Advice on driving deal with Friend in Oilfields on % Split

Discussion in 'Ask An Owner Operator' started by aquajosh, Jun 19, 2017.

  1. aquajosh

    aquajosh Bobtail Member

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    May 26, 2011
    Carrollton, GA
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    Hello Trucker Community,
    I will try and make this to the point. I need help on how to structure this with my friend. I want to work in the oilfields hauling Frac Sand in a tanker. I have less than 1 year OTR in dry van and Zero experience in the oilfields. My friend has 5 years OTR in dry van and also Zero experience in oilfields. I have great credit, no debt or bills at the moment, 6 grand in my checking for a down payment, and 25 grand line of credit if something goes wrong. . I want to buy a used Fleet 2014 Freightliner Cascadia for $58,000, has 436k miles, and 8 months left on manufacturer warranty. --- My friend is selling his used truck at break even this week. He has low 600's credit and is unfortunately struggling with divorce and financial woes from truck repairs. He wants to lease a "0" down, 0% interest truck that leases for over 3k a month. But in my opinion is not a good option.---- So I asked him if he would like to drive with me. I told him I could use his driving experience, his O/O business experience, and help in securing a job with the company based on his experience and negotiating skills. Question one is how to approach the company for hiring. Should I tell my friend to contact the company and tell them he's partnered with me and we will be driving together? Question two is how to value this partnership based on what he is contributing and what I'm contributing. I will be financing the truck and paying for insurance, I will be getting experience from him, and I might be getting a job from his experience. So can you think of ways we could split things, or do things differently like him being on insurance instead of me? Should it be a 50/50 split of money. Or is that too greedy on my part or is that too much? How should I plan for an exit strategy if things don't work out. Should I seek legal counsel from a trucking lawyer before getting into this? I'm very new at this so please reply with constructive advice. I appreciate you for reading this long post. Drive safe, Josh
     
  2. kimbosa

    kimbosa Medium Load Member

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    Jul 4, 2011
    lufkin texas
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    Don't do it. I did the very same thing with bro in law! Big mistake, it ruined my chance being o/o and put me in bad financial shape. so i got out of it. Lucky for me fedex heard i was back working local and ask me back. My partner was great at first, ready to work. Then slowly started not wanting to drive and wanted sleep all the time Anza and go home a lot. Lucky for me the truck was in his name. We left on good turns and he wanted go on his on. He lasted about month. So skip the head aches. Good luck
     
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  3. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    Rancho Mirage, Ca.
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    Yeah, what he brings to the table is the samr stuff that got him into his current state.
     
  4. strollinruss

    strollinruss Road Train Member

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    Montgomery, TX
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    Yeah, man. I wouldn't do it.
     
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  5. dptrucker

    dptrucker Road Train Member

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    May 14, 2012
    adelanto,ca.
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    Freinds and money does not mix.
     
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  6. viper822004

    viper822004 Light Load Member

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    Jul 25, 2014
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    It's not going to work!! Five years ago when oilfield was booming, I called around and asked if I could team with my dad, they always gave me a response like uhhhhh. I guess. It wasn't till I got to the oil fields that I realize nobody works teams! Oilfields is a 24/7 solo job. The other driver in the sleeper will never get a chance to really make money. Plus the dirt roads are horrible!!! And the noise at frac sites!! Your partner will never sleep lol
     
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  7. rollin coal

    rollin coal Road Train Member

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    Mar 29, 2008
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    Is this a troll post or for real? A Cascadia for oil field work? That plastic piece of #### will be a shambles in short order it's not a suitable off highway tractor. Your idea is very hairbrained. Your friend is basically going to drag you down because he has the exact same practical oil field experience and skill level as you.

    The best he can give you is advice on how he was a failure. I can summarize that already. He couldn't manage money, period. If you can't do that nothing else matters. Most importantly you don't have enough capital to start this venture. You need a pile of cash to risk on this. $6,000 ain't gonna cut it.
     
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  8. Western flyer

    Western flyer Heavy Load Member

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    Mar 13, 2014
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    Those leased roads will ground that cascadia into
    Dust long before your done paying for it.
    You won't be able to afford the truck payment
    And the repair bills at the same time.

    Don't waste your time in the oilfields right now.
    Wait till this E-LOG thing kicks in and see who's
    Left standing with consistent work.

    Whole lot of fly by night outlaw companies in
    The patch, with frac sand leading the way
    By a large margin.
     
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  9. Ridgeline

    Ridgeline Road Train Member

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    Michigan
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    Look the worse thing next to a cheap owner is one who is allowing a friend drive a truck for him. It is not a partnership, it is an employer/employee arrangement with no means to cover the work if he leaves.

    By the way, the split should be 60/40 with the bigger amount going to the person who is paying for fuel.

    You need a good contract lawyer who belongs to a firm that he can tap for advice on legal issues in business because there ain't no such thing as a trucking lawyer.
     
  10. JPenn

    JPenn Road Train Member

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    Southern Tier NY
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    Nope nope nope. Don't do it. You're looking at the wrong industry, the wrong truck, and the wrong business partner. You don't have anywhere close to enough startup capital to cover the first thing that goes wrong, and something will go wrong. Heck, you will barely be able to cover the first tow truck bill when you get that Cascadia stuck on a muddy lease road.

    1. Oilfield is possibly one of the most hot or cold segments of this industry. When it's hot it's really good, when it's cold it's flatline (especially for sand). It can go hero to zero almost immediately, and faster if you make some sand boss somewhere mad at you. Right now, it's lukewarm-ish, not nearly hot enough to jump in, knowing nothing about the industry.
    2. A Cascadia is not a good offroad truck. You need one, preferably made of metal, that wasn't spec'd out for mega fleet onroad operations. Wrong motor, wrong gearing/rear ends, no ground clearance, likely no locking differentials, and the list goes on. Pass.
    3. Don't go into a business venture with someone whose current gig is falling around his ears like this. Save your sanity and your money. Just don't do it.
     
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