Welcome to the The Ren Men Wrap-up, each month we will discuss the prior month’s goings-on.
On the real estate side of the business, we are currently at 72 homes and our one commercial property, the store and lock. Last month, we missed out on the house at auction, however, we did manage to purchase three new houses. The breakdown is as follows:
| House | Purchase | Repairs |
| #1 | $15,000 | $15,000 |
| #2 | $16,501 | $24,000 |
| #3 | $22,500 | $20,000 |
On the vending side of the company, we placed one machine at Porter’s Pub in Columbus. We have placed four machines, but the R Bar had a contract with another company and made us take our boxer out of the bar, which takes us down to three. The breakdown of the boxers is as follows:
| Location | Counter | RVG |
| Lodge Bar | 1,110 | $566 |
| Gumby’s | 222 | $108 |
| Porter’s Pub | New | N/A |
{ 14 comments… read them below or add one }
What’s RVG? Relative value of growth? Doesn’t seem like that acronym fits but what i think of when I see it. Also why’s it a % when you give a $ amount.
Is that Gumby’s machine making what you expect? Seems low. I can’t remember your numbers off the top of my head from the previous episode but seems like that is barely above what you figured the cost to be for the month.
Love that you guys are being so transparent with this, there are a lot of people out there selling what you talk about for free who can’t back it up like you guys do.
Great work guys! Having spent a total of 10 days in North America I am not at all familiar with the US real estate market. However, I’m surprised by the low prices of the houses you purchase. How can you find houses in the $15,000 – £25,000 range – what’s the secret? In episode 9 you expect an appraisal value after repairs to be $72,000. I live in Ireland and there are just no houses on the market even close to $72,000. Anyway, $750 in rent per month on a house worth $72,000 – that’s an amazing gross return for a real estate investment.
I know you make video responses quite often, but still, I did jump out of the seat when seeing you responded to my comment- so that’s cool! I have a feeling that in the future you might get so many comments that there’s no way of responding to all of them.
Totally agree that it is the return that matters, not the price of the property. The thing is that here in Ireland there’s been quite a dramatic property boom from the early 90s to the peak in February 2007. (http://www.statusireland.com/statistics/most-popular/3/Irish-House-Prices-Since-1996.html) The rents never increased as much as the prices, so as house prices increased, the returns worsened. It’s gotten better since 2007, but I havent seen good enough returns to invest yet.
One reason to actually care about price a little bit, is that even with good returns, it’s nice to start out small and learn from your mistakes without having a gigantic mortgage straight away.
Here’s what you get for 100,000 Euro (about 137,000 $) in Ireland by the way:
http://propertyteam.ie/searchsale.daft?id=458945#
“DESCRIPTION
The property comprises of a derelict cottage type residence on a c.1 acre site with good road frontage. The cottage itself has not been lived in for a while, and is in need of total renovation. This is a fantastic development opportunity to build your own house subject to necessary full planning permission from Meath County Council.”
Looks green and nice though, got to give them that.
You mention international investing – and yes, that’s exactly what I have done. Three years ago I bought a house in the city of Abidjan in the Ivory Coast in West Africa and I am currently looking for my third property there. But ehm, I’ll save that story for a later post or for a blog of mine own if I ever start one.
What’s the time span of the vending numbers? Meaning how many days to achieve the $566 in the Lodge Bar?
Time frame for $566 report is the month of January.
Hey guys,
Absolutely love what you are doing. Not only are your videos informative, but it looks like you are having a blast making them! I’m curious how you selected the boxing machines for the vending machine of choice?
I’m in Australia and have started looking into the market, and have been blown away at the selection of vending and entertainment machines out there.
International love.
We chose KOV because of its low maintenance high interest qualities.
Ok, blog started! We’ll see how it goes. Not sure I would have started it if I hadnt seen your site.
http://hotelivory.wordpress.com/
And thanks for the tip on the reasonably priced Irish property!
Way to get off the bench!
We will follow your progress.
Hi Red Mens I really like your show.
I live in Slovak Republic – Europe Union and just going over your web.
I am watching yours shows for 3 day. I love developing real estate and business. In Czech Republic and Slovak Republic is the real estate business totally different. There is nearly no market for renting homes. Majority of the homeowners build theirs homes them self. People rent flats but mostly in cities. Its look to my like there is more homes and flats for sell or rent than demand. I would like to hear your opinion on this kind of markets.
Thanks and keep up the good work.
Find a spot where the demand is higher than the supply. If you can’t find that, look into flipping houses. If that’s not an option, look into other businesses.