[4strings]

what is the highest safe rate you can get with your money just sitting in an account?

[ProfessorOfDarkness]

Has anyone tried foreign banks? I've considered putting some of my money into foreign CD type accounts that earn higher interest than any in the US.

I think this may not be a good strategy because this introduces a new variable: the currency conversion rate, which can change over time. I could potentially lose the money I would have gained if the value of the foreign currency goes down.

Are there any other obvious problems with this that I haven't considered? Will it cost more just to convert the money than I will make in extra interest?

[WanganRunner]

Originally Posted by BOG

That's your plan? Buy from stressed out rich guys? Do you even know any stressed out rich guys? You do know that any exotic car dealer will glady write someone a check for their car if they want, don't you?
I can tell you now, you're going to fall flat on your face and lose a fortune unless you have built up a reputation and relationships with customers. You're not flipping Dodge Durangos here.

I know a couple of stressed out rich guys, lol. I have also found that I can often beat dealer-offered trade-in prices and still make a substantial profit.

I recently bought and profitably flipped a 2004 996 Turbo Cabriolet. The seller wasn't "distressed", but he wanted more than the dealers were offering and he wanted to sell quick. I provided that service (albeit leveraged to my eyeballs) and I took home a small profit. The margin was lower than my normal transactions, but it built goodwill and he'll go tell his friends about me.

Anyway, in regards to "building relationships", I've already built a relationship with a guy who is known in DC as being a big-time buyer of jewelry and real estate from estates, and from anyone else looking to quickly liquidate very high-end goods (i.e. $200k Patek watches, diamonds, antiques, etc..).

His problem is that while his customers have also often tried to unload autos on him, he doesn't know the first thing about pricing. I am going to provide this service to his customers through his company, and I'm only going to owe him something like 5% of my net for the priviledge.

Oh, and it's actually fairly tough to "lose a fortune" flipping cars unless you buy at the wrong price. I have no problem walking away from potentially unprofitable deals, I do it all the time. I don't have to make money every time opportunity knocks, but I don't ever lose any.

I'd also like to buy totaled exotics from owners. Maybe have them take the buy-back option from the insurance company and then sell me the wrecked car at a markup. I would then part it out at a profit, although this requires a substantial time investment. I'm qualified to make the call on the value of certain vehicles as parts, not so qualified with other vehicles, so it'll be a learning game.

[The Stealthy One]

Um, I hate to be the one to have to point this out, but if you're not making money, then you're losing it.

[WanganRunner]

Originally Posted by The Stealthy One

Um, I hate to be the one to have to point this out, but if you're not making money, then you're losing it.

LOL

Yes, I suppose in regards to inflation, this is the case, but my cash balances earn like 4% or whatever in the account, and so they're technically beating inflation whether I'm doing deals or not.

I was just trying to illustrate the fact that it's just as important to know when to pass on a bad deal as it is knowing when to close on a good one.

Besides, I do enough deals every year to be beating inflation by a tremendous margin. I can afford to be selective on what I get involved in, because my winners tend to be big winners.

[The Stealthy One]

Ok, if you have a cash balance, you're probably making money, no? And how can you then turn around and say you do enough deals to beat inflation? If you are doing this, then you are not losing money.