Bend over backwards for customers.
Deal with disrespectful partners.
Take investments from folks who don't have the same vision as you do and bend the terms to their liking.
How you know you've made it:
You get to stop doing business with assholes.
No asshole clients.
No asshole partners.
No asshole investors.
Bend over backwards for customers.
Deal with disrespectful partners.
Take investments from folks who don't have the same vision as you do and bend the terms to their liking.
And you can start firing the bad customers.
Breaking up with the bad partners.
And buying out the bad investors.
F U money is the next phase...
It happens a few million later when you become one of the assholes.
Tip:
Get F U money but don't become an asshole.
When we start, we have none. Others have it all.
You have no negotiation power because they have everything YOU need and YOU are a commodity.
Not just anyone can do what you can do. So you can negotiate more for yourself.
You aren't a commodity anymore.
And you set the terms and the other person doesn't get to act like an asshole.
Clients need you more than you need them.
Partners need you more than you need them.
CAPITAL becomes a commodity.
Cash needs you more than you need cash. And investors lose the leverage and you gain the leverage.
Thats when you have an opportunity to carve out better terms and more ownership.
And even more money.
And the snowball continues to roll down the hill.
@threadreaderapp unroll
More from Nick Huber
Don’t have much cash but want to invest in real estate?
Want to get SBA loans and special loan programs so you can buy real estate investments with only 5-10% down?
One word for you:
Don’t.
Here’s why
👇👇👇
Leverage can be a beautiful thing.
Appreciation takes over and all that value you bought with debt grows and you amplify your returns.
But there is another, darker side of debt.
Values drop 5 or 10% and you’re underwater. You have zero equity or negative equity.
Ask the folks who were over-levered in 2007 what happened on 2011?
Real estate is a frothy space right now. Money flying everywhere and values higher than they’ve ever been.
Debt is cheaper and easier to get than ever.
Will it continue?
Probably.
Money could stay cheap for a long time. There is a ton of negative yielding debt abroad and liquidity ready to flood our market at the drop of a hat.
Rates will likely stay low. Gov will probably keep subsidizing these loans. You’ll probably be okay.
Want to get SBA loans and special loan programs so you can buy real estate investments with only 5-10% down?
One word for you:
Don’t.
Here’s why
👇👇👇
Leverage can be a beautiful thing.
Appreciation takes over and all that value you bought with debt grows and you amplify your returns.
But there is another, darker side of debt.
Everybody I know loves LEVERAGE when it comes to real estate.
— Nick Huber (@sweatystartup) October 18, 2020
It\u2019s a beautiful and scary tool, kicking appreciation, depreciation, and cashflow into overdrive.
It amplifies everything. You can make a lot of money really fast and go broke in months.
Here\u2019s how it works\U0001f447\U0001f447\U0001f447
Values drop 5 or 10% and you’re underwater. You have zero equity or negative equity.
Ask the folks who were over-levered in 2007 what happened on 2011?
Real estate is a frothy space right now. Money flying everywhere and values higher than they’ve ever been.
Debt is cheaper and easier to get than ever.
Will it continue?
Probably.
Money could stay cheap for a long time. There is a ton of negative yielding debt abroad and liquidity ready to flood our market at the drop of a hat.
Rates will likely stay low. Gov will probably keep subsidizing these loans. You’ll probably be okay.
