hey, Simple Passive Cashflow listeners. Today, we have a simple passive cashflow who we deal pipeline club member. Who’s invested in some deals and has an absolutely crazy story to share with you guys. Now, the people that sign up for our group and especially come out to our events are definitely not average.
I think a lot of you guys say that. Yeah, I can’t talk about like how much money do I take out of my retirement account? To make my AGI not go over a certain threshold. So I don’t pay those taxes. Not buying a house to live in. Like my friends, family, coworkers, think I’m absolutely crazy.
And I have nobody to talk with, but if that’s you guys need to get involved with our tribe go to our networking section and events section on the website to learn more how you can get more involved or if not, just join our investor clubs, we’ll pass the cashflow. Dot com slash club. But everybody, I think in our group the common thread I see is, we’re not trust fund kids.
A lot of us are first generational wealth. Which means our parents did not have a million dollars. My parents, even on real estate, they told me not to ever buy stuff and have people live in. Cause people screw it up. Boy, were they wrong? But everybody who comes in there they’re very frugal, actually a lot of people did a lot of crazy stuff in their twenties, such as travel hacking.
If you guys remember the mint coins where you. Buy $10,000 of coins and take it to your bank. So you can get the 2% on the credit cards. Had a one guy who rented a storage closet, so he could build the Ikea furniture. So you could sell the pre-made furniture on the internet. Daniel, Yeti, crazy stuff like that.
Okay. From your earlier days, when I was 18, I got bit with the network marketing bug, the multi-level thing. So I tried that for a long time going from different one, the different one, I was hanging out with the people that were making all the money. That’s definitely not making the money.
That was not so great, but it did open me up to the idea. That’s when I found out about That little purple book that most people read that got me into thinking about real estate, but I never did anything because I was so young and I didn’t have any money. And so I just never did anything with it, but nothing really crazy, like what you’re talking about, but I definitely did some different things that I guess most people don’t do.
I know in my. In my late teens, I did the Apple Rama’s so I could get a whole bunch of credit cards and business credit cards. So I could get back in those days, you could get like 6% interest rates in checking accounts and savings accounts. So I got, I racked up like 50, a hundred grand. This is during college and I just milked it for five, 6%.
And then in my early twenties, To my thirties. I did that. Those rewards checking accounts the ones we have to make full debit card transaction and get East statements. I had four of those accounts because a lot of the times you max out at 10 grand per account, some accounts I could set up with Venmo or PayPal transactions, I could do that from the comfort of my house, but there was always that one that I had to actually go to the freaking gas station and pump.
12 transactions, but you couldn’t do more than four because they would flag your account and And they’ve shut you down. And they had called my cell phone that was like the low point of my life doing this stuff. I was like, what am I doing? It was like 40 degrees outside driving around to all these crappy gas stations and pumping small micro-transactions.
So I could hit my 12th transaction so I can get my three, 4% at the time. I’m a recovering. Covering person today, but so Danielle is, I’m gonna be talking about a really cool story and it’s just mainly for fun. I think we don’t recommend people doing this strategy at all, but I think how we first met, you came in through the investor club, we connected and then you actually came to some events, but I don’t know, maybe I think you misinterpreted what I said.
I think he said You’re not allowed to invest. I told you, you can’t invest with me because you don’t have enough money. Is that she thought, I thought you had said you wouldn’t let me invest all of it. So I had made in what I thought was a substantial amount of money in the stock market fairly quickly.
And I was like, wow, I have some money now. I want to do real estate. And so of course. Got to you. And I think, I remember you saying, okay, you can’t put it all in right now, so you eat, you can do something. So I took some and started with you, but then I took the other half and I was like, okay, what can I do?
Did you look at like turnkey rentals, you go down that road. I did. That’s where I started was okay. I better get a single family home. Let’s start looking into that. I started looking into that and then I started finding the turnkey rental companies that were out there and I was following the breadcrumbs, so to speak.
