How to Buy A Ferrari for $20K

[biophase]

So a few weeks ago I'm looking at this 2006 Ferrari 360 Modena in red with nice wheels. Asking price is about $100k. I'm not one to spend $100k on a car, because every time I've had money I've put it into investments. So my other thought was I should just buy an investment condo which returns about 8% per year.

But then I came across an ecommerce store for sale for $100k which puts out $100k a year or $8k a month.

This got my thinking. Why would I ever pay $100k cash for a car or buy real estate if I could purchase online stores like these?

So I did some numbers and I could do the following:

Buy the store for $100k
Take the $8k monthly
Which is $6k after taxes
Buy a Ferrari with $3000/mo payments
Buy a home with $3000/mo payments
Why wouldn't this work?

And why doesn't everyone do this?

Poke some holes in this plan please or else I'm going to implement it this year.

 

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[snowbank]

going to start making my Wordpress site tomorrow for the beginnings of my e-commerce site. I'm an IT guy so i'm thinking of servicing pc's, laptops, servers, and networks to instantly increase income; and also provide an online store for PC's, parts, supplies, and anything slightly related. Any thoughts on my plan?? Seem effective?

Snowbank or anyone, what should my steps be for making my "first money" at 24? Any guidance, tips, and thoughts would be greatly appreciated!

Are you going to dominate that space, and fill a huge gap in the market? From the way you're explaining it, it doesn't sound like that's on your mind at all.

biophase kills it in e-commerce because he is a leader in the space. he is dominating the markets he's in.

i've been successful with bluefirep0ker because we offer the highest quality p0ker education in the world. i didn't just put some random p0ker videos onto a website.

mj crushed it in the limo market because he filled a need that wasn't being filled

mj filled a need with the fastlane forum because most entrepreneur/make money forums suck, and here there are a handful of successful posters who are willing to share some knowledge.

i launched foreverjobless because there was a need in the 'make money' blog space. the fact that none of the 'make money' bloggers know how to make money - that's a pretty glaring hole in the market.

that's why it's not an accident when biophase makes a bunch of money on his e-commerce stuff, because he is #1 in the market he's in. he's got better product, better support, more variety, etc...

here on the forum you can get answers from millionaires- that's why people keep coming back here. other forums the most valuable poster is a guy who makes $3k/month selling ebooks to newbies. so again, it's no surprise that people wanting to make money prefer here, over there.

foreverjobless will grow extremely fast because of the content, not because of WHAT I'm doing. It will grow extremely fast because of why and how I'm doing it. It won't grow extremely fast because it's a blog. A blog is just what it happens to be.

So, for whatever business you want to go into, it's really irrelevant WHAT it is.

I like basketball, but that doesn't mean I'm going to launch a basketball store on a wordpress site. That sounds like the equivalent of what you're trying to do right now.

Best thing to do at 24- get knowledge. Lots of it. Find 2-3 guys here who are doing what you want to do/achieving what you want to achieve, and find every word they've ever written. Then, you'll have the knowledge base to ask them questions. ONLY then, should you ask them questions. Don't go about it in a lazy way like most people and ask them to repeat everything they've already said and do your due diligence for you, instead of just putting that work in yourself.

This is not a long process, and can be done in a much quicker timeframe than people think. You just have to do it.

Then, you can start attempting to implement what you've learned.

Then, repeat.

Go do work for really smart people for free. Chances are, from being around them you'll learn a lot. If you're around smart/successful people all the time, it's nearly impossible to not figure out how to be more like them. Add value to their lives, and they'll give you tons of free knowledge. You can then scale that knowledge into however much money you want to make.

If you do all this, it becomes pretty easy.

Good luck.

 

[snowbank]

And why doesn't everyone do this?

Their fear of failure along with their lack of knowledge outweighs their untrained logic, and keeps them from acquiring knowledge that would reduce the fear of failure, leading to action, which would lead to ferraris.

 

[biophase]

I guess the question is, if you are seeing this as a slam dunk, what is the seller seeing?

Why would someone sell a website for one year's profit, when they could hang on to it and keep the asset and the income.

