WEBVTT - Outside of the Box Passive Income Ideas w/ Mr. Passive #938 0:00:00.080 --> 0:00:03.280 Welcome to How the Money. I'm Joel, I'm Matt. 0:00:02.960 --> 0:00:05.920 And today we're talking outside of the box passive income 0:00:05.960 --> 0:00:07.920 ideas with mister passive. 0:00:27.080 --> 0:00:31.280 That's right. Yeah, who doesn't want automatic recurring deposits Joel, 0:00:31.440 --> 0:00:34.160 just showing up in their savings accounts? I would love that. Yeah, 0:00:34.360 --> 0:00:38.240 with minimal effort, that's the dream. Well, so that last 0:00:38.240 --> 0:00:40.519 part I mentioned, the effort that is required. I think 0:00:40.600 --> 0:00:43.600 that is the part that a lot of folks get wrong. Actually, 0:00:43.640 --> 0:00:46.640 I was recently talking with a very smart friend and 0:00:46.760 --> 0:00:49.320 we got to talking about rental properties and he said, oh, yeah, 0:00:49.440 --> 0:00:51.879 I bet it's nice to have that passive income streaming in. 0:00:52.440 --> 0:00:54.360 Not a let him know it wasn't, you know, I 0:00:54.440 --> 0:00:58.080 purely hands off activity. But we are not mainly going 0:00:58.120 --> 0:01:00.080 to talk about real estate today. We're actually going to 0:01:00.120 --> 0:01:03.480 talk about vending machines and what it takes to be 0:01:03.720 --> 0:01:07.920 a vending preneur. And the guy that basically invented that term, 0:01:08.440 --> 0:01:11.640 Mike Hoffman, that is who we are speaking with today 0:01:12.120 --> 0:01:15.920 and online. He's more commonly known as mister Passive, and 0:01:16.080 --> 0:01:18.800 I don't know of anyone who knows more about vending 0:01:18.840 --> 0:01:21.720 machines than he does. You know what it takes to 0:01:21.760 --> 0:01:25.000 succeed when it comes to vending machines. So Mike should 0:01:25.000 --> 0:01:26.640 should we call you Mike or should we call you 0:01:26.680 --> 0:01:30.520 mister passive during our conversation everyday, Mike's Mike. Okay, Mike, 0:01:30.720 --> 0:01:32.839 mister p thank you for joining the podcast today. 0:01:33.120 --> 0:01:35.160 Matt Joel, thank you for having me. This is great. 0:01:35.240 --> 0:01:36.920 You wear like a gold chain with a big pea 0:01:36.959 --> 0:01:37.120 on it. 0:01:37.240 --> 0:01:37.679 I don't know. 0:01:40.160 --> 0:01:42.240 Efforts, I get the reference now, I'm a brandy coach. 0:01:42.360 --> 0:01:44.800 Just turn to me for that. Uh, Mike. 0:01:45.560 --> 0:01:46.800 As you know, Matt and I we like to drink 0:01:46.840 --> 0:01:49.760 craft beer. But you know we're spending a lot of 0:01:49.800 --> 0:01:51.960 money on high quality craft beer from time to time. 0:01:52.440 --> 0:01:54.880 But it doesn't mean that we're not investing and thinking 0:01:54.880 --> 0:01:58.120 about our financial future simultaneously. Do you have something like that, Hey, 0:01:58.160 --> 0:02:01.240 you're being smart, you're investing in all sorts of things 0:02:01.840 --> 0:02:03.960 to grow your net worth, but hey, you're willing to 0:02:04.000 --> 0:02:05.600 splurge on what in the here and now. 0:02:06.040 --> 0:02:10.160 Yeah. So for me, I have two kids under three, 0:02:10.320 --> 0:02:14.000 so we always splurge on kind of a daycare slash 0:02:14.120 --> 0:02:16.680 date night once a week. So every week we have 0:02:16.800 --> 0:02:19.840 a date night where you know, you're basically factoring in 0:02:19.960 --> 0:02:23.560 the cost of dinner plus the cost of daycare, and 0:02:23.919 --> 0:02:28.000 it's been you know, I just having a wife that 0:02:28.120 --> 0:02:33.200 understands entrepreneurial kind of grind and being on the same wavelength. 0:02:34.080 --> 0:02:37.040 I'm a huge believer and kind of that time. 0:02:36.840 --> 0:02:39.880 Together very nice. It's so important. That's something. Okay, you 0:02:39.919 --> 0:02:42.440 want to hear a little life little hack that Joel 0:02:42.440 --> 0:02:43.239 and I have implemented. 