: Investors needed. Big time.



97EldoCoupe
10-11-09, 08:17 PM
Can't let the details out publicly. I've got as much money invested in the business as I can manage and borrow right now. Need $27k. Return to you would be 30% (approx. $35k) with a ROI of about 6 months to 1 year max.

Contact me via email for details. (jwiebe@northstarperformance.com) Even if you are only willing to invest a portion. This has to do with something that will benefit 100 Northstar owners who own the 00-05 FWD cars.

I'm willing to put up all of my possessions (the whole Caddy collection, the tools & equipment, current inventory etc.) as collateral and put things in writing. It's a can't lose situation and unfortunately I can't raise the funds right now alone.

JSTS02
10-19-09, 05:26 PM
i got $5 on it!

97EldoCoupe
10-24-09, 07:22 PM
Haven't been online in the past week or so. $5,000? email jwiebe@northstarperformance.com and we'll go from there. I seriously don't expect any replies because lending money to a perfect stranger is usually a dumb idea.

I'm working on refinancing the property that I just bought back in May to do this. I may not be able to.

Anyone want a hint?

220 brand new Northstars. I'm buying 100 for now. Never been installed or even assembled. Most parts are there to complete these engines in factory GM crates. They are not hot. I'm not releasing much more info than that right now but $27k for 100 new Northstars is a no brainer. These aren't defective, stolen, or damaged; they were bought right off the GM line by a large engine building facility. I've made a deal to pick up the other 120 by February of next year. I have about 25 days to have the cash in the bank to pay for these. All of these are getting studded and assembled with factory GM parts and then at least 100 people will be able to buy a new, studded engine for their Cadillac for the price of a rebuilt unit. I'm guessing around the $3500~ range.

chp350
10-25-09, 11:25 PM
I will email you in a few days..I am considering investing $5,000 (five thousand) also..

tateos
10-26-09, 12:35 AM
Interesting. So, you will drill out and stud them BEFORE the HGs and threads fail? Very interesting, Jake. This reminds me of women that carry the breast cancer gene and get pre-emptive masectomies. I guess that indicates the lack of confidence you have, even in the somewhat improved head bolt design 2000-2005 engines, and the great confidence you have in your stud system.

chp350
10-26-09, 01:42 AM
Jake, I was wondering also why if the newer, 2000 and up engines were to be better as for as hg concerns ,why you were going to be studding them also? that was one of the reasons along with some other details I was working out when I said I would be emailing you in a few days on this investment. thanks, Ted..my email is....( gtowith455@hotmail.com)

eyekandyboats.inc
10-26-09, 01:53 AM
i have alwayse wanted a new enigne for my DTS 200,000 Km its time for a new one, get back some of the power it has lost!

97EldoCoupe
10-26-09, 08:54 AM
I don't like the factory head bolt & thread design. It has improved in 2000 (because of the not-so-porous blocks) over the 93-99's but they're still failing. I could have double customers if I used factory head bolts (7-8 yrs down the road, those engines may need to be studded) but I want these engines to hopefully last longer than that without issues. I think it just makes sense to stud them before the first assembly. Maybe leave the customer the option.

Taylor, 200,000 kms? You should still have all the power and it should still be a great engine- that's just broken in for a Northstar....:D

Speaking of "broken"-that's why I need to get my hands on these engines- 2000+ have weak connecting rods. Any hydro-locking cylinders will bend that connecting rod and throw the engine out of balance. I've seen this 2-3 times now and with failing HGs, when people continue to drive, hydro-locking will eventually occur. Next time you get an out-of-balance engine up to 6000 RPM the connecting rod breaks and smashes the aluminum block. Once the block is smashed, there's only one way to fix the car.....

Ted- I will speak to you soon. My broker called yesterday and has two lenders that might go ahead and lend me the full $27k using my shop & home as equity. I've got a few vehicles to sell as well but if that broker can't get the loan for me I will definitely need any and all help I can get. I thank you very much in advance.

