Episode Details

We live in interesting times: a global pandemic, a recession and a divided country heading into an election year. Anyone who says they know for sure which way the economy is headed for sure in the next six months is lying.  So, what can we do now to prepare for an uncertain future? Well, that’s what being a sophisticated investor is all about. We have been very fortunate that our portfolio is heavy on working class apartment buildings and self-storage in rapidly growing, landlord friendly states. In fact, in those cities, we are seeing a further compression of cap rates because of increased demand and lower interest rates. Regardless of some potential short-term volatility in our real estate niche, I am bullish as ever on our thesis of focussing on essential real estate. But to be clear, it would be disingenuous to suggest that real estate is not correlated to the markets as a whole. Usually when you identify something that is truly uncorrelated to the economy, it has a very uninteresting pro forma as well. However, I have been investing in an exception to this rule for the last 3-4 years: Automatic Teller Machines (ATMs). Ok, so you are thinking, “Who uses cash these days?” or more broadly, “Why in the world would I invest in ATM machines?” Well, I thought the same thing when I first heard about it. However, you know that I’m hardly reckless when it comes to investing these days. I like boring—especially when it involves our . Believe me, investing in ATM machines might make a lot of sense right now.  If done properly, ATM investments can be highly profitable. You can write off your investment against any passive income you earn with current bonus depreciation provisions in the tax code. And finally, ATM machines are uncorrelated to the economy.  Put that together with an institutional level operator and portfolio, and there is very little not to like about this kind of offering in my humble opinion. To tell us all more about this exciting opportunity, I invited our ’s new partner Daryl Heller of Heller Capital to discuss this asset class. To listen to this interview, make sure to tune in to this week’s episode of Wealth Formula Podcast!