Sold my dream car...Porsche 911 S.....am I crazy?

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Sold my dream car...Porsche 911 S.....am I crazy?

Account Closed
Investor · Charlotte, NC · Member since 2016 · 19 posts · 61 votes

So I sold my dream car that I waited 55 years to own after two years of ownership. I made a radical decision last weekend and the short term affect of that decision was realized today. So...I bought a convertible Porsche Carrera 911 S in perfect condition two years ago. Since then I have invested in apartments, bought ten single family homes, and a portfolio of short term rental vacation homes. Now I am working on a syndication and expansion of the portfolio with a focus on STR (Short Term Rental) properties. With the pandemic raging on, I desire to be ready for the deals that I believe will be available in 2021, I have been squirreling away money in preparation, and today I sold my dream car to help with the buying fund so that I can capitalize on future opportunities. I don't think you will, and I expect some haters to reply to this, but don't feel bad as I drive a nice Toyota truck every day, so I am good, but sometimes we need to make these types of decisions to improve our opportunities and to improve the future fo our family.

I would love to hear your thoughts a comments....positive and negative. Thank you in advance - David M Boatman, Charlotte, NC

@beardybrandon @davidgreen24

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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
6y

Usually in cases like this, you found that the dream of having the car was better than the car itself, which is why you were able to part with it so easily. Aside from the financial considerations of trading a liability for an asset, which you've done/will be doing, it sounds like you got your fill of the car and moved on. That's how life is sometimes.

I used to restore old Mustangs. I built a 67 convertible from a frame and boxes. I drove it for 2 1/2 years after I built it, then sold it for a nice profit. What I found is that the journey was more important to me than the destination, and that even though I liked having a nice old car, what I really liked was the process of fixing it up in the first place. Real estate was a nice substitute for that; I get to see junky houses rehabbed, and then they make money instead of sitting in my garage.

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  • Luke Rorech
    Real Estate Agent · Greater Tampa Bay · Member since 2017 · 392 posts · 290 votes
    6y

    @Account Closed For what my opinion is worth, you made the right decision. You sold a depreciating asset for cash which will help fund an appreciating & cash flowing asset. In which case will help support your family's financial future. I get that it's your dream car but seems like a no brainer in the long run. 

    20Reply
  • James Bradin
    Rental Property Investor · Destin, FL · Member since 2016 · 91 posts · 55 votes
    6y

    Coincidently that is also my dream car, and a car that I hope to one day afford as my RE portfolio grows.  I am not selling any extraneous assets, mostly because I have yet to invest in any.  However I do agree that cash is king right now.  I am much earlier in my RE journey than you.  However I am hoping that the house hack that I am currently under contract on will continue to build my cash reserves should I need to pull the trigger on any upcoming deals.  Since April I have not contributed any money to mutual funds/stocks (I threw a ton in during the low in March/April).  Now everything is focused on the next move.  Whether that occurs in 2021 or later, I would like to be ready.

    I think there could be promising stuff in STR properties near big cities where the owners are on the ropes due to lack of airline travel/sports events/conferences/major attractions (Disney). I haven't done a lot of research on those areas as my portfolio is limited to a few cities not in that category. I am fine driving my old car saving up cash and waiting for the next deal to come up.

    2Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
    6y

    Usually in cases like this, you found that the dream of having the car was better than the car itself, which is why you were able to part with it so easily. Aside from the financial considerations of trading a liability for an asset, which you've done/will be doing, it sounds like you got your fill of the car and moved on. That's how life is sometimes.

    I used to restore old Mustangs. I built a 67 convertible from a frame and boxes. I drove it for 2 1/2 years after I built it, then sold it for a nice profit. What I found is that the journey was more important to me than the destination, and that even though I liked having a nice old car, what I really liked was the process of fixing it up in the first place. Real estate was a nice substitute for that; I get to see junky houses rehabbed, and then they make money instead of sitting in my garage.

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    22Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y

    I bought a Ferrari in May.  It is the fourth one that I have owned, and I have made a profit on the first three.  I wouldn't call it an investment, but it's better than buying an RV I suppose.

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  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    6y

    @David Boatman no brainer

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  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    People have been predicting a crash for three years. I just don't see it unless we're hit with some other major catastrophe (man-made or otherwise). I'm not really changing anything. However, you can never go wrong with selling a depreciating toy for an appreciating asset.

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  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    6y

    @Collin H. How does one turn a profit on used Ferrari’s? I need to get in on this niche!

    4Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    6y

    Hey @Account Closed, you probably made the right decision. What year was it? I had a 1972 911T with full S package in Tangerine. Totally restored. Sold it to buy our current house.