97EldoCoupe
10-26-09, 08:58 AM
Speaking of vehicles for sale, as soon as I get the engine fixed in my '04 Bonneville it might be up for sale, at a very decent price. It's got the Northstar, I picked it up with a dropped valve. Either the valve snapped or the spring did- anyways I think I may wind up replacing the whole engine. I'll have to check and see what damage it did.

codewize
10-26-09, 09:32 AM
Sounds like a good investment to me BUT I have to wonder what the market is going to be for engines in potentially 10 year old cars.

I think most people now days are out of a car before it's 10 years old and if someone had to make a $3500 repair on a 5 year old car they'd probably get rid of it before doing so.

I guess my point is, you have a handful of people here willing to do some crazy things to keep their cars. Many others wouldn't do that.

Be careful with your assets

97EldoCoupe
10-26-09, 12:05 PM
For sure Code. If these were Pontiacs or Buicks or Fords or Chryslers, I would re-think this. Cadillacs are cars that are very often kept in tip-top shape. Not always, but usually. Theres a lot of Cadillac limos and hearses too that will be in service for a long time to come. These are special cars and special engines and one way or another, even if it took 5 years, those engines will all sell. I plan to keep 2-3 engines built up at all times and the rest of the parts will be on the pallet racking in my shop. If an engine sells, I'll build another. All the timing parts are included and everyone knows those tensioners and chains/sprockets are not cheap. The fuel rails are included. The intakes are included. All 8 injectors for every engine is included. I could buy each engine just for those parts alone and it would already be cheaper than buying just those parts. I'll come out ahead on this either way. And so will anyone who wants a new engine.

97EldoCoupe
10-26-09, 12:15 PM
Once I know I have the cash to do so, I'm headed into the USA to see and purchase the engines. If I see anything wrong or fishy, I'm headed back home. If all looks good, I'll have the trucking company I deal with pick the engines up as I'm there. I want to personally see those engines get loaded up before I head back to Canada. Here's some photos they sent me of the engines:

http://www.northstarperformance.com/engines/blocks1.jpg
http://www.northstarperformance.com/engines/blocks2.jpg
http://www.northstarperformance.com/engines/blocks3.jpg
http://www.northstarperformance.com/engines/blocks4.jpg
http://www.northstarperformance.com/engines/blocks5.jpg
http://www.northstarperformance.com/engines/blocks6.jpg
http://www.northstarperformance.com/engines/blocks7.jpg
http://www.northstarperformance.com/engines/blocks8.jpg
http://www.northstarperformance.com/engines/blocks9.jpg
http://www.northstarperformance.com/engines/blocks10.jpg
http://www.northstarperformance.com/engines/blocks11.jpg

eyekandyboats.inc
10-26-09, 01:54 PM
holy sweet liza!, imagine the look of those engines sitting on YOUR SHOP FLOOR!, all the valves and everything are installed allready?
freaking sweet!

97EldoCoupe
10-26-09, 03:25 PM
Yeah they are. I'm hoping Taylor, I'm hoping.

abs
10-26-09, 06:47 PM
I know this goes without saying (and I'm sure you're already thinking about this), but I would recommend that you have insurance on those parts BEFORE you begin putting anything on the truck. A great investment could quickly become a deep hole without insurance!

Andrew

97EldoCoupe
10-26-09, 06:56 PM
No doubt- insurance is a must.

Krashed989
10-26-09, 07:22 PM
Wow, that's awesome. If I had money, I'd invest... I wonder how hard it would be to convert one to work in a 94. lol... :hmm:

Aron9000
10-26-09, 07:33 PM
So I guess you'll have to assemble the engines? I thought you were buying crate motors . . . ..

97EldoCoupe
10-26-09, 08:04 PM
Yup- crate motors that I have to assemble.

Converting one to work in a 94 would be impossible because of the angle, position, and diameter of the holes for the CKP sensors. If it wasn't for that it would work.

97EldoCoupe
10-26-09, 08:06 PM
Well still no word from the mortgage broker. I think I'm going to take the evening off and think some things over. I know a good deal when I see one, I just have to figure out what I'm willing to give up to get these.

JSTS02
10-26-09, 08:54 PM
hey... even if the investment goes totally sour... at least thats some collateral i would not mind assessing!!! based off the numbers... 5 grand should get me about 15 brand new northstars i wouldnt mind having around...

Ranger
10-26-09, 09:45 PM
My God! How in the world do you stumble across something like that? Who other than GM would have that many lying around?

