Paying cash is a mindset

[cgaengineer]

Originally Posted by muddywater

I saw a 05 crew cab isuzu diesel w 130k miles box w dovetail built into the box(part of van body) for 11k. If you had to line of financing, you were too late. That was a 20k truck.
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Ours is an 06 with 86k 14' box 5.2 deisel and it was $15,000 w/o dove
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[Duekster]

Originally Posted by muddywater

I saw a 05 crew cab isuzu diesel w 130k miles box w dovetail built into the box(part of van body) for 11k. If you had to line of financing, you were too late. That was a 20k truck.
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That would have easy been a 20K truck.

If you have neither cash nor credit then you miss the deal.
If you have 30K you can only grab one or two if these deals.

You could however buy the truck then go get a low note on it.

Used equipment often has higher interest rates so it is less attractive for sure.

We can play the game forever. Used vs New, cash vs credit and so forth.

I think the trick is to maintain cash flow and have a cash reserve.

Companies of any type are not in the business of holding cash, you want the cash working for you....Hard to generate cash flow from assets stuffed in your mattress.

[muddywater]

Well if you have cash laying around, you tend to be able to take advantage of these opportunities.

If you can find a little niche somewhere and can back it w cash, i think that is how some people make the big bucks.

Speaking of having cash laying around, how many billions is apple sitting on?
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[zak406]

Originally Posted by muddywater

No tax returns? No property to borrow against? No cash in the bank?

Cash in the bank? Yes however I need it to make it through the school year. I couldnt work for half of the season after hip surgery, Im 22 in college. Property? I wish but unfortunally no. Tax returns? After this year, I just came back from playing hockey in newyork 2 years ago. Last year I started everything back up again. This year I became legit.

Heres the thing about credit, irresponsible people screwed us responsible peoplee. I do have two credit cards, both of which are paid off on time every month (when there used) Always pay more than minimum and my credit score is in the middle 700's 730-750. I need a new to me vehicle bad, im 99% sure im driving on a blown headgasket. Im not to picky when it comes to that I just want a regular cab 2500 that is somewhat newer 2004-2008. Realisticly im good with my money, I could legitimatly afford a 400 dollar a month payment. Do I want that? No, but the fact of the matter is I have the money and can afford it however when I apply to get one I get denied because I dotn have enough credit history. Dont have a cosigner either. Dont get me wrong I would love to pay off a new or used truck cash, but with school and hockey still its impossible for me to do so. My truck now is a 85 power ram, I talked to my mechanic about rebuilding the engine but he said at this point its just not worth it. It will cost me more than the truck is worth. I commute 3 days a week 40 - 50 minute drive to school. Have hockey 4 days a week and still have to mow 2 days a week.

[muddywater]

Originally Posted by zak406

Cash in the bank? Yes however I need it to make it through the school year. I couldnt work for half of the season after hip surgery, Im 22 in college. Property? I wish but unfortunally no. Tax returns? After this year, I just came back from playing hockey in newyork 2 years ago. Last year I started everything back up again. This year I became legit.

Heres the thing about credit, irresponsible people screwed us responsible peoplee. I do have two credit cards, both of which are paid off on time every month (when there used) Always pay more than minimum and my credit score is in the middle 700's 730-750. I need a new to me vehicle bad, im 99% sure im driving on a blown headgasket. Im not to picky when it comes to that I just want a regular cab 2500 that is somewhat newer 2004-2008. Realisticly im good with my money, I could legitimatly afford a 400 dollar a month payment. Do I want that? No, but the fact of the matter is I have the money and can afford it however when I apply to get one I get denied because I dotn have enough credit history. Dont have a cosigner either. Dont get me wrong I would love to pay off a new or used truck cash, but with school and hockey still its impossible for me to do so. My truck now is a 85 power ram, I talked to my mechanic about rebuilding the engine but he said at this point its just not worth it. It will cost me more than the truck is worth. I commute 3 days a week 40 - 50 minute drive to school. Have hockey 4 days a week and still have to mow 2 days a week.

Maybe you could sell a nice landscape job.

[muddywater]

I think where landscapers really get into trouble is having payments and then doing landscaping jobs. Landscaping required alot of capital. I am good friends with a local supplier and it blows my mind how many people bounce checks or are sent to collections. Especially guys doing commercial work where a 100k job might take a month to complete, and then 30-60 days to get paid. How do you do it if you don't have capital? Short term loan? Terms with supplier? Not many suppliers have 90 day terms.

[Duekster]

Originally Posted by muddywater

I think where landscapers really get into trouble is having payments and then doing landscaping jobs. Landscaping required alot of capital. I am good friends with a local supplier and it blows my mind how many people bounce checks or are sent to collections. Especially guys doing commercial work where a 100k job might take a month to complete, and then 30-60 days to get paid. How do you do it if you don't have capital? Short term loan? Terms with supplier? Not many suppliers have 90 day terms.

Very true point.

[grandview (2006)]

Originally Posted by muddywater

I think where landscapers really get into trouble is having payments and then doing landscaping jobs. Landscaping required alot of capital. I am good friends with a local supplier and it blows my mind how many people bounce checks or are sent to collections. Especially guys doing commercial work where a 100k job might take a month to complete, and then 30-60 days to get paid. How do you do it if you don't have capital? Short term loan? Terms with supplier? Not many suppliers have 90 day terms.

Most of the time there should be a draw on a project of certain dollar amount.

[PerfectEarth]

Originally Posted by muddywater

I think where landscapers really get into trouble is having payments and then doing landscaping jobs. Landscaping required alot of capital. I am good friends with a local supplier and it blows my mind how many people bounce checks or are sent to collections. Especially guys doing commercial work where a 100k job might take a month to complete, and then 30-60 days to get paid. How do you do it if you don't have capital? Short term loan? Terms with supplier? Not many suppliers have 90 day terms.

Yes, I've had some casual conversations with employees at landscape suppliers and I was SHOCKED to hear that companies that I thought were awesome and on top of it, were in incredibly BAD standing. Unpaid accounts.... anyway, thats another story.

I'm probably a decent example of what you wrote. Little grass mowing and more landscape expenditures. I have to keep a very strong reserve of 'working capital'- cash in the bank. We rarely take upfront deposits on jobs (to our fault) so to supply the plants, soil, sod, and materials needed, we have to keep enough cash on hand. We have accounts at our most used suppliers... but honestly, I'd rather pay upfront and not finish 2,3 jobs and stare at a 8,000.00 bill from the nursery. We spend for the job and then get it all in after invoicing. I think customers like that we do it this way- it gives them confidence that we are not some shlubs who need cash right away to survive. Professionalism.

[muddywater]

Originally Posted by grandview (2006)

Most of the time there should be a draw on a project of certain dollar amount.

I have never seen that on commercial jobs. You get paid when you are finished and even then they might hold 10% back to guarantee everything will work properly. The last job I bid was 250k and there were no draws, and you did not get paid till the grass seed germinated.