Someone will run my truck and trailer Questions

I appreciate you reaching out and doing your research. This business is unique for several reasons.

The 1st is huge capital investment.I know realestate is competitive but $150000 would either buy you a place or it would be a huge downpayment for place. In realestate your investment appreciates In trucking your investment depreciates. Eventually it will be worth virtually nothing.

Drivers are very difficult to find. Often when you do they will either destroy your equipment be unreliable or may even steal from you. Now you have a $150000 truck that you are paying $20000 a year for insurance for a driver to not show up or quit or abandon the truck 30 States away or steal from you or you can't find a driver and now your investment sits as it cost you money.

Trucks also breakdown, the newer seem to break down more frequently. Warranties don't help you pay the bill if the truck is down for a month and you are still paying the insurance and the price of the truck itself is losing value. And I assume you are paying your driver while the truck is down. Along with matching his social security and paying workman's comp.

Rates in trucking also fluctuate.You may jump in when you think everyone is making money only to find the cycle has changed and now that investment that you made is making even less money.

I agree with the above posts. Either be the banker and just loan the money or figure out how to lease trucks to people and make money every month on that. Never forget that even if you financed someone to buy a truck if they default by the time that truck comes back repossessed it will be worth very little.

Myself I would not want to be the banker to someone in this business. It is very difficult for someone to go into a bank and get a loan on a tractor trailer because the failure rate is so abysmal. So you loaning the money to someone to go buy a tractor trailer is very risky investment and I would advise against that. Leasing a truck you still have the capital output then you have to maintain it and there's a lot of work involved in the paperwork to set up and I am not sure how you actually would do that and make money. I suppose it's possible but honestly there's got to be better ways to invest your money.

If it were me I would find a new realestate agent that can really track the deals down, or find multiple agents, or branch out to multiple cities and areas, or I would get a good investment analyst have them set up a portfolio for you atnd nvest in stocks and bonds.

Even a stock that is somewhat risky but you have the opportunity to really make a lot of money is better than trucking. I am sure you understand risk, but in trucking truly the odds are that you won't make money. In the example of the stock maybe the odds are 5050 but if you hit it you really make money. In trucking if you hit it you probably will make some money or some money for now until something insurmountable happens or until it cost you the money that you just made.

If it were myself, I would never get involved in this business in that way that you are suggesting.

Now if you really want to invest money you could finance me to run a business where we buy salvage trucks and part them out and make a ton of money. And maybe have a tow truck business with that.

Orl you could finance me to go into a building supply business or something like that. Nothing wrong with buying an established business either.

Those are much better businesses than buying a truck.

 

It's an extremely volatile industry. Most people getting in are in debt to their eyeballs to get in it. Then the money rolls in good for awhile and they collect more debt. Then one stupid little thing goes wrong with the truck and they're down for a month or 3, suddenly they're bankrupt.

 

If it’s your business and truck then I’d have your own dot authority and insurance. That way you actually own the business. Maybe set your friend up on a somewhat small salary and share some profits to keep him hungry.

I’d be curious to see what your friends business plan is and how he expects to make money.

The other posters are right. The failure rate is extremely high. You’ll need to become an expert in this business to make the money you want to make. Chances are you’ll have a falling out with your friend and will want control of everything to start handling it yourself.

I’d say come back to us after this friend has given you a very detailed plan for success. In the long term if one truck is successful then you’ll want to expand to several trucks. This takes time and money but if you really invest your time into it then yes the money can be worth it. There is no quick or easy way to riches in trucking no matter how much money you have.

 

Honestly, you won't make Jack off it. That's a lot of fingers in an already small pie. Unless he's got contracts, that you've seen not just that he claims to have, that pay what they should. You'll spend over 100k a year just on the driver, truck, maintenence, and fuel. That's a hell of a gamble you're taking on a complete stranger in my opinion.

 

Then I wouldn't say he has a lot of experience, just because someone can drive a truck doesn't mean they would be able to run a company. Has he tried raising the capital through the normal channels and been declined loans? If so that's a big red flag right there.

 

Just curious. Evidently you have the resources to invest. Of all the investment/Business opportunities that exist, why did you select this? Did your friend offer you a higher ROI than any other?

 

I'm sure that the majority of folks P&L statements from the past 8 months or so look extremely attractive with how rates/freight have been but, this has been an abnormal year...

Ask him to see 2019 statements, my guess would be your thoughts on how "great" they look will change drastically...

 

, Put a tracking device on the truck, I have had drivers in trucks and they have been known to disappear

 

How many billboards do you pass a day with a lawyer advertising he will be glad to sue some truck that got into an accident? Guess whose name will be attached to that truck? Guess who has the deepest pockets in this business deal you are undertaking? There are much safer, but maybe not better, ways to make money.

 

Sounds Like a Text book case of How to Lose Money & a Friend, To Me...Good luck..