00 Deville
10-26-09, 11:29 PM
Often when companies are in bankruptcy or reorganizing the bean counter will start calling the shots. Companies in the US pay taxes every year on the inventory of parts they currently have in the warehouse. To the bean counters these 00-05 N*'s are a liability that they want off the books. They are obviously selling them for pennies on the dollar to be relieved of the tax burden and cost of storing these engine that are no longer used in production. They are probably also looking at a huge tax write-off for the loss associated with what $$$ they have in them compared to what they are dumping them for.

Ranger
10-26-09, 11:36 PM
Ahh, that would make sense with Jake being so close to Detroit.

codewize
10-26-09, 11:53 PM
Wow, that is sexy just looking at that. Do you know what the percentage of VIN 9 / VIN Y is ?

So for that 27k you're getting the first 100 or all 220 ?

How much are you short at this point?

Ranger
10-27-09, 12:24 AM
I'm not releasing much more info than that right now but $27k for 100 new Northstars is a no brainer.
I guess not. $270 for a new Northstar and no guns involved.

tateos
10-27-09, 01:29 AM
Nice pics Jake - thanks for posting them.

Richard Moore

Destroyer
10-27-09, 08:48 AM
Anyone want a hint?

220 brand new Northstars. I'm buying 100 for now. Never been installed or even assembled. Most parts are there to complete these engines in factory GM crates. They are not hot. I'm not releasing much more info than that right now but $27k for 100 new Northstars is a no brainer. These aren't defective, stolen, or damaged; they were bought right off the GM line by a large engine building facility. When you say "most parts are there to complete", it raises the question of what isn't there and how much it would it cost to get it. Are the short blocks assembled or are you just getting 100 bare blocks and most of the parts for assembly. $270 per motor is a no brainer like you said because I'm sure even a bare block is worth more than that but how much of an investment per motor would it take to get it to the point where the engine could be sold for $3500?

97EldoCoupe
10-27-09, 09:37 AM
The cranks, pistons, rings and rods are not there. Pistons are easy enough to get ahold of. I've got my local GM dealer looking into an order of 100 rotating assemblies. Also where I'm purchasing them, they may be able to get their hands on the rotating/reciprocating assemblies at a volume discounted price. I'm not so concerned about that right now, as Destroyer just said the bare block alone is worth more than the original investment price.

We can do it that way. Anyone willing to invest money in this will receive the engines if I cannot repay within 1 years time. I rough guess that by the time I pay duties and shipping, etc., Each engine will cost no more than $400 max.

So now the question is, if someone lent me the money to do this or even a certain amount, and I could not pay back (and I know I can easily within a year or less) would anyone mind getting stuck with some new Northstars at $400 each? I have a lot to gain by repayment and not losing out on this deal.

My mortgage broker is supposed to get back to me today sometime. I hope he can pull it off. I had a dream I refinanced the shop and house at 3% and wound up with the $27k in cash. That'd be nice.

I've only got about $8-10k right now. I can get those numbers up quite a bit but I still have to pay my suppliers for parts soon. That'll take a chunck of that.

97EldoCoupe
10-27-09, 03:33 PM
I'm not holding aces right now. The broker came back to me with a loan at 29% interest compounded in the first week and then 30% thereafter. Something along those lines. Screw it. Nobody will ever have me paying $5000 per week on interest. If that 29% was the annual interest rate I could live with that, but not a weekly interest rate. I told him to tell that lender to take their money and shove it up their @$$es. I thought even loan sharks had their limits.

I'll come up with something. I'm not finished yet.

STSS
10-27-09, 04:52 PM
I wish I had some cash laying around..... you KNOW those engines will easily pay for themselves.

Keep your head up Jake, it'll work out somehow.

97EldoCoupe
10-27-09, 05:56 PM
Thanks STSS, you're right. I KNOW those engines will pay for themselves. More than 2 times over.

I'll keep trying. If lenders knew my situation, and saw the work we're doing in the shop; they'd have a better understanding. What does it take to get a bank manager to meet you in person at your own residence/shop?

I might have to talk to Sub about getting some carburetor gaskets for my '76 Olds. Gotta have her in tune when I put her up for sale....