0:02:43.280 --> 0:02:43.720 Absolutely. 0:02:43.919 --> 0:02:46.360 This is something we started over ten years ago. Is 0:02:46.400 --> 0:02:48.679 that we both had our first kids around the same time, 0:02:48.760 --> 0:02:52.679 and so we implemented a date night swap. And I 0:02:52.680 --> 0:02:55.280 don't know, ten years like, had we invested that money 0:02:55.280 --> 0:02:58.800 that we didn't stand on a babysitter, I'm sure it 0:02:58.800 --> 0:03:01.239 would be a quasi impressive number. Yeah. 0:03:01.280 --> 0:03:03.240 If you got a friend who's willing, who's got kids 0:03:03.240 --> 0:03:05.160 similar age, and you put your kid to bed and 0:03:05.160 --> 0:03:07.440 then you you know, swap off seven seven thirty and 0:03:07.440 --> 0:03:09.359 then you go out to dinner with your your your 0:03:09.360 --> 0:03:11.200 significant other, that could be I. 0:03:11.200 --> 0:03:13.280 Could save money the next week you're on the closs. 0:03:13.400 --> 0:03:14.720 I just gotta be willing to put that time in. 0:03:14.800 --> 0:03:15.760 I guess just think about it. 0:03:16.040 --> 0:03:18.240 Oh, I like that, Okay, I was wondering what the 0:03:18.240 --> 0:03:20.480 swamp was. I was like, are the husband's swapping Dade? 0:03:21.880 --> 0:03:25.959 Yeah, glad you explained it. Yeah, exactly what's going to 0:03:26.000 --> 0:03:27.480 go over watch his kids and vice versa. 0:03:27.680 --> 0:03:31.240 Yeah, and it really does cut down on the babysitting costs. 0:03:31.080 --> 0:03:33.239 But add up into minera though you don't think with 0:03:33.280 --> 0:03:35.200 the girls getting older. Yeah, thanks for sharing that, Mike. 0:03:35.320 --> 0:03:38.880 Uh Yeah, time with your partner like that, that's incredibly important. Yeah, 0:03:38.920 --> 0:03:41.520 while we're talking, I guess about our personal lives a 0:03:41.520 --> 0:03:44.360 little bit. You were a strength and conditioning coach. How 0:03:44.400 --> 0:03:47.520 did you go from something like that that's I don't know, 0:03:47.800 --> 0:03:49.960 that's not an area like when you're talking about personal 0:03:50.040 --> 0:03:52.320 finance and you're talking about entrepreneurship, you don't typically hear 0:03:52.360 --> 0:03:54.560 about dudes that also used to spend a lot of 0:03:54.560 --> 0:03:56.600 time in the gym. But how did you transition from 0:03:56.640 --> 0:03:58.160 that to becoming mister passive? 0:03:58.600 --> 0:04:01.720 Yeah? So I actually used to live in the Bay 0:04:01.920 --> 0:04:04.920 and the Silicon Valley and Mendo Park there and was 0:04:04.920 --> 0:04:08.160 a strength conditioning coach for a think of it as 0:04:08.160 --> 0:04:10.440 like a lab where we worked with high level athletes 0:04:10.440 --> 0:04:12.720 from Stanford and cow but we also developed a lot 0:04:12.720 --> 0:04:16.920 of software to predict injury risk that teams in our 0:04:16.960 --> 0:04:20.279 military would use. So I would travel a lot to 0:04:20.440 --> 0:04:24.080 these professional and college teams and even down by you 0:04:24.240 --> 0:04:28.279 in the South Southeast. But long story short, traveling a 0:04:28.279 --> 0:04:30.520 lot requires you to be in an airport a lot, 0:04:30.600 --> 0:04:33.960 which if anyone's ever been in an airport, including Atlanta's, 0:04:34.000 --> 0:04:37.000 there are a lot of venue machines. So I still 0:04:37.040 --> 0:04:40.400 remember to this day. I was in a layover in Denver, 0:04:40.600 --> 0:04:43.600 flying back west from the East Coast, and our flight 0:04:43.600 --> 0:04:46.040 got delayed at eleven PM. They're like, oh, the pilot's 0:04:46.080 --> 0:04:47.960 gone over as hours for the day. You're gonna have 0:04:47.960 --> 0:04:50.800 to stay in the airport overnight. So I went up 0:04:50.839 --> 0:04:54.200 to this venue machine and I was like, One, there's 0:04:54.400 --> 0:04:58.080 crappy options in here, and I'm a healthy guy at 0:04:58.200 --> 0:05:01.680 least I hope to be. And then two, this water 0:05:01.760 --> 0:05:04.159 i'm paying for. I know I'm paying two bucks, but 0:05:04.240 --> 0:05:06.520 I know it cost ten cents at costco and someone 0:05:06.640 --> 0:05:10.760 is making whatever that is, five hundred percent margins off 0:05:10.800 --> 0:05:14.400 of me while they're sleeping and I'm currently in an airport. 