Lease to Friend

Discussion in 'Lawn Mowing' started by MikeGA, Mar 27, 2001.

  1. MikeGA

    MikeGA LawnSite Member
    Posts: 101

    I had a guy approach me about "leasing" my mower untill I have time (about 2 months) to push my personal growth. I only have my personal 3 acres and two other accounts to take care of currently which shouldn't take an entire day. He has past accounts (several) and said he could take care of them in about 3 or 4 days. He currently has credit problems preventing him from upgrading his mower and his current mower just won't go any further. I feel, and a couple other guys stated, there won't be any problems collecting from him IF I get it every week when he gets it.

    Has anyone ever done anything similar to this?

    I will type up some type of "contract" and have him sign it in front of a 3rd party witness.

    Is this advisable? If so, what are some of the "items" I should include is this "contract"?

    Thanks

    Mike.
     
  2. jrebeiro

    jrebeiro LawnSite Member
    Posts: 97

    I would be wary.. mainly because he has credit problems in the past. I would require some sort of deposit that you would be happy with if he skips out on you. Wether it's a hardware deposit or cash GET SOMETHING! Just say to yourself, If I had no money, no credit, and no collateral and desperatly needed a mower upgrade and someone is letting me use theirs without a deposit.... would I skip out on this guy? Take your current morals and subtract 40% cuz you can pay your bills and their is your answer.... Mine is "Show me the money!" Also think what your gonna do with those other lawns if he pulls the wool over on ya.

    Also a contract is pretty much useless... especially if you really don't know this guy. If you sorta know him make sure you get everything a bank would require like nearest relative not living with him and verify that info beforehand. I would also get a customer reference and info so that you can hunt him down if he avoids you.

    It's a gamble but it may work out.

    Just my nickel 'n dime
     
  3. lee b

    lee b LawnSite Fanatic
    Posts: 5,614

    Just a thought, since your a farmer you know how it is when you let your help run your equipment. Some people can tear-up a piece of equipment just by looking at it, and some will take better care of it than you do. Lease equipment always has a harder life because you're not as concerned about tearing it up, if it breaks its somebody else's problem. You tend to push it harder because every hour its used costs that much more, and the life expectancy dosen't matter. I would want to be real sure that I could trust the dude not to abuse your equipment.
     
  4. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Are his problems going to be fixed in 2 months? If u do it, get a notery public, not just a 3rd party. I take it your mower is under full warrenty, if not who pays if it breaks. its your mower.
     
  5. MikeGA

    MikeGA LawnSite Member
    Posts: 101

    Yeah, I'm having some of these same concerns. He works for a construction company which only works 4 days a week and he mows grass the other 3. A good friend of mine, who told him to call me, says he has been with this construction company for a long time. This friend sold him a new trailer to haul his equipment on 2 years ago and financed it for him and said he didn't have any problem getting his money from him. Supposedly, one of his kids has had some sever medical problems within the last year or 2 which has exhausted his credit some how. That is why the friend said to get payed at the end of the weekend while he has the money from the jobs he has done. And while he isn't using the mower, it WILL be in my shed. He will get it when he starts on thursday or friday and will bring it back clean Saturday or sunday afternoon.

    I have my concerns, but I hate for him to loose his contracts he has worked to obtain. I also thought it would be an oportunity to get a little closer to paying my machine off even while I am not able to use it, and when I get caught up in the field I can see about helping him out and building up some accounts if he still hasn't found a better machine he can afford.

    ???????Who knows??????

    I can't come up with a firm answer. I guess it is a combination of my Business side and my soft side and my concern for my new toys all fighting amongst each other.
     
  6. jrebeiro

    jrebeiro LawnSite Member
    Posts: 97

    Well about paying your equipment off early.... you will be paying it off for hours not put on by yourself. You also better make sure he greases that sucker when its supposed to be greased. Just another thing to consider.

     
  7. joshua

    joshua LawnSite Bronze Member
    Posts: 1,226

    personly it doesn't sound good, when he's out working he could ruin your mower somehow, to many ways to list. if you did want to help him out, i would say that i'm going with you and want a piece of the pie that he gets, plus what it would cost you to run your machine. without you this guy is in a lose/lose situation. good luck with what you decide.
     
  8. VLM

    VLM LawnSite Member
    Posts: 189

    I think your wanting to help out this guy is a noble thing but maybe not the best business decission. Just a thought, but what about buying an older mower and lease that to him. Lots of us guys buy new machines every few years, mainly for tax reasons and there are allways cheap mowers for sale. You might end up making out ok financially and still help this guy out and if he screws you you have a backup machine. Nobody touches my equipment so that's what I would try to do.
     
  9. MikeGA

    MikeGA LawnSite Member
    Posts: 101

    I thought of that VLM, I have another friend with a 721d (I think) Grasshopper I want real bad but can't swing the money, BUT, I also have a 2 year old 50" 25hp Crapsman I am wanting to sell!!! You jogged that one into my memory. I will offer that one to him tomorrow!

    Thanks!!!
     
  10. AVRECON

    AVRECON LawnSite Senior Member
    Posts: 290

    If you decide to do it then I would have the contract notarized and filed with the register of deeds. They will do this for a small fee.
     

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