And I just kept thinking to myself once I do one or two of these. There’s gotta be a bigger way of doing this. I was thinking, what about the people that do the apartments? Maybe I could check in to how they do that. They must pull their money together and started looking around. And that’s when I found you started listening to what you were saying.
And I was like, this is it. This is exactly what I’m wanting to do. And so I set the single family home part aside. And just went straight in and took my other half of my money. I was like, okay, what other kind of business can I do now to make money? And I had originally looked into doing vending machines, cause I thought about that a long time ago.
So I started looking into that again, cause I didn’t want employees, I didn’t want overhead. I didn’t want a building. And I saw this little ad. While I was looking around for ATM’s, which isn’t a vending machine, they just spending cash. So I started looking into that. So how that got started.
Yeah. It’s funny how, when you told me this, I was like, Oh, you went into these the ATM funds that everybody goes into, you hear about that. I’m not a big fan they’re decaying assets or how the fund is created they are a little misleading with how they also put in like the tax benefits there as returns, which is, I don’t think is what you should be doing in a performer.
Anyway, we’re not really here to discuss that stuff. That’s more for inner circle type discussions, but I was like, Oh yeah. Okay, cool. Daniel did a ATN and I tell him, I bought ATM machines to take us through. How you did this and how does it all work? I first started looking around online to see what this was all about.
There were a lot of YouTube folks out there that were promoting doing it yourself, which I guess most people. Don’t know that you can do it yourself. I started checking those out, listening to videos and podcasts and things about that. Just to learn, I liked the idea of how it was similar real estate in that these are things that you can own.
These are things that you can depreciate. These are things that cashflow we’ll call it. Half passive income because you do have to do things with it. And so I was looking at that and then I found out there was another way to do it besides doing it on your own. And , that a company offers you to able to join with them and have them do most of the work, the calling the contracts.
The leads, all of that. I wanted to go that route because I don’t like rejection. I don’t like meeting people and them telling me no all the time. And so I decided I’m going to go that route. Like a ATM turnkey ATM and to me, that’s the daunting part. I don’t know too much about the business, but like you have to make a deal with the corner deli or the shopping mall to put that thing in there.
The one part of this where you don’t have the technical expertise, so that industry knowledge and so they would set up the leads where I could then go and visit the hotel or the mall or the event center or whatever it was. And so I went that route and actually even went further than that
and decided I was gonna buy into an existing what you might call a route.
Where there were already ones placed already making money, and I’m just buying it from somebody else, stabilize asset or stabilized cash crop. Exactly. Or you can start from scratch. So I did both where I bought in, but then I also started myself trying to get my own. And so I did both of those and.
Obviously it costs more money to buy in than to start from scratch. And it’s definitely more lucrative to start from scratch, but it also takes a lot longer and there’s a far more rejection involved in doing it on your own. So to speak, trying to find your own leads and that kind of thing.
It varies depending on how you do it. And not that they. Always have it where you can buy in. They don’t, they just happen to be doing an acquisition at the time. And so they funnel those out to those people that want to do it that way as well.
Now there’s a lot of this stuff. You gotta be careful here.
Daniel can reveal all the numbers and everything. I think he likes beer. So if you guys see him in real life, I’m sure you can bribe him. And he’ll tell you all the dirty little secrets, but
just to give people some magnitude in their head, was it one of these ATM machines cost?
if you were to do it on your own and if, using these kinds property management type of companies that kind of gets you going. , I think an easy way to think about it again, not an expert, but from what I’ve learned, you can get an ATM for a couple thousand. If you want to go turnkey, let’s just call it just double that.
So 4,000, let’s just say then of course, you’re going to have to put money in and that is going to depend on what type of place you put it in. So if you’re in a mall, you’re going to need a lot more money than if you’re at the tattoo shop around the corner. The amount of investment on that side of it varies drastically.
And then of course, how busy the place is, will determine either how often you go or how much money you choose to put in at the time. that’s an easy way to think about the cost of the ATM as far as. The cashflow again, that’s going to depend greatly, but let’s just say an average of $300 a month.
