I’d Get a Car - Posted by Frank Chin
Posted by Frank Chin on February 21, 2002 at 10:41:09:
Hate to voice a negative opinion.
Flipping and lease options is something you do to solve other people’s FINANCIAL PROBLEMS. To do so, you must APPEAR like you ARE CAPABLE of solving those problems yourself.
First, let me say I grew up in the city, and didn’t realize what a big deal cars were in the suburbs. People make judgments on what car you drive. Occasionally, when I go somewhere and I park further down the street, folks look puzzled and say, where did you park your car?
I once got a good quote from a contractor to cement a back yard. This guy came the very first day on a bike with a few tools to get things cleaned up. A neighbor whom I left to supervised called me excitedly and said “I hope you know what you’re doing, this contractor of yours couldn’t even afford a car”.
I rushed down there to question the guy. He had an answer for everything. Claims he got a freind who has a dump truck to haul the stuff away. Says he’d arrange for the cement to be delivered when needed, no problem.
Well, the project turned out to be nothing but problems. For instance, the friend’s truck he was counting on is tied up on other jobs, so I got a pile of junk for months on end. After months of excuses, I fired him, and got a REAL contractor.
What I’m getting at is when you show up to do a deal, you got to look like the REAL DEAL. You got to have some reserves to do flips, and lease options, particularly when T/B’s are short and you have to cover some payments.
Bronchick wrote a post recently saying “no money down” does not mean “no cash”.
A word about using old folks to get you around. Sounds like a good idea on paper. My father is 80 years old and NEVER bought a car in his life. Got a bunch of retired buddies to drive him to the supermarket, and the doctor.
Unfortunately, its not the most reliable plan as these folks can be out of commission for long periods due to illness, spouse illness, spending holidays with the grandchildren, outbreak of arthritis - you name it. So my brother comes in from Jersey (to NY) on weekends to help with the shopping.
In my book, if I’m going into a business, I’d figure what I need and how much it would cost me to get going. It looks like you’re all out of gas after paying for marketing. If a problem came up, not only will you not have cash to cover unforseen contingencies, you might not even be able to get there!!
My wife never let me forget about the guy I hired with NO CAR. OK I’ll say it again “it was stupid”. I could imagine some poor guy with a flip gone awry having his wife and friends reminding him about trusting someone who cannot even afford a car.
Think about it.