#101 with Ryan Begelman - How to Succeed Applying Private Equity Structure to Startups

**Sam Parr** (0:00)
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**Shaan Puri** (0:39)
Okay, what's up? We got Ryan back, doing back to back episodes, pretty much. This is great.

**Ryan Begelman** (0:45)
Yeah, I'm excited about it.
It's been amazing how much feedback I've gotten. I got buried in all kinds of emails, and it was interesting to see what people wanted to know.

**Shaan Puri** (0:56)
What was the best and worst email you got?

**Ryan Begelman** (1:01)
Well, there was a handful of people trying to sell me their company, but they were usually too small, but there was a couple of interesting ones.
If people out there want to email me, they can just go to ryanbegelman.com, and if they have a company with 300,000 or more profit, I'm interested in buying it, or if they just want to jam out or ask me a question, I'm happy to help. A lot of people asking me about the concept of how to structure your business to minimize risk and upside, which we talked about, like joint venture waterfalls and structuring separate LLCs, and some interesting invites with some other podcasts. You guys are kind of like kingmakers, I guess.

**Sam Parr** (1:41)
Well, what podcasts?

**Shaan Puri** (1:42)
Music to my ears.

**Ryan Begelman** (1:45)
You know, to be honest, I only listened to like three podcasts and didn't listen to them for a while. So I didn't recognize the podcast, but I don't know, one of them had like Gary Vee and some other interesting people, like pretty legit.
Nice.

**Sam Parr** (1:59)
Ryan, when I was, I don't know if you guys happen to see this, when I tweeted about how I thought buying a home was a horrible idea, I pissed off so many people.

**Ryan Begelman** (2:08)
I agree with you by the way. I mean, historically, I think historically like home values have grown like two or 3%.
And obviously in some areas that if you bought at the right time, they've done better. But yeah, I mean, I was a renter for a super long time because I felt I could do better with my capital.

**Shaan Puri** (2:29)
Yeah, I'm about to eat a huge loss on my San Francisco condo. So I'll never buy again as far as I'm concerned. This taste will take seven years to wash out of my mouth.

**Sam Parr** (2:38)
How much will you have lost? A significant amount?

**Shaan Puri** (2:41)
Yeah, I think I'm going to lose like, I think it's going to sell for 200,000 less than I bought it for. So that's just straight out of my down payment. And then, you know, the agent fee is like 5%, right? So I went with like a real agent, not like a discount broker, because I was like, shit, it's gonna be hard to sell. I think I actually need somebody who's good and will hustle for this. But 5% of a $2 million house is like, you know, that's 100 grand right there. So on top of the loss, I'm then gonna pay the 100,000 fee for the pleasure of losing money on my house, but whatever.
When some other places I lost on this one, that's okay.

**Ryan Begelman** (3:19)
Well, one of the ideas I brought today is how to make money on your house.

**Shaan Puri** (3:23)
Oh, okay. Yeah, let's start with that then.

**Sam Parr** (3:25)
Go.

**Shaan Puri** (3:25)
Because I need that.

**Ryan Begelman** (3:28)
Well, it was a lot of the concept I was talking about on the last show about holistic entrepreneurship and how you can live better lives through entrepreneurship. And so one idea that I love noodling on is, like you buy a house outside of a major city and a destination people wanna go, like Hudson Valley, New York. And then you renovate the kitchen, you make it a chef's kitchen and you give high-end cooking class experiences. I've done a bunch of these myself.
But I was doing the math on it. And if you do two classes a day, 500 bucks a person, and you have 10 people per class, and you do that five days a week, 50 weeks a year, it's about two and a half million dollars of revenue.