How Do I Buy Work Equipment Without Debt?
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- เผยแพร่เมื่อ 28 ต.ค. 2024
- How Do I Buy Work Equipment Without Debt?
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I disagree with you on this one Dave, heavy equipment costs big money on repairs if its old and especially worn out. Buying junk is a good way to loose contracts and major jobs. I’m in the trucking business and I borrowed 45k to buy a truck and made 85k the next year and payed my loan. The truck is not new nor junk, I could’ve easily gone and bought a 15k truck but it would’ve been junk and cost me more time, money and effort. Today I bring home 100k+ per year thanks to my truck!
he's good but you are right you have too get the job done
well he don't know how it works DAVE RASEY DO WHAT I SAY NOT WHAT I DO
So tru man dave doesn't understand stand trucking
You have a great mind set Johnny you took a risk and bet on yourself now your business is thriving great I commend you do you have a company Instagram where I can check out your transportation business?
You have to take Risk into consideration. Think, What if..? And now I can't pay the laons. It perfect if you know for sure what the future holds.
Heavy equipment is very expensive to maintain and repair. Even smaller equipment is gonna cost you at least $50k. I purchased an excavator brand new, 5 years worth of payments. .... but also 5 years worth of a full warranty. The monthly payment was equal to the cost of renting a machine for 2 1/2 days. I am no fan of debt, but sometimes it doesn't seem possible without it. Not only that, but depending on the nature of your work; when that phone rings, the truck needs to start and the equipment needs to be running. There is no such thing as downtime when you do emergency work and/or utility repairs.
This makes the most sense to me. Not sure depreciation is the same on this kind of equipment as well
In my experience, the equipment seems to hold value for a long time. You can buy a new mini excavator for $50k, and you can buy a 10yr old unit with 3,000+ hours of wear and tear for $30-35k. When you buy a used machine, and blow a final drive that will cost you $7k to fix..... you will be happy for a warranty that covers replacement.
Dave is correct that saving cash and buying used is probably the best bet in this particular situation.
That said,
The whole no debt thing literally does not work for some businesses. No cable, utility, rental car company, or radio company can reasonably operate without debt. Debt can have great tax advantages as well for businesses.
It does make sense to pay off the debt over time or to build up a strong net cash position though.
@@coconutjuice7777777 add very very few construction companies
Yea. Im in the tree business and did the same thing with a stunp grinder. Sorry Dave. I take what you say to heart but having that machine opened up a lot more doors. Im working hard to pay it off early though and will avoid debt like the plaque.
That type of approach works really well for somebody that wants to start investing in real estate or wants to start a small business but that shit ain’t gonna fly trying to operate a real business.
Get an equipment loan and be wise with it. You’ll never get to where you wanna be if you don’t take a chance here and there.
Don't let Dave read this.
I run a very small sign company, I get it. Rent your equipment (depending on what it is) like bigger augers, scissor lifts, boom lifts, add the cost of the rental into the job with a 1.3 markup, you’ll be fine! Other than that just save up
@nick behrooz billboard sign company?
I wouldn’t try to borrow first of all from family
100% agree. I was 24 and had an investor. Figured out every time I deposited checks it wasn’t into my business. It was into his. It’s going to take a minute to get back up and running on cash but wow don’t have partners is all I have to say.
@@Thathat-o7w Yeah and then they use that against you when something goes down. Keep family out of business, simple as that.
I like Dave's approach, keep you day job. Invest in a bobcat and trailer. Weekend jobs don't need the big equipment. Learn to run a business and work you way up. You are going to be subcontracting with people. The small jobs will lead into bigger ones. No one wants to contract out a big job to a new guy, small jobs have less risk. And you don't need to servicing debt hen you are just learning to run a business.
True my family tractor is 70+ years old and it’s still worth a great deal. With offers made yearly!
Do you go by what was paid back then or you express what was paid back then in today dollars?
@@williambencher2466 Actually you might be surprised. The price of older equipment has been going up because they don't have the electronics that require you to take them to the dealership to get them worked on.
Is that because it's an antique or because they actually want to use it for work?
From experience as a guy who.just started a mobile equipment repair business. My clients don't care that I show up in a old tired truck, they care that I know what I am doing and can work my truck to get everything fixed.
My clients do care what equipment i show up cause they wont believe if I can handle the job. better equipment less change they will be cheaper on you.
If they drop half and value in 24 months then why not buy a tractor that 2 years old, I mean I know nothing about farming
Exactly like a freaking car.