97EldoCoupe
10-27-09, 05:59 PM
Got the specs for shipping. 33,550 lbs. worth of engine parts. Northstars for less than a dollar a pound. If this slips by me I'll be beating my head against a wall for a week :(

00 Deville
10-27-09, 06:40 PM
What does it take to get a bank manager to meet you in person at your own residence/shop?

It's never going to happen with a large bank or institution. Your best bet would be to find a small local bank.

Krashed989
10-27-09, 07:14 PM
If you can't bring them to your shop, bring your shop to them. Take pictures or video of your whole operation and bring it to them. It isn't that hard to assemble a presentation that will ease a lenders mind and make the cash flow more freely.

tateos
10-27-09, 09:57 PM
$27K for a get rich scheme? Reminds me of the Handy Housewife Helper. Zip-zip. Ralph Kramden would have said it's "a mere bag of shells"

Pete315
10-27-09, 10:24 PM
but can it core an apple:D

Destroyer
10-27-09, 11:29 PM
$27K for a get rich scheme? Reminds me of the Handy Housewife Helper. Zip-zip. Ralph Kramden would have said it's "a mere bag of shells"
LMAO. Good one. This whole thing looks good..........on paper. I buy liquidations all the time, businesses and estates. I ask myself how much I would pay for 100 N* blocks and I just don't know. Probably less, a lot less. :cookoo:

codewize
10-28-09, 12:44 AM
So it looks like you're getting the block, lower crank case, oil pan, intake and fuel rails, assembled heads?

Is that about right?

There are a lot of parts to rummage up just to get a stripped down engine, no accessories, no sensors, no exhaust manifolds, etc.

It does sound good on paper but you might just make more profit selling the aluminum for weight. I'm not trying to shoot you down I'm just looking very closely at the reality of it all.

97EldoCoupe
10-28-09, 08:56 AM
Ive thought about all of that many times. My opinions don't change. It's a good deal. A VERY good deal.

tateos
10-28-09, 12:59 PM
but can it core an apple:D

No - it's not "it can core an apple" - it's "it can core a apple"

LOL

Anyway, I was not implying in any way that this is a crazy idea - I'm just a big Honeymooners fan.

97EldoCoupe
10-28-09, 02:57 PM
I retracted this last reply- but the future of Northstar Performance is looking good. I will let everyone in on the details very soon.

Investments may still be needed soon but I think we can manage without.

Extremely good news though, and we will let out the details soon! :D

codewize
10-29-09, 12:00 AM
OK great, I'm ready to listen.

Do you know what the VIN Y to VIN 9 ratio is? Do we care?

97EldoCoupe
10-29-09, 12:19 PM
We may be under contract soon to stud these engines and assemble them. Their previous assembler was messing up and four engines in a row had misfire issues, and it was not from spark, timing, or fuel delivery issues. That leaves compression and or valvetrain.

The bottom line is the engines have to work flawlessly. We're thinking of a test stand to actually have each engine running and bring them up to operating temp. Compression testing does a lot but nothing beats actually hearing them run.

Let's just put it this way- soon, if you buy a new engine from a local GM dealership or have on installed; they may already have the SureGrip studs installed...

220 Northstar engines in GM crates. I bet everyone can already guess who we might be signing a contract with soon.

STSS
10-29-09, 12:32 PM
Good for you Jake!

00 Deville
10-29-09, 02:49 PM
That's how things work... when you need money nobody will lend it to you. Once you ink a deal to assemble the engines or provide your studs for the engines with you know who. Everybody will be wanting to loan you money.

Ranger
10-29-09, 04:58 PM
WOW! Congrats. :thumbsup:

97EldoCoupe
10-29-09, 08:05 PM
Thanks everyone. It may not be a 100% sure thing yet on the latter. But it looks very promising at this point.

97EldoCoupe
10-29-09, 08:07 PM
A move to the USA may become necessary soon. If the US government asks me why they should let me in, well, I'll just ask them "wouldn't you want the money to stay in the country?". I at least need the rights to set up a shop in the US. And keep the one here in Canada in operation.