0:05:14.560 --> 0:05:18.440 So I actually went down this rabbit hole of venue. 0:05:18.480 --> 0:05:20.960 And I had a couple rentals back in the Midwest 0:05:21.800 --> 0:05:23.800 from when I used to live there, But so I 0:05:23.839 --> 0:05:26.040 had real estate and things like that, So I always 0:05:26.120 --> 0:05:28.159 kind of had the entrepreneurial mindset. But that's how I 0:05:28.160 --> 0:05:30.440 got into vending was during that layover in Denver. 0:05:30.640 --> 0:05:33.680 So, yeah, you started with real estate. Talk about that? 0:05:33.800 --> 0:05:37.160 Was that essentially this goal? Did you kind of have this? 0:05:38.440 --> 0:05:40.919 It sounds like it maybe the vending machine was like 0:05:41.000 --> 0:05:43.160 an aha moment, but also not an epiphany because you'd 0:05:43.160 --> 0:05:45.599 also already thought about kind of passive income and the 0:05:45.640 --> 0:05:46.919 role that it could play in your life, and that 0:05:46.960 --> 0:05:47.880 started with real estate. 0:05:48.320 --> 0:05:51.479 Yeah, that's right. So I actually my first I guess, 0:05:51.520 --> 0:05:53.840 if you want to call it, outside of my W 0:05:53.960 --> 0:05:57.800 two income stream was a rental. I was coaching as 0:05:57.839 --> 0:06:00.000 a strength conditioning coach in Saint Louis at the time, 0:06:00.400 --> 0:06:04.480 and I got a seventy thousand dollars house at the 0:06:04.760 --> 0:06:07.159 And all I knew about real estate was you typically 0:06:07.240 --> 0:06:09.360 have to put twenty percent down, and this is right 0:06:09.360 --> 0:06:11.720 around twenty twelve. You have to put twenty percent down, 0:06:11.760 --> 0:06:13.719 and you want to you want to get the one 0:06:13.760 --> 0:06:16.479 percent rule. And that's all I knew. I wasn't like 0:06:16.480 --> 0:06:19.520 a bigger pockets guy or read a bunch of these books. 0:06:19.560 --> 0:06:23.280 I was like, okay, seventy thousand dollars house the neighborhood 0:06:23.320 --> 0:06:26.000 oz Inc Had rentals listed on Craigslist for about nine 0:06:26.080 --> 0:06:29.000 hundred and fifty bucks. So I bought the house. I 0:06:29.080 --> 0:06:32.120 hired a property management firm. We listed it for I 0:06:32.160 --> 0:06:34.960 think nine to twenty five and I knew I was 0:06:35.160 --> 0:06:37.599 I was doing more than the one percent, so I 0:06:37.640 --> 0:06:39.560 knew I could afford to pay the mortgage and make 0:06:39.560 --> 0:06:41.800 a little bit of money off of it. So that 0:06:41.920 --> 0:06:45.359 was actually probably five years before I got into vending. 0:06:45.800 --> 0:06:48.600 Okay, So I guess while we're talking about that first house, 0:06:48.640 --> 0:06:51.480 I think I saw that you used your emergency fund 0:06:51.920 --> 0:06:54.760 to purchase that house. A. Is that correct? 0:06:54.800 --> 0:06:57.520 But that's absolutely correct, Okay, B Do. 0:06:57.720 --> 0:06:59.760 You feel that that was a risky move? Like if someone, 0:07:00.040 --> 0:07:01.520 if you had a friend who came to you today, 0:07:01.680 --> 0:07:04.400 was just like, hey, I'm thinking about doing this, I 0:07:04.400 --> 0:07:05.479 guess what would you say to them? 0:07:05.800 --> 0:07:08.279 So definitely a risky move, there's no doubt about it. 0:07:08.320 --> 0:07:11.840 I think back in whatever that was twenty twelve, the 0:07:11.920 --> 0:07:16.320 market was in a completely different place and it just 0:07:16.360 --> 0:07:19.040 hadn't been going up and up into the right for 0:07:19.720 --> 0:07:23.760 this long. So if I was in those shoes. Today, 0:07:23.800 --> 0:07:27.080 I'd probably say there are other things you can do 0:07:27.120 --> 0:07:30.560 with that money to be a little bit more smart. 