Newb looking at buying dedicated route

You want to do it ... the numbers are "manageable" ... do it. Especially if your friend is carrying the note on everything ... commercial interest rates are a killer when you are first building business credit.

I have made a comfortable living with "buying myself" a O/O job for the last few years ... all so I could have 2+ days off and sleep in my bed 4 nights a week. Grass is way greener in other areas for me if I so choose, but the home time is worth everything to me with a dedicated account that gets me thru the house.

 

I'm a new owner operator. if you're in the northwest look into Fairchild's Walmart operation. They're continually looking for new owner operators both independent and leased on. The numbers sound similar but you don't need your own trailer. My point is, compare that to what you're looking into. Could potentially start up a lot cheaper, still have good hometime. Just something to mull over.

 

My biggest concern with a deal like this would be buying into it without a freight contract with the company he's leased to, or directly with a shipper. As others have mentioned, you could lose it all shortly after buying in, and then have a very expensive and well used truck/trailer and be relying on the spot market to pay the bills. I have a couple contract clients and work the spot market on the west coast and occasionally the other 11 western states. You have to hustle for find good paying loads on the spot market, but it can be done. Without at least a one year contract that guarantees you those loads for at least a year, I'd pass on it.

 

He'd be running loads into California, and pre-emission trucks won't be allowed there any longer in the very near future.

 

Ask if the company that leases the truck will buy it and hire you as a driver.
Win,win

 

You will have to make up your own mind, and it may or may not work out the way you expect.
Several years ago I made a deal to buy a truck, trailer and job running to Alaska. A friend had been running this deal exclusively for some time. we got it all set up for me to talk over with all parties, but he was going to run one more load. That load never happened, as they found someone to make the run cheaper. I lucked out on the deal 2 different ways. One is I did not wind up buying his equipment, which in itself was not a bad deal, I just didn't really need it.
And second the cheap operator didn't last too long, so I wound up with the job, running my own equipment anyway, knowing it would just last till someone else under cut it, which happened several times over the couple of years I hauled for them. lol

 

Two things that jump out.


You mentioned $1.80 all miles, I wonder what the company is paying. Not all miles.

You talked to the owner of the company, are they willing to make it a contracted freight?

 

Are you saying it is not a designated route down and back, maybe outbound only?