Starting a small fleet

About my situation: I am 27 and new to Trucking I received my CDL in Nov 2016 and Currently have 10months of actual otr experience (and military experience driving class A type vehicles but no company excepts that.) I worked Dry van for US Xpress and Roehl and now just started Swift as it better suits what I was looking for atm. I live in Upstate NY. Since coming into trucking I have been studying the business and learned tons in the 10 months from driving a lot from other drivers, I know there is a lot of money in freight transportation as well as a lot of expenses and hard work.

Anyways I go through banks where I live at and buy repoed cars and I happend to find 2 trucks in a matter of the last 3 months a 2013 International prostar and a 2014 Freightliner both with around 500k miles. I negotiated and bought both of them outright cash and had a friend who works at International look them over I have put a little extra money in them but they are both good trucks and pass inspection no problems.

So now I have 2 trucks just sitting, I am not ready to try to get my own authority and insurance for me to drive is crazy because of lack of experience. I also looked at Prime's advanced fleet program where I would still have to get my authority but run under their freight network as well as talking to the owner of Wil-Trans who does that who advised just starting out I should look into being under someone else authority. So I have been looking at going under someone else s authority, but no one will let me drive because their insurance won't cover me again the experience thing, unless I went somewhere like swift which only requires 6months but it sounds like a complete rip off, their cpm being around 1.04 a mile and .86 empty or the percentage which they take 35percent and dispatch your loads. Basically the recruiter told me I could expect about $1500 net a week and that's because I don't have a truck payment, which sounds like #### to me, as I make about $1000 net a week now there as a company driver with the walmart account.

I know there is a lot more money and better ways to utilize these trucks to their earning potential. So basically I have been looking at companies that are the same as what MAG sounds like, particularly one called RAFA TRANS out of Illinois which I would get 88 percent of gross load, they advertise drivers make 9-15k monthly take home pay and that their goal is for the truck to be grossing 1k a day, I have talked to the owner and they seem legit. and again they can't get me approved to drive but I am now just looking at putting drivers in the trucks. After doing all my numbers and also working loosely with the SBA after accounting for all expenses including a maitenance account and money aside for the actual value of the trucks not what I paid I came to I should be able to make anywhere from $1000-1400 weekly based off setting up a driver to receive 27percent of the 88percent that I receive with me taking care of truck expenses, fuel, maintenance etc.... but with them set as an IC(1099). RAFA TRANS has told me that is fine for me to find drivers as long as they have the time requirements and a good driving record, and said I should be able to make anywhere from 35K-50K a year off each truck. I know there are lots of variables that influence these numbers, maintenance, fuel, if a driver wants to take time off or emergencies...etc

My goal is to own 3 more trucks for a total of 5, I know in NY I have to set up an LLC for this and I will hire an accountant and lawyer to check over everything before putting drivers in the trucks, but as of right now my trucks are lawn ornaments. Any advice from people that own their own truck or small fleets that are doing the same thing and have the same scenario PLEASE I would like to talk to you and learn any knowledge you have to offer on what I may be missing and how the best way to pay drivers in this situation whether it be a cpm or percentage....etc.

Thanks in Advance, and please do not condem me about "you shouldn't have bought trucks without have 5 years experience or what not I got them for a great price that even if I flipped them I could make 20k but I know they are more valuable with the wheels turning. Also again I am new in this industry but always looking at business sides of industries. And I do have a little business experience owning a Taxi company which I had 10 drivers, it was short lived because I was so anxious in getting started I overlooked things and was to friendly to my drivers and hired friends, but at the end it was a learning experience. It cost me a lot but I learned alot.. THANK YOU AGAIN FOR ANY ADVICE!

 

I know thats why I didn't want to go with Swift with my trucks

 

Thanks but that is why I am here to gain more knowledge, I am not trying to rip anyone off just trying to figure out the best way to make these trucks make money, and not sit in my yard, thats why I posted to get info from more experienced drivers on how I should set this up. Thank you

 

Hello, sorry if I am ignorant about a lot of trucking principals, I just want some advice if you can help me out with my situation thank you