So I worked for this company, for years, where I was paid 50k to work 50 hour weeks and sell shit on commission- however, after a few weeks in, I met people, and well, I met the people that owned the OTHER gold recycling facilities and had no employee, and the same kind of inventory to use.
Well, I threw as much of my personal savings as I could, mostly money paid to me by the company, and bought as much of that shit as I could- and flipped it to people to people overseas when I got home from work, all night long.
So the company that has employed me has gone out of business. Creditors seized all assets.
I want to offer the creditor a lump sum of my money (I'm making more than I know what to do with it) and buy the damn plant myself.
Then I know I will always have a steady supply of the shit I sell- and I can make money on the actual plant's operations, the melting cash for gold junk bracelets, etc.
Any advice? Great idea? Bad idea?
sounds like a dream come true. Im assuming you know about the state of the facility?
is it leaking hazardous things?
equipment in good shape?
is the property paid off or is their a mortgage?
are there extra "membership fees" for people to buy your scrap or can you do business with anyone anywhere?
do you guys take copper that people have melted down?
sounds kick ass btw
No loan. I have 5 million in cash I want to offer the creditors.
The facility, is worth $5.5-6 million just in equipment.
Yes. The real buisness is buying e-waste, you pay $1 million, the melt price is 1.1 million.... you can sometimes pick out you know, $500,000 in shit.
I was buying that shit for 250,000$, for years now from competitor plants. I sell it to someone for 450, out the door.
The previous owner, all he wanted to do was buy gold bracelets for 1 million becuase it melts for 1.125 million.
Costs say, $100,000 to hit the melt price for 1 million in shit.
I am interested in recycling.
when you say
>The real buisness is buying e-waste
do people just bring it in to you? or do you actively go out and run campaigns to collect peoples stuff?
who are the ones who buy stuff from you, manufacturers?
anything "inside" ideas/tips you could share about the current and future state of metals/processing/recyclables? it seems like precious and base metals are consistently dropping in price for the past several years.
There's no membership fees. The important thing is signing the right contracts with citys, towns, and then huge companies like EMC,
Those contracts are worth millions of dollars.
What I'm buying, is a property worth 1.5 million dollars, and about 4 million in equipment. (used price, new, maybe 20 million or more).
I'm gonna offer 5 mil CASH, 7 day close for everything and cross my fingers and hope they take it.
I have $10,000 in my bank account, and 100% share in a company with 6 mil in free cash on the books.
I can afford to pay, maybe 5.5 mil, but 5 is close to best and final
>There's no membership fees. The important thing is signing the right contracts with citys, towns, and then huge companies like EMC,
oh okay got it
>What I'm buying, is a property worth 1.5 million dollars, and about 4 million in equipment. (used price, new, maybe 20 million or more).
>I'm gonna offer 5 mil CASH, 7 day close for everything and cross my fingers and hope they take it.
>I have $10,000 in my bank account, and 100% share in a company with 6 mil in free cash on the books.
>I can afford to pay, maybe 5.5 mil, but 5 is close to best and final
well hot damn that sounds like pretty air tight plan, maybe check to see that any existing contracts the company has are transferable to a new owner, sometimes city laws can be wonky.
did you have a goal of getting into recycling or were you there and saw an opportunity?
if your in south Tx, ill work for free until I am worth a paycheck
sounds like you know what youre doing, id say go for it
Company lost all contracts.
If you have those contracts, you NEVER go out of business, no matter how badly you mismanage your facility.
Those contracts are worth 10s of millions of dollars- a lot of the time, you lose those contracts to companies that come in and say 'hey mr mayor here's a briefcase with 5 million dollars in it have you thought about seeking a new recycling facility for the city'"
The clients, it's the wrong clients. But it's ok- I know the right ones. And if I have to hire their braindead cousin, for 100k a year to mop the floor, fine.
If you want this stuff you better have a million bucks in cash.
Their time isn't worth it to deal with anyone that can't pick up a million in shit right away.
Even if you have a million, so what- they have 250.
For them to do business with you, you need to be someone they know/like
These are not city clients- this is all, private companies that do millions of dollars every month
>all about contracts and connects
smart move then that you were working with other operations during the whole thing
I cannot offer advice more than "dot your I's and cross your t's" but if you care to share more about the industry/business I am eager to listen.
you said earlier the money is in ewaste and melting things down. but who buys it?
if someone walked in with a bunch of melted copper do yall buy it or turn them away?
are "scrappers" a big part of the "everyday traffic"?
Ive been interested in metals and things like that but recently discovered I dont have what it takes to be a materials scientist so am giddy about what your up to.
>this is all, private companies that do millions of dollars every month
>If you want this stuff you better have a million bucks in cash.
interesting, so its mostly to big businesses then
sounds bad ass to be able to make that much resources be valuable again
Huge, Goliath company has the regional manager for XX part of the country decide who gets to buy all the scrap metal the company produces- you want to be that guy.
They charge them, 1 million, per week, for tons and tons of cpu, ram, computers, etc.
The melt price of that stuff is 1.1 million. That's the price of the gold inside- you can sell that for cash right away.
But you're paying 100,000 to get the gold out of the crap- so where's the profit?
