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  #61  
Old 09-04-2012, 08:14 PM
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PerfectEarth PerfectEarth is offline
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Oh, and by "good debt" (which is an actual term) I meant this- yes, copy/paste front the interwebs.

"There can be good debt as well as bad debt. Good debt can be described as debt that helps you build equity or increase your net worth. For example, education loans usually are considered good debt because in the long run more education generally translates into higher earning power. Most people borrow money for a mortgage to get a home—if the home purchase was a wise investment that increases in value and adds to your net worth, then it would be considered good debt. Another example of good debt might be loans to run a small business—for example, if you borrow money at 7 percent and use that money to make a 15 percent or 20 percent return, then it would be considered good debt because you are using the loan to increase your net worth. Good debt includes loans that help to build your financial future.
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  #62  
Old 09-04-2012, 08:16 PM
muddywater muddywater is offline
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Originally Posted by PerfectEarth View Post

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.
I like that way also. I feel uncomfortable holding people's money when I haven't done anything. I think it makes the client feel safe and secure AND know they are dealing with a stable contractor.
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  #63  
Old 09-04-2012, 08:22 PM
muddywater muddywater is offline
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Originally Posted by PerfectEarth View Post
Oh, and by "good debt" (which is an actual term) I meant this- yes, copy/paste front the interwebs.

"There can be good debt as well as bad debt. Good debt can be described as debt that helps you build equity or increase your net worth. For example, education loans usually are considered good debt because in the long run more education generally translates into higher earning power. Most people borrow money for a mortgage to get a home—if the home purchase was a wise investment that increases in value and adds to your net worth, then it would be considered good debt. Another example of good debt might be loans to run a small business—for example, if you borrow money at 7 percent and use that money to make a 15 percent or 20 percent return, then it would be considered good debt because you are using the loan to increase your net worth. Good debt includes loans that help to build your financial future.
I am somewhat comfortable on debt for real estate. At least it is borrowing on an asset that doesn't depreciate... at least that is the way it used to be. And when you pay it off, you have something tangible that is still worth something... not a beat up wore out piece of equipment.

I think borrowing money for an education is probably not a good idea. I hear stories of college educated kids owing 100k and come out of college making 30k. And now an education at a local college is very good. And some states have scholership programs that make it very affordable.

Small business loans is one hell of a risk. The guy that owns the shop next to me fell into a predicament with one of those. Had a short term loan to buy materials for a government job, and they dragged their feet paying him. He ended up losing everything... his shop, trucks, equipment, and his business.
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  #64  
Old 09-04-2012, 08:28 PM
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PerfectEarth PerfectEarth is offline
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I like that way also. I feel uncomfortable holding people's money when I haven't done anything. I think it makes the client feel safe and secure AND know they are dealing with a stable contractor.
Ha, that's exactly the way I feel. They give you a deposit and next thing you know the phone is ringing and they're standing over you. I don't want that! I want the leverage at the start of the job.

It's worked great for us so far. Start-up cash in March gets rough though.... that's a very tight period after winter salary and January tax.

SNOW!!!!! lol
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  #65  
Old 09-04-2012, 08:36 PM
nepatsfan nepatsfan is offline
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Originally Posted by muddywater View Post
The truck will be gone w/in 12 hours of hitting craigslist. Is that enough time to get a loan?
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That is why you put up a deposit and have a bill of sale.
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  #66  
Old 09-04-2012, 08:50 PM
C Jovingo Landscaping C Jovingo Landscaping is offline
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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.
I think Grandview is refering to construction jobs, not commercial. I worked at a painting/caulking company for 12yrs & they took monthly draws of percentage completed on jobs. Currently i work fulltime for caulking company & they take monthly draws on percentage of job completed.
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  #67  
Old 09-04-2012, 08:52 PM
muddywater muddywater is offline
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That is why you put up a deposit and have a bill of sale.
Might work sometimes and would be a pita if it is 3-4 hours away.
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  #68  
Old 09-04-2012, 08:53 PM
muddywater muddywater is offline
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Originally Posted by C Jovingo Landscaping View Post
I think Grandview is refering to construction jobs, not commercial. I worked at a painting/caulking company for 12yrs & they took monthly draws of percentage completed on jobs. Currently i work fulltime for caulking company & they take monthly draws on percentage of job completed.
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I have never encountered draws on landscaping jobs.
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  #69  
Old 09-04-2012, 09:14 PM
C Jovingo Landscaping C Jovingo Landscaping is offline
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Originally Posted by muddywater View Post
I have never encountered draws on landscaping jobs.
I bet if you have a job that is longer then a month, you could take a draw if you submit billing for percentage of work completed at time of billling. We are currently finishing caulking on a school that we have been on for 18 months. Long time to go without income if they didn't allow draws. Landscaping does fall at end of job so maybe it is different. But I'm sure if it is a 2 month job, you can bill halfway through the job. Might want to check into it

Edit...You can also bill for materials on site when you get a draw.
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  #70  
Old 09-05-2012, 12:00 AM
zak406 zak406 is offline
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Maybe you could sell a nice landscape job.
Im sold out for the year my man, we started march 31 and still cut grass 2 days a week. In a week or two ill be on the road every other weekend for games. Weekends in between im home. Game days are automatically no work days. Hockey is the job at hand those two days. The other three school is at hand.
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