How I make money and enjoy the HUNT!!!

Random Ramblings
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Someone here once asked me if I’d ever retire???

The answer to that question fascinates me because I couldn’t imagine NOT playing the game…I LOVE THE HUNT…The kill is where you put the money in the bank, but the HUNTING is where the fun is.

I was very lucky to have a mentor that was a genius…He looked at the world differently than almost anyone I have ever met. He LOVED the chase…the hunt…The interaction with other living, thinking, strategizing humans…He also LOVED getting a good deal…on ANYTHING.

He taught me a very simple lesson…If you want to BUY IT, you MUST let people know that…Be very specific…ASK for the thing you want and people will call you with it.
I try and incorporate this strategy into a lot of the things I do business wise and and even for a hobby.

A couple of examples…

My wife LOVES Thos Moser furniture…It’s beautifully designed and built to last GENERATIONS. It also costs a lot of money…A simple kitchen chair runs $1600 (each)
So instead of driving to Maine and paying $15,000 for a dining room set, I run ads looking to BUY Thos Moser furniture…I get calls from people who are moving, or lost a job, or are down sizing and we’ve filled our house with about $80,000 worth of this furniture for about $10,000. FINDING IT is the FUN part…Getting hand Built AMERICAN MADE, classically styled, cherry furniture by a recognized American Master at 75% off is the pay off.
If you’ve never seen or heard of this furniture check it out at…

www.thosmoser.com

I recently decided to fill a barn I have with Porsche 911’s from the air cooled era. I believe these cars are at the bottom of the depreciation curve and will move up in value in the coming years, so I’m loading up!!
I used what I have learned buying real estate to FIND these cars…I run ADS in local county newspapers that say…WANTED…AIR COOLED PORSCHE 911’s…ANY CONDITION…CASH PAID!
ASK and you shall receive…I’ve “received” 3 Porsches in the last 2 months from these ads.
All purchased for pennies on the dollar from people who just wanted CASH. I LOVE THIS!!!

The best part???

Pulling up to that garage and having the caller open the door and seeing that car for the first time!!! YOU NEVER KNOW WHAT YOU’ll SEE!

Buying real estate is the same game for me…It’s a TREASURE HUNT!!!

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Very interesting and inspiring. Thanks!

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I talk about that all the time. You should never work for money. The second worst thing that could ever happen to a person is that they get a job. The worst thing that could happen to a person is that they get paid from that job. From that point on people start seeing their job as the way to make money and then they work for money. They have a bill they get a job. That causes people to do anything that will pay them. You should only work because it is fun. If you don’t love what you are doing you want to get way from it as soon as you can. But if you really love what you do you should keep doing it as long as you can. People talk about retiring from their job. That is the sheep mentality. It is what we have been told. But in reality you should retire to something. Retire from what you either can’t do anymore or don’t like doing to do something you do like to do. It is like in the movie Wall Street ( I know I watch too much TV) when Bud Fox the Charlie Sheen character asked Gordon Gekko the Michael Douglas character “How many yachts can you water-ski behind? How much is enough?" Gekko’s reply "It’s not a question of enough, pal. It’s a zero sum game. Somebody wins, somebody loses. Money itself isn’t lost or made, it’s simply transferred from one perception to another. Like magic.” Gekko didn’t care about the money. The money was how we keep score. He LOVED the game.

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You nailed it man…100% nailed it…AWESOME POST!!!

Thanks Blue!!!

Wall St. is also one of my favorite movies…The variety of great lines in it is ENDLESS!!!

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“Greed is good”

-G. Gekko

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I will use a line from one of my all time favorite movies to describe my passion for dealmaking…Heat…

Michael Cheritto: Well ya know, for me, the action is the juice

This sums it up for me…I couldve retired at 37 years old but Im good at what I do and I have a passion for it…Whether it be dealmaking,trading,hard money,loan to own…I love it all…You can have my place in the sand and my fruity looking drink with the umbrella stuck in it…Id rather be stabbed in the leg than retire…Retirement in my family meant meeting my maker way too early…

Not to derail this thread but I do feel the last 2 years have been very profitable deal wise…But…And this is a big but…You needed to have access to capital to make money…Real money that is…I wont post what I make or how much I make but I will tell you that had I not had capital ready I wouldnt have made nearly as much as I did…

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I recently decided to fill a barn I have with Porsche 911's from the air cooled era. I believe these cars are at the bottom of the depreciation curve and will move up in value in the coming years, so I'm loading up!!