Depends how critical the work you do is. Imagine if you build a house and everyone gets delayed because the guy with the bulldozer is broken down. That can ruin your reputation.
So much so that big contracting compagnies will either rent for the year or buy and resell yearly.
Same kind of seal for farmers of huge operations. Can't afford to be down even a week. Reliability is critical.
They usually drop around 30% max that I've seen. After that they usually don't drop again for a long time. They retain a lot in value for the most part.
@@fmaz1952 you're over thinking reliability.
Most equipment, even 20 years old is inheritely reliable, it's all in the maintenance. My skid steer is a 1993, excavator is a 1995, and tractor is a 2000. They all run very well and just need simple maintenance regularly, and stay on top of repairs. You can make $ with them fast so you have a good cash reserve in case of a failure and needing to rent for a week or 2.
Buying new makes 0 sense for equipment unless you want to go bankrupt in the first real estate or construction downturn. Plus you can underbid a the competition with no payments and never need to advertise. That's what I do.
It depends on the equipment. Tractors any way don’t drop in value nearly as fast as cars. I know of instances where a farmer bought it brand new and 30 years later it’s still worth more. My dad bought a used tractor over 20 years ago and today could sell it and still make 10 grand. Combines are a different story though they do drop in value more like a car.
You can rent the equipment needed for each job, when you need it, build up cash and then buy good used equipment.
.
Slowly increase your inventory and upgrade.
Some tractors hold value pretty well.
Mostly the "compacts"
But only if they are well maintained.
You better be sure you dont hit a snag while renting heaving equipment such as rain, project manager delays, ect ect ect. You will loose your tail renting.
That’s very true, doesn’t matter what you buy, you just need to make sure you get the job done in the way you say you will. Just as long as the equipment you buy isnt so beat up that you have to keep paying money to maintain or fix it because that takes time and money away from your business
Maintenance costs are necessary. They keep the equipment running top notch so you dont end up with massive repair costs.
wow... unless your a master mechanic the mechanic is going to hear chaching so many times. how dum do you have to be to think that a crapbox death trap isnt going to cost you more money than a loan.....
And with your TH-cam profile-picture/name, your comment is all the better!
He needs to be able to maintain and fix his own equipment. That's what I did for our small company. Bought our electrical test equipment on Ebay and programmed it myself.
Not sure about this,I financed my BOBCAT loader 0% financing paid it off with what would have cost me in rental equipment. Tax deducted and now owned with all profit going to me. Same with my "idiotic" new diesel truck also tax deducted low interest and knowing it starts everytime is priceless.
Is there a reason the intro music is abhorrently loud?
ALL THE TIME
Gov. auctions for cheap earth movers and trucks
I was thinking the same thing, there's lots of cheap military surplus equipment out there
Ive worked for a few of the largest heavy equipment rental companies in the US. Bid the job, rent the equipment, do the job. You can rent a skid steer, excavator, wheel loader, etc, until you can buy the stuff. Contractors rent equipment on their jobs all the time, its a multi billion dollar industry.
I bought a $40,000 tractor that was about $260,000 new. I put $12,000 down and financed the rest for five years. I only use it for a few months out of the year and the rest of the year it’s here if I need it. The rental of a similar tractor would be $10,000. A year so I would have paid out $40,000 and had nothing but rent receipts but now I have a paid off tractor and it’s still worth what I paid for it. I could not have gotten my tractor without the finance company. Of course if it had broken down in that time it would have been a different story.
All it takes is for the beat up bulldozer to break down for several weeks, making it impossible to complete the job in a timely fashion. Then the builder sues you for breach of contract, and now you a repair bill plus a lawsuit to deal with. Buying new or newer has its place.
My semi needs alot of repairs I don't know what to do
Sad but true....people do actually make judgements about you based on what you drive or in this case, the shape of the equipment. In the end, it doesn't matter as long as the results are good.
Dave Ramsey is out of his mind, honestly the only good thing he’s ever said is working 80/90 hours a week
Make certain that the equipment is dependable or else your income will be spent on maintenance.
Go sell a weekend job then borrow or lease the equipment. You could even pass the job to another company and make a spread if you got good as sales (which you’ll need to do anyway).
borrow a bulldozer? Good luck with that.
@@godsdozer I’ve borrow bobcats and excavators before. Why not a dozer? I have cool friends
@@mjf5049 good for you.