Personally I wouldn't sell for that valuation, and I doubt you would either. If you can figure out the real reason that the seller is selling then it may be a deal.

In general markets are efficient.

There are alot of deals out there. I wouldn't have believed it either until the last 6 months where I've been looking. My friend bought a store for $5k which makes $1k a month and it is consistently making $1k a month. There was another store making $25k a year where the guy was asking $15k.

Just like with houses and anything else for sale, these deals aren't on the open market. You have to search for them, find motivated sellers. These sellers were tired of running these businesses and wanted out.

With regards to evaluating ecommerce stores, it's fairly simple to see if their profits and what they claim are legit. You can review their traffic, checking their rankings and see their admin panel. I feel very comfortable looking through this data.

Even on flippa or bizbuysell there are tons of stores for sale at 1x-1.5x. You just have to sort through the crap to find the good ones.

Then next thing you need to decide is if you can improve them. If a store is making $50k and all its search terms are on page 2 of google and they are running heavy PPC, there's alot of room to increase traffic and lower costs. You could probably take that $50k store to $75k just by shifting PPC costs to SEO.

 

[biophase]

"Most" people haven't got the $100k to outlay to begin with, "most" would struggle to borrow $100k to buy anything but a house, and "most" would struggle to manage any business, even a mostly automated website, and would probably send their "investment" nosediving.

But then, that's what it's all about, isn't it - being different than "Most"

Doesn't matter whether it's a website or not, on 1 $100k investment and $8k/month thats a 96% annual ROI - anything that can be maintained consistently at anything near that level is worth investigating imo.

But is the $8k/mo revenue or profit? I'd be amazed to find anyone who'd sell a $96/year profit business for $100k, unless it requires an awful lot of effort to maintain or they feel it's close to dying... or they have no idea what they've got? hehe

It is $8k/mo profit. This is really not an investment as it does require time to run the business. However, the amount of time required would be about 2-3 hours a day.

BTW, this can be done with $10k. You can purchase a business that makes $1k/mo for $10k and pay for a $400/mo car or whatever else you may want.

 

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[DeletedUser2]

Ok, what do you guys think this business is worth? I am not interested in purchasing this one.

https://flippa.com/136820-Established-Online-Store-for-Helmet-Cameras-1-on-Google

So I have some formulas I use.
1. its older than 24 months, +
2. it makes more than 200K yr ++
3. the product is in an evergreen industry, +++
4. the product ties into several vertical markets and has the ability to expand beyond its borders +++
5. the customer list has potential for additional income ++

So i would start at a 1X of NET rev. (gross profit is kinda misleading, but lets say 25% off the top of the GP to figure Net Rev. and I am just WAY guessing here)
since I have 11 Pluses (in my own little hinky way of valuing things) i would be willing to pay up to 2.1X of NET rev.

but since i have not done my Due Diligence yet, I would expect to find 2-7 -'s so lets just say 4 for fun. that would bring it down to 1.7X of net

They claim a 345K GP number so lets take our 25% off (my number) and we get about 258K at 1.7X that's about 438K is the TOP of what i would pay for the site.

now about my discounts. I would like to get it for 1/2 that. or less.

so looking at the 199K price, i find a nice little flag. not bad, just pay attention. this might be a motivated seller with a "problem" he has to solve to buy his way out of, it might be on the other side of a divorce, and price for speed.
it might be a "partner dissolution" situation. in any case, its a pursue until there is a flag that says no.
now all my DD is focused on finding the absolute reason to NOT buy it.

but that's my 2 cents... and my kinda off the cuff numbers
Dale

 

[Runum]

I do this with my houses every time. If I want a car I buy an asset that will pay for the car and then some. Seems like a no brainer to me.

 

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[Inphinity]

"Most" people haven't got the $100k to outlay to begin with, "most" would struggle to borrow $100k to buy anything but a house, and "most" would struggle to manage any business, even a mostly automated website, and would probably send their "investment" nosediving.

