0396

Sorry to hear of your situation. After reading these suggestions, I think the best suggestion is the one above....the same option you've originally thought of.
Best

RichPugh

Well, I listed it.

https://rennlist.com/forums/vehicle-...l#post13543683

Thanks everyone for the sincere feedback. I really do appreciate it.

Parnelli

Wise move. I've been a financial advisor for 25 years. If you ever have to ask yourself "can I REALLY afford this".......then you usually can not afford it If I can't write a check for it then I don't buy it (personal opinion of course but I sleep well at night ).

And don't listen to all the BS about these cars being "appreciating" assets. They have ALREADY appreciated. And substantially, too. Factor in the annual cost of insurance, maintenance, storage and most importantly the opportunity cost of that capital and you'll be hard pressed to say that these cars will be NET gainers going forward.

AZ Targa

^ Did you pay cash for a house?

Ed Hughes

Agreed 100%

Ed Hughes

Why would you ask or wonder that? Many people do. There IS a lot to be said about being debt free.

AZ Targa

Debt can be a powerful tool, not saying it's great to have but, it allows one to leverage their position in an investment.

earossi

Rich,

I posted early on in this thread and have been sitting back watching the responses that have rolled in addressing your quandary. Originally, your quandary seemed to be simple: a single piece of property that appears to have been a questionable investment.

But, after seeing all the responses and the additional information you supplied in response, I think there is a bigger issue here than just this one property.

To put it bluntly, you are extremely over leveraged. And, you appear to be almost addicted to the choices that have produced your financial dilemma. When you have to begin selling appreciating assets (like your 993) to pay down credit card debt, things are out of control. With all your current debt, I no longer can suggest that you retain the 993. Selling the 993 will provide some cash flow to resolve some of your financial issues. But, man, if you don't change the way you live, you'll be in debt up to your eyeballs forever, and the 993 a very distant memory.

Maryland is a land of hurt these days. The state is over taxing its residents and businesses. And, those are beginning to move out of state. Same thing that is going on in New York,Connecticut, and my own state of Illinois. The resulting loss of personal income and business taxes are causing the state to loose revenue. State politicians will make up for the shortfall by increasing taxes. That will put you further underwater while you wait for appreciation that may never come.

My point is that your state is heading for a crash. So, putting your eggs in any basket that is betting on things getting better is another crap shoot. Others on this forum may object. But, I am giving you just one man's opinion.

So, sell the 993. Prioritize your debt, and use the proceeds to pay down that debt. But, at the same time, you need to seek financial (and possibly psychological) help to assist you to work through your addiction to debt leveraging.

Im not a financial planner. But, I have spent a lot of years doing real estate projects, making and loosing money; but, I never got under water as you have. The main difference between you and I is that I was always conservative when it came to borrowing money. And, I never accumulated any debt on credit cards. I'm not any better than you; but, I have survived.

HalfGerman

Good luck with the sale. As someone who remembers the quality of your cars on Vortex, whoever buys it will get very nice car. Saw it at Hershey.

Keep attacking that debt. I learned my lesson on that. My mom was right, if you don't have the cash you cannot afford it. Always spend less than you earn. Save something, no matter how small at first, it will add up.

RichPugh

The heartache comes from a property I own, rent out and subsidize $1000/mo to do so. Realizing that I have a big chunk of "equity" in the 993 that could potentially give me a solid return gives me some opportunity NOW that I wouldn't have otherwise. Let me explain below...

Here's the part where I post a bunch of personal financial info on a public forum and probably shouldnt, lol.

I am just this... extremely over leveraged. I do have solid income, BUT... I have 42k in CC debt that requires $1200/mo in payments (really a bit less but I always overpay), 3 car loans totaling $1700/mo including insurance, my modest primary home mortgage is $1200, I pay all the gas/electric/cable/internet/etc for about $500/mo, I pay an ex-business partner $3100/mo for a buy-out deal we made (26 months remaining), I subsidize that rental property by $1000/mo... That is $8,250/mo... in expenses... That leaves me with about $4/month for food, gas, etc, LOL. My wife works part time so she takes care of groceries and most of the kids stuff but I'm starting to realize the 993 is the key to an immediate improvement in stress/life/income/etc.