As a farmer and former dirt work company owner, I would advise you not to engage in either of these lines of work unless you have an outside source of passive income to cover your normal bills. In my area the work for the construction side of things dried up with the oilfield so I had to sell out and switch to farming full time. Machinery is expensive to buy and very expensive to maintain and fix. This is not for people who are bad with money or who are starting from essentially nothing. Not to mention the amount of insurance that you have to carry, CDL to haul from job to job, it is a hard way to make a living if you're not in the right area.
I want a passion like this guy. Anything. I just want to WANT something.
I know your pain. If I might ask, how old are you? Have you been exposing yourself to different fields of skill to find what suits you?
@@youmakeitwhatitis Thanks for the response! 28. I'm pretty good at taking overseas vacations but that's not really too special. Gave up on getting into firefighting. Pilot. Runner. Propane delivery driver until I have some direction. Haha! You?
before watching: answer slowly with cash second hand. people like to think buy new but 60k dump trucks can go for 6000 and used equipment. going in slow and cheep with cash helps you get the kinks of your business model ironed out aswell as you grow your knowledge grows of the business and your management skills grow as well. you'll have repairs but if you can start making money on your equipment the equipment will pay for its upgrade/expansion/replacement.
and for goodness sakes don't put all your money into the company past the first year. set up ratios that pay you, invest capital in the business as well as create a war chest thats taken out of the after taxes profits. example your company makes profit of 100k after expenses and taxes are taken out a year you could set up a 25/25/50 split giving 25k to expansion and acquisition of equipment and business growth/25k a year going into the business warchest emergency fund/and you have a 50k salary. what this does is prevents the hobbyist syndrome where a person has fun while his family starves if you cannot make enough money to at least equal your hourly salary then get a real job. also it sets a balance of what you spend to make sure company doesn't slowly go into decline underneath your radar as well as positions your company cash assets to weather any storm or take advantage of any real opportunities that you might be able to take advantage of.
after watching: Nailed the answer😉
id love dave to branch out into business fiances id love to see his take on how businesses should be run. companies have bad practices like leasing because of bad management of assets and a lot of other things that equal like debt leveraging that really could be addressed like he does in personal finances. there's a lot of difference and a lot to unpack in business arena. im surprised he doesn't offer business consulting side of his company by now that would be huge.
The price of equipment is nutz. The price of a professional grade lawn mower can easily be between $7,000-$10,000. A new pick up to plow snow can easily be $50,000. Then you have to add the plow for another $4,000-$5,000.
Save cash and buy used equipment off season. You can get things cheap when it's winter and nobody is working it, even cheaper when you flash cash.
For your average family farm, 1500-2500 acres, you might only put 200-300 hrs on it per year, buy one used with 1000 hrs, and it will serve you for 15-25 years. Ironically, at that point, if it was well maintained, and because of how much new equipment goes up in price over time, that piece of equipment generally sells for more than it cost when it was new.
I can’t be a small John Deere service department, and we pound on 1000 hrs per year. So I do a 1 pay, 1000 hour lease. The programs are heavily subsidized, my capitalized cost is 15% less than what a John Deere dealer can buy the equipment for themselves, and the money factor, even for the equipment I’m getting in 2025, would calculate to less than 2%. The bottom line is that the category of equipment I use has a million dollar list price. Even if I am a great haggler and get it for $925k, I’m only going to get $700k for it the next year, but I can lease that equipment for $100k.
Great advice guys. Love your channel.
Buy cheap and make it pay you back, that’s how you grow, you don’t take out loans
David Does
Literally every company in the Fortune 500 disagrees with you. But what do they know?
Top Comment Maybe it’s how to stop you from growing
David Does
Yes, acting like debt is cancer will cause you to stop growing.
Top Comment Very vague, be specific with that you mean by debt. Tractor debt will
David Does
Not if you know how to run a business. That tractor debt pays you big bucks.
That's not really all that bad of advice, repairs can be big money, but newer equipment breaks too. My last word is if you can afford Japanese, buy an old Japanese machine before a newer western one. Caterpillar makes all their money on service, same with Deere. I run 5 different midsize Komatsu loaders, 1 cat CTL a bobcat Skid steer, and small Deere(Leibherr) loader. All of these machines break down occasionally, but it's usually the Cat that we're picking up with one of the WA320s and forking onto a trailer.
Work your way up through a good honest company/contractor and learn every aspect of the business. Knowing how to do the job/operate the equipment doesn't always translate into understanding how the business side of it works.
