Built to Sell Radio Ep 465 Negotiation, Earn-Outs, and the Pitfalls of Stock Deals in His $4.6M Exit with Pete Neubig
Oct 25, 2024
Pete Neubig, who sold his property management company for $4.6 million, shares his entrepreneurial journey from real estate investor to industry player. He discusses the intricate balance of negotiations, earn-outs, and the common pitfalls in stock deals. Pete emphasizes the vital role of having a skilled team and the importance of standard operating procedures in enhancing both creativity and efficiency. He also highlights the significance of legal expertise in navigating mergers and acquisitions, urging listeners to understand the complexities involved in selling a business.
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From Real Estate to Property Management
- Pete Neubig's entrepreneurial journey began with buying $35,000 houses using leverage.
- He amassed 60 homes before realizing property management was more lucrative.
Origins of Empire
- Pete's property management company began at his CPA's suggestion to separate his properties and management duties.
- He initially managed his own properties, then partnered with Steve to manage 31 homes before third-party managing.
Learning from Mistakes
- Early on, Pete's company commingled funds and didn't collect rents directly, leading to a negative cash flow cycle.
- Joining the National Association of Residential Property Managers (NARPM) taught him proper procedures.