The Road Less Traveled

Discussion in 'Ask An Owner Operator' started by crackinwise, Aug 26, 2014.

  1. crackinwise

    crackinwise Medium Load Member

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    After getting the call about my financing I finally got hold of my banker. He said when underwriters put the information together for the loan they use a formula and get an amount and thats what they approve. Of course they dont consider other factors that the business plan spells out rather clearly. They plug numbers into a formula and get a number but I was told usually after talking to the bank again those numbers are routinely adjusted if the underwriters are happy with what they hear. So basically they may not like my profile and say all I get is what they originally approved or they may decide they are ok with giving me more once they get more information from me. The majority of the time the loan can be adjusted upwards so I should know by the end of the day today.

    The bank told me that they might not get me all that I was asking for but maybe get me close.... I reminded him that what I was asking for was not some arbitrary number and explained my position. Bottom line is if I cant get to where I need to be Ill have to go to a plan B on financing the truck and trailer. The outcome of this loan does not end the dream early but merely changes the route to get there. In trucker terms my GPS might take me out of route by 50 miles but Ill still get to the destination.
     
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  3. rollin coal

    rollin coal Road Train Member

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    Older trucks aren't a sure thing end all be all. Case in point right now I'm having a steering issue with an '03 that no-one seems to know what the hell is causing. The entire front end is basically brand new with only one thing left to do and still not even confident that will fix the problem. That kind of thing happens with ANY truck at one point or another. Put another $100 bill on the fire. https://www.youtube.com/watch?v=BWpYQjuJ0u0
     
  4. crackinwise

    crackinwise Medium Load Member

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    LOL.. I totally agree with you rolin coal... But from what I have found when a newer (emissions) truck suddenly has an issue it can be $10-20,000 and they still cant figure it out... At least "most" of the components on older trucks are easier to diagnose and repair. Of course Im speaking generally, Im sure there are individual cases to the contrary all the time.

    I may end up with an emissions truck anyway...lol... The used market has tons of 05-08 trucks out there at decent prices but repairs are always the wild card...
     
  5. FORESTGUMP

    FORESTGUMP Light Load Member

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    1998 Peterbilt, big sleeper, 475 cat with about 425,000 on the overhaul, 10 speed 373 rears and a dump valve for the spread axle. 5.5 mpg including reasonable idle time.
    That's a real flat bedder truck that you can work on yourself. I know, you've got all those wonderful fuel mileage numbers dancing around in your head and, that's a nice fuzzy feeling till they get even with you because only a dealer can work on it ant it will only cost you ten thousand dollars and two weeks in the shop. And, another ten thousand in lost revenue during that time. Then, if you survive all that, the problem seems to come back and what they fixed didn't need fixing to begin with. Trying this again, it's back to the shop. Seen that type of scenario so many times.

    I know that most, if not all freight out of Fl. is laughably cheap so you will probably be forced to use it to get out and run in better areas until you find that real good load going back in. Example, a round the old Pete did once was a good load from Ms. to North Port,Fl. Reloaded at Plant City to Alexandria, La. Loaded pipes in Lafayette, La to Bartlesville Ok. Only cheap stuff around there so I deadheaded the truck to Ft Smith and loaded a good load back home. Could have had a real good rate to Chicago area but I never send trucks up there. You could do it and probably get good money back to Fl. from there.

    Negotiating rates is a lot like playing poker, especially flatbed. When I talk about loads to Fl. I always start the old foot dragging, poker faced hum hawing around and will win unless they can find a Fl. truck in the area that will take it for less. In your case you will be that Fl. truck and brokers know it. Never let them know you want to go in that direction. Only do it if it pays really well. When you catch the big one, then you head south.
     
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  6. crackinwise

    crackinwise Medium Load Member

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    The bank called me late yesterday to let me know that they are working diligently on my loan. No word yet on what the deal is but I'm really hope I know before the holiday weekend begins. I'd like to start seriously looking at trucks next week.

    Im going away for a long weekend to relax a little so there probably won't be much to report until Tuesday at least. Unless I get a call before the end of business today.
    Hope everyone has a nice holiday weekend.
     
  7. crackinwise

    crackinwise Medium Load Member

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    After a nice long weekend I am back and waiting on a call from the bank. Hopefully today will bring good news.
     
  8. jldilley

    jldilley Medium Load Member

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    Please keep us posted. I'm expecting good news!
     
  9. crackinwise

    crackinwise Medium Load Member

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    Is No News Really Good News?

    Since there was a holiday on Monday I figured Id hear something from the bank by today. So I waited thinking maybe Id get a call by the end of the business day but no call. I got busy this afternoon and by the time I looked at the clock the bank had closed. The old saying is "no news is good news" so lets hope thats true, but for now Im just left to wonder what is going on. Im being patient because Monday everything was shut down so basically tomorrow would be the "middle" of the work week if this were a regular week. If I dont hear anything by early tomorrow afternoon Ill call and see where we are with this loan.

