Register free!

The Green Industry's Resource Center



Reply
 
Thread Tools   Display Modes
  #21  
Old 09-04-2012, 01:50 AM
zak406 zak406 is offline
LawnSite Bronze Member
 
Join Date: Jun 2006
Location: irwin pa
Posts: 1,512
Yeah paying cash really worked out for me ..... Now wwhen I need a loan I can't get one because I don't have enough credit history. I'd rather be 100 gs in debt
Posted via Mobile Device
Reply With Quote
  #22  
Old 09-04-2012, 05:41 AM
123hotdog's Avatar
123hotdog 123hotdog is offline
LawnSite Senior Member
 
Join Date: Aug 2012
Location: Bristol TN
Posts: 459
I guess I will weigh in one time. No debt here at all. I think some thoughts from some on here are more personal preference than business decision. I have never financed anything including my house that is paid for. It's not much but it is mine. This year we are to purchase our first foreclosure to flip for a rental. Because I am a owner operator with no overhead the business now makes enough profit to purchase one rental property a year and I have all winter to get it ready to rent. I have friends in this industry on both sides of this debate large and small. There really is no 100% correct way.
__________________
Licensed and Insured
Operating since 2007
1993 Isuzu NPR dove tail open bed 4cyl diesel
1978 F-350 Dump Truck
1988 Z-71 Chevy 4x4 Meyers Plow
2005 Chevy HD 2500 6.0
1989 Toyota One ton Flatbed
2013 61" Bad Boy Outlaw XP 36 Vanguard
2013 54" Bad Boy Outlaw Stander Kawasaki
2014 48" Wright Walk Behind
Reply With Quote
  #23  
Old 09-04-2012, 06:27 AM
fastlane fastlane is offline
LawnSite Senior Member
 
Join Date: Feb 2002
Location: east PA.
Posts: 347
Quote:
Originally Posted by 123hotdog View Post
I guess I will weigh in one time. No debt here at all. I think some thoughts from some on here are more personal preference than business decision. I have never financed anything including my house that is paid for. It's not much but it is mine. This year we are to purchase our first foreclosure to flip for a rental. Because I am a owner operator with no overhead the business now makes enough profit to purchase one rental property a year and I have all winter to get it ready to rent. I have friends in this industry on both sides of this debate large and small. There really is no 100% correct way.
How is it possible to have no overhead?
Reply With Quote
  #24  
Old 09-04-2012, 06:50 AM
Duekster Duekster is offline
LawnSite Fanatic
 
Join Date: Jan 2007
Location: DFW, TX
Posts: 7,971
Quote:
Originally Posted by muddywater View Post
Uh yeah. I maintain a couple of his million dollar apart complexes that are paid for. It is rare to get intimate knowledge and advise from someone that has made it. Well worth the $250 an hour.
And you called me the smuck.

That is assistant attorney type money.

Difference is I deal with book keepers , Accountants and CPA for for many years after about 5 years I think I have paid enough and learned enough to have a CPA. I can run quickbooks and do tax planning pretty well.

Cash is very safe for sure and excessive debt is bad too, then there is somewhere in between.
Reply With Quote
  #25  
Old 09-04-2012, 06:53 AM
cgaengineer's Avatar
cgaengineer cgaengineer is offline
LawnSite Fanatic
 
Join Date: May 2007
Location: Winder, GA
Posts: 15,782
Quote:
Originally Posted by fastlane View Post
How is it possible to have no overhead?
Yes...do tell?

Maybe his equipment never breaks down and run on air.
Posted via Mobile Device
Reply With Quote
  #26  
Old 09-04-2012, 06:58 AM
Duekster Duekster is offline
LawnSite Fanatic
 
Join Date: Jan 2007
Location: DFW, TX
Posts: 7,971
I thought Overhead included things like owner salaries too
Reply With Quote
  #27  
Old 09-04-2012, 07:13 AM
94gt331's Avatar
94gt331 94gt331 is offline
LawnSite Bronze Member
 
Join Date: Jul 2011
Posts: 1,491
Congrats to anyone that is debt free. I hope to be there someday. I couldn't have started in buisness without going into debt. I wanted to grow faster. It can be done for sure I didn't have the patience to pay cash for everything. Trust me theres been many times i wish i didnt finance things, I've been struggling to overcome my debt and get out from underneath my debt. It's been getting better. I feel like I'm a slave to work currently because of making poor descisions with credit. But there's two options, take the coward way out of bankruptcy or let the bank take it or work hard pay off your debts and be debt free. I have 2 more years and my $300,000 dollar investment will be paid off, my shop and ground included. I can't wait for that day. And then cash will be paid for everything. Thats probaly the best feeling to know your waking up in the morning and your banking most of your money other than your daily operating expenses like fuel,payroll, insurance, comp etc.
Reply With Quote
  #28  
Old 09-04-2012, 07:19 AM
123hotdog's Avatar
123hotdog 123hotdog is offline
LawnSite Senior Member
 
Join Date: Aug 2012
Location: Bristol TN
Posts: 459
Quote:
Originally Posted by fastlane View Post
How is it possible to have no overhead?
Depends on what you call overhead I guess. I'm a owner operator with one part time employee that works between six and forty hours a week depending on landscaping projects. All my trucks and mowers are paid for. Oh yea and shop and all equipment is paid for. My total insurance for business, trucks, and all is barely $100 a month. My fuel bill has averaged $81.62 for the past thirteen weeks and my labor (not including myself) was under $100 as well. I have a strong grip on my cost. My Dad mowed for twenty years and is dumbfounded about the fuel bill. That fuel bill is trucks, mowers, and two stroke equipment. This is mowing 35-45 lawns a week. I only drive 166 miles a week on average.
__________________
Licensed and Insured
Operating since 2007
1993 Isuzu NPR dove tail open bed 4cyl diesel
1978 F-350 Dump Truck
1988 Z-71 Chevy 4x4 Meyers Plow
2005 Chevy HD 2500 6.0
1989 Toyota One ton Flatbed
2013 61" Bad Boy Outlaw XP 36 Vanguard
2013 54" Bad Boy Outlaw Stander Kawasaki
2014 48" Wright Walk Behind

Last edited by 123hotdog; 09-04-2012 at 07:20 AM. Reason: punctuation
Reply With Quote
  #29  
Old 09-04-2012, 07:25 AM
muddywater muddywater is offline
LawnSite Bronze Member
 
Join Date: Sep 2011
Posts: 1,813
Quote:
Originally Posted by PerfectEarth View Post
It is possible to have "good" debt on the books (in fact, it's wise to have some) and plenty of cash on hand. Could I go buy a new truck with cash right now? Sure! (well, maybe slightly used, lol) ...but I can't. Being over-extended is a whole other thing. Balance.
What is good debt?
Reply With Quote
  #30  
Old 09-04-2012, 07:26 AM
cgaengineer's Avatar
cgaengineer cgaengineer is offline
LawnSite Fanatic
 
Join Date: May 2007
Location: Winder, GA
Posts: 15,782
Quote:
Originally Posted by muddywater View Post
What is good debt?
Using someone elses money for free. Credit cards for fuel and equipment maintenance. Kinda tough to give employees cash for this kind of thing.
Posted via Mobile Device
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 05:56 PM.

Page generated in 0.09987 seconds with 7 queries