Buying an Amazon FBA Business..

Hey, how's it going, YouTube? This is Eman Los Angeles, and in today's video, we're gonna be discussing this new investment strategy that I think everyone should go into because it has higher growth potential than any stock on the stock market. It has better cash flow returns if you are investing into any type of real estate investing where you're trying to rent out a house, and I think it is the wild, wild west when it comes to opportunity, and it is Amazon FBA. And no, this is not going to be a video going ahead and reiterating what Amazon FBA FBA is and why it's so lucrative. It is thinking outside the box as far as going ahead and investing into Amazon FBA businesses that are proven to be profitable, right? So instead of going ahead and spending all this money into launching a product that has a 90% chance of failing, this is actually going ahead and building on an existing Amazon actual product that can be profitable for years come. So if you guys appreciate this level of transparency that I'm going to be going over in this video, please do not forget to go ahead and smash that like button because I think more and more people need to go ahead and watch this video if they're even thinking remotely as far as investing money into Amazon FBA. And don't forget to go ahead and subscribe to this YouTube channel if you are interested in branding Amazon FBA businesses, learning more about Amazon FBA, and basically getting the most recent news, but let's go ahead and shift into what Amazon FBA I am talking about. And don't take my word for it. This is actually my sales on Amazon currently right now. As you guys can go ahead and see, it is 2:53 PM and I have sold right around 92 units with $2,837 worth of revenue. Revenue does not equal profit. There's obviously cost involved to go ahead and selling on Amazon FBA, but you can go ahead and see that this is very lucrative. This is just this month alone, right? If you go to year-to-date route, I have $181,000 that I went ahead and got from revenue on Amazon FBA. And when we go ahead and look at the last 12 months, I have sold right over $500,000 in revenue. So again, I've been doing this for 3 years and this is why I am preaching to everyone that Amazon FBA is a business model that everyone needs to go into. And back when I started Amazon FBA in 2018, there was a lot less competition. Now with Amazon FBA, there is this stat that 90% of people that try the old school way end up failing. And what I mean about the old school way is trying to find a product, spending hours to try and see if there is high opportunity and low competition, and then going ahead and contacting manufacturers, trying to drive the price down per unit, shipping it into Amazon, and then hoping and praying that you picked the right product to go ahead and sell, right? So there is a lot of risk involved in that. But now what I'm going to be discussing is a new opportunity out there. And when I go ahead and show you, you might think the pricing is ridiculous and you won't be able to afford to buy a profitable FBA business. Well, I think you are completely wrong on this. And I think that right now is the greatest opportunity if you go ahead and just hear me out. And total transparency, I am not an affiliate for this website whatsoever, but I think that this is a huge opportunity and we're going to dive in to see why that is. So Empire Flippers is actually a marketplace where buyers and sellers get together to actually either sell or buy Amazon FBA businesses. So let me go— let's go ahead and check out the opportunity there is at this current moment in time. So when we go ahead and go to the Empire Flippers website page, we go ahead and see select monetization, and we're going to go down to Amazon FBA because this is what we're interested in going ahead and purchasing, right? Either selling or buying an Amazon FBA store. So when we go ahead and find listings that are currently up for sale at this very point in time, and this is the result that you go ahead and get on Empire Flippers. You have actually niches and statuses right over here from hobbies, occasional gifts, sports and outdoors, children, and the list goes on and on. And you just can go ahead and see the price. This is the price for this hobbies listing right over here. It is $5.8 million, which is insane. And The list goes on and on, 1.6, 1.5. And you just go ahead and see this monthly net profit. This $5.8 million listing is getting $127,000 of profit every single month. So why is it for sale for $5.8 million? Well, that's because they're selling their business by a 46 multiplier. That basically means if you do nothing with the business whatsoever, you come out with no new product, you don't negotiate down the pricing of each product with your manufacturer, you don't save on freight forwarding costs, you would expect to get all your money back in just 46 months. And I know what most of you guys are thinking. $5.8 million is ludicrous. Who has that type of money to go ahead and purchase an Amazon FBA business? And this is where the perspective changes. Instead of looking at these Amazon FBA businesses at, let's say, $7.8 million, Look at it as in you are buying an investment property. If you're going ahead and actually buying an investment property, let's say here in Los Angeles, you might see a property that is $1 million as a purchase price. And basically, if you go to a bank, they will tell you you need at least 25% in order to go ahead and purchase that $1 million house, right? So after we go ahead and take principal, interest, insurance, and all that into account, We might have a $4,200 to $4,500 monthly payment. And if we get a renter