After selling the car and adding it to the existing cash I have, I can pay off all of the $42k in credit debt and use about $20k to complete an apartment renovation. The apartment would generate an additional $1200/mo in income alone. Once that apartment is renovated, with my now ideal debt service after paying off all the CC's, I can refinance the building... which I WILL leverage based on what I can cover with the rental income of the bar/restaurant business on the 1st floor downstairs. I owe very little on the building but I cant realize the equity in it via refinancing w/ cash-out unless the apartment is finished and rented and the cc's are paid off... THEN I can refi, take a big chunk of cash out (still leaving 25% equity in the building and the positive apartment cashflow for me because the NUT is paid by the 1st floor bar/restaurant) and I can pay off the balance of a business buy-out deal that costs me $3100/mo.

After paying the 993 off (I owe $9k with a $600/mo payment), eliminating the insurance on the 993, eliminating the $1200/mo in cc payments, bringing in the $1200/mo apartment rental, and eliminating the $3100 monthly payment to my old business partner, I will now have over $6k in additional cashflow and zero personal cc debt. This way, I can either afford to keep the house I subsidize $1k/mo OR I can sell it at a loss and cover the loss with avail credit which I can pay off at an accelerated rate with my newfound cashflow. If I put my blinders on and keep paying the $1k/mo for the next 240 months, I spend $240k and I end up with a house probably worth at least $400k in 20 years. That's better than a 4% annual compounded return for 20 years on $12k/yr. Eirther way, now I CAN afford it.

I am prioritizing my finances so it will be easy to own another 993 someday, lol

Dunno if you saw the previous post where I put it up for sale already

Maryland isn't terrible but Baltimore City is. the real property tax rate here is 2.27/100! A $400k home costs you over $9k in taxes in Baltimore City. The same house in the Baltimore County costs $4400. That's an extra $400/mo to own in the city. Nobody is increasing taxes in Baltimore City. They've already made some improvements to it and reduced it a fraction.

Ideally, Id sell the city house for a loss and buy another house near us out in the county so I can move my Mother up here and she can be our free babysitter down the street for her granddaughters and her SS/pension will cover my mortgage on that 100%. Then I could realize an ADDITIONAL $1000/mo in cashflow and afford to put gas in my car

I appreciate your input. I'm not a stupid guy... I just love my 993, haha. There will absolutely be another one down the road.

RichPugh

I agree with this but this is also why I am where I am now. My father is a retired president of a small Bank. He was a banker for over 40 years so he knows (and has instilled in me) the value of leverage and he knows when to only buy it if you have the cash. Me, I'm selfish. I bought TONS of junk when I didn't have the cash. Thats not to say some of those weren't good investments... just most werent, LOL. Without leverage, I wouldn't be even close to being able to pull out of the financial situation I'm in currently. I'm glad I leveraged what I did. Now I need to stick to the rules of thumb to stay out of debt... but benefiting from leverage is a solid practice. The principle of financial leverage is using someone elses money for your benefit. If you don't have to use your own money, don't... so long as you can afford it.

RichPugh

Here is a link to 293 photos we took yesterday. Unedited so some are dark and some are filtered. Either way it shows the car as well as I could...

https://www.dropbox.com/sh/5jbrgh1ti...6HorrSr7a?dl=0

Soup

Good luck on the sale.

Been following this thread since the beginning - interesting tidbits. Seems like you knew the right answer all along, just needed the reassurance from the group.

FLYT993

i empathize with you rich. absolutely loved, what you did with your car and understand you are doing what you believe YOU need to do. good luck and best wishes and i hope you are able to return in another 993 or be able to get yours back. all the best.

RichPugh

Thanks fellas. I'm getting some bites but nothing serious. Looks like I'm selling the Outlaw001's and probably selling the car w/ the Techarts for like $57k. That's pretty fair considering this car needs NO maintenance or repair and wont for a long time relating to the typical stuff. I cant be responsible if someone jumps it over a roundabout or anything, lol. I definitely want back into another 993 but the next time, it'll be a cash buy when I'm in no debt