FDjake,

Quick question on this…based on some research I’ve done, and to the best of my understanding, 911 aircooled engines were made from 63-89, are you picking up ANY models within these years, or are you only trying to find 78-83 SC’s like you recommended in your other post?

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Great post FDJake, keep them up!

Not to get off topic, but do you think vw’s might be a good investment too jake?
I just bought this:
http://images.thesamba.com/vw/classifieds/pix/3309533.jpg

it’s a 66 vw bus. I love these things and this will be my 3rd one. Great fun and they go up in value quick. Not sure if they will skyrocket like a porsche or not. The first one I bought back in 2000 at a yard sell for 800 bucks. Sold it a few years later for 3200. This one I picked up for 17K. Which is a steal!

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John_in_NC,

That BUS is a CLASSIC…That car will continue to increase in value for YEARS…This type of vehicle has always fascinated me…It TRANSENDS GENERATIONS…and THAT is what you need to INVEST in classic cars…You need a vehicle that young people NOW think is cool and OLDER people remember BEING COOL…Those TWO ingredients FUEL demand and DEMAND fuels PRICES!! What you did by buying that VW bus is a CLASSIC example of WHY this investment works…You COULD have spent $30,000 in a NEW Minivan that 5 years from now would be worth $12,000…INSTEAD…You purchased a CLASSIC you KNEW something about and THAT car will INCREASE in value in 5 years as the supply gets SMALLER!! They ain’t making classic air cooled VW buses anymore!!!

As for the 911’s…

ANY air cooled 911 is going up in value and I’m buying ALL of them I can get at a great price…I specifically mentioned 911SC’s because EARLIER 911’s have already had HUGE price increases.
Take early (pre 1973 911 “S” models) these cars are now demanding almost $100,000 for pristine examples…Cars that need work still pull $40 to $50K.

The SC’s are currently at the BOTTOM of the depreciation curve selling for $5000 to $15,000…Later model CARRERA’s from 84 to 89 are also GREAT cars and I wouldn’t hesitate to buy them also…But prices for these cars with the coveted G-50 Transmission run about $25 to $30K.

In my opinion…They’re ALL going up in PRICE for one reason…

These cars were built during a time at Porsche when PRICE did not matter…If you wanted a PORSCHE you paid what the factory was asking or someone else did…These were HAND MADE CARS!! The engines are JEWELS, that with proper maintanance, will run for half a MILLION MILES…The OILING system in these cars are DRY SUMP, exactly what RACE CARS USE…Very expensive to build and NOT USED in current Porsches (except the Turbos and GT’s) because of that expense.
These older AIR COOLED porsches WERE NOT built to PRICE POINTS…

I have a 1981 Porsche 911SC that came with the original window sticker
from 1981…That car cost $42,000 in 1981…A SINGLE FAMILY HOME in this State during the same time cost $40,000…In 2010 a new Carrera will cost you $75,000 and that $40,000 house is now $180,000…The point being DOLLAR FOR DOLLAR a new PORSCHE, if built to the standard of the 1980’s, would now need to sell for about $200,000 to be comparable to the cost in 1980’s dollars. Porsche has made HUGE CUTS in it’s build quality inorder to compete with LEXUS, ACURA (NSX) INFINITY and Other car companies that didn’t exist in 1981…

Porsches of the air cooled vintage are like Mercedes 300SL’s built in the 1950’s…At some point the WORLD will realize how well CRAFTED these cars are, how OVER ENGINEERED they are, and how UNDER ENGINEERED and DISPOSABLE the new stuff is…When THAT happens these cars will EXPLODE in price like EARLY 911’s already have!

The best part??? You can’t DRIVE your IRA and earn the same return!!

PLEASE…DO NOT use your IRA money to speculate in vintage Porsche investing…This should all be FU money! But…as with Real Estate investing…You CAN make money doing this AND have a GREAT TIME…IF…IF…you know what you are BUYING and what to PAY for it!!!

