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 83 homes under contract and our one commercial property, the store and lock.
We got 0 new houses under contract, in the month of May. ‘Chirp…chirp…chirp…” those are our Ren-crickets. Now before all the Ren-Menions and Nay-sayers ask about if we have thinned ourselves out too far- we haven’t. Our real estate business placed more offers in May than any other previous month. We just didn’t get any houses bought.
Why not?
Well, the $8,000 tax credit completed last month. Prices might be going up, but really real estate is cyclical, just like any other business. Some months we get a bunch of houses, some months we get a few houses, and some months we get no houses.
Renaissance Auto Group sales are as follows:
| Vehicle | Vehicle Cost | Selling Price | Profit |
| Chevy Venture | $ 1,900.00 | $ 2,700.00 | $ 800.00 |
| Jeep Cherokee | $ 2,150.00 | $ 2,800.00 | $ 650.00 |
| Pontiac Grand Am | $ 2,300.00 | $ 2,700.00 | $ 400.00 |
| Jeep Cherokee Limited | $ 4,100.00 | $ 5,295.00 | $1,195.00 |
| Ford Taurus | $ 1,300.00 | $ 600.00 | $ (700.00) |
| Total | $ 11,750.00 | $ 14,095.00 | $2,345.00 |
The average profit of each car is $469.00. The Ford Taurus is the outlier. The car was bought before we started test driving cars. We were told the repair cost would be nearly $2,000. We decided to auction the Taurus and wash our hands clean of it. We ended up losing $700 on that tranaction. If we hadn’t had that car in the equation our profit per car would be $609.00. We are happy with $609.00 a car and content with $469.00, especially for our first month. Our profit is split with our sales staff.
We will be collecting the money in June and will have a breakdown of each location. We also placed two vending massage chairs. Our profit is split with the bar owners. We have all 21 machines placed, but still have not made some pickups. More info will be in next month’s update.
| SU Name | Processed | Currency |
| Lodge Bar | 05/11/10 | 405.00 |
| Lodge Bar | 05/25/10 | 458.00 |
| Pujols 5 Sports Bar | 05/05/10 | 152.00 |
| Slammys | 05/10/10 | 220.00 |
| Alton Sports Bar | 05/10/10 | 166.00 |
| Joes Brewery | 05/06/10 | 484.00 |
| Bradley’s County Bar | 05/06/10 | 76.00 |
| Total | 1,961.00 |
{ 9 comments… read them below or add one }
I think some of your audience (myself included) might be interested to know how you have managed to finance such a large number of houses and automobiles. As a real estate investor, I am finding it increasingly difficult to find financing for my 11th house (Due to Fannie Mae regulations limiting the number of mortgages for a single borrower to 10). Also, where are the initial down payments and renovation money coming from? Are you using construction loans, a business line of credit or conventional financing? Or, do you have an extended network of private investors? Did you have a lot of money saved from a previous career? How did you get started, and how did you ’scale up’ so large? Please excuse me if you have answered these questions in a previous post. I have not yet watched all of your videos. My internet is a bit slow when using Vimeo.
Keep up the great work.
agree with commentor above ^^ . I’d really like to know how you got started, manage to keep your projects funded etc..
Hi guys,
I’m a long time listener, first time commenter, just starting out with vending machines (foosball tables) in the UK but I’m also interested in real estate. I’m just wondering if you believe that vending alone can be a lifestyle business and what sort of critical mass do you think is needed before you can embark on other projects?
It seems to me that your core business is still real estate and I’m wondering is your rental income powering all your other projects? Was that how you guys got started? Is this profitable business now allowing you to branch out or have I confused your core business. It would be great to hear from you guys! I’m getting off the bench now to try and place some foosball tables!
Yours thankfully,
Ben
Vending alone can definitely be a lifestyle business. Our real estate is powering all of our other projects…just make sure that your money makes you more money…that is the key…congrats on getting off the bench…, let us know how it’s going…
I’m shocked by how much cash the massage chairs are bringing in. I’ve never seen one in a bar around here. An Airport would be a good place as well.
Airport would be a great place…once we get the numbers back from the truck stop we’ll post them…
Grant and Alan,
Nice, broader view into you numbers this month. You may want to add a ‘last processed’ date onto the vending machine revenue – It is hard to tell how the locations are performing for you without some measurement of duration since the devices were last cleard of their cash.
Keep on leading by example,
Matt
Noted…we’ll have huge update on the vending business…
Gents,
I just reviewed the vending stats via my Iphone…Great information! I will review it on a large screen later and will let you know if I have any further questions and/or recommendations.
Thanks,
Matt