0:07:30.720 --> 0:07:32.440 Keep in mind too, the other risky part of this 0:07:32.640 --> 0:07:35.760 why I had to tap into an emergency fund is 0:07:35.880 --> 0:07:38.600 as a strength conditioning coach, I was the lowest on 0:07:38.640 --> 0:07:41.760 the totem pool at that university. So I was literally 0:07:41.760 --> 0:07:44.200 making twelve hundred dollars a month, like that was my 0:07:44.800 --> 0:07:48.000 W two paycheck every month. So I had to dip 0:07:48.040 --> 0:07:51.960 in an emergency fund because you think about or seventy 0:07:52.000 --> 0:07:54.160 thousand dollars house, I had to put fourteen grand down 0:07:54.160 --> 0:07:54.960 at twenty percent. 0:07:55.400 --> 0:07:58.600 So this felt like to you, like the real estate investing, 0:07:58.720 --> 0:08:01.480 did this feel like an necessity? Was it one of 0:08:01.520 --> 0:08:03.600 those things like, Hey, if I'm going to continue to 0:08:03.640 --> 0:08:05.760 do this job that I love, the only way to 0:08:06.360 --> 0:08:09.000 make ends meet is if I find income somewhere else. 0:08:09.120 --> 0:08:11.280 And then did you have this ultimate goal in the 0:08:11.320 --> 0:08:13.720 back of your mind after you saw the success of 0:08:13.760 --> 0:08:16.200 the first rental property, like, oh man, I want to 0:08:16.240 --> 0:08:18.200 quit my day job and continue to ramp this up. 0:08:18.320 --> 0:08:19.680 Or is it just kind of like no, this is 0:08:19.920 --> 0:08:22.800 this is supplemental income so I can continue to do 0:08:23.040 --> 0:08:24.720 the job and the career that I'm interested in. 0:08:25.120 --> 0:08:29.520 Yeah, at that time, it was more supplemental, just because look, 0:08:29.560 --> 0:08:31.320 we were renting it out for nine to twenty five. 0:08:31.400 --> 0:08:34.160 After expenses and mortgage and escrow and all that, we 0:08:34.160 --> 0:08:37.120 were probably making three hundred bucks a month, and I 0:08:37.120 --> 0:08:41.160 couldn't keep affording to stack more rentals because it's not 0:08:41.200 --> 0:08:44.439 like I just had another emergency fund that tap into 0:08:44.480 --> 0:08:46.960 for my next rentals. So it was more of a 0:08:47.200 --> 0:08:49.680 that's an extra three hundred bucks a month type of thing. 0:08:49.720 --> 0:08:53.000 But when I got going down the vending route later on, 0:08:53.160 --> 0:08:55.680 that's when I really realized, oh, wow, I can stack 0:08:55.800 --> 0:09:00.280 vending locations way easier than real estate properties and even 0:09:00.280 --> 0:09:03.240 buy these machines with no money down, and like you, like, 0:09:03.360 --> 0:09:09.000 you could just use leverage financially a lot more simpler 0:09:09.040 --> 0:09:10.040 than what's real estate. 0:09:10.559 --> 0:09:12.760 Yeah, it's a bit more, a bit more feasible. So 0:09:12.800 --> 0:09:15.000 we're yeah, we're talking about passive income. But before we 0:09:15.080 --> 0:09:17.800 kind of dive into the specifics, do you think that 0:09:18.080 --> 0:09:21.120 the concept just gets over hyped by folks who are 0:09:21.160 --> 0:09:24.040 out there trying to sell a course or trying to 0:09:24.040 --> 0:09:25.719 get you to buy their product, that kind of thing, 0:09:26.040 --> 0:09:28.720 Like you always hear about passive income. But I'll you 0:09:28.720 --> 0:09:30.520 know a lot of times there is. Sometimes it's a 0:09:30.520 --> 0:09:33.120 part time job, sometimes it's you maybe even just selling 0:09:33.160 --> 0:09:35.720 your time. But yeah, I'm curious to get your thoughts 0:09:35.720 --> 0:09:37.480 there as somebody who's there in the space. 