But then, that's what it's all about, isn't it - being different than "Most"

Doesn't matter whether it's a website or not, on 1 $100k investment and $8k/month thats a 96% annual ROI - anything that can be maintained consistently at anything near that level is worth investigating imo.

But is the $8k/mo revenue or profit? I'd be amazed to find anyone who'd sell a $96/year profit business for $100k, unless it requires an awful lot of effort to maintain or they feel it's close to dying... or they have no idea what they've got? hehe

 

[JEdwards]

So a few weeks ago I'm looking at this 2006 Ferrari 360 Modena in red with nice wheels. Asking price is about $100k.

Poke some holes in this plan.

Small hole, they didn't make the 360 in 2006.... and there are no 2006 ferrari 430's for 100k. Probably a typo.

Also if you can find a businesses that creates 100k in profit a year and buy it for 100k. I can get you 1 million tomorrow and we can buy 10 of them. < I am not kidding.

 

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[Russ H]

Man, I have really missed threads like these (thanks, Kenric).

We used to have them all the time around here.

And then the economy did a belly flop.

Gerk.

OK, my 2¢ (which, due to inflation and the recession, are really only worth about 7/10¢ right now) :smxB:

***********

We got into doing our "thing" based on some pretty serious number crunching.

We had spreadsheets that incorporated so many variables that even the SBA consultants and lenders admitted our projections were a lot more solid (ie, predictive) than theirs.

What we saw, back in 2001:

•B&Bs in Napa sold for 5x annual revenues (not profits-- gross)

•The market was growing, and rates/occupancy were increasing every year (from 2001 on)

•We did LOTS of spreadsheets-- looked at flat growth, negative growth, loss of occupancy, rising costs, etc.

Then, we pulled the trigger.

Actually, we pulled it a few times: Bought the first B&B, then used the revenues/profits just like you would for your Ferrari-- only we bought more B&Bs/business revenue generators, which allowed us to buy *more* B&Bs.

Our formula:

Wash, rinse, repeat.

************

It worked great, but our spreadsheets neglected to tell us a few things:

1. B&Bs are a limited market. If you have 90% occupancy w/9 rooms, this does NOT mean you'll have 90% occupancy w/20 or 30 rooms. Because at 90% occ, 10% of your rooms were empty during the year-- if you have more rooms, those will also be empty on those days-- but instead of 10% of 9 rooms, you'll have 10% of 9 rooms empty, plus 100% of your additional rooms. I can 'splain further if that doesn't make sense.

Web/product corollary: If you have a market where you're selling 100,000 widgets a year, doubling your production or supply line does NOT mean you'll be able to double your sales. Your market may only be 100,000/year.

2. If you're doing spreadsheets (ie, projections), you're making assumptions:

-That biz will continue to be good and not hit snags
-That google will continue to smile on your property/product/website
-That the market will either grow, or stay flat

But what if:

-The market decreases (ie, LESS people buy this year than last)
-Your costs increase (ie, your raw materials cost more this year than last)
-Your overall selling price decreases (ie, you have to sell your product for less this year to stay competitive)

Look at the above 3 things.

Most spreadsheets/projections never plan on all 3 happening at the same time-- at least not at 20-30% for each.

Yet that's what happened to us, from 2008 to 2009.

Helluva gut check.

So, we're having to re-group. Figure out what to keep, and what not to keep.

Moral of the story?

Nothing lasts forever-- and conditions may change that you do not provide for in your forecasting/projections.

So plan for the worst case scenario at the outset.

Give yourself an escape plan.

So, if your downside isn't too bad (ie, you lose the Ferrari and your credit stinks), and you can live w/that-- then GO FOR IT.

It's a calculated risk.

But if the downside is more serious for you (ie, having your credit rating take a dump is super bad for you, and cascades into your other businesses failing b/c you can't order or pay for things), then structure your deal so if it crashes and burns, it doesn't take you or your other businesses with it-- just that one business entity.

Hope this all makes sense.

What I'm saying is: Do the deal if the numbers make sense. Just structure it so that if it implodes, it won't take you down with it.

And realize that your projections may not count for diddly if there are some major market shifts.

-Russ H.

