Alex Hormozi, the owner of acquisition.com, shares a lucrative investment experience on his channel, highlighting the strategic approach to hard money lending and the importance of deal structure, risk mitigation, and trust in business. Hormozi outlines a $2.5 million deal for a 334-unit building in Memphis, emphasizing the significance of personal guarantees, property valuation, and title control for securing investments. Despite a legal oversight which could have resulted in a financial loss, the integrity of the parties involved led to a correction and reinforced the value of ethical conduct and trustworthiness over mere profit. Hormozi uses this narrative to underscore that building reliable partnerships is a critical asset in business, potentially more valuable than the financial gains themselves.
I made an investment that pays me three $300 per day in profit off of a single deal that was struck. A hundred days ago, I made an investment that pays me three $300 per day in profit off of a single deal that was struck.
These quotes indicate Alex Hormozi's successful investment that provides a steady profit of $300 daily, showcasing a lucrative financial decision made a hundred days before the discussion.
Welcome to the game, where we talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons we have learned along the way. I hope you enjoy and subscribe.
This quote serves as an introduction to the podcast's content, focusing on business growth strategies and learning from past mistakes, while inviting listeners to subscribe for more information.
For those of you who don't know me, my name is Alex Ramosi. I own acquisition.com. It's a portfolio of companies that's about $85 million a year. The reason for this channel is because I know a lot of people are broke, and I don't want you to be one of them.
This quote introduces Alex Hormozi and his business, acquisition.com, while establishing his motivation for sharing knowledge through his channel—to help others achieve financial success.
So one of the things that I like a lot is hard money lending. I'm a big fan of it. It's private lending, which is basically like, you are the bank.
...if you can control a lot of the variables and you can mitigate downside risk, which, if you've heard any of my stuff, the ultra wealthy out there, it's not about trying to hit their upside.
These quotes explain Alex Hormozi's preference for hard money lending, where he can act as the bank and structure deals to control outcomes and reduce risks, aligning with the wealth-building strategy of minimizing mistakes over time.
Big picture here, this was a two and a half million dollar note, all right? So I wired two and a half million dollars in cash to a buyer, all right? And the buyer went to buy a building out of foreclosure, all right?
It was also in a war zone. Like, the police officer don't even go here. This is a deal in Memphis.
...both of the buyers, there's two people personally guaranteed the money, all right? And they had net worth in excess of two and a half million, all right?
These quotes detail the investment deal, describing the property's condition and location, the risk factors involved, and the measures taken to secure the investment, such as personal guarantees from the buyers to protect against potential losses.
"So we had three offers already on the building for between 5,000,005.6 million." "Earnest money of 300,000 in the deal, saying that as soon as you guys can transfer the title over to us, then great."
These quotes indicate that the building had significant market interest, with multiple offers and earnest money put down, suggesting a potentially lucrative deal for Alex Hormozi and their team.
"And the last thing was to make sure that we were actually on the title, right?" "So that there's no other liens against the property, that we are the only ones who are going to be receiving the property if something went in default."
These quotes highlight the importance of securing the title to protect their investment and the steps taken to ensure they had the primary claim on the property.
"So it was 4% per month, all right?" "So if it took four plus months, the interest rate would double." "On top of that, what we did was a two month minimum carry."
These quotes outline the specific financial terms of the deal, including the monthly interest rate, the conditions for an increased rate, and the minimum guaranteed return.
"I added in a lost chapter that has never been released. I'm releasing it now transparently. I'm doing that to build hype for." "100 million dollar leads."
The quotes show Alex Hormozi using the opportunity to engage with their audience and promote their work by offering new content and building anticipation for their next release.
"It talks about your first avatar and how to segment customers to make more money. You can get it by going to acquisition.com leads."
This quote explains the content of the unreleased chapter and how to obtain it.
"Email so that I can email you when we launch 100 million dollar leads and so that you cannot miss out on it."
Alex Hormozi explains the reason for collecting email addresses – to notify potential customers about an upcoming product launch.
"So the individuals who did the deal, they flew out to see us and have a kind of like a celebratory dinner."
Alex Hormozi narrates the setting in which the incident regarding the loan repayment mistake was revealed.
"So our lawyers messed up, for lack of better term, they just messed up when they sent the loan invoice for repayment at the end of this."
Alex Hormozi acknowledges the error made by his legal team in the financial documentation.
"The more deals you do with someone, there's a big five letter word that starts to occur, which is trust."
Alex Hormozi emphasizes the development of trust through repeated honest transactions in business.
"And so anyways, he caught it. His lawyer caught it. His lawyer said to go forward with it anyways, chose not to and to bring it to our attention."
Alex Hormozi appreciates the ethical decision made by the other party to correct the mistake rather than exploiting it.
"And so we obviously are not going to use our lawyer anymore. He is not going to use his lawyer anymore because our guys made a stupid, boneheaded mistake."
Alex Hormozi indicates that both parties have decided to cease working with their respective lawyers due to the mistakes made.
"And his made an ethical error. Right? So mine was an error on skill. His was an error on ethics."
Alex Hormozi differentiates between the types of errors made by the lawyers, categorizing them as either skill-related or ethical.
"I talk about the three circles, right? You have the skill, you have the ethical component, and then you have the hardworking component."
Alex Hormozi refers to his framework for evaluating mentors and vendors, emphasizing the need for skill, ethical behavior, and a strong work ethic.
So 275 was the deal. Instead, it was 100 and something days or whatever. So we had 300k plus 33. 33, 33 per day until the deal was closed. And so it ended up being like something like that with decimals, right. That we got paid back, plus the 2.5 million. So we got a check back for 2.85 million.
The quotes detail the specifics of the financial deal, highlighting the initial agreement, the daily rate, and the final payout received by Alex Hormozi.
And we have trust, which was the most valuable thing that you can have, right. You only get one name. You only get one reputation. And we're obviously hoping to do bigger and bigger deals with you guys as we earn more and more trust.
Alex Hormozi stresses the importance of trust in business dealings, equating it to a form of currency that underpins the potential for future collaborations and larger transactions.
That's why I don't sell anything on this channel. That's why the trainings we have on acquisition.com are free for all entrepreneurs. And the book is can get it on Amazon because I just want everyone to win.
The quote provides insight into Hormozi's philosophy regarding sharing knowledge and resources, demonstrating a commitment to transparency and the success of others in the entrepreneurial community.
I do have to pay 50% in taxes on this. And so that's why you need, for me, I have to have really high returns on any kind of private lending because I have to realize those gains, right.
This quote reveals the significant impact of taxes on Hormozi's investment earnings and underscores the necessity for high returns on investment to make financial sense of such deals.
My hope is that from this channel that you are one of them in terms of yourself. And then also maybe you grow your business to three or five or 10 million a year, and then you let us invest with you so we can help you grow it more.
The quote captures Hormozi's investment philosophy, which is based on trust and the idea of fostering growth within his community, suggesting a future where mutual success is achieved through partnership investments.
Love you. If you enjoyed this video, hit the subscribe button. If you didn't enjoy the video. Love you anyways and I'll see you guys in the next vid. Keep being awesome. Lots of love. Bye.
The quote concludes the video with a call to action for viewers to subscribe and a positive farewell, reinforcing Hormozi's friendly and inclusive approach to his audience.