Two to $300 a month is a nice, easy way to think about it. The annual lies, that’s a few grand. Yeah, 3030 500 somewhere around there. And you’re going to spend anywhere from two to 4,000 on the machine, the cash to put in it. So let’s just say $10,000. one, that’s how I think about it. Like when I was finding out about the turnkey rentals and everything for the real estate, okay. 20,000 to get you a hundred thousand dollar home. I think about these the same way, $10,000 to get me a home, but I’m going to make two or $300 a month, which may be somewhere, which is on par, right? Yeah. But as one of the podcasters would say, there’s no tenants, toilets or trash with this.
I thought that was a pretty funny way to think about there’s no leverage to involve. You’re buying these ATM’s cash, right? You can’t leverage. , you could possibly, once you get more. At this, you can probably get a business loan, I would think. But at this point starting off, it’s pretty lucrative actually has got my wheels turning.
It com it could be. you’re making about what a hundred. I got some random questions. The repairs, do these things break, what do you do on it? Because then what typically breaks on these things? Usually around 10 years or so before, you’re going to have to start replacing parts 10 to 15 years. And at that point you might replace a card reader. The piece that actually reads the card that goes in or maybe the speaker. Just little things. There’s not major that I have been made aware And obviously I haven’t been doing it 10 to 15 years, but there are people that I’ve met that have been doing it 15 to 20 years.
, I think that’s the most. Detrimental part about the businesses I’m buying this piece of metal and it’s just going downhill and it’s not something where I can just, Oh, Hey, I’m going to upgrade this and it’s going to be awesome. No, you’re going to have to buy a brand new one. And so it’s like just starting over.
It’s like a car, a depreciating asset. And. When these things break, right? I’m sure you had little mishaps, like you just call somebody and they go check it out themselves. If you, you don’t have to go out there and do diagnostics on yourself, cause you don’t know what you’re looking at.
I do. And I have access to technical support to help, but yes, I do everything , that could be a hurdle for a lot of people would, if people are very on. Technically inclined. They could just call a dude to go do that for them. I know that there are people that you can call that, do this kind of thing.
I haven’t done it it’s not that technical. more, unscrew this and turn that and okay. Put that back in and screw it back on. It’s not too techie. that makes sense. But you got to watch your six in case someone comes up hits you in the back of the head, right? Yeah. You want to go when nobody’s around?
Sure. Okay. So tell us, okay, now this is the fun part. You gotta feed this machine and Daniel’s not made of money, so he’s not stack overflowing this thing with the 110, the 50 grand in an ATM. You can’t even put that much. And if you wanted to, , you got,
Cheaper real estate. So the throughput on these things, isn’t super high, I’m assuming. So you’re how often are you refilling these things with five grand, 10 grand or something? Something like that every week or two just depends on the location and how it does. You got half a dozen of these things?
Yeah, I have eight technically. Okay. So how much take us through that day and what, when you go, so it’s just a route that you drive, right? You’re like a paper boy. Yeah. I go, I get my stuff ready. I go, I fill them up. I download the transactions on a little SD card and I go home. It’s really quite boring, but that’s what I love.
You’re missing out the good part. You go to the bank, you pick out. Oh yeah. I forgot about 40 grand of cash telling you. I’m telling you the first time I went, it was a little dicey. So I go to the bank and I’m like, all right. Give me 40,000 or whatever. I don’t remember what it was, but it was a lot of money and these were not hundreds.
So it was more than you would think. And so they’re just bringing their like, stacking, just. Stacks is like a movie. I felt I was like looking around. Is anybody else here? I was it was fun. I felt like I was robbing them, but yeah. How much shoe boxes of money is that 40,000? It’d be like. It’d be like that.
Okay. Just one or two for stacks of 10,000 or something. Yeah. You should make like a YouTube channel, just like you going to the bank and like getting all this money and putting it in your car or at home and just stalking people like that type of stuff. Oh yeah. It’s all over.