 

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[biophase]

Q: Where did you get this deal from?

My 2 thoughts:

a.) If the numbers you stated are valid the biz price would be 3-5x from the 100k mentioned - nobody on earth will sell a valid working business that makes 8k per month net for 100k IMO

b.) the numbers - the owner are not valid / the business is struggeling whatever

If it sounds too good to be true..... :smug2:

You know I am kind of shocked to see that people just don't believe that you can purchase businesses at these multiples. Isn't a real estate house flipper doing the same thing? These deals are out there. Cold calling businesses work, you never know who's sick of their business.

Did you guys see this post by zen******* on another thread? His metrics are very close to what I'm seeing. Notice he mentions a $500k site going for 1x.

https://www.thefastlaneforum.com/we...rketing/31105-website-valuation-question.html

I purchase sites on a regular basis. I only buy Profitable ones,
Here are some rule of thumb metrics I have developed

The Pluses
+ if there is a great domain name
+ if there is consistency in profit and traffic
+ if the site is doing over 50K yr in profit
++ if the site is doing over 100K yr in profit.

quick metrics,
site profits under 10K yr .8X of earnings (8K)
profits under 25K yr 1x earnings
Profits between 25K -50K 1.2x
Between 50K - 100K yr 1.5-1.8x
100-200K yr 1.8-2.2x
200-500K up to 3.5x
1M+ regular M&A Standards


DISCLAIMER these are MY metrics based on years of buying deals, industry knowledge, and a whole TON of additional information that I use for valuing sites. but just quick metrics. Flippa is a good place to get a pulse of the market, but not the best place to buy IMHO. Most of the deals I buy are private negotiated deals.

to be honest, I Have seen some really good sites go for 1x that were in the 500K range. deals like that are more dependent on seller motivation, and buyers quickness in cash.

All these sites BTW have their own products and services. they are NOT affiliate related sites, They are NOT advertisement based income, they usually follow a singular direct response model.

that's a quick answer, Hope it helps. PM me if your really interested in buying sites. there is just to much info for a single post

 

[biophase]

@biophase I just want to say thanks.

When I first joined the forum, I read some post of yours talking about buying a business and using the proceeds to buy a car. I can't find that post, but I found this thread, same difference.

Anyways, I've been wanting a new car since before I joined the forum. I drive a paid-off dadmobile sedan. It's point A to point B, and it ain't fun.

Instead of giving into the urge for more fun, I stacked some cash and am now finally closing on a business for 1-1.5x. I'm going to give it 6 months to ensure everything is as it should be, then I'll go get a car I actually want.

So again, thank you, for helping me make a smarter decision with my time & money.

Thanks for bumping this. I went back and re-read it and it is so interesting that I talk about selling ecommerce for 1.5-3x back then. The numbers now are crazy from 3-8x.

I'm going to go back through the post in more detail. Alot has changed in 10 years!

 

[Rickson9]

Speaking for myself, I wouldn't pay more than 5% of my net worth on a car. A car, and a salary, are the two fastest depreciating assets for the typical individual.

You need to be fairly good at reading and interpreting financial statements before buying a private business. It's not a game for the financially illiterate. Ask for 5 years of income statements. Then pour over them.

Best regards.

 

[Jonleehacker]

I guess the question is, if you are seeing this as a slam dunk, what is the seller seeing?

Why would someone sell a website for one year's profit, when they could hang on to it and keep the asset and the income.

Personally I wouldn't sell for that valuation, and I doubt you would either. If you can figure out the real reason that the seller is selling then it may be a deal.

In general markets are efficient. The reason, as I understand it, that websites sell for such low valuations is that profit in web based businesses can be highly volatile and fragile (one Google engineer's bad day away from a 50% drop in income).

 

[biophase]

Let's hear how the deal went down Biophase

No special deal or anything. Just went out and bought it cash. I did think about purchasing a store to fund it, but I have way too many stores to take care of now to even think about running more.

If you want to take some things out of this thread, note that I made the actual post in May. However I made it a goal in January to get a Ferrari this year "if" I hit other certain goals. Most people will make goals and never even move a step forward to achieve them.

