Wickedfire Member Buys a Website, then Pays for a Ferrari with it
- Thread starter $tateOfMind
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You just agreed with what I said. All of the above qualifies as "downside risk".
Although I would add another factor he hasn't included - the risk to his initial capital. How likely is it that, irrespective of the Ferrari, he'll lose that because the business folds? I'd say at least 0.3, based on how flaky most ecommerce businesses are.
All in all, this sort of asset finance set-off shit is great if:
A. You're a multinational corporation and the set-off is a tiny part of your balance sheet.
or
B. You're trying to sell get rich quick books.
Otherwise it's mainly bullshit.
Blog post sucked. Read this instead: Opportunity cost - Wikipedia, the free encyclopedia. Then using logic, decide which investment will get you the highest returns. Life simplified.
P.s. You're not always going to get a return like given in the example. And if you do, then you're a dumbass for leasing a ferrari. Instead you should take that money and put it back into that awesome investment you have. Within a short time you'll have not one, but 3 ferraris.
P.s. You're not always going to get a return like given in the example. And if you do, then you're a dumbass for leasing a ferrari. Instead you should take that money and put it back into that awesome investment you have. Within a short time you'll have not one, but 3 ferraris.
I agree.
Obviously the point is about thinking outside the box and having a much smaller amount invested in an asset pay for an expensive toy. Not to show how to pay for a Ferrari with exactly $2,000/M. This idea should apply to anything. If you are going to pay 20k cash on a Honda, invest a much smaller amount in a cashflowing asset and have it pay for the car (and keep the asset after the car is paid)!
You'd have to pay insurance, maintenance and gas if you paid cash anyway, so what's the point of trying to factor that into the $2k/M?!?
Sounds like these guys knew their business too - so the risk was prob very low compared to the reward.
This is not like rich dad poor dad. He was talking about e commerce sites, not real estate. Kawasaki would be scared to do this deal. I did see a "make your money work for you" in there though.
Because only the financially naive ever purchase assets without analysing the total cost of ownership, not the purchase price.
That's like buying a store off someone and then realising it's not making any money, because you didn't factor in taxes, rent, stock costs etc.
Of course, detail like that bores the shit out the get rick quick crowd, so they don't talk about it in Rich Dad Poor Dad.
Yeah, ancient 360 isn't even owning a ferrari really.
It's like "I want to own a ferrari, but I can't afford one!" car. You could get a much better modern car for the money, but the guy's so up himself that he wants to be able to tell people he drives a ferrari.
Then he turns up on your drive and you realise that it's the ferrari you can get for £35k.
Buying old ferrari's is dumb shit. They do like 4 mpg or something hilarious, will need servicing every couple k miles, and you'll be taxed to death emissions wise here in the UK at least.
It's more cost effective to run a newer ferrari on the road, after the initial outlay. Not to mention you don't look like a wannabe jackass driving a new Ferrari. Just a jackass.
It's like "I want to own a ferrari, but I can't afford one!" car. You could get a much better modern car for the money, but the guy's so up himself that he wants to be able to tell people he drives a ferrari.
Then he turns up on your drive and you realise that it's the ferrari you can get for £35k.
Buying old ferrari's is dumb shit. They do like 4 mpg or something hilarious, will need servicing every couple k miles, and you'll be taxed to death emissions wise here in the UK at least.
It's more cost effective to run a newer ferrari on the road, after the initial outlay. Not to mention you don't look like a wannabe jackass driving a new Ferrari. Just a jackass.
I agree that people get bored by the details that actually do matter, and that's why they never talk about it in get rich quick books.
In this case, it's funny to see how people look at the little details as excuses instead of the big picture. Ironic really. Like people pass deals like these because they are "too good to be true" or "dangerous", it makes them miss the big idea here too. It's like people are expecting all the lights to always be green before doing something. That's never gonna happen.
Looks like "How to buy a Ferrari for 20k" was a shitty choice here as the main idea is about the poor vs rich thinking.
The "idea" itself is business 101. The choice of car is another matter
If you think that 15 year old (not vintage) ferraris are lame in the US, you should see how lame you come across in them in Europe. Wannabies drive them. Lease a nice dependable new lexus and throw it in the costs of doing business.
buy a used ferrari without guarantee is like commiting financial suicide if you calculate to pay all costs by lousy 25k / y .
and i doubt that you can get a new ferrari for 2k / month without a downpayment of at least 30-50%.
And as eliquid mentioned the whole calculation is made without taxes insurance etc pp.
If you want a ferrari buy it cash, get a new one with guarantee or an older one to collect.
and i doubt that you can get a new ferrari for 2k / month without a downpayment of at least 30-50%.
And as eliquid mentioned the whole calculation is made without taxes insurance etc pp.
If you want a ferrari buy it cash, get a new one with guarantee or an older one to collect.
The "idea" itself is business 101. The choice of car is another matter
If you think that 15 year old (not vintage) ferraris are lame in the US, you should see how lame you come across in them in Europe. Wannabies drive them. Lease a nice dependable new lexus and throw it in the costs of doing business.
I live in the UK. I see guys in their late 20's/early 30's driving 15 year old red Ferrari's with their shades on and music blaring and just laugh to myself. I'd rather have a nice BMW M5 or something, or heck, any other sports car that's relatively modern.. Like a newish Alfa/Jag or something.
If you're going to get a Ferrari do it properly, or don't do it at all. It's the reason they depreciate so quickly, no one wants an old ferrari because you look like a wannabe douchebag driving one. The guy that didn't get quite as successful as he wanted.
[ Of course vintage ferrari's are another matter entirely ]
That's not the case in third world countries, where you'd considered to be a mega millionaire no matter how old the Ferrari is.
In third world countries you're considered a millionaire when the water comes out of your tap clear.
