The Story of My First Private Note Deal (My First True Local Investment)

 I want to share the story of my very first note deal — my first real private investment. If you’ve seen my earlier video about my failed Lonnie deal, this one happened about three weeks after I sold that old trailer… and thankfully it went much better. https://youtu.be/jA5HV9hTMbc 

The Kijiji Ad That Started It All

One day I was on my computer browsing Kijiji — Canada’s big online classifieds site (similar to Craigslist in the U.S.).

I came across an ad from a woman who had recently been divorced. It said something along the lines of:

“Recently divorced, with a poor credit score, need a private lender to buy a mini home.”

I reached out to ask what the situation was.

She had found a 20-year-old mini home, and one thing to know about older mini homes is that once they hit a certain age, banks won’t finance them anymore. Structurally they start to deteriorate, so lenders consider them too risky.

The sellers were asking $32,000, but she managed to negotiate the price down to $20,000. She had $10,000 cash and needed another $10,000 to complete the deal.

Structuring the Deal

All the specific math is in my book Invest Local, but here’s the core of what I did:

• I loaned her the missing $10,000.
  
  

• I secured my position with a lien on the mini home.
  
  

• I charged a lender fee, so instead of owing me $10,000, she owed $11,000.
  
  

• She repaid the note over four years.
  
  

• She was late three times, which meant I collected a few late charges too.
  
  

This was a great investment for me because she had so much of her own equity in the home. There was no chance she was going to let me take it — she had $10,000 cash tied up in it.

Turning One Deal Into Two: Borrowing Against the Note

Here’s where the deal went from “good” to “excellent.”

After writing the note, I used it as collateral to borrow $9,000 from a friend at a lower interest rate.

That meant:

• I only had $1,000 of my own money tied up in the deal.
  
  

• I was earning interest on $10,000.
  
  

• I kept the difference between what she paid me and what I owed my friend.
  
  

In other words, I was acting like a bank — lending at one rate, borrowing at another, and profiting from the spread.

The final return on my $1,000 investment was well over 100% (again, the exact figures are in my book Invest Local).

Always Watching for the Next Deal

I’m always on the lookout for another opportunity like that. They don’t show up every week, but whenever I’m on Kijiji I keep an eye out. Deals like that are truly no-brainers when the fundamentals line up.

Join my email list at DavidCBarnettList.com for early access to videos, insights, and 7 free bonus gifts.

Big Updates: Buyer Insights, Holiday Chats & New Exit Program

 

***New Video Alert!

This week, I’m sharing a mix of important updates, lessons, and announcements from the Business Buyer Advantage community — plus a look at what’s new here this fall.

We’ll talk about:

• The return of Holiday Chat 2025 (and how to book your spot before they sell out)

• What’s been happening inside the Business Buyer Advantage Group Coaching Program

• Key takeaways from recent buyer conversations on seller financing, rollover equity, and earn-outs

• The launch of Exit Ready — my brand-new online program for owners planning their exit

• Details on the Business Buyer Boardroom pilot events coming to Austin and Vancouver this January

And yes — Black Friday deals are coming soon (email subscribers always hear first)

It’s a busy season, but an exciting one. If you’re buying or selling a business — or planning your next move — you’ll want to catch this one.

Watch the full video here: https://youtu.be/PxqpnuJ-i3M 

Cheers,

David

Austin, TX and Vancouver, BC- January 2026

 

I'll be in Austin and Vancouver in January doing a Business Buyer Boardroom Mastermind day in each city. Learn more and enroll at https://www.BusinessBuyerBoardroom.com

The Business Buyer Who Put $55K on His Credit Card

 I was at a local business luncheon recently, and someone cracked a joke about buying a business using credit cards.

It reminded me of a real story from my time owning a Sunbelt Business Brokers office. https://youtu.be/LE_Lyx9eOI0 

The Deal

There was a small retail store for sale with an asking price of about $150,000.
After some back-and-forth, the buyer and seller agreed on $130,000.

The terms were simple:

• $100,000 due on closing day
  
  

• $30,000 to be paid over time through vendor financing (a seller note)
  
  

The Buyer’s Clever Move

A week before closing, the buyer asked the seller about her accounts payable.
She had about $55,000 in unpaid supplier bills.

The buyer made an interesting request:

“Don’t pay your suppliers this week — bring the payables to closing.”

On closing day, before signing the papers, they sat down together.
The seller had a big stack of bills. The buyer pulled out his credit card and called each supplier, paying off all $55,000 directly.

Then, when it came time to close the deal, he only needed to pay the remaining $45,000 in cash.

 Why It Worked

From the seller’s point of view, this was an asset sale.
She kept the bank account, cash, and receivables — and she was supposed to pay her suppliers out of that cash anyway.

