Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

Spending $5K per day!!!

5 Nov 2022 · 1 min

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0:38

A company burns through $5,000 daily, spiking to $15-20K when staggered payments hit. Debt repayments, legal fees, and payroll drive the burn. The speaker warns that borrowing adds serious risk and that one large balloon payment could tank the business.

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I mean, debt adds risk. We want to put that out there. We are spending $5,000 a day and it's painful. Now, are we actually writing a $5,000 check? No, but it's like $15,000 and $20,000. You know, it's staggered, but we are blowing through cash and some of it's debt payoff. Paid off multiple six figures of debt this year. Some of it's legal for random stuff that pops up. You know, it's just— it happens. Some of it's for earnest money. Some of it's just for business expansion. Some of it's payroll. But it costs a lot of money, and when you borrow money, it adds risk. So it's super important if you're going to borrow money to manage expectations and manage your risk by making sure that everything cash flows and you don't have close balloons.