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Fdjake,

Thanks for the response.

Like I said before, I used to drool looking at these cars, and I always told my self I’d own one. After you mentioned how cheap and well built they are, I have to own them at these prices.

I was recently talking to a mechanic about the straight six engine that’s in my F150 and how reliable and durable it is, so then the conversation lead to flat straight sixes and they said the same thing you did about them being reliable, simple and reaching half a million miles.

PLEASE........DO NOT use your IRA money to speculate with vintage Porsche speculation.....This should all be FU money! But,,,,as wu\ith Real Estate investing.....You CAN make money doing this AND have a GREAT TIME doing it....IF.....IF..you know what you are BUYING and what to PAY for it!!!

The way I see it, worse case scenario I make my money back if they don’t appreciate and have some great fun. But I agree on your logic of supply and demand that these things SHOULD go up in value. I’m also looking to get these at a great deal, I’d never pay market price, just as I don’t for almost everything else I buy. :beer

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John,

That bus looks like it’s in great shape!! When was it restored?

I know there are a lot of guys out there that love vintage air cooled VW’s and talk about the ones they used to own while going cross country on them. I’ve also heard of stories of being able to do engine swaps on the side of the road with these buesses, that’s how simple they are built!!

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Jake,

I am a HUGE car guy and have rebuilt a car or two already. However, I am not too familiar with the older Porsche line. I found this add. Is this close to what you are referring to?

Porsche Targa 1975 - $1800

NO ENGINE parts or restore ? Euro car 911s 1 of 266

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THAT’s THE CAR!!

BUT…here’s what you need to remember on a “PROJECT CAR” like this…

You DO NOT want to even attempt a restoration on that car…You BUY IT and look at the $1800 as a SAVINGS BOND…you park it somewhere (NOT on dirt of GRASS) and you FORGET YOU OWN IT!! 10 years from now the car will be worth a LOT MORE than an $1800 savings bond!!

Be very careful on the PRE 1978 cars because these DID NOT have FULLY Galvanized bodies and tend to RUST much more than the later 911SC’s I recommended…BUT, it depends on WHERE the car is…If you’re in ARIZONA it probably doesn’t have rust…If you’re in a climate that has snow during winters STAY AWAY from RUSTY PORSCHES…

Since I started this thread I’ll give you guys some more background on these cars…

I’m going to cover the 1978 and NEWER 911’s since they are the best priced Porsches out there NOW…

In 1978 Porsche introduced the 911SC (SC stands for SUPER CARRERA not “sport coupe” as some think)

These cars were a HUGE leap forward for Porsche…Wider rear quarters housed wider rear tires, engine dispalcement went to 3.0 liters from 2.7…SC’s also had FULLY GALVANIZED BODIES. Earlier cars had just certain PARTS galvanized like floors and rockers…In 78 Porsche started dipping the entire body shell prior to painting. This GREATLY reduced rust.

A few things to look for when buying a SC…FIRST body work…Porsche 911’s have their engines in the BACK of the car…For people unfamiliar with the handling of these cars, it’s EASY to get into trouble…Driving these cars FAST is a ball…BUT…You MUST put your FOOT into the car when CORNERING…If you LIFT off the throttle in mid corner the weight in the rear starts to PENDULUM and the car will spin…LOOK for REAR END repair work on ANY 911 because most SPINS see the car backing into whatever it hits…

Next…there are 2 upgrades that MUST be done to any SC you buy…

First…the timing chains on these cars have tensioners that can FAIL and destroy the top of the engine…PORSCHE fixed this defect in the later Carrera by using an OIL PRESSURE FED tensioner…These pressure fed tensioners are BULLET PROOF and are rountinely retro fitted to older SC engines…MAKE SURE YOU DO THIS or that it has already been done…It’s easy to identify…There will be TWO metal tubes running to each cam housing on BOTH sides of the engine…If the car HAS these OIL LINES…the tensioners have been upgraded…NO LINES means NO UPGRADE…It’s about $1000 to have this done but will save you $10,000 should the old SC tensioners fail. I would not pass up a car that hadn’t had a tensioner upgrade…Just account for it in the price you pay, then GET IT DONE IMMEDIATELY!!

