Why Alex Hormozi Took On His First Business Partner

TL;DR

Alex and Leila Hormozi are bringing Shiron Servata into Acquisition.com as their first-ever partner, calling him the 'Michael Jordan of real estate.' The three had been close friends for six or seven years before planning the move for over a year. Servata previously guided their post-sale investing and inspired their 'money rules' list.

Transcript

The fastest way to become the person that you want is to surround yourself with people who give you no choice but to become them. And so I think Leila and I are very proud to announce that we're bringing in for the first time ever in our career a partner into our business at acquisition.com which is the man, the myth, the legend, the Michael Jordan... Read More

Key Insights

• The fastest way to become who you want to be is to surround yourself with people who give you no choice but to become them, which is the mindset driving the Hormozis' decision to bring in a partner.
• Shiron Servata is joining Acquisition.com as the first partner ever brought into the Hormozis' business, described as the 'Michael Jordan of the real estate industry.'
• Entering a business partnership is compared to getting married, a huge decision the trio approached with equal terror after planning it for over a year, even counting down the days on a phone timer.
• The game of making money and the game of making your money make money are two completely different games, a distinction the Hormozis learned largely from Servata after selling their company.
• The Hormozis' 'money rules' or 'money algorithms' list, created three or four years ago, stems largely from Servata, who became their first trusted confidant for handling their wealth.
• Servata came to the US as an immigrant and only child whose parents sold their belongings to buy him a one-way ticket, and he later worked to remove his thick Indian accent.
• Servata's first startup began by chance when he pitched his college senior computer science paper at a Berkeley programming contest, after which a judge funded him; he raised over $20 million and sold the business.
• At Telus, Servata grew the real estate company from $300 million in gross volume to $3.4 billion in five years before it sold and was integrated into Douglas Elliman.

Questions & Answers

Q: Who is Alex Hormozi's new business partner at Acquisition.com?

Alex and Leila Hormozi are bringing in Shiron Servata as a partner into their business at Acquisition.com, the first time ever in their career they have taken on a partner. They describe him as the man, the myth, the legend, and the 'Michael Jordan of the real estate industry.' Servata expressed excitement that the long-planned announcement was finally happening after being in the works for over a year.

Q: Why did the Hormozis decide to bring in a business partner?

The Hormozis believe the fastest way to become the person you want to be is to surround yourself with people who give you no choice but to become them. They had been very good friends with Servata for six or seven years and already relied on him for money and deal advice. When Alex mentioned wanting to retire after hitting big goals, the group agreed they could work together for a long time, leading to the partnership.

Q: How did Alex Hormozi and Shiron Servata first meet?

A mutual friend introduced Alex to Servata, and they had a Zoom call at four or five o'clock in the afternoon, an unusual time for Alex to take a call. Alex was skeptical at first, partly because Servata had already sold a company for $3.4 billion, which sounded like a scam. But they ended up talking for about three and a half hours, which never happens, and quickly became very good friends.

Q: What is the difference between making money and making your money make money?

According to the video, the game of making money and the game of making your money make money are two completely different games. There is crossover where each makes you better at the other, but the Hormozis had huge ignorance about the second game, including tax law, distributions being taxed again, assets that appreciate, blends for cash flow, and buckets to optimize investments toward different outcomes. Servata became their first trusted confidant for their money and taught them much of this.

Q: What are Alex Hormozi's money rules and where did they come from?

Alex Hormozi created a 'money rules' or 'money algorithms' list three or four years ago, which he shared in a video. In the discussion he explains that a lot of those rules stem from Shiron Servata. Servata was the original first trusted confidant for their money after the company sale, teaching them how to make their money make money, optimize around tax, and structure investments, which directly shaped the money rules list.

Q: What is Shiron Servata's immigrant background and early career?

Servata came to the United States as an immigrant and an only child, and his parents sold their belongings to buy him a one-way ticket so he could be there. He met a mentor who took interest in him and helped him get rid of his thick Indian accent. His first startup began by chance when he pitched his college senior computer science paper at a Berkeley programming contest, after which a judge funded him, and he built a startup while living in his aunt's basement.

Q: How did Shiron Servata build his first company on Sand Hill Road?

After a judge at a Berkeley programming contest declined to award him but offered funding, Servata got his first foray into having a startup. He lived in his aunt's basement with no money and built the startup down Sand Hill Road, raising cash during the boom. They raised over $20 million and eventually sold the business overall. He credits it all to chance from pitching his senior paper at a programming contest.

Q: What did Shiron Servata accomplish at Telus real estate?

Servata found Telus through one of his Goldman Sachs clients, who was an investor in the real estate company and asked him to take a look at it. Over five years, Servata bought a huge chunk of the company and grew it from $300 million in gross volume to $3.4 billion. The company was then sold and integrated into Douglas Elliman. Before Telus he played professional tennis for five years, earned an MBA at Vanderbilt, and worked at Goldman Sachs on the credit side.

Summary & Key Takeaways

• Alex and Leila Hormozi announce that for the first time in their career they are bringing a partner, Shiron Servata, into their business at Acquisition.com. They call him the 'Michael Jordan of the real estate industry' and had been planning the announcement for over a year, counting down the days.

• The relationship began years earlier when a mutual friend introduced Alex to Servata for a late-afternoon Zoom call that stretched to three and a half hours. Having already sold a company for $3.4 billion, Servata became the Hormozis' first trusted advisor on managing money and inspired their 'money rules' list.

• Servata's path ran from immigrant only-child to founding a Sand Hill Road startup off his college senior paper, raising over $20 million, playing professional tennis for five years, earning an MBA at Vanderbilt, working at Goldman Sachs, then growing Telus from $300 million to $3.4 billion before its sale.