So, the buyer covering those payables had zero impact on her proceeds.
But for the buyer? He effectively put $55,000 of the purchase on his credit card — and earned enough airline points for a business-class trip to California.

Pretty sharp move.

 The Takeaway

Creative deal-making isn’t about trickery — it’s about understanding the flow of money in a transaction and finding win-win solutions.

👉 Want deeper dives like this?
Join my email list at DavidCBarnettList.com for early access to videos, insights, and 7 free bonus gifts.

Business Broker Fails: How Bad CIMs Kill Deals

 

***New Video Alert!

This week, I’m digging into one of the most common frustrations I hear from business buyers — poorly prepared CIMs and business profiles.

If you’ve ever tried to review a deal only to find missing financials, no balance sheet, or vague “adjusted income” numbers that make no sense… you’ll want to watch this one.

In this video, I break down the top errors business brokers make when preparing SIMs, including:

• Missing balance sheets and working capital details

• No asset list or equipment valuation

• Sloppy or missing normalization adjustments

• And why not accounting for the owner’s time completely skews earnings

Whether you’re a buyer trying to make sense of bad info or a seller who wants to present your business properly, this will help you understand what a real, professional SIM should look like.

Watch the full video here: https://youtu.be/bKu7n20H750

Should You Stick with the Same Business Broker When Buying a Business?

 This week’s question comes from Dustin, who asks:

“If I start working with a business broker to buy a business, should I stick with that same broker even if I find a business for sale somewhere else?”

Great question, Dustin.
Let’s unpack this by talking about how co-brokering actually works in the world of business brokerage. https://youtu.be/09ndJBQT6A8 

What Is Co-Brokering?

In real estate, co-brokering happens all the time.  Agents have access to Multiple Listing Services (MLS) that make it easy for them to show and sell properties listed by other agents. The MLS is designed to facilitate cooperation between brokers—so one agent can show you dozens of homes listed by many others.

But the business brokerage world doesn’t work quite the same way.

Why Co-Brokering Is Rare in Business Sales

When I was a business broker, I worked under an international franchise brand that technically encouraged co-brokering between offices.
But in practice, some offices refused to do it.

Why?
Because they wanted to keep the entire commission for themselves.

Here’s why that’s easy to do in business brokerage:

• Business listings are private.
  Unlike houses, businesses for sale aren’t publicly listed with names or addresses.
  
  

• There’s no shared MLS system.
  Each broker markets their own listings independently.
  
  

• Some brokers simply don’t get along.
  Personal differences can stop co-brokering dead in its tracks.
  
  

The end result?
Cooperation between brokers is the exception, not the rule.

What This Means for Buyers

If you start working with a broker and they show you a few opportunities that don’t fit, don’t feel obligated to stay with them exclusively.

You’re absolutely free to talk with other brokers who are representing other businesses for sale.
You’re not stepping on anyone’s toes—it’s just how the business works.

Every broker only has access to their own listings, and since there’s no central database, you’ll need to cast a wider net to find the right fit.

Why Relationships Still Matter

That said, there is value in building a strong relationship with a broker who understands your goals.

A good broker will:

• Learn what kind of business you’re looking for
  
  

• Understand your financial and lifestyle objectives
  
  

• Help guide negotiations between buyer and seller
  
  

That leadership and insight can often make the difference between a deal that happens and a deal that falls apart.

Final Thoughts

So to answer Dustin’s question directly:

No, you don’t have to stay with one broker exclusively.

Feel free to explore other listings and other brokers if it helps you find the right business to buy.

Just remember—the business brokerage world isn’t like real estate.
You’ll likely need to contact several brokers to see the full range of available opportunities.

Learn How to Buy a Business the Right Way

If you want to make sure you’re approaching your search correctly, check out my full online course at BusinessBuyerAdvantage.com.

It’s a full-day workshop that you can take at your own pace, and you’ll get lifetime access to all materials—so you can review and revisit whenever you need.

👉 Want deeper dives like this? Join my email list at DavidCBarnettList.com  for early access to videos, insights, and 7 free bonus gifts.

— David C. Barnett

Before You Hire a Business Broker—Watch This!

 

***New Video Alert!

This week, I’m answering a great question from a viewer named David who wanted to understand the real relationship between business brokers and business owners—and why so many buyers end up frustrated dealing with them.

I’m breaking down:

• How business brokers actually get paid (and why it matters to you)

• Why some brokers chase listings instead of real deals

• What separates professionals from amateurs in the brokerage world

• How to tell if a broker is really working in your best interest

• What business owners need to know before ever signing a listing agreement

I’ve been on both sides of this. I’ve worked as a broker, I’ve worked with buyers, and I’ve helped owners sell privately. I’ll show you how the incentives really line up—and what you can do to protect yourself whether you’re buying or selling.

Watch the video here: https://youtu.be/XK74F1cf71Q 

Cheers,

David C. Barnett