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Stupid Lease/Purchase question

Discussion in 'Other Off Topic Forum' started by frogman, Mar 4, 2004.

  1. frogman

    frogman Guest

    ALL,

    I am currently looking to purchase a V12 Fcar. TR or 512 perhaps. Looking to spend 70-80K and get into an excellently maintained car.

    Here is my dilemma. Im currently deployed and will be until June/July. And will have six months off. After that I will be gone for a year or two, redeploying.

    I have terrible credit (stripper girlfriend need I elaborate?) BTW she is gone now.

    I have no bills and clear 18K a month.

    I dont own anything except clothes and watches. No house, no investments. I have just paid off all my bills and now all my money dumps into a savings account.

    I dont have the time or temperment to study investing for Frogmen. Ide rather masterbate with sand.

    I am clearly in the presence of the fiscaly well endowed here at F Chat.

    My questions are these.

    1. Would you recommend I buy the TR and let it sit in a garage somewhere? Where do I find a safe garage with responsible/reliable people to maintain the car?

    2. Should I lease for a year while I am home? How will my dreadful credit affect that? Is this foolish?

    3. What should I do with my money that I have left over?

    I have no financial advisor here in the desert. So what are your thoughts?

    Is there a company or business that could recieve my money, invest it, smartly, or Ill shoot them, and give me an allowance until I can retire?


    Help a gunslinger out here.

    Thanks for taking the time to read this guys.

    Stay Low
     
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  3. tifosi

    tifosi F1 Veteran
    Lifetime Rossa

    Sep 5, 2001
    5,382
    texas
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    Tom D
    I would not spend 70k for six month of fun only to let it sit for another 2 years. That said since you are in a dangerous business you may want to pluck down some money to rent a nice car for a few weeks here and there, same fun, prob less cost in the long run and no hassles, my two pennies
     
  4. tvrfreak

    tvrfreak F1 Rookie
    BANNED

    Mar 31, 2003
    3,879
    Arkansas
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    F K
    Consider sharing a car with one or two other people. You slash your expenses, and since you will be gone so much, it should be easy to sort out who gets to drive it when. If you do this, make sure you have an attorney draw up an agreement--it's not worth losing friends over.
     
  5. ernie

    ernie Two Time F1 World Champ
    Lifetime Rossa Owner

    Nov 19, 2001
    22,028
    The Brickyard
    Full Name:
    The Bad Guy
    Realestate man. I would say to get a house, but your not settled yet. You don't have to have a house, but you can get income property. Have a management company handle it. This way your money makes you money, and when your ready to get a house, or a Ferrari, or what ever, you have that property generating the funds you need.
     
  6. airbarton

    airbarton Formula 3

    Nov 11, 2002
    1,462
    Kennesaw, Ga.
    Full Name:
    Chuck Barton
    I agree with Ernie on this one, get real estate. The only thing I would do differently though is buy condo's instead of houses. They are easier to rent, cheaper to get into, and you can use them yourself if you want to take a vacation!
     
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  8. Kds

    Kds F1 World Champ

    I too am facing the same kinds of decisions as you are frogman.

    Same car....less money....leasing......difficult credit......

    Put 1/3 down.....you can find reasonable leasing for deficient credit with that much down on an F-car.

    Save 1/3 for "teething troubles".....don't spend what ever else you have left and get back to work earning more.

    A TR will stay relatively flat value wise in the next 12-18 months, which will be my "probation period" with this car.........the only risk is mechanical....and for that you'd be somewhat prepared.
     
  9. ross

    ross Three Time F1 World Champ
    Silver Subscribed Owner

    Mar 25, 2002
    31,854
    houston/geneva
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    Ross
    i agree with ernie.

    don't buy the car. there will be plenty to choose from when you get back, and they probably won't have sat around disintegrating in a garage for 2 years - these cars need to be driven, at least a little.

    if you need to get a horsepower fix every so often, then rent one when you are on leave.

    to repair your credit rating, buy a piece of property and rent it out. buy something that is easy for you to deal with in your circumstances and let a management company rent it out etc. plough part of your monthly salary towards the mortgage on a direct debit basis so that you never miss a payment. 2 years of that and no other screw-ups will go a long way towards repairing your rating. in the meantime, you may even make some money on the property, and you will not have lost any money on the car. winner all around !
     
  10. airbarton

    airbarton Formula 3

    Nov 11, 2002
    1,462
    Kennesaw, Ga.
    Full Name:
    Chuck Barton
    Ross is right about having a managment company handle the property for you. That's why I suggested condo's especially beach rentals. The managment companies take care of everything and just send you a check every month, it's super easy. The other nice thing is you can get them with very little down. Usually all you need to do is buy them pre-constuction, close it a year or so later, and furnish it. That is your entire investment. You can get pre-constuction with no money down. All you have to do is prove you will be able to close when it is finished. A lot of the time you can sell the paper before you have to close it and make a quick 10 or 15 thousand without putting in a dime!
     
