Part 2: The 1 Ronin Magic Trick to Rule Them All

Travis Sago

Jun '23 • General discussion

[If you didn't respond to Part 1, this won't be nearly as helpful.]

Like getting deals the Ronin Way...

Getting car dealers to consign their back row cars to me to clean up, drive to the auction and sell was NO PROBLEM!

I had my PICK!

I had as much inventory as I wanted...with no money upfront.

Where it all went to hell in a handbasket was the first few deals I made.

I got an old Ford Tempo, we agreed the dealer would get $2,000 and if it sold above $2,000 I'd get to keep the rest.

So, I cleaned her up real nice, drove her an hour down to Fort Smith...

And ya know what happened?

The highest bid was $1,000.

I had to return the Tempo to the dealer.

After 2 hours of detailing and 2 hours roundtrip of driving.

BUT...what saved me from feeling like a deal dunce was...

I learned something very valuable.

Pickup trucks and Crown Vics were selling like hotcakes.

The Crown Vics were selling for $1200 to $1500.

So after I returned the Tempo I went and scouted some other dealerships.

I found a white Crown Vic in the back row.

It was structurally sound on the outside, but was heavily oxidated and a pig stye on the inside.

I knew the dealer because we'd already detailed some cars for him.

I asked him if the Crown Vic ran?

It did.

I asked him what he wanted for it.

He said he'd take $500 cash. (Ding. Ding.)

Then I ran my RFP (Risk-Free Proposal) by him.

"If I detailed it out, drove it to the auction and it sold for more than $500, would he be against me keeping the rest? Worst-case scenario you get a clean Crown Vic back. Best case he gets $500."

He said, "Let me get ya the keys."

Cleaned that pig up.

Drove it down to Fort Smith.

Sold right away at the auction for $1500.

I came out with $1,000 gross for detailing a car and the drive.

$1,000 was a lot for me in those days.

Now, here's where it gets really interesting.

This was a life-changing lesson for me.

And I hope it is for a budding Ronin too.

I chatted with the fella who bought it.

I thought I saw him the last time I was at the auction?

I did.

He told me he buys Crown Vics. He puts as many as he can buy on an auto hauler and drives them to Mexico at least once a month if he has a big enough haul to make it worth it.

😯

I asked him what price he likes to pay and how many he likes to buy every month?

He said he never pays more than $1500.

And he can never find enough.

😯😯

"So, lemme make sure I understand. If I can get you 6 Crown Vics a month...and I'm not saying I can...but if I could, you'd buy them all...if the price wasn't more than $1500?"

He said, "I'd take them all."

We exchanged cards and then I went SHOPPING FOR Crown Vics.

Turns out...

I did sell him about half a dozen more Crown Vics, but they were hard as heck to find.

But...

I got smart and started talking to the OTHER buyers...who were mostly dealers.

I found out what they wanted, what price they would pay and how many.

THEN I WENT SHOPPING!

I will put together a PART 3...

But I want you to soak in this like a warm bubbly bath.

We want to study the MARKETPLACES and PARADES of people and then figure out what they're buying, how much they're paying and who is buying MULTIPLES.

THEN WE SIMPLY GO SHOPPING!

This works for real estate, land, autos, sofas, sneakers...

...but best of all it works for CONTENT AND INTELLECTUAL property flips and cash flow.

Regardless of the item, WE MUST KNOW THE MARKET VALUE FIRST if we are going to buy for PENNIES on the dollar.

Make sense?

Do ya know the answer to Part 1's question now?

It doesn't matter how much the dealer I'm buying from has into the Crown Vic, right?

If the Crown Vics are selling for $1200 to $1500...I can't pay more than that. In fact, I want to get it for far, far, less.

The Royalty Ronin advantage is that once we get ACO (access, control or ownership) of content, databases or IP...we don't have to KEEP shopping for another one like I did for Crown Vics.

Are ya feeling me?

And here's the juiciest part...

Our best buyers will be SELLERS!

Why sell onesy, twosy...to a consumer/buyer

When we can just as easily sell a HEAP LOAD to a SELLER!

Does this give you a clue about where to start?

I'm not saying we can't ever get a Ford Tempo and get lucky.

But we don't want to study PRAHDUKT!

We want to study MARKETPLACES and talk with the BUYERS and to get rich faster: talk with the SELLERS because EVERY SELLER IS A BUYER TOO! They just buy by the truckload!

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Are you ready for Part 3?

Or do ya need time to gnaw on this meat? 🥩😯

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Rooting For Ya,

Travis

PS Some of this story is told from the best I can recollect. Most auctions are dealer only...I had a small-time dealer buddy and we'd go down to the auction together.

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