0:09:37.880 --> 0:09:42.800 Yeah, so it's interesting. The thing so mister passive came about, 0:09:44.200 --> 0:09:47.679 I wasn't really like, I wasn't in these courses. I 0:09:47.760 --> 0:09:51.559 wasn't reading all these like oh, make money on YouTube 0:09:51.720 --> 0:09:54.400 or faceless YouTube or all the different things that are 0:09:54.920 --> 0:09:57.840 out there now. So I wasn't really in the know 0:09:58.040 --> 0:10:01.320 of that hype. But now I'm really starting to see it, 0:10:01.360 --> 0:10:04.720 and I just come back to you can make whether 0:10:04.760 --> 0:10:07.040 it's vending our real estate, you can make it as 0:10:07.120 --> 0:10:10.560 passive as you want to, granted all the upfront effort, 0:10:10.800 --> 0:10:13.960 it's just you're going to let go of control. And 0:10:14.040 --> 0:10:16.640 I see this all the time with our operators in 0:10:16.679 --> 0:10:20.280 our community. Is you got those that will have a 0:10:20.400 --> 0:10:23.360 day job and they'll go stock forty machines, and then 0:10:23.360 --> 0:10:27.040 you got people like me where I quantify the value 0:10:27.080 --> 0:10:30.120 of my time and like, I am totally fine with 0:10:30.200 --> 0:10:33.880 finding an operator and letting them take control of some 0:10:33.920 --> 0:10:36.240 of those tasks that I don't think are worth my time, 0:10:36.720 --> 0:10:39.400 and I will cut into my margins happily to make 0:10:39.400 --> 0:10:40.760 it as passive as possible. 0:10:40.840 --> 0:10:42.880 Yeah. I mean the same thing in real estate when 0:10:42.880 --> 0:10:46.120 you hire property manager versus self management, and you're exactly 0:10:46.200 --> 0:10:48.839 you're paying to unload the hassle and the time suck 0:10:49.520 --> 0:10:52.400 and the potential frustrations of that gig. But you yeah, 0:10:52.440 --> 0:10:57.520 you minimize profitability. And you also there are other troubles 0:10:57.559 --> 0:10:59.320 you might run into with that strategy too, which we 0:10:59.360 --> 0:11:01.760 want to get into. I'm curious too though, before we 0:11:01.800 --> 0:11:04.079 get into it, we want to talk a ton about, 0:11:04.760 --> 0:11:08.280 you know, vending machines in particular. How does like traditional 0:11:08.559 --> 0:11:12.120 investing in retirement accounts in the stock market, which is 0:11:12.160 --> 0:11:15.920 incredibly passive as well, but it obviously takes time to 0:11:16.400 --> 0:11:19.000 build up a nest egg, how does that factor into 0:11:19.040 --> 0:11:21.000 your passive income masterplan. 0:11:21.640 --> 0:11:24.959 Yeah, it's it's a huge part of it. I mean 0:11:25.000 --> 0:11:28.040 we have we've kind of set up a system or 0:11:28.080 --> 0:11:30.360 I guess a pie, so to speak, and split up 0:11:30.400 --> 0:11:33.720 the pie in different sectors. You know, I look at 0:11:33.760 --> 0:11:37.400 it as like a passive income Disneyland, you know, vendings 0:11:37.400 --> 0:11:41.000 and the cash flow Kingdom. We got the the stock market, 0:11:41.080 --> 0:11:44.160 and long term kingdom over here, and there's just different 0:11:44.200 --> 0:11:46.120 you know, the real estate kingdom with our We have 0:11:46.160 --> 0:11:49.480 an airbnb in Florida that we bought sight unseen. So 0:11:49.520 --> 0:11:51.880 there's just there's different pieces of the pie and we 0:11:52.000 --> 0:11:54.960 try to keep it as balanced as possible. You know. 0:11:55.200 --> 0:11:58.320 The thing with vending compared to like our our index 0:11:58.440 --> 0:12:00.600 funds and things like that, is it's actually a lot 0:12:00.640 --> 0:12:03.400 more stable these days. I mean, you guys probably follow 0:12:03.480 --> 0:12:06.000 the market a lot more close closely than me. But 0:12:06.200 --> 0:12:10.240 it's been an interesting ride since the election in November, 0:12:10.320 --> 0:12:13.880 and and each day I'm like, wow, I'm way up, 0:12:13.920 --> 0:12:15.160 and then by the end of the day, I'm like 0:12:15.240 --> 0:12:19.479 way down or y versa. And it's like, holy caligator, because. 