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How to Buy A Ferrari for $20K

hatterasguy

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Jul 29, 2008
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It would appear that we're really talking about the same thing here. But you may have to expand your thinking a bit to see it (and I don't mean that as a slam, by the way. I too used to think that real estate was the best way to build wealth, until I learned and studied more about different types of internet businesses).

In both examples, the e-biz and the condo project could turn into "buying a business". But if you hired someone to manage the business, then maybe you're only working 5% of the time in the business you bought.

However, the big differences are in the capital required for each business, the overhead costs, and the ROI. You should look into it Hatteras, you might be surprised. :)


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.

Also in my experience the problem with hiring people to run things, that's all fine and dandy but it kills your margin and you have to manage them. Not saying its a bad thing, just that its not as easy and cut and dry as people make it out to be.
 
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MJ DeMarco

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Since Kenric actually bought the Ferrari this week, I'd thought I'd bump the thread! :smxF:
 

snowbank

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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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andviv

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Congrats! I love the fact that you made it happen. Can I be like you when I grow up? :hl:

Looking forward to see it next Feb for the meetup.

Congrats again!
 
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biophase

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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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PopEmersen

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I think this was the first thread I read when I found this board and its inspiring to see that you achieved what you said you would. Congrats.
 

JEdwards

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It doesn't just happen that you wake up one day and can go buy one.

.

Well not in all cases, when I bought my first Ferrari, I was in Florida on Business, had some spare time, drove up to the dealership, 20 minutes later I was cutting them a check. Done. No thinking about it at all.

To be young..
 

garyfritz

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Like MJ says, the event is me buying the Ferrari. The process of buying it started in Jan 2011.
If you dropped cash on a Ferrari, I think it started a lot longer ago than January. Maybe you got the *idea* in January but you've obviously been creating successful businesses a lot longer than that.

Congratulations for that, and for the new toy!
 
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biophase

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If you dropped cash on a Ferrari, I think it started a lot longer ago than January. Maybe you got the *idea* in January but you've obviously been creating successful businesses a lot longer than that.

Congratulations for that, and for the new toy!

True, but my goal was to "create a new" or "grow my current" business in 2011. The goal was to increase profits in 2011 over 2010 by enough to completely pay for the Ferrari. I did a combination of both.

If I just counted on the business that I created in 2011 then I would not have made it. But the new business put in its fair share into the Ferrari Fund.

Here is my post on my blog from Feb 18th, 2011. The picture I posted on that post is the exact same model/color Ferrari I ended up getting.

2011 Goals » Live Learn Invest
 

Davidla

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Well not in all cases, when I bought my first Ferrari, I was in Florida on Business, had some spare time, drove up to the dealership, 20 minutes later I was cutting them a check. Done. No thinking about it at all.

To be young..

I was looking for the "like" button but couldn't find it... :rofl:

True, but my goal was to "create a new" or "grow my current" business in 2011. The goal was to increase profits in 2011 over 2010 by enough to completely pay for the Ferrari. I did a combination of both.

If I just counted on the business that I created in 2011 then I would not have made it. But the new business put in its fair share into the Ferrari Fund.

Here is my post on my blog from Feb 18th, 2011. The picture I posted on that post is the exact same model/color Ferrari I ended up getting.

2011 Goals » Live Learn Invest

Congratulations Kenric. I remember reading the blog back then. it is nice to see the process!
 
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andviv

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Something tells me Jack Edwards do not use Facebook or its "Like" button.
 
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JEdwards

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The other way around, I like your story!

Oh good, cause I was going to have to destroy everything you have come to love.

besides I like saying to people.. "You Mocking me"? Especially my employees.. Try it and watch their expressions..

Something tells me Jack Edwards do not use Facebook or its "Like" button.

I do not have a facebook, so I cannot use a the like button. One day I will have a facebook though.
 

GlobalWealth

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SerpSmasher

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Ive been into dropshipping for 5 years, this thread is really inspiring. Ive had what I consider mild success, I think it went flat because me a my gf started the business together, and now we argue about every little thing about the business and how it should run. It sucks because its capable of being a million dollar business that I think will never go further than 200k a year. Im thinking about just selling it to finally sever this deal. And work on my very own businesses,and not mix business and relationships together again. we get about 90k profits per year, the sites are 5 years old. thinking about listing it
 

ChrisRempel

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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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biophase

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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.
 

andviv

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Getting an online store or a larger affiliate site to the $100K mark actually isn't that hard.
Chris, I'll bite... please do tell more about getting an online store at the $100K mark....
 

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