How Big Circle Auctions Can Transform Your Financial Strategy
- David Waller
- May 28
- 5 min read
Unlock the Potential: How Big Circle Auctions Can Transform Your Financial Strategy
Ever feel like you're just saving money, earning minimal returns, and not really building lasting capability? Our recent conversation delved into a powerful tool that aims to change that: Big Circle Auctions (BCA). More than just a place to buy and sell, BCA, related to our TCC community, is presented as a platform designed to build and compound your financial future.
Let's explore how BCA works and the unique advantages it offers compared to conventional auction houses.
A Different Kind of Auction: The All Pay Model
Unlike typical online auctions where only the winner pays a commission and potentially high buyer fees, BCA operates on an all pay model. This means that when you place a bid, you are actually paying that bid amount. For instance, if you bid $53 in round one and $64 in round two, you pay both amounts.
But here's where it gets interesting and fundamentally different:
Bids Become Points: As long as you are a TCC member, all your bids become points on your TCC profile.
Earn Interest on Bids: These points earn interest at a rate of 6.5% per year, paid out monthly.
Bids are Redeemable: After five years, the money you used for bidding is redeemable.
This structure means that your balance sheet is never negative, even if you lose the auction. You are essentially moving your money from one savings vehicle into BCA, where it becomes points, earns interest, and is saved.
Winning Strategies: Bidding and Listing
BCA offers multiple avenues to build value:
1. Bidding:
Building Future Capability: Every auction you participate in, even if you don't win, makes you more capable to win in the future. The accumulated points from previous bids can be used and applied to your best and final offer in future auctions. It's like "loading rounds in a chamber" for future items you want.
Winning the Item + Redemption: If you win an item, you get the item, and critically, you still get all your money back that you used for bidding after five years. This is described as one of the greatest potential returns.
Favorable Financing: For winning bids, BCA, through a third-party lender, can provide financing terms that are set up before the auction starts. You only need to bring a minimum of 10% of the final bid in cash. This financing is qualified by the successful completion of the auction and the value created, not your personal banking history or credit. Terms can be highly favorable, even an 80-year amortized loan at 4%.
2. Listing Items:
Creating a Spread: Sellers can list items for more than their market value. If the minimum price set by the seller (higher than market value) is met, they can sell the item at market value to the winning bidder but profit from the spread created by the auction. For example, listing a $400,000 property for a minimum of $460,000 could result in a $60,000 profit for the seller.
Low Listing Fees with Returns: BCA's listing fees can be as low as 2%. These fees also earn 6.5% annual interest and are redeemable after five years. Sellers are guaranteed no less than a 20% return upfront on their listing fee.
Gains Even If Not Sold: If an auction for your listed item does not complete (i.e., the minimum value isn't met), you keep the property. In this scenario, you still receive the guaranteed upfront return on your listing fee and earn 20% of the value that was created in the auction over five years, paid monthly. This creates new monthly cash flow without losing the asset.
Creating Income by Listing: It's possible to create a business model or income stream simply by listing items on BCA and earning spreads or monthly cash flow if the auction doesn't complete.
Additional Unique Benefits
Item Return Option: If you win an item but decide you don't want it, unlike conventional auction houses, you have the option to return it to BCA and instead take 80% of the item's cash value. This can itself be a strategy to generate an upfront return. Combined with the five-year redemption of your bid amount, this can result in a significant annual return on your capital.
Inspections Provided: BCA provides inspections for listed items like vehicles and properties upfront, offering more transparency than many traditional auctions where you might buy an item sight unseen.
Building Corporate Capability: Participating in BCA, through both listing and bidding, builds member history and contributes to the corporate capability of the TCC entity you are part owner of.
Advanced Strategies: Groups and Infinity Cycles
The potential of BCA becomes even more apparent when leveraged by groups pooling resources. These groups can commit funds monthly to both listing and bidding, snowballing their capability over time.
An exciting concept discussed is linking the cash flow from Kindling notes (another tool in the TCC community, paying out substantial monthly cash flow) with BCA activities. By using the monthly cash flow from a Kindling note group to fund BCA listing and bidding activities, you could potentially create an "infinity cycle" where one asset (the note) generates cash flow used to acquire and build value in another asset class (items/returns/spreads through BCA). This strategy could turn a group into a multi-million dollar valued company in just a few years. It was even suggested that a Kindling note itself could be listed and sold on BCA, acting as "rocket fuel".
Conclusion
Big Circle Auctions is presented as a powerful tool within the TCC community, offering unique advantages over traditional auctions. Whether through bidding to build future winning capability and earn interest, listing items to generate spreads and cash flow, or leveraging the platform's unique return option, BCA provides multiple pathways to build and compound financial value. When combined with other tools like Kindling notes, the potential for creating significant assets and revenue streams is unlike anything out there. BCA is not just a transaction platform; it's a mechanism for building financial capability and potential for both individuals and groups within the community.
DON'T FORGET! Head over to BCA and participate in the TEST auction on May 29th at 4pm MST! Register and ENROLL in advance!
Winner of the test auction will win $250 of real cash!
To learn more about Big Circle Auctions, The Community Corp, and Kindling - head over to the "Connect" tab in the top menu to find a representative near you.
For BCA, you can also call the help desk at 307-258-1861
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