Next up…POP OFF VALUES

SC engines used a very basic and reliable FUEL INJECTION system called CIS injection…the only flaw in that system is OCCASIONALLY fuel vapors can collect in the air box and backfire…This causes the airbox to explode (it’s not dramatic just a small POP) but the PRESSURE cracks the air box and the car WILL NOT run with a cracked box…replacing this air box is $1000…The FIX is simple and CHEAP…you buy a POP OFF VALUE from Pelican parts and install it in the bottom of the air box…It’s basically a trap door that opens IF a back fire occurs…The pressure is released and the spring mounted valve closes again and you just saved yourself a $1000 airbox!!! The value is about $50 AND MY 10 YEAR OLD CAN INSTALL THEM!

Make SURE you spend the MONEY and have ANY PORSCHE you’re looking at INSPECTED by a PORSCHE MECHANIC…

YOU CAN LOSE YOUR @SS BUYING A BAD PORSCHE!!

These cars are VERY EXPENSIVE TO REPAIR and they are unlike any other car on the road…You NEED a Porsche mechanic to work on these cars…I would start out by driving down to your local Porsche dealer, walk around back and TALK to a few mechanics…BE DISCREET…Ask if any of them work on OLDER PORSCHES on the side??? If not, ask if they can RECOMMEND someone…Then give that guy a $20 for the info…Next time he see’s you he’ll remember that!!

Be PATIENT…Look at a LOT of cars…DRIVE as many as you can…That’s the ONLY way you’ll LEARN what a GOOD CAR is VS a sh*tbox.

And HAVE FUN!!! The HUNTING is the best part…If you run out and buy a crappy car you’ll be MISERABLE and it will cost you a small FORTUNE…So DON’T DO THAT…

I would also HIGHLY RECOMMEND Joining the PORSCHE CLUB of AMERICA and signing up as a member at PELICAN PARTS…BOTH offer a WEALTH of information and your LOCAL PORSCHE CLUB members can recommend good, HONEST, LOCAL mechanics. Also, there’s ALWAYS local members that work on their own cars and don;t mind TEACHING others that WANT to learn!! AGAIN…Don’t forget to PAY for their time and effort…The first guy that taught me the in’s and out’s of these cars saved me a TON of money…For his time I purschased him a $400 MOMO vintage Porsche steering wheel for his 911 and just placed it on his front seat one day while we were working on his car…HE NEVER FORGOT THAT and was THRILLED to help me with any little issue I had a question on.

That’s another little GEM to keep in the back of your head!!

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I’m not sure when it was restored, I haven’t picked it up yet. A hippie got to this one. The owner said the throttle cable was a guitar string when he bought it. They also did some hacking around and put in those nasty chevy front seats. It has been welded back, but that hurts the value. I’m gonna drive down next week and get it.

But it is a 21 window walk through model, meaning it has two bucket seats in the front which allows you to walk to the rear. Not too common but very sought after when buying one of these. And only buy a 21 or 23 window. Don’t worry too much about mechanical, it’s cheap. BUT watch out for rust! The metal replacement parts are cheap but unless you are a skilled body man, the labor costs usually put the price out of what the bus is worth.

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I have bad memories of my rear-engine air-cooled VW van bursting into billowing smoke on Highway 5 heading to LA to pick up my little daughter from an International flight. On the opening day of the LA Olympics.

I pulled it over to the shoulder outside of Oceanside, jumped out, opened the rear engine cover and was fanning it like crazy. I was hoping that that piece of c___ would burst fully into flames! Just incinerate the whole car…

Unfortunately, helpful motorists jumped out and stopped the fire with an extinguisher. So I was left with a destroyed engine instead of a completely destroyed vehicle that my insurance would have covered.

Don’t talk to me about those great VW buses.

Furnishedowner

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This is such an inspiring thread! I enjoy my work now but I don’t really see myself doing this for years and years. However, I am working on building a business of my own and right now, I have gotten to the point where my working hours are spent half for the job I currently have and half for my business. I hope to shift that to ALL of my working hours spent on my business and working for myself!