30K saved and needing advice on becoming Owner operator by 2024

If you don’t have any age restrictions on the truck , get one that’s pre emissions
No EGR no DEF none of that crap .
That crap is what causes most trucks to be in the shop .

 

In my experience of 15 years, having done it multiple ways, and the experience of friends, I really think there’s 3 ways of doing this.

1. Company driver, invest into an index fund like VOO especially when it’s down like it is now and max out Roth IRA.

2. Older pre emission truck. I believe this is the best route if you must be an owner operator. Everything is so simple to fix, parts are aplenty, no special ordering or waiting, every shop can fix it on the road, and it’s cheap. You can buy a good condition truck, rebuild the motor, replace just about everything on it to brand new, and still come out tens of thousands cheaper than a 400k mile truck, that will be more reliable in the long run.

3. Buy a brand new truck and keep up with maintenance and get as fuel efficient as humanly possible. This option is pretty guaranteed to succeed and I would consider this the slow and steady approach.

Worst thing to do is take a loan out on a few years old truck 450-550k+ miles that’s been abused and then have something go out so you lose money on repairs, insurance, and still have a loan to pay all while you can’t work because your part is back ordered few weeks.

 

If you saved $30 000 from a truck driving job, please accept my sincere congratulations. It is a tremendous feat that requires patience and self-discipline. That alone puts you in the category of those with the right personal attributes to become an owner operator and then build a fleet. However, this still may not be enough.
I am afraid that you need another 20K, or at least 10K so that after down payment, you can be comfortable knowing that you have enough in case of more expensive repairs. With 30K, with a little bit of luck, maybe it would be all right buy a truck with 10-15K down and then lease it onto a carrier that rents you their trailer, gives you advances for fuel, assist you with on the road repairs, and pays you regularly but to get own authority and then trailer you should have more.

 

Congrats are indeed due .

but if you can’t save $10k a year working ANY job that requires a skill, (not talking about minimum wage unskilled skilled jobs , although if you’re earning min wage that’s a loud and clear signal that you have no marketable skills and need to learn some marketable skills pronto )

you’re going to be paycheck to paycheck on the edge of starving you’re entire life .

my nephew is driving , and has been able to save half of his income , since he is living with his uncle in their spare bedroom for free , easy to do if you’re gone all the time . He only there about one weekend a month so they don’t charge any rent .

 

I’d like to add to Lone Ranger’s excellent post. If you invest in real estate, make sure you do it in a state that is respective of the rights of property owners.

Certain states will tie up an eviction proceeding for months, while others will have the tenant out in short order. There’s also common law proceedings such as an ejectment to look for, that will work in your favor of reclaiming your property.

Like everything else, there’s risks in trucking and real estate.

I agree 30k is not enough reserve for trucking. You have to factor in down time, and also insurance payments, including one of the most important, healthcare plan and payments. There are plans out there that offer monthly pay outs god forbid you were injured on the road.

Take some more time to research here. There’s so much information available from many members here. I wish you the best of luck.

 

That’s the best thing to do. Research enough, till you’re familiar. That’s the only way you can make a solid decision without regrets

 

Best advice I could give is to read through this thread, The journey begins - purchased a truck.

I'm not saying Blair did it the "right" way but he did it in a way that makes it much easier to be successful. Yes it's a long thread and you can skim a lot of it but I would read the majority of the first half or so when he was in his first few years. I wish you nothing but the best.

 

I’m not giving advice but I’ll tell you where I’m at in my journey. I purchased a 2016 579 that had very good fleet maintenance and looks new inside and out. It now has a rebuilt Cummins( $26k in parts), rebuilt Eaton 13 speed, new clutch, pressure plate and flywheel. New brakes and 10 new virgin tires. I have $85k into it. I believe I’ve found a used Fontaine trailer for $30k. So I’ll be out about $120k before my authority becomes active on the 26th of this month. My only payment is $1800 a month for insurance and I have $50k in my business checking account for fuel, maintenance and repairs before money starts flowing in. My equipment is paid for and I wouldn’t be comfortable starting with less than $50k in reserve. Everyone has a different level of risk they are comfortable with. I’m in my mid 50s. When I was younger I would of borrowed the truck and pawned everything I owned for the first tank of fuel. In other words if you’re comfortable with the risk in the situation…..then go for it. Good luck in your O/O journey

 

Are you hauling freight for contracted customers or spot market?

 

Spot at first but I have some contacts and ideas of direct shippers I will be targeting.