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Lessons from a Deal Collapse

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Hey there entrepreneurs,

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Welcome to the Better Business Brief, where I share takeaways from:

• running businesses I’m building to sell for millions
• My advisory with other business owners building to sell for millions
• tips and tricks you can use to do the same

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This week on my podcast, we dug into a story that’s been making headlines: Tai Lopez, the “here in my garage” guy, just got hit by the SEC with allegations of securities fraud and Ponzi-like practices.

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If you’ve been online in the last 10 years, you’ve probably seen his ads. He pivoted from selling online courses into buying distressed brands like Pier One and RadioShack, raising investor money on the promise of 20%+ returns from turning these brands around.

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The result? Not a single brand turned profitable, millions allegedly misused for lifestyle expenses, and investors left holding the bag…

So today, in less than 5 minutes, I’ll give you: ​ 🚨 5 Red Flags in Investment Opportunities 🧩 Why They Matter 🛡️ How to Protect Yourself

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Now, I don’t share this story to pile on.

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I share it because it’s a cautionary tale for anyone considering putting money into an “opportunity” that looks shiny on the surface…

RED FLAG #1 – Grandiose Claims Without Audited Financials

If someone is promising sky-high returns (20%+ when the best PE funds average 10–15%) but won’t show audited, third-party financials, that’s your first warning sign.

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No matter how good the pitch sounds, trust but verify… and make sure the verifier isn’t tied to the deal.

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RED FLAG #2 – Complex, Confusing Structures

If the corporate setup is a maze of entities you can’t untangle, walk away.

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Good deals can be explained in a couple of sentences. Complexity is often where misrepresentation hides.

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RED FLAG #3 – Early Returns Despite Losses

When investors are getting “returns” while the business is actually losing money, something’s off.

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In this case, new investor money allegedly paid old investors… a textbook Ponzi move.

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RED FLAG #4 – Vague Use of Funds

“Trust me, bro” isn’t a business plan.

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If you can’t clearly see how your money will be used to grow revenue or operations, and monitor it month-to-month, you may be setting yourself up for disappointment.

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We covered the 5th red flag in the full episode, which you can catch on my YouTube channel right here more a more in depth walkthrough of what happened.

The Bottom Line​
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Not every failed deal is fraud.

But when you combine hype, lack of transparency, and unrealistic promises, investors can get burned.

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And the whole private equity world takes a reputational hit.

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The lesson?

Don’t get starstruck by charisma or big claims.

Stick to fundamentals: real numbers, real operators, and real plans for execution.

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If you like these ideas or found this informative, stick around and subscribe. I do this newsletter every week.

If you did, share it with a friend who may too, as this is the best way for me to grow it and make this better.

They can even sign up here :)
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Happy value-building to you!

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See you next time for Better Business Brief,

-Brody