That million in shit, has, $500,000 in working semiconductors just waiting for you to scoop it up. It's not hard to sell that shit in a week- I sold that much, every week, while working a 50hr job.
I can get 600 for that stuff- this is my trade.
Some facilities, they put it in a box for me, sell it to me for 250, and I sell that shit for 475 to just get it gone. Sometimes I hunker down and go to work and can pull out 600-
I never would have guessed there were politics involved in recycling
I like the concept of re-making the resources to be valuable again
sounds like it could pretty nerve racking/high stakes but sounds like a good time/jorb
Look, the stuff that you pick out of there, $500,000 in stuff, wake up tommrow, and it's $450,000 in stuff.
The shit goes down in price FAST.
So it takes a special breed of salesman to sell that shit profitably- it's a hot potato
I get more for that shit than anybody else- that is my creed.
I want to buy this facility so I can get first crack at this shit.
Yeah. Guilty as charged. Company went under a week ago, I've spent the last week working 90 hours for myself- wondering why I was still working there- I already know everyone.
I've liquidated everything in my warehouse and I'm sitting on a pile of cash waiting to get that plant.
Gonna get the plant, then rent my warehouse out. 16,000sq ft facility, 3,000sq foot living space, 1 bed 1 bath 1 master bedroom.
And just move myself into that second facility.
I've been talking to the creditors who said they will only consider offers "starting with 5 and with 8 number after that"
So, we'll see. I hope someone doesn't want to pay 6.
I like what your doing here anon, I tried my hand at auto recycling I made some money at it but not really enough to make it worth while, back in 2008 I was buying and selling scrap catalytic converters, core auto batteries, aluminum rims, things like that anyway...what would your advice be to a small time guy like me who is just wanting to make a living on his own accord 30k a yr to start would be stellar....id like to stay away from the whole car market anyway im sitting on around 50 cars now that aren't worth but around 1/3 of what I paid for them...any advice would be appreciated.
You know what dude, the end of the day, buy shit, sell it for more.
The capital start up cost is low- buy a broken washing machine, fix it, sell it.
Computers, from a position of experience, it's better to sell the parts of a laptop than the laptop itself if it has any defects.
That was a long time ago. You need to figure out what works. A $50 investment into a washing machine that is worth hundreds, is a good way to learn what you can do and what you can't.
Even if you lose all your 50 bucks, learning "this is a bad business' is worth 50 bucks.
Keep going until you find something and say 'wow this works'. And run with it, as fast and as hard as you can
yeah man I do trade buy and sell a few running cars truck or ones that need a little work ect from time to time, I was just curious if you had any inside tips from the recycling or scrap aspect of it that I could invest say 5-10k into and clear a profit without having to chase after shit, something a little more steady?
Is tricks working for you? Because if it's not, you need to figure out something that does.
That's ok. I had a few of those- everyone does. Lose some money- learn a few lessons.
My guess is trucks ISNT working for you.
So either you need to step it up and make it work, or find something else that does.
My bet is something else is the correct solution.
Up to you. Go with your gut- there's times in life where you have to do what you think is right.
Because I've been where you are, when someone that was doing better than me gave me an advice, I ignored it, even though I knew in my gut they were right- and that was a mistake.
But I did it again and again until I made so many mistakes- I don't make mistakes anymore.
Everyone does. Smart people learn from other's mistakes.
Had contract drawn up- Corporation A , which I own 100% of, owns 51% of the equipment, and 100% of the property- I own the warehouse. The other 49% of the facility, in exchange for 2.125 million dollars cash to the creditors, is owned by my old boss.
Furthermore, the company that my old boss owns 49% of has a 1000 year contract to sell any scrap I want for the melt price of the scrap taken, to my company.
This company pays rent to my company for the facility, and has a 2.125 million dollar debt to my company at 3% interest, compounded operating expenses to cover operating expenses, and initial purchases of scrap metals
He is working on a 100kyr salary.
All the old employees will be asked 'hey do you want your job back for half of was it was yesterday'
I think it'll be great!
>All the old employees will be asked 'hey do you want your job back for half of was it was yesterday'
Rehiring people at half what they were being paid before? Doing the exact same job you did? You sound like an asshole.
My old boss gets 100k to run the plant.
The old employees get a lowered wage- look, that's the reason the first plant failed, my plants NOT going to.
They DONT have to employ me at all- I don't draw a salary.
He runs the plant- I run my company.
If he doesn't run it well, I'll own it all.
If I wanted to employ him, it would have been a million bucks a year.
But I can get away with paying him 100k, if he has half the company (which he paid for).
Much better. I'm not in the plant business- I'm a salesman.
If the plant never makes money, that's fine with me because I've been making 100,000% profits on the shit I pay the plant $50 for in scrap weight and sell.
You seem to not get it- there are replaceable people, and irreplaceable people.
Some people, you just pay them whatever you have to because you NEED those people.
Other people, dime a dozen.
No website- gotta fix that pronto.
Look, anyone that has computer scrap, and is in the north east, let me know, but only if you can assemble, a gaylord of it.
Anyone that has say, millions in cash 4 gold bracelets and wants a gold brick, tell me.
