| Rolling Stock - Rail Cars |
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profitmagic
Full Member
Cash: $ 5.01
Posts: 58
Joined: 18 Dec 2004
Location: Poulsbo, Washington
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| Rolling Stock - Rail Cars |
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Just wondering if any in this forum has had any experience investing in rail cars?
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Wed Jan 12, 2005 1:49 am |
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xboxundone
Senior Member
Cash: $ 67.83
Posts: 795
Joined: 19 Sep 2004
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I have heard of people investing in them but have not personnally done this.
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Wed Jan 12, 2005 2:24 am |
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profitmagic
Full Member
Cash: $ 5.01
Posts: 58
Joined: 18 Dec 2004
Location: Poulsbo, Washington
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Certain kinds of rail cars make great long term investments for continuing income.
Today you are lucky if you can get 3% in a bank or MMF. With rolling stock a yield of 7-8% is the norm plus depreciation which boosts the after tax yield to around 16% p.a..
This kind of investment is very stable, since the users are the major US corporations who ship product via rail or the railroads who move the cars around.
I have an opportunity availible for refrigerated cars with a depreciation pass through. The users are major processed food producers and major Class 1 railroads in the US and Mexico. The shippers have contracts in hand to move their product for a 9 to 12 month period and they will commit for this period. Car life is 50 years under AAR regulations. The shippers will not commit beyond the term of the contracts they have with their buyers, but a check of the USDA food shipments will show that turcks and railcars are being used constantly to move perishable products. They just renew their contracts when they expire.
This situation gives the private investor our opportunity. We bridge the gap between the short term needs of the major shippers and the long term financing that is needed to keep the daily car hire low for the railroads and their customers.
This is a 100% off-line opportunity for qualified investors.
E-mail me for more details.
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Wed Jan 12, 2005 3:29 am |
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