Posted by Headspinning on April 20, 1999 at 08:12:41:
DO WHAT!!!Come on man…You are trying to re-invent the wheel.
What Do You Think About This Idea? - Posted by Nick
Posted by Nick on April 20, 1999 at 08:05:42:
Hello everyone;
Wow, I finally came up with an idea that might work for me.
Here it is; I will purchase peoples cars at a very good
discount. How? I will buy it at a discount by looking for
people who are in a financially distressed situation (they
are about to declare bankruptcy or about to declare foreclosre).
I think I could buy a car for 30% to 40% below market
value, and than I can “flip” it very quickly.
What do you think about this idea folks? Also, how can
I find people who are in financially distressed situation?
What does this have to do with RE? - Posted by Matthew Chan
Posted by Matthew Chan on April 21, 1999 at 13:02:52:
What does your post have to do with RE except for the fact that the prinicples you have outlined is not new and can be applied to RE?
Your posts seem to focus on looking for affirmation vs. answers to issues that you are encountering.
I sense “paralysis analysis” here.
Been there…done that - Posted by Glenn Crocker (AL)
Posted by Glenn Crocker (AL) on April 21, 1999 at 24:47:33:
Nick, don’t waste your time or energy. There is much more profit potential in Real Estate. I have a wholesale dealers license/Master Auto Technician. Neither of which I practice today. You can make some money…but how many cars will you have to sell to make the same kind of profit in Real Estate. Quite a few. Trust me I’ve done both. There are so many ways to find out the value of a car…blue book, black book, Internet etc. At least you have a little room sometimes when dealing with an appraiser as opposed to someone telling you an automobile is worth exactly $XXX to the penny. If this was a serious post then please re-consider. You will see much larger paydays in the RE Arena.
P.S. Seems like Ron Legrand was on the automobile side and jumped the fence. I don’t think he regrets it.
Re: What Do You Think About This Idea? - Posted by KFC
Posted by KFC on April 21, 1999 at 24:00:46:
Caution: Under bankruptcy law, the federal bankruptcy court can RESCIND sales, or other disposals of assets, made by a person who files for bankruptcy. The sales can be rescinded for the period 90 days prior to the bankruptcy filing. These are called “preferences” under the law because they “prefer” or favor certain people over others, including creditors already owed money. This is a general warning based on bankruptcy law which you can find out more about by just going to the local library and finding some general books on filing bankruptcy. My advice is to check into the bankruptcy rules beforehand. Or you may be in for some rude surprises – like the federal marshal coming to take your car.
Re: What Do You Think About This Idea? - Posted by Irwin
Posted by Irwin on April 20, 1999 at 21:03:42:
Nick: Great idea.It’s just that a few thousand people thought of it before you. They call themselves used car dealers and operate what are called “buy here pay here” car lots. The ones I know don’t seem to make all that much money at it, and they have a mega headaches.
Get OFF your Rump! - Posted by Jim IL
Posted by Jim IL on April 20, 1999 at 17:47:00:
Nick,
I have watched you post here, and I have even talked to you on the telephone.
Congratulations on your desire to make money!
But, Shame on you for not using it!
There are a ton of methods here and elsewhere that will make you money in Real Estate. Forget the cars!
Look at it this way,
if I bought Car “1” from you for $500/down, $150/month for 3 years, and then 6 months into the deal, Car “1” breaks down, and I QUIT PAYING,then how much can you make? (oh, and you cannot find me or the car when I quit paying!) OOPS!
But,
I buy house “2” from you, for $3000 down, $1000/mnth for 10 years with a balloon. The furnace goes out, and I quit paying, (this is 3 years into the deal).
What do you do?
Kick me out, (you know where the house is!), put in a new furnace, and sell it all over again, FOR MORE!!
Try THAT with a car!
Ain’t gonna happen.
So, what I’m sayin here Nick, is QUIT PROCRASTINATING! If you want to make money, you never will sitting on your RUMP!
go get some deals!
It can be done in your area! (I know, I live here!)
Dr. Jim IL. has this diagnosis:
You sir are suffering from “paralysis of analysis”.
The cure:
Go DO!
Re: What Do You Think About This Idea? - Posted by Bill Gatten
Posted by Bill Gatten on April 20, 1999 at 17:25:17:
Nick,
Very funny. Howevever, I, too, am amazed at how few got it.
The idea behind buying real estate (instead of something else) for less than it’s worth and selling it for more, is that Real Estate (Realty), unlike most “personalty” I know of (with the exeption of collector’s items), grows in value over time (or is presumed to have a good chance of doing so), and, unlike the automotive industry, one doesn’t have to be licensed to deal in it (unless you’re buying and flipping more than a certain number per year or functioning a a “go-between”).
