Ian Silverberg wanted to get into the health club business and approached a former employer about buying his gym.
As Silverberg did his due diligence, he realized the club was sitting on a real estate goldmine that would all but guarantee his exit would be lucrative. Silverberg went on to separate the health club from the real estate it was sitting on and sold the gym for almost five times EBITDA and then negotiated a lease that would pay him another $25,000 a month for the next ten years.
In the episode, you’ll learn:
- The definition of a “ground lease” and when they can be valuable
- A unique way to finance an acquisition with the help of something called a Rural Development Corporation
- The techniques Silverberg used to triple the value of his operating business in less than a decade