I had a plan and it worked out. I sold my Mercedes in Feb because I "knew" I would be getting the Ferrari at the end of the year. This kind of stuff takes planning and effort. It doesn't just happen that you wake up one day and can go buy one.

Like MJ says, the event is me buying the Ferrari. The process of buying it started in Jan 2011.

 

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[ChrisRempel]

Flippa.com and others are full of stuff like this.

But you need to realize that MOST sites like this are "built to sell". Not always, but often. That is why they sell for 1X to 2X earnings. Very low compared to "traditional" valuations.

Getting an online store or a larger affiliate site to the $100K mark actually isn't that hard. It all comes down to what you sell, market demand, etc.

However - the internet is volatile. Search engines are volatile (just go read about "Google Panda" in 2011). Everything will fade over time, and succumb to what we call "attrition". If left alone.

The difference between buying that condo or a website is that a condo can literally be left alone for 10 years (rented out, whatever, fix the odd thing) and 10 years later can sell for a comparable or possibly even higher price than what you bought it for due to the general inflation-matching that RE tends to do, over time.

If you did nothing to that website you just bought for even 12 months, it would very likely slump to half of its revenue, or less. That's because the search engine game is one of continual "clambering". You have to defend your rankings (even on the long-tail, by way of domain authority maintenance).

Same goes for affiliate-driven revenue (people selling your stuff), buying ads, monthly rebills, running a newsletter, etc.

EVERY ONLINE BUSINESS REQUIRES CONSISTENT INFLUX & STOKING THE FIRE, OR IT HAS A TERMINAL LIFE SPAN.

A condo does not.

And that is why a condo making 8% can be just as appealing as "online real estate" making 100%. One is an investment (arguably), and the other is a business (arguably).

Tip: You will see a significantly higher ROI if you buy a site or online business that can be made to "fit" within your existing operations, either as another lead source, profit-center, whatever.

I'm not trying to be a party-pooper here guys, but this is kind of like investing in penny stocks.

You REALLY need to know what you're doing if you plan on dropping big change.

If you do - awesome. Easiest ROI you'll ever see.

If you don't - you're essentially gambling. Slightly better odds, but still...

Just my $0.02

-Chris

 

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[snowbank]

When I get enough in cash, I think I'll try something like this.

If all you had was $20k, or even $40K, you shouldn't be doing this. Especially being 19, you should be scaling your money up.

Two totally different scenarios between someone who's 19 trying to make their first money, as opposed to someone who already knows how to make money, and has other assets producing income.

 

[BizyDad]

@biophase I just want to say thanks.

When I first joined the forum, I read some post of yours talking about buying a business and using the proceeds to buy a car. I can't find that post, but I found this thread, same difference.

Anyways, I've been wanting a new car since before I joined the forum. I drive a paid-off dadmobile sedan. It's point A to point B, and it ain't fun.

Instead of giving into the urge for more fun, I stacked some cash and am now finally closing on a business for 1-1.5x. I'm going to give it 6 months to ensure everything is as it should be, then I'll go get a car I actually want.

So again, thank you, for helping me make a smarter decision with my time & money.

 

[biophase]

I would love you to share your thoughts after you go through it! I am young and just starting. I know how much I can learn from those, who have already walked those paths. I am curious about your insights after these 10 years

So it looks like back in 2011, you could purchase ecommerce stores for 1x multiples. I remember the company we were looking at was selling sports equipment, but big stuff like pitching machines. They had high dollar items that cost $200+ each. I don't remember if they were dropshipping, but I think they were. There was no Amazon FBA at the time. We were all competing with Amazon.

Now in 2021, the landscape is so different. You've got Amazon FBA businesses mixed with Shopify stores selling at 5x-7x. Online businesses are hot right now due to the pandemic. They are viewed as "safer" than brick and mortar.

Found this quote from a reply in 2011.
"Thanks for the heads up but I really have zero interest in any kind of online business. I only buy assets I can see and touch, I'm old fashion."

This sounds exact like Kyosaki back in 2006 when he told us to get off the internet LOL.

