Anyone who knows me, knows I’m always cooking up business ideas. Some are better than others, but in the right hands they all have merit and could be their very own million-dollar idea — so I thought I’d start publishing them and see if they’d end up in those hands! Or who knows, maybe someday I’ll circle back to one or find someone to collaborate with. Anyways, enjoy!
- Real Estate “Quad”
FIRST, start a property management company. This is a firm that ultimately “manages” other peoples’ income properties. Collecting rent, paying bills, fixing issues (facilitating repairs, etc.), screening new tenants, and evicting problem tenants.
I particularly like this part of the trifecta because it is 100% administrative and clerical. It’s basically accounting for the income and expenses of each property, and sending the owner a check after everything is done. A separate construction / maintenance company would be dispatched for any repairs or maintenance needs.
My information might be dated, but property management companies used to charge 10% of rents collected and 30% of any facilitated repairs / maintenance.
SECOND, become a licensed real estate salesperson. In some states (like NY) in order to be a property manager for more than two properties, this is required. This activity could give excellent exposure to real estate investors that might need a good, reliable property manager.
Financially, it would provide ‘waves’ of commission income to supplement the steady property management income. This would be especially true if / when the property management clients are looking to sell their large properties. Of course they would go to their property manager first to facilitate the sale.
THIRD comes the real estate ‘holding company.’ Since you already have the property management company, you could start to acquire real estate holdings of your own, using your own company and the infrastructure you’ve already built to run it.
You’ll also have some good leads on property hitting the market through your real estate sales activity. Again, clients will go to you first when they need to sell.
FOR THE QUAD – finally, If you have the stomach to continue, you can start a construction company of your own. You’ll have gained traction with the other activities to justify taking the repair, maintenance, and renovation calls yourself. You can send your own crew to renovate the properties in your own portfolio between the jobs for your customers.
This entity would have the most (insurance) risk exposure and possibly the most relative overhead, but can certainly add value to the rest of your real estate activities. Now you can purchase properties that need to be rehabbed and literally build yourself into a positive equity position.
2. Vending
I once had a few vending machines. It was at a time in my life when I was a full time contractor – an industry that (at the time) required my presence on each and every job — which made me appreciate opportunities that allowed me to produce sales when I didn’t have to be there. Vending was one of those opportunities.
This idea is incredibly valid, but there was a good deal of time involved with the larger snack and drink machines. Oh, and LOCATION IS EVERYTHING. In the right place, I had 25 cent snack vending machines making more money than much larger machines in other less traffic locations.
As with many things, I found it incredibly beneficial to have (or acquire) the skills to service these machines on your own. It’ll help you save costly time and dollars when a machine needs repair or modification.
FIRST, find and purchase a simple machine on Ebay or Craigslist. Thoroughly clean it and make sure it looks immaculate.
SECOND, ask a local business if they would allow you to put it in their lobby or place of business. This is where having a ‘charitable’ organization component can help. Businesses might be more receptive to the vending machines if they know a portion of the sales are going to help a good cause. It doesn’t always have to be like this, but might be food for thought.
FINALLY, make sure the machine is stocked with fresh snacks and maintain contact regularly with the business where the machine is located.
With the bigger machines, I used to tape a $1 or $5 dollar bill to the back of random chocolate bars or drinks to create a fun vending experience for the people regularly using the machine. This was a huge hit. Usually the money went right back into the machine, but also had a ‘slot machine’ effect, encouraging sales. Sometimes I’d find the candy bars sold out just so people could find the hidden cash!
3. The Good ‘Ol Laundromat
I’ve always liked the idea of a laundromat. It goes along with my thoughts on vending and not having to be present at every waking hour. Sales can be made without my presence, and I dig that. Like vending, I’m sure there is a good deal of work to be done, but the reward can be worth it. As I’ve seen many years ago when I was working in a business brokering office, laundromats are highly desirable and highly sellable — so if you’re beginning with the end in mind, this business model can be a good choice.
Another similarity to my vending idea is LOCATION, LOCATION, LOCATION. It would be prudent to get as much demographic information as possible when choosing a location. For example, an area predominantly made up of single family homes might not work very well. Also, areas with high per-capita income also might not be the most suitable. Look for apartment complexes, multi family units, and a lower average income level.