I've seen lots of young people work for a company/business for a few months or a year and think they can start their own, only to fail in a short time because they don't learn how to run their particular bussiness successfully.
Just save, beans and rice. Work there for another 6-8 months or so, that way you’ll have a safety net of sorts for the first few months while getting your business off the ground.
This is such simplistic useless advice - the man makes $2800 a month. The average price of a bobcat is 25K-65K per google. How the heck is he supposed to save uo that amount of money on that income?
Bought my used new holland skid steer for $7000. It's worked out great with my other paid for equipment.
Starting a new business in debt is like walking around with an anchor.
Its tough ill go into debt for a business that I know works and thats proving
better to buy new and know it works then a junk that you need to put money and time regularly
@@carloscampos5469 definitely time is money!
This is very sound advice, and very doable. I am a plumbing business owner with 10+ trucks on the road, jackhammers, hydrojetter, equipment, everything, and it was all paid for in cash.
Now granted, because we are dealing with large amounts of cash, it is very difficult to buy all of these things brand new. I would call that impossible. But if you are smart, and you do enough research, and you know where to look, he is right that you do have to work like an animal, save, and make smart purchases, but it definitely can be done. You just have to buy used equipment and let someone else take all the depreciation. Another key is that you have to control how much you pay yourself in the beginning. You can’t just rake in all the dough and pay it all to yourself because you’re the owner. You have to treat your business like another person. It also needs to eat, pay its bills, survive, and afford to pay for things.
I started as a one truck operation by myself, and my business is still growing to this day because of this advice. Debt truly is a burden to bear and a curse on your life and your wallet. It just adds so much unnecessary stress and risk to your life.
Heavy equipment is not cheap. We’re talking six figures USED in many cases. Repairs on heavy duty machinery is not cheap either and who knows what the previous owner did with that machine. TH-cam is full of crazy stuff operators do to equipment. And customers don’t want to hear about “my equipment is down” or why the job is taking longer because you bought what you could pay cash for instead of investing a bit more that can get the job done. This Im speaking from experience. So I go the route of renting so as not to go into debt.Great! Rent payments very quickly add up to more than you’d pay for finance.
This is great advice if you have a nice garage for the equipment repairs and you like to work on broke equipment. You don’t make money unless that hour meter is turning.
Rent the model you want and decide if it is the one you'll save for, or rent from home depot various models before landing on one.
Ive built my whole business off of debt. We make enough to pay cash for all the new equipment but still go with lease to own. Each payment is a 100% tax write-off. The equipment on average has an annual roi of over 100% every year for 5-10 years. The money the company makes is used to buy real-estate that produces cash flow every month. If a recession hits like everyone says it will, then i still have enough guaranteed work to pay all my bills and still have lots left over.
Debt is how you build wealth if you know what you are doing.
You're right about debt being a tool, but it's a very dangerous tool. Ramsey wants his listeners to build wealth slowly over many years, with very low risk. The method you're describing destroys far more people than it helps. Of course, it does work for some, and I hope it works for you. I wish you well.
He’s a little off the mark on the value of new equipment.
First, they actually hold their value pretty well. Obviously they depreciate faster than a piece of used equipment but you probably won’t have lost half your value in 2 years unless you don’t take care of it.
Second, new equipment has new equipment warranty. I work with heavy equipment repair shops and it’s not uncommon for a repair bill to get up to the $30,000+ mark. Lots of operators want that warranty cushion because they don’t have the cash flow to handle a hit like that.
Sell off unused equipment or scrap, he says. Revisit the budget.
Dave wrong farm tractors hold value extremely well
They still depreciate, just not as fast as Dave thinks.
@@herbiehusker1889 of course they deprecate but not half in 24 months Dave's salesman side that's made him millions loves to exaggerated
We bought one new in 2000 got half what we paid on trade in 2019 lol
Ramsey thank you
Tractors hold their value much better then cars, no comparison, they do not drop by half the first year or two
Imo buy older to start out this way You own it and worst case you can work on it yourself. Newer stuff brakes down more and it’s designed for the most part to be dealer repaired
They do not drop that fast in value I got a kubota and I paid 14400 new 3 years later I decided to buy a bigger one I got 12700 trade in on a 25000$ tractor
A kubota is NOT heavy excavation equipment.
Eddie Adventure you ain’t buying 1 million dollars graders to start a small business excavating kubota sells equipment over 100000$ so it gets pretty heavy
Same but market shifted big time.
