Thursday, December 16, 2010

One Year-40 Bucks-Endless Possibilities!!!


Is it possible to scour classifieds, flea markets, garage sales, estate sales, and auctions for items that can be bought and resold for a profit?  Then roll that profit into more items, continuing to successfully grow that original investment?
Thats what I am setting out to do!
160 quarters, eight 5 dollar bills, four 10 dollar bills, or two Andrew Jacksons.  However you want to cut it, its $40 USD, and thats what I am going to start with.
With one year, some searching, a bit of intuition and some luck from the picking gods…. I am looking to grow it into something more.  What kind of return on my original investment can I make?  Only time will tell.
Methodology:
I plan to find anything in my local area to resell,  mostly online, for a profit taking into account any costs associated with it (mileage when going to purchase, ebay fees, paypal fees, gradings/appraisals, etc.).  I will then set out to repeat the process with single or multiple items attempting to grow that original $40 into a sizable sum!
I will use a basic ROI (return on investment) formula to calculate it.  Lets look at an example:
Lets say I buy this antique cutlery for $10 dollars and it sells for $20 on ebay.  My profit looks like $10 right?
Well I did drive 10 miles to get the set…. @ $.12 a mile thats $1.20, ebay charged me $1.70 to list it and another $.88 in paypal fees actually makes my original investment at$13.78  Essentially that means I made 6.22
ROI = [(Payback - Investment)/Investment)]*100
Sooooooooo…..
45=[(20 - 13.78)/13.78)]*100
45% return!
Not a bad return in such times!
So that gives me $16.22 to put towards the next find, and that is how I will calculate my returns.
I will be getting started as soon as I can find an item!!
STAY TUNED

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