basically, you put your last touch in a adjusting your price because let’s say when you’re running through traffic on the appointment, you’re not productive. You’re just wasting time. So having, let’s say, three people running, all those quotes and you just approved all those quotes or even get involved if you want to the extend.
00:20:57:03 – 00:21:15:17
George Otel
That’s another thing. So being efficient, it’s another thing. So whoever is going to be efficient with the time is going to be able to grow because there is so much demand, but everybody’s time is limited. So whoever is going to be able to kind of multiply them themselves. So to focus just on what’s important, what’s what’s worth it to do.
00:21:15:17 – 00:21:36:06
George Otel
And that’s the key to any business, it’s just break it down and delegate and systemize because it’s having system in place. It’s going to make it happen. That’s why you’re thinking, okay, so you have the right does okay, I’m going to buy that. I’m not going to run it. Obviously I’m going to have someone. And so this is the right approach because you’re not going to you’re not trying to save some money.
00:21:36:09 – 00:21:43:18
George Otel
You’re trying to make sure you own the asset and is run properly. So that is the best approach.
00:21:43:20 – 00:22:02:04
Aaron Fragnito
Yeah, yeah I appreciate that, George. Now as you’re speaking to me, I’m looking at all the books behind you and a lot of them I recognize and I’m thinking, oh yeah, that’s on my to read list. I really should get around on that one. So according to the bookshelf behind you, you seem like a well read, businessman here.
00:22:02:10 – 00:22:10:18
Aaron Fragnito
What are some suggestions you have for us, entrepreneurs as, far as, like, maybe a top 3 to 5 books you suggest we read.
00:22:10:20 – 00:22:35:14
George Otel
Yeah. The, atomic, habits, psychology of money. I’m working on, buy back your time right now. That I mentioned. So basically, every inntrepreneur that is has no time. You should, because I’m just I’m not just, reading the book. I’m implementing the book. So, next two weeks, I block my calendar. So I’m just going to implement the book.
00:22:35:14 – 00:23:00:15
George Otel
Basically, I’m hiring processes, optimizing, doing the playbook. So. Right. I’m just basically doing a playbook. So when I hire someone, they just read the playbook, check the videos and just know what they do. So the whole idea is, to hire someone, the, I present them with a task and don’t give too much instruction. So they got to they got to they’re going to bring the value they got to show me.
00:23:00:15 – 00:23:21:16
George Otel
Okay, here’s the problem. Give me three options. How you planning to solve it? Then? We we thank you from there. Because at the end of the day, I’m trying to hire people that are willing to be creative and think out of the box. And I’m willing to pay a little premium for that to optimize, the company, because it’s totally worth it.
00:23:21:16 – 00:23:42:13
George Otel
So let’s say you’re making, you have a specific, area in your business, and you’re making 100 grand a year. Then you hire someone for, let’s say, 20, 20, 5000 a year. So it’s worth it because you pay someone and you have the margin and it’s that’s the whole idea. So it’s because, look, I’m, I’m doing that as we speak.
00:23:42:15 – 00:24:03:03
George Otel
Someone is going to take my my inbox. My, my full inbox. Everything is it’s happening right now. We I’m doing the playbook, and, we have a couple very nice candidates that they have experience, and they’re going to be doing it much better than me because I’m just going to focusing on on the strategy and how to partner and how to grow the company.
00:24:03:05 – 00:24:09:02
Aaron Fragnito
Yeah, yeah. For 25 grand a year, I assume you’re talking like an overseas virtual assistant. Someone like that. Yeah.
00:24:09:02 – 00:24:27:07
George Otel
Yeah, yeah. Someone that it’s, you know, it’s, has experience and it’s it’s. I call them ninja. Ninja because they know what they do, and they do much better than me because, my, my, I’m running with 800 miles an hour. And sometimes a lot of things that are falling off. So. Yeah. So I got to make sure things are not falling off.
00:24:27:09 – 00:24:31:17
Aaron Fragnito
I hear you, I hear, yeah, especially working with investors like I do. You got to make sure you’re answering emails.
00:24:31:17 – 00:24:33:24
George Otel
Yep yep yep yep.
00:24:34:01 – 00:24:56:13
Aaron Fragnito
No. That’s important. You know, you got to think about the highest and best use of your time as an entrepreneur and any business owner, you know. And what what are you doing? You know, is the most effective thing. Could you hire someone for a lower cost than what you earn? Then what your pay is? You know you need to if you don’t take it, salary what what you expect your salary to be or you know, your partner draws or so on.
