Quickest way to end up with a million dollars building and selling cars is to start with 2 million!
A very true recent story. I have many others like this over the years.
Friend of mine that is very green to the business and hobby, but is badly bitten, desperately wants to make money flipping cars. He wants to be someone in the industry, a player, so bad he cannot stand it. It was all he talked about. When he would tell me about his fantasies of flipping cars, I used to tell him he could "get rich like me" (sarcasm). I tried to warn him, I tried to stop him, BUT...... he buys a project, tells me he paid $15k and is going to put $15K more in it, and it will be worth $40K. I only agreed with one thing, it would probably be worth $40K if he did what he said he was going to do. Only problem is I explained he was $50K away form making it worth $40K. Of coarse he disagreed.
That was 6 months ago. He got it and tore right into it. So I talked to him a couple months ago.
How's the car coming?
Oh, I sold it.
Really? How much did you get?
Oh, I sold it to my friend for what I paid for it.
Why? Surely it was not going to cost to much to restore was it?
No, I just wanted to help a friend out.
Really? What about the money you already spent?
Oh, I just wanted to help him get into the hobby so I call that a donation.
LOL! I am way to nice a guy to tell him I told you so. I will let him keep his pride and let him think I believe he wanted to help someone get into the hobby. But ya know, I saw him a few times since he sold that car in the last couple months, and he does not talk about buying, building and selling cars anymore?
Quickest way to end up with a million dollars building and selling cars is to start with 2 million!
Quote:
Only problem is I explained he was $50K away form making it worth $40K
Chris, if the real estate market isn't toast in your area and you have the testicular fortitude to get it done, try flipping properties. It is NOT easy but the gains are worth the effort. Let me know if you want to learn a little more about it.
I say its a bad idea....It sounds easy but it doesnt always work out that way...Its like Real Estate...Fliping houses may sound fine and dandy but you can get stuck with it...You may not be able to flip it for a few months, maybe a year or maybe even longer...Now if you were gonna go out and rebuild a Judge or something my mind may go a different way...When it comes to cars i have realized that you never get back what you put into them, unless you have something pretty rare...I think your best bet would be to find people who want work done to their cars and then do the work for them, this way you know the money is there...
Brian Hobaugh SCCA National Tour June 2014
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