Looking to start a frac sand hauling business

The frac hauling industry is covered up with trucks that can't get enough loads as it is, it's not a very enticing market right now.

 

Indeed it is....trucking is a loss leader anyway. In accounting 101 its a cost center not a profit center.

Break over points or ROI are typically very high because of the high capex to get off the ground. This is how brokers and mega carriers survive . By pennies on volume or no capex.

If I was an investor and wanted oil field returns it would be mineral rights or purchase a working SWD. The returns on both are perpetual and one can sit very comfortable with less than 5 million invested. 2nd choice would be a real estate portfolio of residential renters convertible to tote the notes. Get quality renters in with a caveat of owner financing in 24 mos. Very doable.

JMO

 

Hi,

I am responding to an old post BUT I started a frac sand business in 2014. Terrible timing but we were getting paid. I approached it differently. I did not own a truck. My research showed the trucks were 1. expensive to non CDL owners 2. repairs, repairs, repairs 3. Expensive to repair-captial needed.
I owned 2 Gardner Denver blowers ($15k each) and pneumatic trailers (leases).
I partnered with 2 Owner/Oper that wanted entry into Frac but didn't have the capital for blowers, the pneumatic trailer leases nor the contracts that paid.

CONS: Yes, this type of model could've worked if the following had happened:
a. My Owners/oper trucks didn't keep breaking down and they did not have the small capital for repairs
b. Trust. I had a $15,000 blower on a truck without a GPS tracking system. Yikes
c. Trust. I had a $60,000 pneumatic trailer on a Truck that I did not own. Possession in Texas is ?? % of the law.

PROS:
a. I was successful until the market droped. Oil dropped from $120 to $50 in months
b. The capital entry was cut due to the fact that I did not own the truck.
If I did it again I would Lease the truck, own the blower and do a month to month lease on the trailer.
I would have GPS tracking on everything...including the driver.
Currently my Friends contract in Texas is $1600 per day with a 50 mile distance. Not bad

 

And the sad thing is, there are drivers out there that will allow this....

 

Helpful. Don't you have some conspiracy to discuss somewhere else?

 

Hi, You said your friend's contact is for $1600 a day? Do you mind sharing the name of his company?

 

AC141, I know this is a long shot but if you'e still around, how did things turn out?

 

Raybonent Im planing on starting a frac sand business, I own the equipments and would like to put them to work as an independent carrier. Any word of advice?? Where do I get the contracts from??? I'll appreciate any information.
Best regards