View Full Version : How would you do this???
03-21-2004, 01:45 PM
I am moving in a couple of months, and selling the place I live in now. Me and my brother bought it 4 years ago and we each have about 50k a piece in equity. I am going to pay off a bunch of my debt with about 15-20 of that that leaves me with 30k. I am going to buy a used truck out of that 30 also. I have 8 years expereince doing maintenance, soft and hardscape. I want to do every aspect of Lawn/Landscape but I know I can't do it all right away. So the question is how would you guys handle this so you could get yourself out there and make as much as possible as fast as possible. I also have alot of people to help on the weekends. The only equipment I have so far is an EB7001, BCX2600S string trimmer, 346XP-18in husky chainsaw(all brand new) a husky backpack, an echo hedge trimmer(used). Any help on this would be great. Count out ZTR's though, I have no problem walking all day and I'd want to save that money for other needs. My target area might help also. It is high end residential, 1/4 acre to 1 acre max. My brother is a head mechanic for the bigger of the tool rental places around here so used equipment is also a consideration(i know a little myself also).
03-21-2004, 01:56 PM
Start looking at some walk behind mowers depending on the size of lawn's you do alway's good to have 1 36" to get into gated yards .
03-21-2004, 02:23 PM
I am starting on my second season on my own (14 years previous exp).Mowing is weekley so like a regular pay and most often leads to other work.Cleanups killed me last fall price them high.I looked at cleanup suggestions here and think I can do better this season.As far as mowers go I have a Lesco 48 belt drive new last year I had no probs at all with it .I bought a cheepo ryobi 31cc trimmer it actualy works real good still.The ryobi and bolins 21in push mower are the only good cheepo stuff that still works!I reccomend not buying cheepo stuff but it is tough to have enugh $ to buy all good.My experiance with mcculoc backpack blower and poulan wild thing chainsaw was really bad.They were aprox 1/2 price of husquavarna products but only lasted 1 light first year season.
03-21-2004, 02:41 PM
change your mind about the ztr.
also, remember that a 36" cut mower (for example the 36" metro) will not fit through the standard 3' gate. 36" is the width of the cut. the actual width of the deck is bigger than 36"
03-21-2004, 06:13 PM
i would try to find a good 1 or 2 year old walkbehind, it will still have years of service left in it and i would try to get as many lawn customers as i could and really press a full maitnece program for them, if your already driving there to cut the grass why not do the fertilizing and maintence at the same thats how u make the most for the hour but yes i wouldnt try to do to much start out slow but get quality customers and figure out what you need to make a hour and get that an hour to many people will work for nething and when the days done the bills get paid but theres nothing left for all that hard work
03-21-2004, 06:22 PM
Are you moving far from where you live now? Do you have a place to go to? The equity you are getting from the house you & your brother are selling can be taxed unless you reinvest it in another residence. Is that what you're planning to do? If you tie all of that 50K up in new equipment youmight get a hugh tax bill with no way to pay it off.
03-21-2004, 07:22 PM
The capital gain Flipper will get from his piece of selling the place would probably be tax free regardless of what he does with the proceeds. The old tax rules required putting the money into a new home to shelter the gain from tax. Current IRS rules allow an individual to shelter up to $250,000 (and couples up to $500,000) in capital gains from tax as long as the property sold was the taxpayers residence for at least the last two years, which according to his post, Flipper has lived there for the last 4. It's one of the few nice IRS gifts in a rising real estate market.
03-21-2004, 10:51 PM
I hope I should be good tax wise, we were 1 time buyers and I was told the 1st house you own and sell is the only house you don't pay tax on. I already have the labor rate worked out. I am going to register and insure it before opening. I have been doing estimates for years around here so I am going to charge what my last lawn maintenance boss charged. He doesn't have to worry cause its a big enough area and he has been turning down new work for years(likes to live comfortable and low stress)(weirdo). I am asking you guys for your input on this because I don't think that lump sum is going to go as far as I think, it never works out that way. I plan on getting used mowers I seen 2, 2 yr old 52" scags in the paper for 1250 each last week if I had the untied money I would have bought 1 of them, but anyway stuff like that is what I was thinking. Get a used 32" wb, 52" wb, 7 x 16 enclosed trailer, have the truck and trailer lettered and logoed, hand tools, big green buckets, wheelbarrows, stick edger, push blower, in addition to what i already have. I am just worried about something I haven't planned for arising as the funds dwindle. I have a local guy around the corner that would love me to work for him part time and I have been keeping him updated. He said anytime I need work he's got it for me. As far as a new living arrangement, my girlfriend is buying a condo so I would move in with her and keep my equipment at my brothers house about 5 minutes away. He and his fiancee bought a house together so he's set up and and moved out already. I think its gonna be a little weird with neighbors that close but, I'm positive this is the right strategy right now. Thanks for the suggestions guys, and keep em coming. I am a realistic person so any criticism is great.
03-22-2004, 08:44 AM
If you have not sold a previous residence within the past 24 months, and this home has been your primary residence for at least a year, you will not be taxed on any profit up to 125k. If it has been your primary residence for at least 2 years, you will not be taxed on any profit up to 250k. This tax shelter is a VERY nice way to make money if you find the right homes to buy.
As for the equipment, I would look for a good used walkbehind. Ebay seems to have an abundance of them nowadays. I have also seen quite a few in my local paper lately; you might want to check yours.
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