I gave 130k for a d51 with 1100 hours on it. 2 years later about a year ago I sold it for 160k. Bought a new one for 220k out the door.
Can you buy a used one that was liquidated buy an unsuccessful businessman?
oh man. I couldn’t disagree more with Dave here. 10k for a broken down skidsteer that you’re going to be working on half the time is a waste of time when you’re trying to get the job done.
I’ve been looking at tractors and 10 year old machines with 1000+ hours are selling used for what they were purchased new for.
First thing I heard is “I’m a heavy equipment operator and make 2800 a month.” Bro, you should be making minimum 2800 a week with that skill set.
You're absolutely right. That's only about $20 an hour working full time. He's getting taken advantage of.
There were 2 bosses I’ve worked for that went bankrupt. Why? Because they used debt to buy business equipment and to pay expenses incurred by the business. 🤷🏾♂️
Bob W
No, they went bankrupt because they were incompetent. People finance equipment all the time and grow successful businesses.
Bob W
That’s like saying the reason someone got in a car wreck is because they were driving a car. Well then how do you explain all the people driving cars and not wrecking.
@@topcomment3816 that was an amazing example
@Top Comment
Indeed. As Dave suggests, it’s better to buy used in cash and eventually upgrade.
If you're going to buy used excavator or skid steer you better have about 40 or 50 grand laying around
I hope this guy took none of what Dave said to heart, this equipment is not possible to buy without a loan. Buy a good used machine that’s about 10-20 years old and work your way up from there, if you need a loan to buy it, do it.
I disagree that equipment goes down in value fast. I bought a new tractor from a dealer because 10-20 year old worn tractors were pretty close price of a new one, and they have no warranty. If I was this guy, I would buy new equipment if it was constantly being used (backhoe, or mini excavator..) and rent the occasional use equipment. Also id watch andrew camarata
Funny you say buy new. Andrew doesn't ever buy new, I don't either.
Pay cash for used, and learn to work on it.
Book work and rent equipment to do the job. You can still make a decent profit from your skills & knowledge.
If he is only making $2800 a month he is either not working, not skilled or not union. So many union apprenticeship training programs that pay you during training. Skilled workers are valued and paid well.
Dave gave the worst/slowest possible route to get there. To do it cheaply, rent your equipment. To get serious, buy a slightly used piece of equipment. Dave is 100% incorrect because equipment is not only depreciable but also holds its value very well if taken care of.
Check out government auction sights, they sometimes have old military earth moving equipment.
Uh a beat up dozer goes for 80k or more.. You'll need to go into debt alot of money. Also to fix these things are really expensive. I would also like to add from experince my boss brought a old beat up (smaller) front in loader and it was 210k
However old equipment does not go down in value, something 30 years old will still be worth the same when it’s 40 years old as long as it’s in the same shape
Also I had a one bay shop I was making 1500 a week profit I spend 70000 on on shop upgrade and expansion on credit I now make around 6000 a week and my monthly expenses are 600 for the loan and 1200 a week for my 1st employee so I now make 4650 a week impossible without debt
Dave I love you but please start researching these topics before you open your mouth. Most heavy equipment/farm equipment holds its value extremely well. It isn't a car where you drive off the lot and lose a ton of value instantly. It doesn't drop 50% in value in 2 years, and most good quality farm tractors hold their value for a very long time and you aren't going to find many "bargains."
He isn't taking into account parts availability, and repair costs.
Obviously Dave’s never had commitments to getting a job done on time. The trade off of buying really old equipment is breakdowns and downtime. They are not cheap, plus most jobs they’re are other trades waiting for you to finish so they can get on site and start. One way to get a bad reputation is to slow everyone else down. There is a balance, and there is good old equipment out there but it still costs money, nothing is free. Debt is a part of business, a tool that is to be used wisely. Dave you are wrong.
Buying shitty equipment is a great way to spend your life fixing equipment. And not working. Bad advice
Depending on what you plan on doing. I disagree if your going after the commercial jobs. They will inspect your equipment at times before awarding the job. Nobody wants to put faith in a multi million dollar job that has deadlines in the hands of a 15,000 hour dozer. If your serious go buy a new one at 0% for 48 months. If you buy a dozer. The fact he thinks 60k is alot on a dozer shows he has no clue. You can get a D51 for around 200k run it for a few years get out from under it and do it again. Down time in this business is your worst enemy.