00 Deville
10-29-09, 11:32 PM
A move to the USA may become necessary soon. If the US government asks me why they should let me in, well, I'll just ask them "wouldn't you want the money to stay in the country?". I at least need the rights to set up a shop in the US. And keep the one here in Canada in operation.


You just need to find yourself a bride in the lower 48.:histeric:

chp350
10-30-09, 08:08 AM
Jake, haven't forgot about emailing you, been following the thread and glad so far everythings going your way. I will be in touch for a couple of stud kits and some advice on r & R thru the top instead of dropping out the bottom soon thro.. also I got several complete engines I might be sending your way when I come to visit.thanks Ted

97EldoCoupe
10-30-09, 09:43 AM
My dad has two brothers in the United States who could probably get him in- he's always wanted to move to the Lone Star State... If my dad were in the US, I think he could help get me a green card too.

One of my uncles is a retired cotton farmer and the other is a manager of an oil company. His boss knows George W. Bush. I did a HG job for the 5th cousin of the U.S. Senator. You'd think that somewhere I'd have some type of connection to help....but I don't think so.

97EldoCoupe
10-30-09, 09:44 AM
Mail order bride? :histeric:

chacenbra
10-30-09, 03:03 PM
Hey Jake I got a sister if you dont mind Arizona :histeric:

ponyboyt
11-03-09, 09:34 AM
So it looks like you're getting the block, lower crank case, oil pan, intake and fuel rails, assembled heads?

Is that about right?

There are a lot of parts to rummage up just to get a stripped down engine, no accessories, no sensors, no exhaust manifolds, etc.

It does sound good on paper but you might just make more profit selling the aluminum for weight. I'm not trying to shoot you down I'm just looking very closely at the reality of it all.

There are LOTS of dead Cadillac's around with just these parts, with people either scrapping, repairing, or selling them for 500 bucks. When the required repair only requires the block and maybe heads, you dont need sensors, manifolds, accessories. I see so many caddy's up here for sale at a "great deal", and even not for sale but soon to be... but a lot of people are aware of the HG repair cost. That great deal can turn into a "greater deal" pretty quick if you say the right things. But for someone bringing in a car with lifted threads, which is why most people i assume go to him, Jake is onto something good.

97EldoCoupe
11-03-09, 10:42 AM
OK Investors are still needed. I have two-three weeks to come up with the 27k still. They still want me to supply them with engines and will still ship them to me for repair, but they will still allow me to buy 100.

My 2004 Bonneville GXP will be up for sale by the end of the week, it's only got 70,000 miles roughly (120,000kms) and it's damn near mint. I see '04s and '05s going for around $15-17k on dealer lots, mine will be for sale for $10k certified and emissions tested (a requirement here in good ole Ontario). Fully loaded with the sunroof and Monsoon stereo, suede and leather seats. Oh, and new head gaskets, studs installed, and the block re-sealed.

I'll come up with every dime I can in the mean time but anyone with some money laying around that they won't need for approx. 3-6 months, let me know. 30% return in less than a year. My business is doing well but the banks keep telling me that I haven't been in business long enough for them to extend credit. I have equity in the property but a very new mortgage so nobody wants to refinance. Visas and Mastercards are near their limits- used them to purchase equipment. Quite a decent income just not enough to come up with the 27k so quickly. This is a large company I'm trying to get the engines from. I'm lucky they gave me 30 days to come up with the $$, usually big companies won't play around.

I foresee being able to have $27k paid back within 3-4 months. I'm allowing myself 12 months max. And I'm hoping to "not" have to borrow this much.

This morning we secured a deal with a limo & hearse dealer who deals with the US and Canada for HG and engine repairs on their Northstar powered machines.

All help will be appreciated. I wouldn't ask if I didn't try every bank, broker, or lender that I could think of.

I will make a private list starting with lenders one at a time and the amount they can lend. The first to lend will be the first paid back. Interest + Principal will be counted as one- (e.g. $5000 will be $6500 to repay at 30%) One at a time will be paid back. The full sum, not in little bits. I will pay back the cost of wire-transfer as well, it doesn't need to come out of the investor's pocket.

I'll be working my tail off for the next bit to come up with every dime that I can. Closer to my deadline, Nov. 15th, there's going to be a Cadillac parts & cars garage sale if there has to be. I've always managed to make things work one way or another. But this time, I'm simply going to need help.