    In the mean time Ive been looking at trucks online and recently found one locally I was interested in. I went by and looked at it about 2 weeks ago but just did a visual scan since I wasnt ready to make any comitments to purchase if I really liked it. But from the exterior it looked really good. My plan was to secure some money and go take it for a ride, have it checked by a mechanic, pull a Rig Dig, oil sample and try to get an ECM report. Well when I first heard I was approved for teh loan I went back to the lot and.......truck is gone! Sold! I doubt I would have been lucky enough to have found the perfect truck on the first attempt anyway but it would have been nice to get a little deeper into it and see how it ran. It was an 05' Columbia mid roof. It was newer then what I was thinking Id buy but if it had a good history and it passed all the tests it would have made the short list. Well the search will begin in earnest soon, Im sure there are plenty of fish in the sea and Ill start locally and expand my radius outward. There are a lot of listings out of state but Im hoping i dont have to go too far away to find a decent truck.

    I cant forget about the trailer.. I have no leads yet but will beging that search as well. Every once in a while someone is selling their whole operation, truck, trailer and equipment. It would be nice to find a great set up like that but everything including price would have to be perfect....a long shot at best for that scenerio to play out.

    I havent applied for my authority yet because it has a deadline attached to begin operations. Ive been holding off until I am 100% certain Im ready to buy a truck, I feel like Id be putting the cart before the horse if I filed for authority but have not secured a plan to purchase a truck and trailer. Im already an OOIDA member so I will use them to help me through the process but I plan to do it all myslef and not pay others to get this done. I figure if I am not organized enough to get through the process of funding and purchasing a commercial vehicle, apllying for authority, IFTA, and all the other details needed to start hauling freight then I shouldnt be in business at all. Besides, after all the research and planning I like the challenge of bringing the plan together into a functional business.
     
  10. crackinwise

    crackinwise Medium Load Member

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    I was super busy driving today and did not have a moment to call the bank. Well I did have a moment early in the day but I wanted to give the bank time to make contact with me. As the day wore on I got busier and did'nt allow myself the time to make a late afternoon call. And of course they did not call me either so I am not sure what is going on just yet but tomorrow I will know something because I am calling them early.

    So a little more about me.. I am currently driving locally but its just a part time gig. There are only 3 drivers and most days are not that long, and of course today was a full day. I deliver conex containers for storage on job sites and sometimes homes. We also have 45, 48 and 53 van trailers as well. So today was a van trailer to Orlando and had to wait for it to get loaded then move it to another location for storage. That took most of the morning which was fine but the afternoon was mostly running around locally and thats when things got busy and I missed my chance to call the bank.

    That being a part time gig I also have a full time job as a firefighter. Im close to retirement and was planning to start the trucking business as a retirement deal. But last year this part time job bumped me into a higher tax bracket and I pretty much paid all my "extra" earnings into taxes. Its crazy but I would have been better off not working extra, except for the fact that I maintain recent driving experience and a DOT medical card. Its critical these days to stay actively driving or risk losing my CDL. Ive had it since 1992 so Im not about to lose it now.

    Anyway the fact that I wiped out any gains from the part time job got me thinking that if I owned the company and I made enough that Id pay any gains in taxes I could then just buy equipment for the business and show no gains. Or if I should make a much higher income I would pay the taxes and keep the gains...Basically I can control the income myself and if I am going to make zero at least Ill be paying off a truck and trailer. So its a gain personally even if it does not result in an income. That probably sounds confusing...LOL.

    My advantage in starting this business is that I do not need to make money because I still have my career. But that does not mean I would haul cheap either. I will have to make expenses and Ill be negotiating my rates in order to make a profit on every load. I know there will be times when market conditions dictate taking something I may not want or like to take but this is Florida. Also Im in an area that requires some deadheading but I have a strategy that might help reduce some of that and may help me get a little more money for some loads. Mostly Ill be haeding north with something outbound and making up for the "Florida Rate" with loads coming back into the state from points north and west.

    The single most challenging part of all of this will be time...I dont have the luxury of staying out a few extra days and making a few more dollars, I have a job to get back to every 3rd day. I have worked out the details on what type of radius I can travel in and make my way back I just have to choose carefully on certain loads. The good news is that I also have time off built up so if I see a really well paying load going somewhere farther then I usually would go I can just take a day off and Ill have 5 days to complete the run. So while it may sound difficult there is a lot of flexability built into my schedule. If I didnt have that much flexability I would not be able to do this. So the challenge for me is PAY EXPENSES...Thats the big one... And once I settle in I believe profit will follow..I have a solid plan..I just have to execute!
     
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  11. crackinwise

    crackinwise Medium Load Member

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    Aug 21, 2011
    Central Florida
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    And The News Is... There Is No News

    I waited all week to talk to the bank only to find out on Friday that my contact person has been out of the office. I spoke to another bank rep and was told they are still working on the loan so hopefully early next week I should get an answer. So for now there is no real news. Other then I started looking for a truck and trailer and getting Plan B together in case the loan falls through. Once this part get straightened out Ill start the process of getting my authority and insurance so things will move much faster over the next week or two.
     
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