Longterm Pain, Longterm Gain

My Porsche people. It is with a very heavy heart that I post that despite all the blood sweat and tears I have shed over the last few years with my beloved 996, a situation has arisen that is necessitating the sale of my dream car... My wife, kids and I are having to make immense sacrifices in order to facilitate the purchase of a business that has the opportunity to change our lives in ways we don't even fully realize. We are liquidating everything we own that is worth anything.. including our custom built home. We know that the business will make our lives incredibly financially free within the first 2 years.. But in order to do it I have to let the Porsche go. The hardest part for me is the amount of work I put in, and how do you sell your childhood dream? I know that in a few years I can buy another one, but I got to know this one intimately, I brought it back from the dead.. I will keep you all posted as I get it ready to go to a new owner soon... The good news for you is i have a ton of Porsche specific tools I will be selling too... Cheers to you all for all your support.

Good luck man big rewards take big steps. Buy you a new one and another 996 in a few.

I say good luck with the venture! And PM me on the tools you want to sell

Good luck! Maybe a 991 turbo is in your future

That must be some opportunity to accept a life w/o a Porsche ! Good Luck and check in with us in future?

Good luck with the business. There will be a time in the not too distant future where I will be within the sale price of my car of having my house paid off. Will be a big temptation weighing the freedom of no mortgage versus the plusses of having that car in the garage. So, I understand absolutely. Don't be a stranger.

Best of luck with everything. I would be real interested to hear more about the business oppurtunity that you are taking the plunge into.

Nothing ventured nothing gained. It sounds like with your drive and focus you will gain quite a bit. Can't wait to see your GT3 when you get it. "Qui audet adipiscitur" D.

That sounds awesome and I want to know about the tools too! Best of luck!!!

It's a little funny, the business isn't something I ever thought I would get into but my Daughters and Wife have a huge passion for it. My girls have been attending a dance studio/performing arts studio for the last 9 years and my wife has been involved in the business for the last 7 helping out as needed. The couple that own/run the business approached us with a very short timeline for retirement and my Wife and Kids really want to take ownership of the business. The financials of the business are really amazing. I couldn't believe that a small "performing arts academy" could be so cash flow positive. We will be able to buy the business outright with our liquified assets and will have paid ourselves back within the first year of ownership. And the prospect of having no business debt removes much of the risk. The business has had its doors open since 2007 and has grown by 10% each year without any advertising. Im going to stay in my career for the time being, although we will have the freedom for me to leave my 9-5 in 5 years and be homeowners living completely debt free by my 41st Birthday. At that point I can pursue my passions, and invest in our future in rental properties etc.

I hope your investment is a great success. Obviously I don't know the details but from the outside looking in this doesn't really add up for me. I analyze business financials daily so I'm pretty familiar with valuations, cash flow, etc. This dance studio is expensive enough (over $100 k ?) that you have to liquidate everything you own to buy it and you're able to recover the entire investment in less than 12 months? After expenses to run the dance studio for 12 months? (after rent, salaries, insurance, etc?) Salaries, taxes and benefits alone have to be over $175k per year, plus the initial investment, plus other expenses. So this dance studio is pulling in over $25,000 per month in fees? That's about $1,000 a day in fees. Why even pay for the business at all? I see no protected assets here, except maybe a name. Why not just open your own dance studio right next door. (or some similar approach). Either way good luck I hope it all works out.

Discipline Determines Destiny. Good luck with the business, and we will see you again one day.

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The Studio model is very low overhead, and is multifaceted including renting space to home school cooperatives, theater troops etc. I honestly was shocked at the Gross Sales and profit margin. Your estimates are close, the studio pulls just under $25,000 in fees monthly though operating expenses are under $120k annually. The business has an established client base and I could not replicate the facility for the purchase price. Believe me we discussed it. We have to liquidate to buy outright and purchase another home. We couldn't access enough of our equity through a Heloc/refi, so selling was the only option.

Sounds like a great opportunity, but like ejdoherty911 says, there seem to be challenges, In my M&A experiences in top 20 banking world, it might be wise to have second set of eyes from a hired gun take another look at it. Due diligence on risks vs rewards is always prudent and deductible. Best of luck to you and your family. Mike

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i have had a second and third opinion, the biggest challenge is the space is leased, and only had 2 years left on the lease.. I spoke to the LL and he has no problem renewing.

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Renewing for how much though?

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the space is already leasing at the top of the market in our area by sqft.

Hey good for you. We'll see if you return to the 996 after making mucho $! In a past life, we tried to structure deals with an earn-out. Might want to Google it. Good luck!

Best of luck to you.

Another "what's a reasonable asking price" post... I am getting ready to list the car this week. Was thinking of asking between $17k-20k? Is that reasonable? Has 108k and a laundry list of work done over the last year and a half.. don't blow smoke, I won't get me feelings hurt,..

Hey Man best of luck. I have worked at a financial company for 35 years and they have been great to me. But I always have the itch to have my own business and will do something when I retire. Again Good luck.

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I would say the car looks great, so $17K is reasonable for sure. What the market will pay for a vehicle with over 100k miles is another story. The maintenance history will be an important selling point. Has the suspension and the related components, bushings, been replaced recently? If the answer is yes, you should be able to get closer to $18K or $19K if you find a buyer that understands the value of a recent suspension overhaul.

Sad.. watched it drive away this evening. Awesome guy bought it though.

How much did it go for? I am watching the market closely and hope to get my childhood dream car soon. Also, good luck with the business!

how'd you get your paint to look that good? It nearly looks perfect - which on a black car is saying a lot.. congrats on your opportunity. there are thousands of cars waiting for you to buy them when you are ready.

Sale Price $15,650. Was asking $16,999. I feel like it was a killer deal. As far as paint.. clay, hand compound, wax.. wax again, hand buff.

Buyer hot a good deal.

Buyer got a good deal. Good luck with the business venture!

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Buyer got a friggin deal. I hope the new vehicle you replace it with is even nicer - although since you are a professional dancer now, I presume you'll be buying a Miata.

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Ha!!! I picked up a Lexus LS430 to get me around. Hope to be back behind the wheel of a Porsche 911 in the next 24 months.

Ah yes, I recall those days. Carrying +$700k in notes, wondering if it'll all stay flush for a couple more months. Good times. Glad they're behind me. You'll be able to get back in a 996 someday. In fact you might have a fleet of them! We'll be here, waiting.