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Livin the dream...
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Discussion Starter · #1 ·
I've got a lot of tools accumulated but my truck isn't up to par for full time work and pulling a trailer. I don't have the funds at this time to pay cash for truck and trailer. I'm thinking I'd like to borrow about 15-20k between the two and was wondering what the best route would be. Would you recommend getting separate loans for the truck and trailer or would the bank do something like a lump sum "business loan."

To add, I'm looking for a pre-2003, 7.3 diesel and either a 7x14 or 7x16 trailer. Like I said, I've got more tools than most contractors around here to get going but unfortunately my house remodel has drained my cash and its time to strike out on my own.

Thanks for the help as always.
 

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less risk in slow and steady,I had a truck (with tools in it) repoed and the stress level was unreal got it all back and by the grace of god that was years ago. now paying cash and less risk. if you have the work I would do what you can to get it done and save up. I know several guys with an f3000 and a repo ed trailer that are up chit creek cause work slowed down.
 

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Tall Moose
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I had a loan on my truck when I first started out on my own. Twas rather stressful having payments when work wasn't as consistent. Loans do have a purpose, since having lots of cash on hand isn't a reality for a lot of us.

My personal approach would be to get a trailer, and tow it with whatever you've got now - pay it off quick. Once that debt is gone, then go get a truck.

It may not be ideal, but I would seriously bet you'd be paying less interest, and have less stress...

All that goes out the window if you're currently driving a **** box that isn't reliable.

Do what you gotta do brother.
 

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I've got a lot of tools accumulated but my truck isn't up to par for full time work and pulling a trailer. I don't have the funds at this time to pay cash for truck and trailer. I'm thinking I'd like to borrow about 15-20k between the two and was wondering what the best route would be. Would you recommend getting separate loans for the truck and trailer or would the bank do something like a lump sum "business loan."

To add, I'm looking for a pre-2003, 7.3 diesel and either a 7x14 or 7x16 trailer. Like I said, I've got more tools than most contractors around here to get going but unfortunately my house remodel has drained my cash and its time to strike out on my own.

Thanks for the help as always.
Spencer what vehicle have you got?
 

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Having a loan on my truck gives me incentive to bust my ass to make sure I can cover it.
I do however have a wife that has a good job.
that takes a lot of stress off.
I realize that a lot of people don't have that safety net.
Where I am, leasing a trailer is what most people do.
The company does not want it back at the end, so you own it.
Last time I priced one it was around $80 a month for a decent trailer.
Instantly tax deductable.
However I would never lease a truck. Just me
I think that if you drive too nice a truck, you are perceived to charge too much. If you drive a piece of crap, you do sloppy work, and don't care enough :blink:
 

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Livin the dream...
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Discussion Starter · #7 ·
Loans are asking for trouble.
So is staying on the road to nowhere.

I have two options.

1) Stay with my current job. Have security. Pay the bills with the weekly income and bust my but on the side to scrounge extra cash for truck trailer. (Working 50 Hrs a week it will take quite a while to accumulate that kind of cash from side work. Not enough time after regular job.)

2) Take out a loan. Get the truck and trailer and make some money. I've got the tools and I've got the work. Just need to step out and do it. I'm tired of waiting.

Believe me. I am anti-debt. But sometimes you have to borrow some money to make some money.
 

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Livin the dream...
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Discussion Starter · #8 ·
Spencer what vehicle have you got?
98 F-150 with the 4.6. It has been a good truck but its rusting badly and I know it would instantly start falling a part if I tried to pull a trailer. Not an option.

An option would be to spend less on a gasser. I don't want a half ton. I'd have it overloaded all the time.

I should add that my wife works. She adds another solid $30k/yr which would pretty much support our standard of living.

Biggest decision I need to make is how much to spend on the truck. I could spend 6k and get a gasser that is beginning to rust and has higher mileage, or get a pre-2003 7.3 diesel that will have the power I need to pull a trailer around everyday and by the time I'm ready to upgrade I could keep it for an employee...maybe...just brainstorming.

I want the diesel because of hauling a trailer everyday and I constantly find myself way,way,way overloading my current half ton.
 

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Tall Moose
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You sound like you're in a similar position as I was in when I started. If you're confident you've got the work and can keep it up, do it.

Might I humbly suggest you burn as few bridges as possible as you leave your employer. Lest you need help down the line.

Good luck!
 

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Livin the dream...
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Discussion Starter · #10 ·
Having a loan on my truck gives me incentive to bust my ass to make sure I can cover it.
I do however have a wife that has a good job.
that takes a lot of stress off.QUOTE]

Exactly, sometimes you have to suck it up and make it happen to get ahead faster. Having everything can foster complacency. There is a balance.

If I thought that not making my payments was a possibility I wouldn't be doing it. I am confident we would be fine. It is more a matter that I wouldn't be able to put as much money towards other things.

Thanks for all the good advice. I truly appreciate it from everyone. :thumbup:
 

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Discussion Starter · #11 ·
You sound like you're in a similar position as I was in when I started. If you're confident you've got the work and can keep it up, do it.