It looks like the title of $20k for a Ferrari came from buying a 25% share of this business for $20k and getting $2k a month. Back then a $2k a month car payment could probably get you a $100k car with a year payment and $10k down.

Guess what, it still works today in terms of numbers because interest rates are so low. Because businesses are selling at 4x+ you would pay $100k for a business that makes $25k a year. The problem is that now it will take you 5 years of running the business to pay off your $100k car. To me that seems like alot of time working off a car.

 

[biophase]

Biophase- Do you have the experience necessary to keep the online store that profitable? Could you hire someone else to do it and grow it?

If I were doing the same thing, that is what would take me a while to consider. I have never really run anything online and would need someone i could trust to help me take it to the next level (or just keep it running smoothly).

This is really intriguing though. Please keep us updated.

Yes, all I do is run online stores. I can definitely keep it at its current level, but I am sure I can improve it also. I would hire someone to run the day to day and I would work on growing it. It's not really difficult to keep a store running smooth, but you have to put time into it.

 

[max momo]

I think JLHacker nailed it. If the business is so great/passive income w/ that killer markgin, why sell it?

How many times has someone here posted the story about how they bought a business and:
a. the numbers were fudged - even the bank blew the valuation
b. undisclosed weakness that are not recoverable in court (only finding that out after legal money flushed down the tubes)
c. unrecognized shift in market trends (which is why the seller sold out)

Based on my only experience trying to buy someone else's business - I am now a big fan building my own.

Good luck either way!

 

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[JEdwards]

And don't drive a 458, 'coz then you won't like the 360 OR 430

The 458 is the only car I would trade in the 430 for... I am on the list.. waiting.

BTW: Looked in the garage, it is sleeping.

 

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[DeletedUser2]

One thing that is really interesting when I see a listing like this on flippa is that basically the guy has laid out a complete business plan of how to steal his niche... to me that is one of the most effective uses of flippa

FLippa, best niche research you can do, made for you business plans also

 

[snowbank]

If it sounds too good to be true..... :smug2:

From my experience the deals that seem to good to be true, sometimes aren't, but because other's are regurgitating what they've heard and assume something must be wrong, it creates a window for the people willing to dig in and look into it to snap up steals. From my experience the stuff you'd classify as "too good to be true" are often easier to get than stuff that's run of the mill because everyone assumes run of the mill is legit, and "too good to be true" must not be, so people like me swoop in and pick them up while everyone else is on the sideline instead of doing their due diligence.

Also, the risk tolerance most people have is not one that will allow them to be successful entrepreneurs, since they're waiting for the sure thing instead of just taking a calculated super +ev risk.

 

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[biophase]

However, I did not buy this for $20k.

 

[biophase]

Flippa.com and others are full of stuff like this.

But you need to realize that MOST sites like this are "built to sell". Not always, but often. That is why they sell for 1X to 2X earnings. Very low compared to "traditional" valuations.

Getting an online store or a larger affiliate site to the $100K mark actually isn't that hard. It all comes down to what you sell, market demand, etc.

However - the internet is volatile. Search engines are volatile (just go read about "Google Panda" in 2011). Everything will fade over time, and succumb to what we call "attrition". If left alone.

The difference between buying that condo or a website is that a condo can literally be left alone for 10 years (rented out, whatever, fix the odd thing) and 10 years later can sell for a comparable or possibly even higher price than what you bought it for due to the general inflation-matching that RE tends to do, over time.

If you did nothing to that website you just bought for even 12 months, it would very likely slump to half of its revenue, or less. That's because the search engine game is one of continual "clambering". You have to defend your rankings (even on the long-tail, by way of domain authority maintenance).

Same goes for affiliate-driven revenue (people selling your stuff), buying ads, monthly rebills, running a newsletter, etc.

EVERY ONLINE BUSINESS REQUIRES CONSISTENT INFLUX & STOKING THE FIRE, OR IT HAS A TERMINAL LIFE SPAN.

A condo does not.

And that is why a condo making 8% can be just as appealing as "online real estate" making 100%. One is an investment (arguably), and the other is a business (arguably).

