Money Machines

I’ve always wanted to own a money machine. A machine that prints money each and every day.

If I really think about it, this really has been my quest for the last few decades.

Buying and creating money machines.

When I first started this quest, I had a picture in my mind of what a money machine was supposed to look like. My mental picture was far from reality.

In fact, my best money machines do not look like money machines.

To show you what I mean, this is a picture of money generated by one of most profitable money machines…

This is a money bag that’s bulging with quarters. Next to this money bag were two additional bags stuffed with more quarters.

I used to use these money bags in my marketing for my real estate brokerage back in the day. Today, I actually use these money bags to…. collect money! 🙂

I’m one of the managing partners in an apartment building that we own, and we have twelve coin-operated washers and dryers at the property.

These 12 money machines average $400 of monthly income and $4,800 of annual income. If I remember correctly, we bought four of these units
used off Craigslist for $700. We bought the remaining eight units new for around $700 each. Our total investment was around $6,300.

If you crunch the numbers, you’ll see that these money machines provide a whopping 76% annual return on investment. These money machines paid for themselves in just 16 months.

Every quarter we collect today is profit.

To be clear, these money machines require work. They’re not completely passive. I do have to go empty all the quarters out each month. My wife then spends an hour or so rolling them. Next, I have to lug them into the bank, which is a pain in the ass.

I’m sharing all of this for three reasons:

  1. The best money machines don’t look like money machines. They are all around you right now, but you probably don’t “see” them. These money machines are hidden from view for most people. A money machine is an asset you can purchase that will pay for itself within two to three years. Any asset that pays for itself within just a few years is an incredible money machine.
  2. Money machines are NOT passive investments. Machines require ongoing maintenance and service. Most people want to own passive money machines. There ain’t no such thing.
  3. Finally, money machine assets are not acquired because you hope they will increase in value. Average people tend to focus on buying low and selling high. They chase appreciation. Most money machines don’t appreciate in value. They just print money.

To find money machines, you need to start focusing on how quickly the asset you’re thinking about acquiring will pay for itself. If it won’t pay for itself withing a few years, it’s not a money machine.

  • How long will it take for this bond to pay for itself?
  • How long will it take for this stock to pay for itself?
  • How long will it take for this index fund to pay for itself?
  • How long will it take for this business to pay for itself?
  • How long will it take for this property to pay for itself

So here’s the important question for you…

Do you own any money machines?