So if I can get a deal under contract, but don’t have the earnest money, what are my options?

This turned up in my Notice of Default search at the county. It is located in the most concentrated commercial zone in Sonoma County. This was the location of the Outdoor Pro Shop for many years, that business recently went all online so this building has been vacant. Apparently the OPS Properties LLC took out a $2M loan against it and now they are not making the payments. There is about $31k in taxes owed from last year and the notice is saying it would take $111k in the next 90 days to make it current and avoid the lenders putting it on the market. The link below shows it valued at around $7M. This notice was recorded on the 3rd. If you know anyone who can tackle a deal like this send me a DM. @Luke Thomas @Jimmy Ayala https://www.movoto.com/cotati-ca/412-houser-st-cotati-ca-94931/pid_iww48sq6kocb/

I need some help. I have a LLC but never used it for anything in California. If you have created one in this state or continually use one here, please shed some light. I need help deciding if it’s worth keeping or if I’m just gonna end up with a high tax bill when I get audited. Any insights or pointers would be great. Thank you.

Most people spend years trying to save enough money to invest. The problem? A $100,000 investment usually doesn’t produce $100,000 a year. But a business can. Here’s the framework: 1️⃣ Decide how much income you want. Want $100K/year? Look for a business producing roughly $300K/year in profit. 2️⃣ Find a boring business. Think: • HVAC• Plumbing• Auto Repair• Pest Control• Car Washes• Commercial Services Businesses people need whether the economy is good or bad. 3️⃣ Use leverage. A $300K profit business might sell for around $1.2M. Instead of bringing all the money yourself: • Bring in a capital partner for the down payment• Use SBA or seller financing for the rest• Keep majority ownership 4️⃣ Let the business pay for itself. The customers are already there. The systems already exist. The employees are already working. You’re buying existing cash flow, not creating it from scratch. The biggest lesson: Stop thinking like an investor. Start thinking like an acquirer. Investors buy assets hoping they produce cash flow. Acquirers buy cash flow first and let the asset come with it. That’s how people control million-dollar businesses without having millions of dollars. 🔥 Here’s what most people miss: This strategy doesn’t stop at a $1.2M business. The exact same concept can be applied to larger acquisitions. Instead of buying a business producing $300K in profit, what if you bought one producing $1M, $2M, or even $5M+ annually? The game doesn’t change. You simply use larger capital partners, larger financing, and larger deal structures. That’s why private equity firms, family offices, and acquisition entrepreneurs buy companies worth millions or tens of millions of dollars. They’re not buying assets. They’re buying cash flow. The bigger the cash flow, the bigger the opportunity. Start with a small acquisition if you need to. But understand the framework scales. A person who learns how to buy a $1M business can eventually learn how to buy a $10M business.

Mondays we are going to highlight a member in the group who is consistently showing up for the community, sharing their wins and what they are doing. Today we are recognizing @Jimmy Ayala a rising star in the community as he has been really posting a lot and connecting with the community. Thank you Jay which is his preferred calling among his fellow friends but you can ask him when you connect. So here’s a little bit about Jay if you haven’t connected with him yet. Joined because he wanted to be around people who are actually building and doing real deals at a high level. He has been focused on learning how to structure larger acquisitions creatively, scale faster, and connect with operators and investors who think bigger. What he does is real estate investing and acquisitions, mainly focused on multifamily, hospitality, and businesses backed by real estate. He specializes in creative finance structures, seller financing, subject to deals and other structures that help get deals done without relying entirely on traditional bank financing. Right now he is actively working on underwriting and acquiring larger cash flowing assets including hotels, RV parks, car washes, auto businesses, and multifamily properties. He is also building out acquisition systems and partnerships to scale into bigger commercial and business acquisitions. What he is looking for most right now is more high quality deal flow, strong operator relationships, and connections with people who understand creative structuring and want to do larger deals together. He is always looking to connect with serious investors, brokers, and business owners who are open to creative solutions. Thank you for this Jay. When you see this please mention what markets you are working in as I forgot to ask that. -A.J.and the CA Real Estate Insiders Team-