0:12:21.440 --> 0:12:23.679 You said you think we might pay more attention, but 0:12:23.760 --> 0:12:27.320 not really. It's pretty passive on that too, so I'm 0:12:27.360 --> 0:12:29.880 not I'm not really looking all that much, which is 0:12:30.240 --> 0:12:31.960 some of the benefits, I guess of being kind of 0:12:32.120 --> 0:12:34.000 a long term passive investor. 0:12:34.320 --> 0:12:37.920 Exactly. Yeah, yeah, so I think all of it's important. 0:12:38.160 --> 0:12:40.680 It's it's all it's just like you know what we 0:12:40.679 --> 0:12:43.920 were talking about earlier, Like even with exercise and diet, 0:12:43.960 --> 0:12:47.920 it's everything has a place in moderation right now. There's 0:12:47.960 --> 0:12:51.200 no doubt there's a revolution with AI and and people 0:12:52.280 --> 0:12:55.040 love to use that buzzword, but I look at it 0:12:55.080 --> 0:12:58.880 as what are the industries that are going through massive 0:12:58.920 --> 0:13:02.120 disruption are ready, and then how do we make those 0:13:02.200 --> 0:13:04.959 things passive? So the reason like I'm so bullish on 0:13:05.600 --> 0:13:08.920 vending and not to like plug vending, but venning is 0:13:08.920 --> 0:13:11.320 going through a massive disruption right now. Like if you 0:13:11.360 --> 0:13:15.200 guys go into the like when you fly to Vegas, 0:13:15.280 --> 0:13:17.360 when you land in the Vegas airport and you go 0:13:17.400 --> 0:13:20.000 down the escalator where it says welcome to Las Vegas. 0:13:20.240 --> 0:13:23.920 There's literally a seven to eleven store at the bottom 0:13:23.960 --> 0:13:28.640 of the escalator that is employeeless, and you walk in, 0:13:29.160 --> 0:13:32.000 the gate opens to the store with your credit card, 0:13:32.520 --> 0:13:36.800 and you walk out, Like the AI sensors literally track 0:13:36.920 --> 0:13:40.920 everything you grab and like, to me, that's unattended retail. 0:13:40.960 --> 0:13:43.719 That's technically vending. But like people think of vending as 0:13:43.800 --> 0:13:46.440 like the machine with a lego set in at the 0:13:46.440 --> 0:13:50.040 O'Hare airport. And so the reason I'm so bullish on 0:13:50.160 --> 0:13:54.480 vending is because not because it's a new concept, it's 0:13:54.520 --> 0:13:58.720 like it's going through a massive disruption with unattended retail 0:13:58.800 --> 0:14:01.840 with AI everything around it, and I think that could 0:14:01.840 --> 0:14:03.560 be for anything. I mean, I come back to like 0:14:04.480 --> 0:14:07.480 some of these Airbnb tools and things that now you 0:14:07.520 --> 0:14:10.280 can like we bought our house sight unseen in Florida, 0:14:10.760 --> 0:14:13.920 but we backdoored the comp comps of it by reaching 0:14:13.960 --> 0:14:17.200 out to the neighborhood properties that are on Airbnb and 0:14:17.240 --> 0:14:20.280 got in with the PM and we knew W two 0:14:20.400 --> 0:14:24.440 within ten percent or sorry W nine, like revenue wise, 0:14:24.520 --> 0:14:27.360 what it was going to do as a rental by 0:14:27.480 --> 0:14:30.520 just and now with AI, you like that would be 0:14:30.680 --> 0:14:32.280 so much more streamlined. 0:14:32.400 --> 0:14:35.880 Yeah, okay, so let's get all the way into vending 0:14:35.920 --> 0:14:39.280 machine talk. You talk about real estate and hey, I 0:14:39.360 --> 0:14:41.920 want to buy that next property, but I don't have 0:14:42.240 --> 0:14:44.600 twenty percent to put down on it. It's going to take 0:14:44.600 --> 0:14:46.920 me a heck of a long time to get going 0:14:47.080 --> 0:14:48.920 in that space and to really ramp up my real 0:14:49.000 --> 0:14:51.840 estate investments. So and then you have this, you know, 0:14:51.920 --> 0:14:55.120 airport moment where you're like, somebody else is sleeping right 0:14:55.120 --> 0:14:57.840 now and they're making money off me. Is was that 0:14:57.960 --> 0:15:01.320 kind of part of the push into ventding machines saying listen, 0:15:02.200 --> 0:15:06.440 the capital that's needed is minimal and this is something 0:15:06.480 --> 0:15:09.840 that can scale, Like what are the benefits of vending, 0:15:10.640 --> 0:15:13.000 you know, running and owning vending machines as opposed to 0:15:13.080 --> 0:15:16.120 other ways of trying to pursue passive income. 