Quote:
Originally Posted by iminhell1
I think some of you have lost touch with reality, or maybe I just see cars differently. It seems most of you are thinking about pristine cars. I would look at fix-er-uppers. I see a lot more possibility for profit if you save on the initial purchase price. In an investment situation you're not (or shouldn't be) concerned about cost of ownership because you won't be driving the car. It's a project for profit only and that is how you must look at it.
I said it in one of the other recent threads of this type, you also want to look at the number of people who have disposable income to spend on your profit project. The more reasonable the selling price, the more potential buyers, which means the faster the sale and the faster you can move on to the next project ... you don't want to tie money up for too long.
Bearing that in mind, your $100K + cars are not a good choice. Even cars that are $50K are not a wise choice. I would say something in that sub $30K is where the greatest market share lies. And that means the cars you should be looking for to fix up should be half that or less.
And from what I've been told, one way to mitigate the losses from holding onto the cars is to create a museum. IIRC there is something in the tax code that allows for depreciation (more than business use).
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As an investment this looks like part a financial outlay along with a part time job. I agree that if you don't count your time at all as part of the investment then you have a better chance at coming out ahead. Count your time at a reasonable labor rate and I still think unlikely.
I had a 3 apartment old house I spent 7 years working on while I lived there and then sold it for a large profit. Counting my time as nothing sure made it look like an even better investment.