  11. airbarton

    airbarton Formula 3

    Nov 11, 2002
    1,462
    Kennesaw, Ga.
    Full Name:
    Chuck Barton
    Yes go to www.cariberesort.com they are just now offering pre-construction contracts in the second tower. While your there check out 1108 & 308. I just sold 1108 for a very nice profit! Good luck and keep your head down!
     
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  13. airbarton

    airbarton Formula 3

    Nov 11, 2002
    1,462
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    Chuck Barton
    Well ok Frogman just make it back in one piece! Good luck
     
  14. airbarton

    airbarton Formula 3

    Nov 11, 2002
    1,462
    Kennesaw, Ga.
    Full Name:
    Chuck Barton
    Yes this is the redneck Riveria. The beauty of it is it is only 6 hours from Atlanta, 45 minutes from Mobile. and about 20 from Pensicola. It has some of the most beautiful beaches on the gulf cost and is very exclusive. My wife and I fell in love with the place after we went down there to stay in a condo her mother bought years ago. Since then our family has been buy property and condo's down there. My father in-law is even in the process of building a marina out at fort morgan. Did you get a chance to do a virtual tour of one of my units like a said?
     
  15. airbarton

    airbarton Formula 3

    Nov 11, 2002
    1,462
    Kennesaw, Ga.
    Full Name:
    Chuck Barton
    Actually I take that back, I don't own 1108 any more because I just sold it a couple of days ago. We only had that unit for a year and a half and we more than doubled our money! In fact that is why I sold it. I wasn't planning on selling it for about five years but some couple stayed in it, fell in love with it and made us an offer we could not refuse! I also have 40 acres out on the foley expressway that we are planning to subdivide eventually. I realize that a lot of people think this place can't possibly be good but that is because they have never been there. My condo overlooks Ono Island and sits between the back bay and the gulf. The view is absolutely spectacular. Not only that but it is close to shopping, fine dinning, night life, ect. All you need to do is go rent any of the condo's on the beach for a weekend and you will see what I mean. The bottom line is why should any of that even matter if you are making money. So far I have made a profit on every single investment I've made down there so as far as I am concerned It makes no difference If one other person does it, that will leave more available for me to make a fortune on!
     
  16. ferraripete

    ferraripete F1 World Champ

    beachfront property is beach front property...don't care where it is. it will always appreciate at the greatest rate and be the first to sell.

    they are just not making any more!! i am going to look into the web site you posted...interesting.

    pcb
     
  17. airbarton

    airbarton Formula 3

    Nov 11, 2002
    1,462
    Kennesaw, Ga.
    Full Name:
    Chuck Barton
    One thing I think might be interesting to note is they are only building the second tower right now. They barely just broke ground on the thing. I know because I fly down there regularly. There is suppose to be a total of 4 towers when the complex is complete. Also I have stayed in many of the condo's there in Gulf Shores over the years and there is nothing like Caribe on the beach! Like I said, don't take my word for it all you have to do is go rent one for the weekend and go explore the place yourself. If you don't have a private plane to fly into Jack Edwards airport, you can fly into Pennsicola which is just 20 minutes away. I think Delta's commuter ASA goes in there.
     
  18. ferraripete

    ferraripete F1 World Champ

    on the lease / buy /or save your money deal...save your money until you get back.

    the cars you mentioned are plentifull and great ones will be here when you get back. they are not appreciating assetts and by the time you return you may even find the market has become softer...the saving you may want to apply to your first major or clutch repair.

    letting a 512 sit for 2 yrs is not a good idea...trust me. the joint ownership idea sounds good in concept but hugely flawed in reality. i would be the guy that was always driving when it broke!

    lastly...$18k net/mo is not too shabby for gobment wurk! grossed up that is about $30k /mo and you could own the car out right when you return from duty. don't lease unless you have a justifiable business reason to do so as these cars are much more funto own when you don't have to write the monthly debt service check.
     
  19. mfennell70

    mfennell70 Formula Junior

    Nov 3, 2003
    564
    Middletown, NJ
    I dread calling a salesperson. Any guesstimate on Phase III pricing?
     