0:15:16.640 --> 0:15:22.000 Yeah, so at the time, all I had and was 0:15:22.840 --> 0:15:25.840 the real estate properties, which required twenty percent down. I 0:15:25.920 --> 0:15:29.920 also bought some miners for bitcoin at the time, I 0:15:29.920 --> 0:15:31.960 think it was like twenty eighteen or twenty nineteen, and 0:15:32.000 --> 0:15:34.600 those required a little bit of a significant investment of 0:15:35.000 --> 0:15:37.120 the miners and the facility and stuff. So I was 0:15:37.160 --> 0:15:40.680 testing out a little bit of different things. But when 0:15:40.720 --> 0:15:42.720 I bought the or when I was in that airport 0:15:42.880 --> 0:15:45.240 and I saw that machine with that water, at the time, 0:15:45.280 --> 0:15:48.640 I didn't know that you could buy those machines with 0:15:48.800 --> 0:15:51.680 minimal money down. I also didn't know how consistent the 0:15:51.720 --> 0:15:54.640 cash flow would be. The other thing that really played 0:15:54.640 --> 0:15:58.320 a factor at the time was I hated looking in 0:15:58.400 --> 0:16:02.000 those machines and seeing the types of products that were 0:16:02.040 --> 0:16:04.720 sold in those machines. Like if you look at when 0:16:04.720 --> 0:16:07.680 I got into this before COVID to now like now 0:16:07.720 --> 0:16:10.720 you literally these smart machines. They are just smart coolers 0:16:10.720 --> 0:16:12.760 with a lock on the door and a point of sale, 0:16:12.800 --> 0:16:14.640 so you could it's just shelf space, so you could 0:16:14.640 --> 0:16:17.240 put in theory. I mean, we have people that will 0:16:17.240 --> 0:16:20.800 put packs of eggs in there, they'll put keifer in there, 0:16:20.880 --> 0:16:22.800 they'll put olive oil in there. 0:16:23.880 --> 0:16:25.760 It's just a lot of like a hippie vending machine. 0:16:25.880 --> 0:16:28.320 Yeah yeah, but like it's like a corner store machine. 0:16:28.320 --> 0:16:29.960 I guess a Brussel Sprats and my vending machine. 0:16:30.040 --> 0:16:32.520 Yeah, but you think about it. I mean, honestly, like 0:16:32.600 --> 0:16:37.600 we have tampons, we have day quill, niquil, Like Walgreens 0:16:37.640 --> 0:16:40.680 just announced they're closing twelve hundred stores. Well, what do 0:16:40.960 --> 0:16:45.040 people willing to pay for for convenience? And so it's 0:16:45.080 --> 0:16:48.479 just kind of like this perfect storm of the industry 0:16:48.600 --> 0:16:51.640 alongside technology disruption. 0:16:52.080 --> 0:16:56.440 It certainly only makes a vending machine possibilities sound well, extremely. 0:16:56.400 --> 0:16:59.200 Well, specifically to what you consider these smart coolers essentially, 0:16:59.240 --> 0:17:01.000 which is what you like, I've seen you post a 0:17:01.000 --> 0:17:03.200 picture of this up on X But like with one 0:17:03.280 --> 0:17:05.400 of those, like, how much are we talking about being 0:17:05.440 --> 0:17:09.159 able to make from a single well placed quote unquote 0:17:09.200 --> 0:17:11.480 vending machine that's actually kind of looks like a mini 0:17:11.520 --> 0:17:13.520 fridge that's. 0:17:12.680 --> 0:17:14.720 Sensors and and all this other other sort. 0:17:14.560 --> 0:17:17.400 Of stuff like that's that's what folks appetite here as 0:17:17.400 --> 0:17:18.840 we are talking about vending machines. 0:17:19.200 --> 0:17:21.840 Yeah, so we we had an old school machine with 0:17:21.880 --> 0:17:24.680 the kind of the motors and the you had to 0:17:24.800 --> 0:17:27.840 enter a C four on the on the little code 0:17:27.920 --> 0:17:31.080 and then snickers would spiral down and then shoot down 0:17:31.080 --> 0:17:32.639 into the chute and you had to grab it. So 0:17:32.680 --> 0:17:36.040 we replaced one of those with a smart machine, same 0:17:36.080 --> 0:17:38.960 exact location as an apartment complex. We went from doing 0:17:39.400 --> 0:17:41.800 twelve hundred dollars a month in revenue to twenty five 0:17:41.880 --> 0:17:44.600 hundred dollars a month in revenue really in one month, 0:17:45.320 --> 0:17:49.080 and it's purely off of when you open that so 0:17:49.119 --> 0:17:52.000 you have to the doors are locked on these smart machines. 