in there to go ahead and pay that off, that is great, right? And the bank is happy because you're making those monthly on-time payments and you're happy because you're getting appreciation on that house. And after 30 years, you will go ahead and become cash flow positive, right? So now let's go back to Empire Flippers, right? So let's go ahead and see a price point that is $1 million. So we go down here and now we start seeing these price points of $1 million. And let's take this for instance. This one is listed at $894,000 and it's generating $19,000 of profit every single month, right? This one is still right here, $892,000 generating $20,000 of net profit every single month. And I know the very first thing in this comments are going to say, hey, Emanuel, Banks will allow you to go ahead and purchase an investment property. There is no way they'll lend you so much money in order for you to go ahead and buy an online business like Amazon FBA. But this is where I want to go ahead and think outside the box as well. There are times where banks do not go ahead and lend you money for an investment home. Maybe one, there might be lien on the property. Two, maybe the property is not habitable, right? Maybe somebody can't actually live there. There must be a lot of work that needs to be done. Maybe there's an illegal conversion that has to be fixed in order for them to go ahead and give you the money to purchase that house. Well, what do these investors for homes do? They don't just go ahead and let the deal go. They find different ways to go ahead and get that money. So the same thing applies with these Amazon FBA businesses. If you see that there is a gold mine and an opportunity to go ahead and make money, there's different ways you can go ahead and negotiate to get these price points and this actual money being lent to you. And I'm going to be discussing 2 different options as far as financing is concerned when it comes to buying these Amazon FBA businesses. The very first one is what actual real estate investors do is they get hard money loans for those hard to finance homes itself, right? The upside is that you're able to go ahead and get that million dollars to purchase that home and the seller is very happy because they're able to walk away with their asking price, right? The downside on this actual, the actual loan itself is that you're going to pay a lot higher interest rates because it is a more riskier type of investment. And that's the same approach that you have to be taking when you're going ahead and purchasing these Amazon FBA businesses. Anybody lending you money knows that there is risk associated with this type of business model that is not very conventional, right? And the second financing option is why I think that we're in the wild, wild west of purchasing Amazon FBA businesses and why it's such a huge benefit for anyone buying an Amazon FBA business is because we have the opportunity to get seller financing. So when a real estate investor cannot come up with the money for purchasing a real estate asset, they might have to turn to actually getting financing from the seller themselves. So let's use that million-dollar investment home as an example, right? So a bank, based on you going ahead and trying to get a million-dollar home, you would need 25% down, and the monthly payment after principal, interest, taxes, and insurance itself would be anywhere between $4,200 to $4,500 in today's interest rate. Let's say we get seller financing and instead of 30 years, we ask the seller to finance us this money for 15 years. And obviously they're going to go ahead and maybe double or even triple the actual interest paid back, right? But even if we're paying $10,000 for the next 15 years, right, I think that this actual deal could get done. And I think this because when we go ahead and take a look at that actual $894,000 listing, we see that the monthly net profit is still $19,000 every single month. And again, this is without going ahead and negotiating the price down with your manufacturer, without optimizing PPC and all the other opportunities involved where you can go ahead and turn this $19,000 of net profit to maybe even a lot more than that on a month-to-month basis, right? So everyone's happy in this situation. The actual seller that might've started this Amazon FBA business with a few thousand dollars is now guaranteed $10,000 every single month for the next 15 years. And now you are stepping into the role of acquiring this Amazon FBA businesses and the sky is the limit as far as where you can take it. And look, I hope this video is not misconstrued as financial advice because when you purchase any type of business or asset, there is so much risk involved. Any money you pour into anything can literally go down to zero. But I feel like with an online business, especially with an Amazon FBA business, where do you think people are going to be shopping at? Do you think they're going to go physically go to a retail store in the near future? Or do you think there is a shift that is barely happening now where everyone is shopping online for their products? That's something to consider when you're going ahead and seeing all these prices on Empire Flippers where the price is only getting higher and higher the more that institutional investors start buying out these Amazon FBA businesses. But again, that is just my opinion. I have been doing Amazon FBA for the last 3 years and it has grown to something that I never thought possible. And I even have a video right over here. I think you guys should all check it out. I had a 40-foot container get delivered to my actual house itself. So check out that video. But until next time, guys, peace.