I got your point… but am afraid that even though that is (as you subtly assert) what we’re all trying to do… there are myriad ways of approaching it (to make the pill go down easier, or the injection less painful). And the keys are knowledge, comraderie and an intripd spirit. If you have those qualities, then I think you’d do much better in Real Estate than in cars, and with much less effort. With the profit you can make on one house, you can buy twenty used cars.
See if this time-worn phrase applies equally to automobiles: "You don’t make money “selling” real estate, you make money by “owning” it.
Good shot.
Bill
Nick, Nick, Nick - Posted by Dirk Roach
Posted by Dirk Roach on April 20, 1999 at 15:49:51:
I am glad to see that you are even considering some sort of idea. However a couple of tips.
I know several people who do what you are talking about with rolling stock (cars, trucks, tractors etc) however they buy them at auction, so that they can get clear title and pick them up cheap, etc.
However what a pain. Nick; if you sell a car to someone and lets face it to make any money you’re going to have to sell with financing. You are creating a note which is secured by a car. That is the collateral for the loan.
Nick, unless you know what you’re doing, never lend money on something that someone can drive away with. It’s hard to drive away in a house.
Nick, now I by no means want to bash you or discourage you.
If you don’t have a lot of cash, pick up Lonnie’s book, turn a mobile.
If you even want to invest. It’s frustrating for a lot of us, because we can see potential in your posts, but we also see a lot of excuses. You have to go out and make things happen.
Personally the only people who I know who are successful in ANY type of business are people who know the heck what they are doing.
Used Cars maybe a successful vehicle (no pun intended) for you, but I think that you really need to research that market a little,
Dirk
Re: What Do You Think About This Idea? - Posted by Rob FL
Posted by Rob FL on April 20, 1999 at 12:14:30:
An interesting idea, although I would tend to want their house instead of their car.
One thing to think about is that most people are in financial trouble because of major problems in their life. Most likely if someone is that far gone, their car is not owned free in clear but instead they have either 1) a lease or 2) a big car loan payment. Although, I have never investigated it outside of FL, I would assume that the person you are dealing with would not have the title. In the case of the lease, they probably would not be allowed to assign it without the dealer’s consent and in the case with the bank loan, the bank has the title and isn’t going to allow a title change unless you assume or payoff the loan. Correct me if I am in error. This is unlike real estate where you can change the title very easily by recording a deed in the public records without the dealer’s/bank’s knowledge.
Very good idea…workable…but… - Posted by raelynn mitchell
Posted by raelynn mitchell on April 20, 1999 at 11:43:56:
there is a downside. There aren’t any used car factories, and therefore every car will be an “individual” issue as far as condition of car is concerned. Also, quite often people sell cars because they are getting a new one (which may mean something’s wrong with the one they’re selling). Hopefully you are very mechanically inclined (or have a mechanic as a partner?) because I can see judgement mistakes in MY past (I DID buy cars at one time and then sell them, but my mechanic is my husband).
It is not always someone financially distressed, but perhaps someone who needs to leave the country quickly and cannot or does not want to take the car with them. If you ever happen to find a diplomat who’s being transfered or promoted, you’ve probably got yourself a great deal…
Food 4 thought.
PS. Dealers licensing issues come up here, just like with the MHs.
(My version of the fish that was THIS big is a car I bought for $40. The guy was willing to take a case of beer, but I worked with him and didn’t want to hear about how I took advantage of him so I offered way more than the cost of a case of beer. Made him check and recheck the vehicle for his belongings. He said, “Take it. Whatever’s in there came with the car.” “Are you sure?” I said. “Yeah.”
Hubby told me there was $30 in tools in the trunk. Spent $35 on parts, fixed car, sold it for $250 for a quick sale the week before moving to a different state.)
I do that with houses!!! (nt) - Posted by SCook85
Posted by SCook85 on April 20, 1999 at 09:14:34:
Do you think it is that easy to sell a car? Are you going to finance the car? Do you know that you have to become a dealer after you do a few deals a year?
Sorry to bust your bubble I could go on but don’t want to be to harsh. Just get out there and do some deals. STOP trying to better everyone else. The methods everyone here use work, why won’t they work for you?
SCook85
Re: What Do You Think About This Idea? - Posted by JHyre in Ohio
Posted by JHyre in Ohio on April 20, 1999 at 08:59:02:
Nick,
You propose to do Lonnies with cars…have at it OR do Lonnies first, with the benefit of lots of guidance. Once you’ve got some experience with Lonnies, apply the principle to cars.
John Hyre