    As for the depreciating asset, I would love to have that '72 back. It is worth 5 times what I sold it for. It recently came up for sale in late 2018 and sold for just under 100k. Don't knock classic cars as an investment. Not a sure thing, but if you buy right, you can make $$$. Unlike real estate, cars are about passion. They are emotional purchases and people want what they want. :)

    1Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    6y
    Originally posted by @Account Closed:

    So I sold my dream car that I waited 55 years to own after two years of ownership. I made a radical decision last weekend and the short term affect of that decision was realized today. So...I bought a convertible Porsche Carrera 911 S in perfect condition two years ago. Since then I have invested in apartments, bought ten single family homes, and a portfolio of short term rental vacation homes. Now I am working on a syndication and expansion of the portfolio with a focus on STR (Short Term Rental) properties. With the pandemic raging on, I desire to be ready for the deals that I believe will be available in 2021, I have been squirreling away money in preparation, and today I sold my dream car to help with the buying fund so that I can capitalize on future opportunities. I don't think you will, and I expect some haters to reply to this, but don't feel bad as I drive a nice Toyota truck every day, so I am good, but sometimes we need to make these types of decisions to improve our opportunities and to improve the future fo our family.

    I would love to hear your thoughts a comments....positive and negative. Thank you in advance - David M Boatman, Charlotte, NC

    @beardybrandon @davidgreen24

     Some aircooled 911s are considered investment grade. My guess is you made a profit on two year hold. It's all good and likely not an either or dealio in the longer run. 

    0Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    6y
    Originally posted by @Michael Baum:

    Hey @Account Closed, you probably made the right decision. What year was it? I had a 1972 911T with full S package in Tangerine. Totally restored. Sold it to buy our current house.

    As for the depreciating asset, I would love to have that '72 back. It is worth 5 times what I sold it for. It recently came up for sale in late 2018 and sold for just under 100k. Don't knock classic cars as an investment. Not a sure thing, but if you buy right, you can make $$$. Unlike real estate, cars are about passion. They are emotional purchases and people want what they want. :)

     My dad had the 72T, in original purple. The fun I had joy riding that one, good times back when 911 beat almost any car made. ( he put the E motor in that one). My brother just sold his aircooled 911 to help pay for daughters college. These 911s can be good to park cash for a bit. These are regularly exported and essentailly collectible commodities. 

    1Reply
  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y

    What makes you happy?  A Porsche or doing your own small business as rentals?

    I like cars and if I would've stayed at Intel, probably could afford a nice one, but I'm not waking up depressed or regretful.

    1Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y
    Originally posted by @Steve K.:

    @Collin H. How does one turn a profit on used Ferrari’s? I need to get in on this niche!

     Steve, it's kind of like making a profit on anything else - know your market so to speak.  Generally speaking, however, once a Ferrari is around 15 years old, it is done depreciating.  That is because even with cars that were "high production" numbers by Ferrari standards are increasingly rare by normal auto standards.  For example, Ferrari produced around 7000 360 Spiders over a 7 year run from 1999 through 2005.  That sounds like a lot, but consider that Chevy produced over 240,000 Corvettes over that same time.  Today, of those original 7,000 360 Spiders, there might be 5500-6000 remaining worldwide.  So prices are strong and will only get stronger over the long term.  

    Here is my latest acquisition, a 2001 Ferrari 360 Spider.

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  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y

    "So prices are strong and will only get stronger over the long term. "

    OOC - As an investment, how do you factor in Ferrari maintenance?  

    My Intel buddy bought 2 (360 hardtop and California) Ferraris used.  Nice cars, even for being cheap for a Ferrari, but the 360 had an oil leak on the top side of the engine and there went $6000.  Drove his Cali and I'm thinking he's going to need a new clutch and syncros (not due to my driving!!!!)

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y
    Originally posted by @Steve Morris:

    "So prices are strong and will only get stronger over the long term. "

    OOC - As an investment, how do you factor in Ferrari maintenance?  

    My Intel buddy bought 2 (360 hardtop and California) Ferraris used.  Nice cars, even for being cheap for a Ferrari, but the 360 had an oil leak on the top side of the engine and there went $6000.  Drove his Cali and I'm thinking he's going to need a new clutch and syncros (not due to my driving!!!!)

    Good question.  A Ferrari can be pricey to repair, but not a lot more than really any other import.  I can't imagine $6000 to fix a leak.  I think my most expensive repair was $2000 for a throw-out bearing once.  That's not all that bad.  Now if a guy is racing around his Ferrari like it's a Formula One car, certainly the Ferrari will deliver, but you do have a lot of expense with driving a car that way.  I only buy cars that have been "cruisers" - puttered around in.  And I can pretty quickly tell how one has been driven.  If I am looking at a 30K miles Ferrari that has had two clutches over that time, it has obviously been "rode hard", and I'll pass.   

