My father in law just signed up with Glaser Williams as an owner/operator and I have a question or three for anyone in the know.

*background*

My FIL talked me into loaning him 80k for a house about 5 years back and I thought with the proper documentation and lawyers it would be ok, well it isn't turning out that way. He hasn't been on time for a single payment and is now about 5 months behind (but he can afford a Lincoln MK V). He was all happy about this company after talking with one of his buddies and seeing how much he made and the prime cabin/hunting property he was able to buy. So he signed up with them and told me that he'd be able to pay the remainder of the house off within a year. Now He's telling me he won't be able to make any payments...

*Here is the question*

He's telling me he's grossing 4.5k a week but his take home pay is under 800 bucks a month (uses Glaser Williams trailer). That's with no taxes or health coming out. I know fuel gets pricy and stuff, and they take a chunk for the trailer, but I'm not in the know for this type of business. Does this pass the sniff test or am I getting taken for another ride.

Your FIL sort of got taken in by his friend in my opinion...they all talk big. That said, here is probably pretty much the formula. They "pay" am owner 87% of the load--off the top. They charged the owner 10%, also off the top for the trailer. They charge 7% for the load insurance, also off the top. So an owner "receives" 70% of the load minus their fuel. For at least the first month an owner runs behind on his fuel, as a start up, which they slowly charge him for, so instead of 5 days fuel they may be taking the fuel for 6 or 7 days. When the arrears all clears, he should be receiving 70% minus the weekly fuel. If it is like the other Williams, he is required to take send in his paperwork/logs, etc. via ups each week, 2nd day air, and then they take from the drivers pay the postage for that. Since he is renting their trailer, he is also responsible for anything that happens to the trailer, except for regular wear and tear. If he gets, say a bolt in his tire and it has to be replaced, he has to replace that tire at his own expense. He may use the card that they give him, but ultimately, it is still charged to him. His net pay may be $800. a week, not month. Since he has been at this a little longer than your first question, he may be receiving more by now, but probably not much. Owner/Operators make about as much as a company hand, without the benefits.