97EldoCoupe
11-03-09, 10:58 AM
Also, it's hard to lend money to perfect strangers. I know that. I'm not even sure I would to be honest.

The business with all the HG repair jobs and stud kits, engines, etc. is fairly well established. When I first started selling the stud kits I sunk a lot of money into the idea before it actually paid off. I have to order enough studs for 100 engines before it actually brings the cost to produce low enough to make any money from it.

I know there's a risk when you loan out money to people you've never met. There always is. But I cannot afford to "not" repay. My business, the reputation we hold, everything would be finished and there's no way I'm giving this up. I owe a lot to many members on the Cadillac Forums. I've gotten many HG jobs and sold stud kits and parts, thanks to the help from all of you. I won't let my investors down.

I don't want any money until closer to the 15th. I'll let you all know closer to that day how much is still needed.

A huge thanks in advance from John (shop helper), Charity (director of operations/secretary), and myself - Jake (97EldoCoupe).

97EldoCoupe
11-03-09, 11:00 AM
Hey Chacenbra, you'd have a guy for a brother-in-law who could do your Cadillac HG jobs at cost..... :D lol

00 Deville
11-03-09, 07:14 PM
Jake, A while back I heard of a new way to borrow money... It's called Peer to Peer lending... I have never tried it but it sounds like an interesting concept.

http://clarkhoward.com/liveweb/shownotes/2009/08/27/16526/

chacenbra
11-04-09, 02:47 PM
Well hot damn :thumbsup:! Maybe then my girlfriend wont get so angry when I try and buy so many. :woohoo: :woohoo:

ponyboyt
11-04-09, 03:36 PM
Well hot damn if there is a parts garage sale you know ill be there haha.

GOT2B GM
11-08-09, 02:41 AM
Keep us posted if you have a parts sale, Im not too far away in Kitchener....

97EldoCoupe
11-24-09, 07:07 AM
Well everyone I got the first shipment. 24 engines (well the parts that were included and 24 blocks). The other 76 are coming soon with the option to buy 120 more later.

Depending on the final cost to build, I may be selling off the parts instead of building these. Either way it was a no-lose situation. Everything is still in GM crates and packaging. I looked up the cost of some of these parts and none of it's cheap. These aren't factory seconds either.

If anyone is thinking of doing some engine work to their 00-05 cars, for a while it may be cheaper to buy brand new, GM assembled heads from me than to have yours machined. New castings, guides, valves, seals, springs, locks, lifters (lash adjusters actually), followers, cams, it's all new and GM assembled. No corrosion or pitting, no surfaces to scrape clean...

Brand new Bosch fuel rails. MSRP is over $350. I'll be selling these for $125. New Bosch injectors. MSRP is $87 each, I'll sell for $22 each. New flexplates (flywheels) balancers, timing covers, all sorts of little odds and ends.

I'll decide first for sure what I'm going to do with these and talk to some people about crank and piston pricing. But depending on what makes more sense, I may be selling brand new blocks soon too. Some, not all.

If I do build these up, the target price I'm looking for is around $3500-$4000 once complete with a 3 year/unlimited mileage warranty. New Northstar engines for the price of rebuilt. Now I need to find bottom end parts at a reasonable enough cost to make this possible.

ponyboyt
11-24-09, 09:46 AM
how are any of the parts for mix and match with previous years? Is there any way to modify at all to have the newer heads work on <99 engine/block/pcm ? That would be interesting. (my top end is getting noisy). If tahts all a no go i think it would be unfortunate, i feel like there is probably a larger market of pre-2000.

eyekandyboats.inc
11-24-09, 12:44 PM
nice Jake! you sure did get your act in gear for these!. proud of ya.

Submariner409
11-24-09, 03:47 PM
2000+ roller follower heads will not, ever, no time, nohow, work on 1999 and earlier. Different everything.

codewize
11-25-09, 01:24 AM
Do we know anything about the VIN 9 : VIN Y ratio?

ponyboyt
11-25-09, 09:40 AM
2000+ roller follower heads will not, ever, no time, nohow, work on 1999 and earlier. Different everything.

:( noisy valve-train :(