punziekate
New member
I’m looking to learn success of others relating to passive (or active investing). I’m happy to share what’s worked for us if it helps.
Profile: 39 yrs. 2 kids. Wife at home. Owner of three small businesses. Former fintech / data tech exec; former CA/CPA. Graduated Queen’s U >$30K in debt. Semi- retired with liquid investments and with no debt.
Q - what are the best PASSIVE yielding investments out there? Real experiences only please!
Other Investments (more active than I want - these are very active typically - SKIP as you like this is for background and for anyone else looking for ideas for themselves):
-career - won’t bore you. Moved up fast via sales and then management at a global tech company after hating working as a Chartered Accountant for Deloitte out of school. Last corporate role was as CEO of a 350 person tech company. Became an entrepreneur from there on out.
-leveraged buyout of a small biz. This was after being CEO of a B2B date/tech company. I found a b2b services company in the health & wellness space and bought it for about 4x cash flow. 1x cash down, 1x via the seller lending (vendor take back), and 2x borrowed from BDC (business development bank of Canada - I highly recommend them because while they’re hard to borrow from they are the friendliest $ around and they work with you if there’s an issue). Biz was a TURD. I had to fire 100% of professional staff and 95% of customers. We built our way out of it and branched into new revenue verticals. Today it’s worth 2x what we paid for it, but because it was 5x leveraged, if selling you make 10x (2x value x 5x leverage) less debt borrowed. BDC has been paid back (paid back month 12 of a 24 month balloon note). We have work to do still before we call this one a big success.
-bought and turned around a dying sports injury clinic. Expanded, now am in the middle of possibly buying the building the clinic is in and makes up 25% of (75% rented out on a 10-year lease) —> putting 15% down for a BDC-backed “owner occupied” real estate deal. Creates amazing returns with only 15% down. Yield is >2x the financing % plus we add a doctor clinic beside the injury clinic for added revenue in the retail biz. This is a small project where we will buy a second clinic opposite side of town and rinse & repeat with real estate and fixing the retail biz we buy. More people should consider these. We are buying a $3M commercial building yielding $200K before financing. Putting $450K down this is a big yield annually while you ride possible real estate appreciation while yielding the whole time you own it. Highly recommended if you can keep a little business alive in it as a tenant.
-stocks. I missed out on Netflix in my mid 20s. Was buying call options on them but got scared and never went for it. Missed an enormous return. Learned my lesson and caught the entire ride of Tesla. Even more because I put a bunch into options. Found Square early too, and other tech names I felt would be industry dominators (Opendoor is my next biggest position - they’ll eat residential real estate - IMO only).
-RE - bought a cottage on 600 feet of waterfront on 6 acres 2 hrs north of Toronto.
I have $ in the market but want to have a higher % of my $ in fairly safe, yielding assets that can provide cash flows. I have a little team to do work, find companies, etc, but I’m always in search of other ideas out there.
Any successful stories you care to share? Thx
Profile: 39 yrs. 2 kids. Wife at home. Owner of three small businesses. Former fintech / data tech exec; former CA/CPA. Graduated Queen’s U >$30K in debt. Semi- retired with liquid investments and with no debt.
Q - what are the best PASSIVE yielding investments out there? Real experiences only please!
Other Investments (more active than I want - these are very active typically - SKIP as you like this is for background and for anyone else looking for ideas for themselves):
-career - won’t bore you. Moved up fast via sales and then management at a global tech company after hating working as a Chartered Accountant for Deloitte out of school. Last corporate role was as CEO of a 350 person tech company. Became an entrepreneur from there on out.
-leveraged buyout of a small biz. This was after being CEO of a B2B date/tech company. I found a b2b services company in the health & wellness space and bought it for about 4x cash flow. 1x cash down, 1x via the seller lending (vendor take back), and 2x borrowed from BDC (business development bank of Canada - I highly recommend them because while they’re hard to borrow from they are the friendliest $ around and they work with you if there’s an issue). Biz was a TURD. I had to fire 100% of professional staff and 95% of customers. We built our way out of it and branched into new revenue verticals. Today it’s worth 2x what we paid for it, but because it was 5x leveraged, if selling you make 10x (2x value x 5x leverage) less debt borrowed. BDC has been paid back (paid back month 12 of a 24 month balloon note). We have work to do still before we call this one a big success.
-bought and turned around a dying sports injury clinic. Expanded, now am in the middle of possibly buying the building the clinic is in and makes up 25% of (75% rented out on a 10-year lease) —> putting 15% down for a BDC-backed “owner occupied” real estate deal. Creates amazing returns with only 15% down. Yield is >2x the financing % plus we add a doctor clinic beside the injury clinic for added revenue in the retail biz. This is a small project where we will buy a second clinic opposite side of town and rinse & repeat with real estate and fixing the retail biz we buy. More people should consider these. We are buying a $3M commercial building yielding $200K before financing. Putting $450K down this is a big yield annually while you ride possible real estate appreciation while yielding the whole time you own it. Highly recommended if you can keep a little business alive in it as a tenant.
-stocks. I missed out on Netflix in my mid 20s. Was buying call options on them but got scared and never went for it. Missed an enormous return. Learned my lesson and caught the entire ride of Tesla. Even more because I put a bunch into options. Found Square early too, and other tech names I felt would be industry dominators (Opendoor is my next biggest position - they’ll eat residential real estate - IMO only).
-RE - bought a cottage on 600 feet of waterfront on 6 acres 2 hrs north of Toronto.
I have $ in the market but want to have a higher % of my $ in fairly safe, yielding assets that can provide cash flows. I have a little team to do work, find companies, etc, but I’m always in search of other ideas out there.
Any successful stories you care to share? Thx