0:17:52.040 --> 0:17:53.920 You have to put a credit card or tap your 0:17:53.920 --> 0:17:57.560 phone to unlock the door. It authorizes that you actually 0:17:57.640 --> 0:17:59.960 have money in your account, it's not just a gift card. 0:18:00.480 --> 0:18:03.320 And then whatever you grab once that door is unlocked, 0:18:03.359 --> 0:18:06.439 the AI cameras track it. So you build out a 0:18:06.440 --> 0:18:10.439 planogram that's like, oh, the case of eggs is in 0:18:10.480 --> 0:18:13.359 the bottom right corner, the laundry detergent pods are in 0:18:13.400 --> 0:18:16.560 the bottom left corner. So once that door's open, people 0:18:16.600 --> 0:18:18.960 will just grab multiple things because you don't have to 0:18:19.000 --> 0:18:23.280 re enter on a machine a code. So watch something inspired. Yeah, 0:18:23.359 --> 0:18:25.320 you're reducing friction exactly. 0:18:25.400 --> 0:18:28.200 Are going to try the keyfer Yeah? 0:18:28.240 --> 0:18:31.439 Yeah, like your friend told me about it, time to 0:18:31.440 --> 0:18:31.919 hop on it. 0:18:31.960 --> 0:18:34.119 But yeah, but think about it, like people go to 0:18:34.160 --> 0:18:36.080 a machine thinking they're going to get a water or 0:18:36.080 --> 0:18:38.040 a bag of chips or snickers, and now that the 0:18:38.080 --> 0:18:40.480 door's open, they'll just grab three different things and walk 0:18:40.520 --> 0:18:43.160 away and it just charges your cart. Man. 0:18:43.400 --> 0:18:45.680 It just makes me think of the advice I would 0:18:45.680 --> 0:18:48.080 give to people using the vending machine, though, would be 0:18:48.520 --> 0:18:51.040 to not use them, just because of how expensive it 0:18:51.119 --> 0:18:52.840 is and how hey, you could go buy a case 0:18:52.840 --> 0:18:54.840 of water at Costco for the same price you're getting 0:18:54.840 --> 0:18:57.199 one water from the vending machine. But I guess on 0:18:57.240 --> 0:18:59.199 the other side, you can capitalize on the fact that 0:18:59.240 --> 0:19:02.119 people like vending machines and they like convenient. 0:19:01.760 --> 0:19:03.560 Or if you just don't have the ability to you know, 0:19:03.680 --> 0:19:06.040 like let's say the car broke down, but you're there 0:19:06.040 --> 0:19:07.680 at the apartment complex and you're like, dang it, I 0:19:07.760 --> 0:19:10.399 really need some eggs. I'm willing to pay a slightly 0:19:10.480 --> 0:19:12.760 higher premium in order to have that now, because guess what, 0:19:12.960 --> 0:19:15.920 it's time to feed the kids, time to cook breakfast. Yeah, 0:19:15.960 --> 0:19:18.440 but Mike, we've got plenty more questions to get to. 0:19:18.520 --> 0:19:21.120 We're gonna ask all about vending machines, what it takes 0:19:21.119 --> 0:19:23.080 to be a vending preneur. We'll get to all of 0:19:23.080 --> 0:19:32.720 that right after this. Okay, we're back from the break. 0:19:32.720 --> 0:19:37.199 We're still talking with Mike, mister passive about investing for 0:19:37.560 --> 0:19:41.160 it to get passive income, and specifically we're talking about 0:19:41.240 --> 0:19:44.800 vending machines. And it is this is a fascinating subject, Mike, 0:19:44.840 --> 0:19:47.280 because I think most people listening, myself included, before I 0:19:47.560 --> 0:19:49.960 started to dive into this, I am thinking about the 0:19:49.960 --> 0:19:53.359 old school Snickers machine, and I am thinking about the 0:19:53.440 --> 0:19:55.720 fact that like, who uses those anymore? But you're right, 0:19:55.760 --> 0:19:57.880