Own Without Operating?

My .02. If you have that money, and you are dead set on investing in the transportation industry...

Buy a quality trailer and lease it to a owner op you know/trust. Charge a fair percentage and have a solid contract. You'll have less headaches than if you were trying to run a truck on a shoestring budget.

 

Thats going to be the most affordable way anyone can get into truck as an O/O with the least amount of cash out of pocket. I went this route, except driving my own truck. Doing so well I am afraid to leave and go it solo or to even trying leasing on with a different carrier.

I think with most things, if you are willing to work hard and put in the effort needed to succeed you will do well. I have been very lucky to have met and associated myself with the right people. I look out for my carrier as much as he looks out for me. We both have a vested interest to see each other succeed.

Though I have to admit,.. personally I would want to start with more than $25k cash and taking out loans for the rest. Thats a gamble expecting many things to work as they should or go as planned. This is trucking,.. things can go off plan in a quick hurry. Cash is king,..

Hurst

 

dude, 25 grand is barely more than pocket change. I hate to squash a guys dreams but the reality is, for the type if business venture you are proposing, that amount of money doesn't even get you a seat at the table.

Edit to add: seriously man, twenty five grand isn't even a reasonable down payment on a new truck. The last time I bought a truck I put forty down. And that was almost fifteen years ago. Trucks are fifty thousand dollars more today.

 

I can name people who have bought into trucking with the only goal in mind being to lose money to help their tax situation. What you want to do may be possible but I would not want to do it. If I could do it over I would learn a trade: carpentry, electrician, doctor (haha), etc. You will have a minimal investment in tools and get paid well for what you know and do. Buying a truck and operating it are very expensive for too little return in many situations in my opinion. Invest another way.

 

If you think the trucking business is full of rate cutting, you ain't seen anything until you get into the construction business. Every Tom Dick and Harry with a pickup truck and a hammer thinks they can be a contractor.

 

You'd see a better ROI in the stock market, given a reasonably savvy adviser. If that's the extent of your funding, bank it and keep on with what you're already doing. If it's play money, there are other playgrounds that won't bankrupt you as quickly.

 

I am no expert in this field, but I will say that I would never try it on $25k. I just started my own outfit, truck, trailer, authority, etc. I started with 4 times as much as you are talking about and I've already spent half and still have a bit more to spend before I start making a buck.

Just some things to consider: While I was on a truck hunt I seen a truck or two in the $8k to $15k range. Let say you found one for $5,000. What are the chances it's 1. Will it pass an inspection? (doubtful). 2. How close is the engine to needing a rebuild? (it will likely already have 600k+ since last rebuild). Then you need a trailer. I'll just go with a LOL figure of $5k again. So it is 10k in thus far. We can go out on a limb here and say it would pass a DOT inspection and is road ready. There is still the start-up costs, fees, taxes, insurance. IRP and first payment on insurance will likely be the biggest hit. Oh idk maybe another $5k hit. So you're left with $10k.

These are dreaming figures, for the most part. Now figure in how you are going to pay the driver every week, fuel, tolls, lumpers, plus insurance every month. Your own cost of living. I suppose it would be possible to carry on as long as you got no fines or breakdowns for at least several months. One major, violation or breakdown would sink your ship.

I'm not one to tell someone they can't /shouldn't do something. Personally, I would at least double the $25k before I tried even those sample figures I said above. Best of luck!

 

Last two used trucks we bought we spent $13,000 in the first year of ownership. And these weren't old jalopies.

 

I bought a truck in Nov 14, leased on to a carrier, avg 1.79 all miles and I'm already 20K into it not counting the Inframe the dealer paid for (13K).......

 

I hear you. I'm sure I could think of better ways to "invest" the OP's $25k. Why is that the general population thinks running a profitable trucking business is so easy? Why not go out and buy a new McDonald's franchise, buy the lot, build the building, hire the workers....oh wait...it's because McDonald's won't let under capitalized and under experienced folks in the club.