It’s already out there. I couldn’t do any better than whatever is out there already. You can watch people do their little videos. It’s funny. You’re taking this money around and you gotta be safe, right? Gotta be cool. Yeah. I am, I guess maybe lucky enough.
I don’t know. When I go there I go. When nobody’s there. So either before the place is open or whatever, obviously I know somebody that’s there, it’s very low key for me, which I’m very happy about. I would definitely not want some convenience store where I have to go. And there’s, 20, 30 people in there that’s not smart.
. Cause the institutional guys. Are sending in two dudes about two times your size with guns and a van truck. Got it. Oh yeah. And it’s even funnier to me. Sometimes I’ll go to a particular place that I have and the armor truck is outside. I’m just laughing because they have no idea what I’m doing.
And if they know they would probably laugh as well. Are you like trying to lift weights? At least look the part or I just try to look like your everyday Joe walking around. I think I do. Okay. I hope you you don’t have your like air buds in your ear. ABC have some situational awareness.
Yeah, I don’t, I’m good. I’m watching around. So one question I always ask for, like, when you vet any investment, is that aspect of insurance, right? What is the worst skin happen? And that’s okay. If you can mitigate that like some agriculture deals you can ensure the crop, in case it burns or there’s a flood.
What’s another one. Like some guys like to play around with like sports cards that just stresses me out. You’re not keeping that stuff in a safety deposit account. Most times you’re docking at it in your bedroom and you can smudge a corner. Your house could catch up fire, maybe it can fall on your homeowners insurance, but is there any insurance at this stuff? What if somebody does whack you in the back of your head and takes your money and, or steals the ATM machine? That’s very common. You see it in all the movies, they chain it to the back of the check and drag it around main street.
I guess the way I think about it is the type of locations that I chose to go with are more, the, I don’t want to call them higher end, but just less in areas where that kind of thing goes on. So convenience stores obviously are going to have way more opportunity for them
to hook that thing up and rip it right out. Whereas mine is in a location where it’s not even near the front door, so it’s just literally not possible for anybody to do that. Not to mention you can bolt them down. To the floor. That definitely helps a lot, most times in my reading and looking around as they’re stolen, because they’re not bolted down, they just throw the ATM in there and not too difficult to rip out.
Cause it’s not anything to rip out. You just take it. Yeah. I haven’t really had to think about that much. Thankfully I don’t think about it. But as far as insurance, I know you can insure the ATM and I’m required to through what, the way I do it. But I don’t believe you can insure the cash.
I’ve heard some people say you can, I’ve heard other people say you can’t. My research says can’t. So I wonder if they take it. Yeah. But once it’s in the machine is locked up. You’re covered at that point. Maybe you can cover it on your, like your homeowners. Of course.
You’re going to have to talk to your insurance guy off the record first to change because they may not like this idea. They won’t, I guarantee they won’t it’s just even getting a bank account is not easy. Yeah. This is like a money laundering stream. This one. Absolutely. Yeah. I, it’s funny just thinking about it.
Your broker brings you the location and you’re vetting it from there is your top of funnel filtering process. Then if I say, okay, go then they’ll try and get the deal. Okay. And the deal is how much do I make? much do they make that kind of thing?
So where is this all going? Are you just gonna fill it out? The goal, the end game is sell them hopefully in five to 10 years. It’s not like it can grow like. You can’t grow. It just does what it does. There’s nothing you can do to make it any better. And so that part, I really disliked.
So it makes sense. There’s no value add there’s no ability you can’t increase anything. There’s nothing you can do. Literally you can’t increase the fee structure. That’s them. That’s a no, I can’t change it. And the kinds of deals that they get when they sign the contracts are usually one to three year contracts.
After that, I haven’t been doing it long enough to know what happens after that. What if they say, no, we’re done. Get your ATM out of here. I guess I go find another place. I wonder if your broker’s business plan is that you’re captive to them. But maybe you can be your own like kind of commercial real estate broker and find other ATM folks.
