

They Want $3.75M for This Pool Club? Analyzing a 56x Earnings Deal
4 snips May 9, 2025
Travis Jamison, founder of Capital Pad, joins the discussion on a shocking swim club listing in New Jersey priced at 56 times its earnings. The team dives deep into the bizarre valuation, exploring the real estate angle and potential revenue challenges for seasonal clubs. They debate whether the worst listings might hide the best opportunities and share insights into investor matchmaking via Capital Pad. Plus, hear some lifeguard war stories and trivia from the Jersey Shore that add a fun twist to the serious investment talk!
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Business Value vs Real Estate
- The swim club shows a huge disparity between business earnings and real estate value.
- Its $3.75 million price reflects much more than just the club's cash flow potential.
Lifeguard Experience Insight
- Michael Girdley worked as a lifeguard at a similar community pool with a ground lease.
- The model involved renting land cheaply, renovating, and selling memberships for the summer season.
Stressful Lifeguard Memories
- Michael Girdley recounts lifeguarding challenges including high risks despite long periods of inactivity.
- Lifeguarding is stressful due to asymmetric worst-case outcomes versus a quiet workday.