Might I humbly suggest you burn as few bridges as possible as you leave your employer. Lest you need help down the line.

Good luck!
That is stellar advice. Especially considering my current employer is also the lumber yard where I will be buying all my materials as well as get a lot of referals. Having THE in at the lumber yard is a big part of my business plan in these starting years. They will throw all kinds of work my way. It is so easy to want to give them an earful for the things that annoy me. Thanks for reminding me to keep my mouth shut and be classy/respectful. :thumbsup:
 

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We've tried to run a mostly cash business a well, but at some point you sometimes have to get a loan. Do you have an option for a home equity loan, could stretch the payments out until you can get the cash built up enough to pay it off early? The only thing is that you need to make sure you have the work to pay it off. Do you know you have work or think you have it?

Sometimes it's a leap of faith or it could be just the jump start you need to something better. When we started we had to get a loan and it cost us a huge finance rate, but the equipment we bought with it more than paid for it. Otherwise we would have been renting trucks to haul material at 500-600 per day rather than 1200 per month for the old off road truck we bought.
 

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I vote for option 1. Slower, but surer.

You may find, no matter what terms you leave the lumber yard on, your "source of work" may dry up.

Plus, with option 1, you can cherry pick more lucrative jobs which will get you to your goal faster.

It's a tough time economically to be breaking out on your own, imo.
 

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I would get the trailer and use that truck. Your well within that trucks limits for that size trailer and not uncommon for that truck to tow a trailer that size. My mate used to pull a massive RV with his f150 that same year model. He traded it for $3k a few weeks ago for a new f150 but that old one just wouldn't die.
 

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What wrong with your current truck? Can it pull a trailer for a year?
 
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What wrong with your current truck? Can it pull a trailer for a year?
Never mind, I see above.

Got some down money? 10% plus TT&L?

If so, shop around hard on the Internet for a good used trailer and truck. Be willing to drive if necessary to check them out. No need for fancy.

Get a truck you can rely on. It will decrease your stress level.

GOOD LUCK :thumbsup: Big step. You will be glad you made it, hoss. :thumbup:
 
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Livin the dream...
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Discussion Starter · #17 ·
I vote for option 1. Slower, but surer.

You may find, no matter what terms you leave the lumber yard on, your "source of work" may dry up.

I've been doing side work for 6+ years. I have an excellent reputation and a solid client base to start on.
Plus, with option 1, you can cherry pick more lucrative jobs which will get you to your goal faster.

I disagree with getting to the goal faster. That is the problem. I'm doing the math and believe I could realistically have a 15-20k loan paid off easily in a years time. I used to be able to work 7-3 at the regular job and then take off and do side jobs. Now they want me there until 5 and it just isn't enough time to be efficient and get going in the evening. That leaves Saturdays. I can make good money on Saturdays but not in comparison to working for myself. The profit potential is just a lot greater. Enough to warrant the risk. Again. I'm not worried about losing the house and truck.
It's a tough time economically to be breaking out on your own, imo.

Three years ago a successful business owner of 30+ years told me the best time to start a business is during a downturn. It gets you on your game. However, the local market here is the best it has been. It is steady and pretty much everyone has a waiting list. I've turned down so much really nice work myself it makes me sick,
......
 

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What's the payment on 20,000? 3-400 bucks a month? If you can't swing that you better stay employed.

What if you buy that older truck with the 7.3 and it takes a dump? They aren't cheap to fix. Maybe go a little newer if you can swing it and not have to worry about it breaking down. If you don't have wheels you won't be making any money.:no:
 

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Best of luck with the business! Things probably stay busy out where you are where as up here, it isn't worth the risk to me to get a loan if I don't have to. Before Christmas I had 2 kitchens and 2 basements back to back to back to back, after Christmas I had a few small things and now I am sitting at home waiting to hear back from a couple potential clients.

As a trim carpenter, what the heck do you plan on carrying that will overload the truck? If it is just the body that is rotting but the frame is solid, your truck can handle a trailer fine. I have a 5.4 but don't see an issue with a 7x14 trailer even with materials. Not trying to change your mind, just wondering on what you are loading it with.

I believe in you and wish you the best of luck, just don't want to see you up chits creek, that's all.
 

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I don't really think that you NEED a deisel truck. I have been operating quite well with a half ton, and smaller, years ago. I did have a 3/4 ton for a few years and it was a good truck, but way too expensive to operate. (repairs) (ford) and I really didn't NEED it. $500 a month in repairs or $700 on a payment for a new one that is way nicer and won't break down.
Heated steering wheel and seats are nice trust me.
A trailer would be nice. However the suppliers deliver, take advantage of it.
If I go pick something up, I'm going to spend 1 1/2 to 2 hrs easy.
Delivery is what, 40 to 60 bucks, and you just spent 2 hrs working.
I would think that a new Dodge (with a warranty) at about 20 to 25 grand will pull a trailer no problem, unless you are a landscaper.
Zero interest on a new one, versus 7% or more on a used one with a lot of miles on it.
my two cents. :thumbsup:
 
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