So maybe that’s another part of this business you might want to build out where you start to build lists and cold call, cold email, different owners and make a deal with them. Hey, how would you like to have ATM machine? Here’s the splits and trying to cut, cutting that company out if you’re so inclined, right?
That’s how you want to use your time. Technically, I can’t do that, but if I didn’t go the route I went and you did it on your own, that’s exactly what you would be doing. You’d be going and meeting owners of businesses and trying to see if they’d let you put it in there. A lot of times you might not even pay them anything.
And that’s how you can technically make more money doing it on your own. But it comes with also other things that you have to deal with. The people that call when they say. That it didn’t give me money, but took my money, but it didn’t give me the money. I don’t not want to deal with somebody calling me and 2:00 AM, however, an issue, no way I don’t have to deal with that, but I’m sure there’s like a service or you can just outsource that part too.
Or if you want to stop doing the driving around with stacks of cash, you can outsource that. I assume. That gets into A little bit dicey thing where they’re walking around with my $20,000. And obviously I can know if they don’t put it in there, but it would take some time to figure that out and then they could be long gone.
I don’t know. I don’t, I have trust issues. I think we talked all about the bad stuff, but some of the good stuff it’s okay. Not only having $40,000 of cash in front of you taking selfies with can be a little therapeutic, but you mentioned to me last time we saw each other that you enjoy the taper out aspect.
Yeah. I liked driving around. I liked doing my own thing. I like being low key. I just do my thing and it works for me. I could be out doing whatever whenever for however long. And. I can check on it anytime I want online, see exactly what it’s doing, how much it’s done, how much is left.
And cool. It’s almost like checking my stocks. So I got addicted to checking my stocks when I was doing that. And so this kind of gives me that outlet as well. A little bit are you more from a tax perspective? Are you like what expenses you’re incurring? Like you writing off?
Mileage and definitely mileage administrative office reimbursements the accelerated depreciation. I did all of that. It’s really pretty cool. But I definitely had to get a CPA who knew what they were doing. So thank you for that, by the way. It’s nice to have somebody that knows exactly what to do and exactly how to do it.
Now you can justify buying a big lifted truck. That’s part of the branding. Yeah. No, thank you. It’s good. You could also justify a big pit bull or any kind of cool dog that makes you feel safer to go on your runs with you and a gun, that could be a business success.
I don’t know. Is there anything else that you could write off that would be necessary? Not really anything else, just normal expenses buying paper and different things like that. The bonus depreciation was definitely the biggest and most lucrative depreciate thing that I could write off.
So that was very helpful. Yeah. Maybe a gym membership. Maybe you could put down in there too. You could, or maybe a tattoo invented tattoos on your ear. That’d make you look a little bit more. The part I definitely don’t look the part I know. Cool. Yeah, any other insights from this?
A little fun when you making activity? I only if you’re going to do it all from scratch. If you’re going to buy in, it’s fine. It’s just when I compare it to what we’re doing in the Hawaii club, it doesn’t really compare unless you do it all on your own, and it’s going to take you a while to build it up.
So if you’re willing to do that or you like doing that might be something to do, but I liked the more passive route than the half passive route, especially if it makes the same or more. Yeah. I think what I like about this stuff, and a lot of people have that itch, right? Checking your stocks, seeing the money, hits your bank account, whether it’s like a short term rental, something like this, or some kind of side gig, or maybe note investing, something that a lot of people live in places where they can’t invest.
Something that is fun, like a hobby to them to justify some expenses. I think this is add that to that list. Yeah, I agree with you. Definitely. Thanks for jumping on Daniel and a lot of cool stuff you guys are doing. Like of course this is the simple passive cashflow group where we try and keep things simple and passive and very unsinkable and not passive at all.
But I think it’s a lifestyle and you always had the wheel spinning. Come in check us out, meet folks like Danielle here is a crazy stories when she, when they happen, hopefully they don’t happen. And yeah. Thanks. Thanks for joining us.
And we’ll see you guys on next week. Bye. Thanks.