Tip: You will see a significantly higher ROI if you buy a site or online business that can be made to "fit" within your existing operations, either as another lead source, profit-center, whatever.

I'm not trying to be a party-pooper here guys, but this is kind of like investing in penny stocks.

You REALLY need to know what you're doing if you plan on dropping big change.

If you do - awesome. Easiest ROI you'll ever see.

If you don't - you're essentially gambling. Slightly better odds, but still...

Just my $0.02

-Chris

Chris, I totally agree with your post. But also, if you can buy for 1X you can probably run the business into the ground and still make decent returns. You only have to run it poorly and make 50% of its original income for 2 years to break even. Anything after that is profit until it dies. I guess it depends on how long term you look at your online business. I have no idea what the online world will look like in 5 years. I look at my stuff in 1-2 year timeframes.

Bottom line, make money online and dump it into rentals.

 

[biophase]

Also I started this thread "How To Buy A McLaren For $20K", but I went a different route. I started a new business in 2018.

That business is still up and running and has made around $260k ish in its first 4 years. The Mclaren has been sold for over a year, but the business is still paying me.

NOTABLE! - How to Buy A McLaren for $20K

So this thread was started by me in 2011. NOTABLE! - How to Buy A Ferrari for $20K Now it's 2018 and the title should probably be changed to How to Buy a Mclaren for $20k. I have a progress thread on the inside and I'm going to copy and paste excerpts that are relevant to this post. Posted...

www.thefastlaneforum.com

 

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[BizyDad]

@biophase I just want to say thanks.

When I first joined the forum, I read some post of yours talking about buying a business and using the proceeds to buy a car. I can't find that post, but I found this thread, same difference.

Anyways, I've been wanting a new car since before I joined the forum. I drive a paid-off dadmobile sedan. It's point A to point B, and it ain't fun.

Instead of giving into the urge for more fun, I stacked some cash and am now finally closing on a business for 1-1.5x. I'm going to give it 6 months to ensure everything is as it should be, then I'll go get a car I actually want.

So again, thank you, for helping me make a smarter decision with my time & money.

@biophase Just wanted to thank you one final time. The business cash flow was twice what we projected, so I took possession my new-to-me 2020 Rav4 today. It's funny, these are hard to find, but I got lucky enough to find the color and model that had me saving all my money all those months ago.

Patience paid off this time. Thanks for planting the right seeds.

 

[CEBenz]

First, I mean this with the utmost respect,

But using a business to buy a car and/or real estate is sort of a big fat DDUUUHHH!

I know most of you read MJs book and most of you even read Kiyosakis RDPD, and now suddenly the light kicks on? Good grief. Maybe MJ should have written his book in the form of a 4' long 2"x4" to beat you guys over the head to pound into through those skulls.

Please don't be offended by that. I know Jack knows it.

Biophase, IF the due diligence checks out, I think I'd pull the trigger. Things I'd want to know are:

-Why is the seller selling?
I can see maybe he has too many irons in the fire and is cutting his lower producers. Maybe he fudged the numbers. Who knows for sure. How old is the business? When was the domain first registered? Look for flags.

-What does the market look like? Is it growing or shrinking?

-What does it use for marketing?


And me personally.....I want a hint on where you're finding these things. lol

And Biophase....another Ferrari to check out is the 550 or 575m Maranello. Fr engine/ rear drive w/V12
Andretti was clocked on a track in Texas doing 193mph in a full road going version with AC and traction control.

Speed for everyone in the thread +++

 

[DeletedUser2]

What do you mean by evergreen industry?

evergreen, never goes out of style, or will always be able to be sold.
examples,

how to make money,
Dating,
credit and money,
stock markets
entertainment
toys

some examples of non evergreen markets
the atari 2600 stragetgy guide,
walkmans
super 8 video store...

this market would fall into "toys" for evergreen. it is a new category, that is less than 20 yrs old. but it wont really go away, just evolve as the tech evolves.

it could also be in the "extreme sport" category, another evergreen type market.
hope that helps