Yeah, until they started coming to me.
No one in the region of the country I'm in can do this, if they offer a client of mine money, I throw more money at them until he goes bankrupt and then cut prices back down
Position is filled,
Which makes me sorry anon. Because I would have paid you well.
Another party came in with 2+ million in cash and bought 49% of the plant and is running the facility.
I'm on the west coast. I deal with recycling centers in my area already selling them scrap metal that I get from my main job, as a side income. I should see if they would sell me working parts.
Where did you sell your working parts?
the only thing I can tell you is if you get some I'll take it off you for half of what it's worth- doing you a big favor.
If you want to sell it on your own, hats off to you- good luck. I'll make it super painful and flood the market with any chip as soon as I see one listed for sale from someone I don't know
what kind of misc computer scrap? boards taken out? cpus inside? ram inside?
Ram is worth, say, 900 times as much by weight as steel cases, so you need to let me know what you have.
How did you start, and what was your starting capital? I'm doing this stuff on a smaller scale. Mainly buying jewelry and refining it myself. It's good as a side job sort of thing. But I can't imagine expanding it into a million dollar industry. Well I can, but only if I start pumping millions into it, which I do not have.
I got fucked on a similar deal. The facility where I worked closed. One piece of equipment was making 15k a week. The company was about to sell it for 5k in scrap so I offered to put up 100k to buy it, hire riggers to move it and rent and rent a space and install electrical service and shit. All I needed was the 2 guys that operated it to sign on and I offered our sales engineer guy to get in because he knew the machine and the customers. They all dragged their feet and basically sabotaged everything I tried to do and when I was out of state the unit got sold to the scrap guy who instantly flipped to an Indian guy who did exactly what I wanted to do. The sales engineer is working part time for the Indian guy making nothing and one of the operators is divorced working at Lowes, and the other is trying to collect disability. I offered them equity and salary and they chose to be cunts.
How many tons of each, where are you located.
How often do you get this stuff.
Oh man, you really shouldn't have gone out of state.
I'm living in the facility right next door.
Honestly, I'm not sure what the **** I'm going to do with it.
It has a 3000SQ foot, all oak floor, marble, marble showers, granite countertops, master bedroom, expensive rugs, art, and 13,000ft of warehouse space.
I know I'll never get my money back selling it so I'm just gonna hang onto it for now
yeah, that's not my business.
my day job was selling those necklaces and stuff sold for scrap but that people would actually pay for- because of nice stones, that kind of thing.
Where I made my money is selling ewaste as a side job
Who the fuck buys tons of outdated computer chips if you aren't using them for the precious metal. They seem useless except for the gold so who do you sell to that actually has a use for it. Third world countries or some shit?
So they run giant multimillion dollar servers off of 256 mb ram and 2.0ghz cpus???
Doesn't sound reasonable or cost effecrive. Plus 4 times the space.
Don't get me wrong it sounds cool to use the stuff but unless you are straight at the mouth of a huge city that is big in computing, the stuff that is usually recycled is never high end and rarely working. Hence why its recycled
>So they run giant multimillion dollar servers off of 256 mb ram and 2.0ghz cpus???
You would be surprised. I work in an industrial setting and the inertia of operating it means you tend to not change things unless you have to. So a lot of times you end up with very old equipment that nobody makes anymore. If you have an old part that someone needs, they will pay a premium for it as at this point they fucked up, didn't plan ahead, and it's costing them money in downtime.
There are entire companies that buy old equipment and salvage it for parts. It really is fascinating.
Let me make it simple for you.
Company goes bankrupt. Bank sells million dollar server array full of 16 core Xeon CPUs, 4 per machine, stacked in a big array, to scrapper. Scrapper sells array to me-
That doesn't add up. Banks usually go through liquidators to sell off the equipment for higher prices. Scrap prices are no where near resale value. So I don't believe that any bank will sell off million dollar server or even high end computer items to a scrapper. If the stuff they scrap is not high end, then usually those components have little value and therefore probably wouldn't even be resellable. But you say you are reselling it
Like who uses all this outdated ram if not for gold?
>outdated ram if no for gold
people who realize that new shit and leading models cost a premium and quickly depreciate, however theyre still plenty usable and reliable as fuck. reliability + 10% of original cost = solid operation and bigger margins.
its like buying a car, get a 10yr old camry for 6k or a brand new car for 32k. why get the brand new one when the older model runs just fine for its intended purpose?
There is always opportunity
people want get rich quick but they never listen: only way to get rich quick is by working 90 hour weeks and being smart.
period. end of story
once your rich, it's a lot easier to get richer than being poor and then becoming rich
OP if you're still checking in can I ask how you got your start in this?
What's your backround and what got you into this line of work?
Thanks for this thread btw, it's weird but this has been very inspirational for me.
I'm just saying it sounds like you are buying stolen equipment if the stuff you get has that much of a resell value. A lot of people have the opportunity to get their hands on nice high end stuff before it makes it to a recycler.
The stuff that does go to a scrapper is usually the garbage. I mean good for you if you found a use for it but realistically you're either moving shit computer components to third world countries or you are selling stolen goods