Two of My Fav Guys Make it Happen!!!! Way to Make that Extra Money, Guys!

Kevin and I got to talking a few months ago about how he had worked on one or two of their cars that they got cheap, fixed them up and then ended up selling them for a good profit. I said I had a business idea to go with his skills – and we talked it out. He has a passion and knowledge when it comes to fixing up cars, and I had some business thinking as well as capital. We agreed to a “one car at a time” partnership – where I put up the funds for purchasing a super cheap car and doing the repair work. We agreed that on any given car we could not exceed $1500 total (between purchase, insurance, title and repair work). Once we sold the car we would repay on the capital investment and then split the profits 50/50. For Kevin, this gave an opportunity to make extra money to help pay down debt by doing something he enjoys. For me, this gave an extremely low risk way to invest a little bit of my money to help generate income to pay off debt. We entered in with 2 main things in mind: 1) We were using money that was sitting in savings at the moment and earning 1%-2% interest. By using this money for this business idea, we would be able to return a much higher rate in short time. Our goal would be to make 30%-70% ROI per car, but even if we made far less, it would still be better earnings that just sitting in the savings account. 2) My car is on it’s last leg – meaning we will need to purchase another car soon. In this scenario, the risk of owning another car we cannot sell is lowered even more because it means that (worst case) I could pay Kevin a couple hundred dollars and just keep the car that he has worked on – now having a more reliable vehicle and knowing the guy who has done the work on it. Our first vehicle we did this with ended up being just over $1100 total between purchase, repairs and all the sales fees. We were able to sell it for around $2300 within a month of purchasing it. This meant we each made about $600 on the car in a month’s time. On top of that, we sold it at a price where the purchaser got a deal – because the car was worth a little more than the selling price (meaning we were able to make great money, provide someone with a great car, and leave some value in it for them to do more repairs). We currently have our second vehicle ready to sell. We have spent $870 on it in total, and currently have it listed for $1900. We expect to be able to sell it for around $1600-$1700, which will mean another $350-$400 for each of us. Cory & Kevin