00:24:56:15 – 00:25:17:20
Aaron Fragnito
And that’s so for every single task, you know, any time I’m doing a task, I think to myself. But then there’s also things like, I feel like with social media, I know that should be like one of the easiest things to outsource. But I’ve done it before with social media companies. Maybe I just had the wrong one, but they create these like cookie cutter, you know, social media posts and, I’m just like, you know what?
00:25:18:01 – 00:25:24:01
Aaron Fragnito
My social media has to kind of sound like me. So I, I’ve taken it back a little bit, although I, I’m pretty effective.
00:25:24:03 – 00:25:46:11
George Otel
Worth it, totally worth it to take time to study. I, I do my own post on LinkedIn. So even today’s post, I got, we got, over 60 million in, in the funding request in the last two and a half months just from LinkedIn and I, none of my followers go viral. It’s it’s it’s crazy.
00:25:46:11 – 00:25:48:24
George Otel
So it’s crazy.
00:25:49:01 – 00:25:55:17
Aaron Fragnito
I thought you guys said you got over 60 million, views on your post. I was like, bro, no, no, no, I.
00:25:55:19 – 00:25:58:14
George Otel
I don’t believe in views. I believe in, cash.
00:25:58:18 – 00:26:09:04
Aaron Fragnito
So there you go. There you go. What actually leads to business, right? Yeah. I mean, that’s the thing. You look at yourself to be like, oh, people look at your profile and you check them out and they’re like, just service providers, you know, like I.
00:26:09:06 – 00:26:30:12
George Otel
Yeah, yeah, yeah. It’s and I, basically the whole idea of creating content. So. Okay. I have myself, a task on a daily basis. So every time I have, like, something, I’m working. I was like, can I do a post of that? So I’m just writing the the hooks. The hooks. Yeah, I’m writing because everybody is saying LinkedIn.
00:26:30:12 – 00:26:54:22
George Otel
Is that actually we got this. And then for example, buying the building. So the misconception about, commercial real estate for business owners, basically one of the recent deals we, we have someone buy the existing building. They were paying $10,000 a month. I got them on. Let’s Be Alone with 10% down. So now they being $9,000.
00:26:54:22 – 00:27:20:07
George Otel
So they own the building and they pay less. So that’s a misconception because actually you don’t need millions in your bank account to to qualify for that. So I, I though the post you don’t need millions to qualify. You just need to work with the right partner like our company or someone else that specialized in doing that. And there is many banks because the problem basically people go to the bank, to the bank that they work and they have only one answer.
00:27:20:07 – 00:27:41:21
George Otel
I have hundreds of answers. I have different options. So there is an option. There is funding is happening, transactions are happening, and you just got to work with the right person. Right now the banks are risk averse and most of them they’re going to say no. But there is private money available and funding is happening. So yeah.
00:27:41:23 – 00:27:53:14
Aaron Fragnito
That’s interesting. All right George. So you do funding for business owners for real estate. And you very entrepreneurial mindset there. So how can people reach out to you and learn more about, what you do there?
00:27:53:16 – 00:28:24:21
George Otel
Yeah, they, they can reach out to me on LinkedIn. It’s, George Hotel OTL, where, check our website is, you was busy finding that net or us biz finding that net as well. So anything from 20,000 to 30 million. We we help you done. Equipment working capital, commercial real estate loans, business acquisitions and you asked me earlier regarding the, the business, preparing the business.
00:28:24:21 – 00:28:50:09
George Otel
I totally agree with you. And that’s what I told clients. So, basically hire someone paid 20, 25,000, let’s say, for consulting. So you’ll be amazed that, in 6 to 9 months, you’re going to have, like, 5 to 10 of those money and you’re going to have, higher multiple of your company. You’re going to have, higher equity stake in your company.
00:28:50:11 – 00:29:20:17
George Otel
It’s going to be easier for you. It’s going to optimize your daily basis of operations, and you’re going to be working less. You’re going to make more money, and it’s going to be much easier for you to exit. And I 100% agree with you. You got to run the business as you’re willing to to sell it, because even if you’re never going to sell it, is that means the mindset, your mindset, the business operation is done properly because eventually that’s all the successful business owners, they run the business like that.
00:29:20:19 – 00:29:37:16
Aaron Fragnito
Yeah. Learn how to work on your business, not in your business and how to take yourself out of it essentially, you know, and that’s, what every business owner struggles with, at least in the beginning, you know, until you get to a certain level of success or, you know, you don’t have enough years in the business to figure that out.