    Don't misunderstand, a Ferrari is not an investment in the sense that an STR is. But bought right, you should still make money on it over the long term, even after maintenance. Classic/exotic car ownership for me is simply a hobby.

    All of life is not the pursuit of wealth.

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  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    6y

    You sold the car to build something new and continue to grow. I think it was totally the right move! Odds are you'll get more fulfillment and satisfaction out of building the business anyway.

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    6y

    Goals and dreams change. You made the right decision for you at this time in your life.

    2Reply
  • John Edwards
    Rental Property Investor · Topeka, KS · Member since 2017 · 56 posts · 137 votes
    6y

    @David Boatman not a bad plan at all. We own 2 11-year old vehicles and are achieving other goals quicker as a result.

    1Reply
  • Tony Kim
    Rental Property Investor · Los Angeles · Member since 2018 · 844 posts · 1k+ votes
    6y
    Originally posted by @Account Closed:

    So I sold my dream car that I waited 55 years to own after two years of ownership. I made a radical decision last weekend and the short term affect of that decision was realized today. So...I bought a convertible Porsche Carrera 911 S in perfect condition two years ago. Since then I have invested in apartments, bought ten single family homes, and a portfolio of short term rental vacation homes. Now I am working on a syndication and expansion of the portfolio with a focus on STR (Short Term Rental) properties. With the pandemic raging on, I desire to be ready for the deals that I believe will be available in 2021, I have been squirreling away money in preparation, and today I sold my dream car to help with the buying fund so that I can capitalize on future opportunities. I don't think you will, and I expect some haters to reply to this, but don't feel bad as I drive a nice Toyota truck every day, so I am good, but sometimes we need to make these types of decisions to improve our opportunities and to improve the future fo our family.

    I would love to hear your thoughts a comments....positive and negative. Thank you in advance - David M Boatman, Charlotte, NC

    @beardybrandon @davidgreen24

    You made the right decision. Once the syndication that you're working on is up and running and starts generating some nice returns (and subsequently, some nice GP splits) you will probably have no problem getting something just as nice.

    0Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    6y
    Originally posted by @Account Closed:

    So I sold my dream car that I waited 55 years to own after two years of ownership. I made a radical decision last weekend and the short term affect of that decision was realized today. So...I bought a convertible Porsche Carrera 911 S in perfect condition two years ago. Since then I have invested in apartments, bought ten single family homes, and a portfolio of short term rental vacation homes. Now I am working on a syndication and expansion of the portfolio with a focus on STR (Short Term Rental) properties. With the pandemic raging on, I desire to be ready for the deals that I believe will be available in 2021, I have been squirreling away money in preparation, and today I sold my dream car to help with the buying fund so that I can capitalize on future opportunities. I don't think you will, and I expect some haters to reply to this, but don't feel bad as I drive a nice Toyota truck every day, so I am good, but sometimes we need to make these types of decisions to improve our opportunities and to improve the future fo our family.

    I would love to hear your thoughts a comments....positive and negative. Thank you in advance - David M Boatman, Charlotte, NC

    @beardybrandon @davidgreen24

    Hi David,

    If you get the urge to "drive", in some some places you rent similar cars for an afternoon at a reasonable price.

    Did you replace it, or was it not your daily driver?

    0Reply
  • Marci Stein
    Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
    6y

     You traded thrills and beauty for
    security .
    No right or wrong answer .       Depends on what you value at this point in your life. 

    0Reply
  • Marin Ivankovic
    New York City, NY · Member since 2020 · 19 posts · 9 votes
    6y

    @David Boatman

    You sold one 911 to have opportunity to buy 2 of them in future! Good call pal.

    1Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    A fancy car is a waste of money and it will just cost you more money and depreciate.

    0Reply
  • Tara S.Pro Member
    Real Estate Agent · Mesa, AZ · Member since 2019 · 125 posts · 60 votes
    6y

    @David Boatman

    You make the rite decision if you ask me. I’d rather have property then cars. Me and my husband we’re just talking about now we’d rather use the money eg for property instead of expensive cars. Because most of them just depreciate anyway

    0Reply
  • Rich Solano
    Investor · Freehold, NJ · Member since 2017 · 51 posts · 12 votes
    6y

    @Luke R.

    I agree in most cases vehicles are depreciating assets. Not so much in the case of a Porsche, but I agree with the decision!

    With a couple good purchases you can get 911 GT3 in no time ;)

    2Reply
  • Rich Solano
    Investor · Freehold, NJ · Member since 2017 · 51 posts · 12 votes
    6y

    @Collin H. - 01 360 spider, one of my favorites !

    0Reply
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