Who is creating a company that focuses on picking up or monetizing used cardboard boxes from homes and businesses?
The amount of boxes we throw away annually (80B in US) is insane and it’ll get worse.
There has to be some kind of opportunity here.
My initial ideas (zero clue if these could actually be profitable).
1.A subscription service (like the trash company) that comes by weekly and collects customers' boxes (maybe even pays you a small amount).
I’d assume lots of ways to monetize the billions of boxes collected.
2. OR create drop-offs so customers can deliver & verify their total boxes, and get paid (likely more for each box than idea #1).
3. An on-site product that shreds or molds cardboard for higher better use products. Not sure if there’s a demand for things made of cardboard.
80 BILLION BOXES - don’t tell me there isn’t an opportunity here!
Or maybe @JeffBezos is already working on this. If this existed, we’d swap boxes with their drivers daily. God knows Amazon comes by our house twice a day w/ packages.
Large MF properties are going to have to rethink their mailroom situation.
The same is true for office buildings. No telling how many packages we get a week. I can’t imagine what a large company gets.
I’d love to invest in the right team that works on this.
If I were looking to do my first real estate deal with zero prior experience and no money, here's what I'd do (I did).
I'd start with the target of buying a single-family, duplex, 3plex, or 4plex in an area close to where I lived and that I was familiar with.
I'd take an online RE course to get my license as quickly as possible (I did it in 2 weeks). Upon completion, I'd sign up for the MLS system so I could start looking at deals.
I'd call the listing agents involved and pepper them with questions about active and sold listings.
I'd also tell them about my plan to buy an investment property.
I'd call local banks or mortgage brokers to get an idea of loan terms I'd be able to qualify for. Rate, Loan Amount, LTV, Term, Guaranty, etc.
I'd be building relationships with these bankers along the way.
My dad died 8 years ago and one of the most precious things I have left are a few voicemails he left me.
Nothing special about the message, except I get to hear his voice.
When I started the podcast, I said early on that if nobody listened, maybe my young kids would one day.
Getting some equipment to record a few messages every now and again that you can share with your kids later in life, isn't a lot of work.
Even easier, Download the @anchor app on your phone and record moments in time and how you felt.
Ex. for a small child.
"I was so proud of how you played your soccer game this morning. You scored the winning goal. Watching you light up when you put on your uniform for the first time was priceless. Love, Dad"
When buying a deal, every day that goes by, the potential for tunnel vision grows.
Obsessing over executing detailed Due Diligence early and efficiently is paramount to limiting this.
On one hand, you have an acquisition fee at closing + all the upside you predict getting from operating the deal post-close.
On the other hand, you have pursuit costs building up and potential non-refundable earnest money.
The "spread" widens each day.
I.e. A $10M acquisition with a 2% acquisition fee - $200,000. You're hard $100k in earnest and have $50-100k in pursuit costs (legal, inspections, finance, title, etc.).
GP is now staring at losing $400k if the deal falls apart.
One of the most underrated & overlooked skills a GP in REPE (or really any GP) should optimize for is “investor experience”.
Especially, early on.
Investors want returns, the bigger the better. Great returns over a long period of time are what keep a GP in business.
What else do investors want besides returns?
Transparency of good & BAD news, consistent & detailed reporting, quick responses to inquires, safely stored & easily accessible investment documents, quick K-1’s, etc.
LP’s want to be treated like a high valued customer, not a checkbook.
My mentor growing up beat this into my head early on, “Treat your investors like a customer, and you’ll go far in this business.”
Returns will always make their way to business or dinner table conversations.
One reason we like Class B Industrial - we aren't competing against new supply, so we can forecast competition.
The lack of available land in city limits for industrial creates barriers to entry.
Often, even if there is land, it's not priced for industrial.
Lastly, if someone was able to find affordable dirt, the hard cost to construct is too high to make sense.
Most tenants in this asset class are using the space as a function of their business, with minimal attention to how "nice" it is.
Don't get me wrong, we always want to deliver a clean property, but tenants aren't looking to pay large increases in rent just to have something that is newer and nicer - so new development doesn't make sense.