00:29:37:16 – 00:29:56:17
Aaron Fragnito
So, but, yeah, absolutely can’t agree with you more. I’m always working on my systems and processes here. And, it is tough because you want to save money at the same time, you know, and not break the bank. But there are times you got to spend money to make money, so, you know, and reinvest in your company, which we do a lot of here.
00:29:56:17 – 00:30:01:19
Aaron Fragnito
People’s capital Group. Well, thank you, George. One more time. What’s that website they can go to?
00:30:01:21 – 00:30:16:08
George Otel
It’s us biz funding that net or US business funding that net. Both sides goes to one site and, LinkedIn. I’m available. Send me a DM or ask me what, what questions you have.
00:30:16:10 – 00:30:31:14
Aaron Fragnito
Awesome. All right. Thank you so much for coming on the show. So I hope our listeners enjoyed, the, trial run we went through with the example of buying a laundromat and, you know, George, I think I’m gonna reach out to you and, let me first contact the broker, make sure that laundromat is still available.
00:30:31:17 – 00:30:55:23
Aaron Fragnito
I’m really curious. You know, I, I think we need to start investing in cash flowing business, like, businesses like that. And I think that’s the right way to go with the, as you’re saying, the baby boomer generation, maturing now and growing out of, their working years and getting to the point where they’re going to be looking to exit these companies, you know, a lot of these businesses, man, I gotta say that they’re they look like they’re poorly run.
00:30:55:23 – 00:31:19:22
Aaron Fragnito
You know, I drive past this, motorcycle dealership. And I love motors. I’m a big dirt bike ATV enthusiast. So I drive by this powersports and do, this, shop all the time, like, twice a week. And, it is so poorly run. And, you know what? I. Yeah. You know, what I did was I went on Google business, and they never claimed their business on Google Business, which is free.
00:31:19:22 – 00:31:37:02
Aaron Fragnito
It’s like the 101 of SEO. Yeah. And so I’m like, all right. So I click that claim this business. And now whenever someone leaves a review I get an email just to kind of like best at it. So I’m the I’m the owner of the business like Google. Yeah. So it just it’s ridiculous how poorly run this thing is.
00:31:37:02 – 00:31:55:23
Aaron Fragnito
And now they put it up for sale and they’re asking some ridiculous price. But I’m thinking of myself now that’s not a good example of a business that’s low, time intensity. Because, you know, a powersports store or any type of retail store, you’re really gonna have to be there working with the sales professionals, working on marketing and branding to get people coming in the door.
00:31:55:24 – 00:32:21:07
Aaron Fragnito
It’s a competitive space. You know, you’re selling, items between, you know, 5000 to 25,000. You know, the maybe the margins aren’t particularly great, but, it, and I was also talk about not resilient, recession resilient. But, definitely a passion of mine. Maybe one day, business I’d love to own. So just incredible example, though, of a poorly run business in a great location, though.
00:32:21:09 – 00:32:44:16
Aaron Fragnito
That, they’re asking way too much, so we’ll let them sit there for a little time. But, I really appreciate you coming on here talking about, acquiring businesses, building your business to prepare for sale, funding businesses as well. And, being a smart entrepreneur is effective with your time, you know, and to our listeners and viewers out there, again, if you’re enjoying this content, like it, share it.
00:32:44:16 – 00:33:02:21
Aaron Fragnito
Hit that. Subscribe button. And let’s keep building the Passive Cash Flow podcast. Here we come out with a new episode every two weeks. Now we’re up to over 180 episodes of the Passive Cash Flow Podcast. And my name is Aaron Franklin. I’m co-owner of People’s Capital Group. We help people build and preserve their wealth through new Jersey apartment building.
00:33:02:21 – 00:33:19:10
Aaron Fragnito
So we’re actually acquiring a new apartment building and hack and Stack new Jersey right now. If you wanna learn more about that, go to People’s Capital group.com. Get in touch with us. We actually don’t even have it up yet. Top secret stuff. But you can go to people scalper group.com and contact us that way and we can get in touch.
00:33:19:10 – 00:33:30:23
Aaron Fragnito
You you can also find me on LinkedIn. I’m on there, five days a week, begrudgingly, begrudgingly at this point. So, for now, it’s all right. Little breaking my day. But, thank you so much, George. Enjoy your day.
00:33:31:00 – 00:46:32:13
George Otel
Thanks for you as well.
00:46:32:15 – 00:46:53:22
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Aaron Fragnito
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Aaron Fragnito
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