Replies to post #9839 on Access Power & Co Inc (ACCR)

[creede]

My buddy flipped them at first but them moved into Toting the Note.

Three big reasons:

1) Constant Income Stream. Car sales are kinda seasonal. Best time of the year is tax season. People have cash in hand.

2) Paper has value. If your repossessions are low and payments are high then your paper can be sold to the banks. For Example: Say you have someone that has paid you $400 per month for an entire year and has 4 years remaining. They will give you cash for 3 years for the rights to the contract. That gives you $14,400 for that one deal. Time has been sped up for you. All you lost was the last year and the rights to repossess the car if they don't pay.

3) Make More Money. When you finance a car you get interest you lose when you flip. ALSO, you keep the rights to the car until its paid in full. There are many many circumstances where someone does not complete a contract. Many times they will call you and tell you to simply pick up the car — that you can have it (it's called a voluntary repossession). At that point you can fix it up and sell it again.

The Used Car industry is an incredible moneymaker for those who have the time and energy.

It's actually very difficult to fail as long as you stay on top of everything.