  20. Robin

    Robin F1 Rookie

    Nov 1, 2003
    2,893
    Arlington, VA
    Yeah I was just wondering about that... I realize frogmen are highly specialized soldiers, and hazard duty pay is probably kinda nice... but $360k a year????? I'm in the wrong business :)

    -R
     
  21. JimSchad

    JimSchad Guest

    $18K as a gov't guy? Holy jebus!
    Airbaton: I emailed that site for some more info. I buy and sell cheapo homes in Dallas, but for some reason condos scare me. I just don't want to be stuck owning something in a far off place that sits vacant.

    Any more you can add to this equation either publicly or privately?

    Such as entry costs? Sale prices then and now? Monthly checks you get for each unit? I noticed your 2 units were the smallest offered and on the corners so I assume a wider view radius?
    Thanks,
    Jim
    jschad01 at hotmail.com
     
  22. airbarton

    airbarton Formula 3

    Nov 11, 2002
    1,462
    Kennesaw, Ga.
    Full Name:
    Chuck Barton
    Sorry guys I just got off the tennis court. I would be glad to elaborate further. When I bought into the first tower they were $240K each. Units in the 2nd tower which by the way is already sold out were going for $580K. Thats what I meant about an offer we couldn't refuse. As I said we only had that one, a year and a half. I have one more but I am going to sit on it just to see what happens when the fouth tower is offered up and besides I like to go down there and it is my favorite one to stay in. I am not going to say how much we netted out in the sale or how much we made on it while we had it as this is private but I think you can figure this out for yourself based on what I told you. As far as entry costs are concerned like I said you will only need a letter of credit to secure the paper and about $15K or so to furnish it. You will also likely need to carry it occasionally but with as much as you stand to make at sale who cares. We bought the corner units for two reasons. 1 we thought they would be easier to rent because they are two bedroom two bath which is perfect for two couples or a family with two kids and 2 the view is spectacular. The market is hot down there right now so IMHO it would be difficult to screw up as long as you are not cash poor. One other thing, many of the people that do this never intend to close these things. They hold the paper right up until closing time and then sell it to people that want to live there instead of renting them out. There are only a small percentage of the units in the first tower that are rentals. All the rest are full time residents so you don't have a lot of competition in the rental pool. If there is anything else I can help with I would be glad to do so. Also if anyone is interested in staying there for a weekend to check it out you can book any of the units in the pool right there on the web site. Enjoy!
     
  23. airbarton

    airbarton Formula 3

    Nov 11, 2002
    1,462
    Kennesaw, Ga.
    Full Name:
    Chuck Barton
    if I had to guess I'd say around $600K. I'm waiting to find out. If I'm not mistaken they are suppose to start offering them this month.
     
  24. JimSchad

    JimSchad Guest

    wow, that is impressive. Just wonder if I/we missed the boom. $600K is a pretty big gamble for me and how high can they go??? I think you rode the "real" wave of opportunity from 240k to 580k. I could be wrong so not trying to be a nay sayer or pessimistic.

    Just pissed I missed a 340K passive profit!!!!
     
  25. airbarton

    airbarton Formula 3

    Nov 11, 2002
    1,462
    Kennesaw, Ga.
    Full Name:
    Chuck Barton
    That is precisely why you want to buy into another complex that hasn't been started yet. Caribe could well be maxed out but there will be plenty of new ones pop up and there are other investment opportunities down there as well. Good call!
     
  26. JimSchad

    JimSchad Guest

    You have any other suggestions on new developments? This is why I haven't ever bought any of them...I don't know the areas' potential until it is too late!

    Somebody on here was touting some new dev in Florida. I remember the pic on the website, but not the name or location. Emerald Green glass 15 story tall building facing the ocean..yeah that narrows it down!
     
  27. ryalex

    ryalex Two Time F1 World Champ
    Consultant Owner

    Aug 6, 2003
    22,314
    Las Vegas, NV
    Full Name:
    Ryan Alexander
    Hey Frogman, you just gave me a great idea: fractional exotic car ownership! For a few $k a year, we'll have one of our fleet of autos at your door in 2hrs, 24hrs a day. You pay based on your allotment of hours/days every year. Think NetJets, only with 575M's and Gallardos for 'low level flight.'

    I think these are in England already as "clubs" and whatnot. But no one's really doing this in the States as far as I know.

    Then, we expand to 6-8 markets in the US... and then... the IPO!!

    BWUHAHAHA!
     
  28. JimSchad

    JimSchad Guest

    ryalex: Exotic Car Countryclub in florida was doing this. Division of Exotic Toy Warehouse or whatever that cheezy ripoff org is down there. $250K fee and you get any car you want for a month or something. Trade it in whenever you want etc. They deliver to your door etc. Don't think it took off for them.

    There is a guy in Dallas that splits a TR with a friend he said, but he also had a 360 of his own so no biggy if the TR isn't available I guess.
     

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