I get that the "no debt dogmatism" Dave preaches is going to make most individuals and families better off but the caller is talking about a business. If the caller knows what he's doing and has crunched the numbers, he's got to do it. Debt financing is a normal part of doing business.
I agree with the part that debt that’s used for expanding a business ( enterprise debt) is a good thing. Even Warren Buffett’s Berkshire with hundred plus billion in cash has investment debt. But his enterprise is not even in infancy. If he starts with loads of debt on a fast depreciating asset like farm equipment, he will be on a rat race forever.
Saying that going into debt to start a business is the same as someone saying they have to go into debt to go to college. There’s is always another better way, but it takes discipline. Going into debt to start a business is a very bad idea. The caller needs money that he made, not money that someone gave to him as a loan.
@@pioneercolonel farm equipment depreciates slowly unlike vehicles. It makes money so there is a reason for more people to want it.
@@dumdumdugan1940 I don’t think that’s a fair comparison. Some businesses can be started with little capital. Some (like all heavy equipment) requires massive amounts of capital that isn’t really obtainable through a day job.
Sounds expensive. Maybe choose a different side hustle that requires no overheads? There are plenty that require no store, rent, expensive equipment etc.
Better advice would be for him to rent the heavy equipment to save up money way faster so he can purchase one.
He’s obviously never run equipment. Old equipment will break you faster than anything. Can’t get the job done if you’re not running. New equipment will to if you don’t have the jobs.
"Stupid things go down in value really fast."
I'm not an earthmover, but um, isn't the main value that the equipment does the job and enables you to run your business?
Wow don’t borrow from family! Just try to lower your expenses.
No one is hiring the guy with worn out equipment. You’ll be in the shop all the time with expensive repairs.
Dave is looking for a way his philosophy fits into an industry he doesn’t have experience in
I dont agree at all with this for farmers or construction businesses
They need to save up!!!
Dave, as usual sound advice.
This is the worst advice ever.
Daves advice is sound for the average employee, and is great for those non finance savvy individuals who want to live a good safe life.
The same advice absolutely does not apply to business
A) rent or lease the equipment until you know for sure you have regular income. This will be expensive but you will make profit from TOMMOROW. Which is better than making no profit
B) if youre comfortable with your sales and you want more cash in your pocket then get an unsecured loan to buy equipment ( second hand is great if you know its good equipment)
If you are worried about what will happen if your business goes under if you have low sales, then let the bank worry about it. They charge interest which takes away from your hard earned money, they know the risk, so let them worry about it, as long as its unsecured.
If the guy is on 2800 a month, how long will it take for him to save up for equipment? Even if he saves 1000 which is ridiculous, it would take 2 to 3 years. Theres a reason they say time is money.
Nobody gets rich from their own money, they get rich using other peoples money. Its all about speed. Good luck.
100%
Big stretch to talk about him starting a business and go all the way to talking about getting rich.
I'm not rich, but get a lot of work done with my $7000 skid steer, $8000 mini excavator, $5000 loader tractor, and $5000 dump truck. All bought with cash. Will they make you rich? Not fast, but it's a marathon, not a drag race. I get to keep much more of the $ that comes in without equipment payments, and if it's a slow winter or rainy season I'm fine.
@@karaayers2867 its not about getting rich per se, but i think one should get the most out of the time and money they invest in a project.
What you have done is great, nobody can say its the right or wrong way to do it, but its not the maximum result you can get using you mind, time and money.
Youve invested 15k. Lets say you invest 3k instead and the rest was a loan, that would mean at 8% interest you would be paying $960 interest a year or $80 a month.
Now with the leftover 12k cash you have how much money can you earn by investing it other machinery? Another 1k a month? Thats 12k a year, minus 980 interest. So an extra 11k a year on top of what you are earning anyway.
Again, this is on an unsecured loan if you dont want to worry about risk. Let the bank worry about it, as they sure as dont care about you.
“Save like a crazy man” -Dave 2020
Rent equipment, & save til you can pay cash for one at a auction
Im 50 and all my life i have paid cash for everything! its worked out amazing for me
You have at least $1.5m?
@@cjjohnson353 Mate i have invested in apartments and make enough rent money not to need to work a day job BUT work in construction because i love it! Everything i have is bought is in cash and over the years one brings the other and so on. All my investments are now over 5 million worth
@@oldschoolnaturalbodybuildi4301 is construction not a bit physically taxing @ 50+ when you have no financial need for the work?
@@cjjohnson353 It is but i only renovate my apartments so i go and work as i please when i get too tired or dont feel like going i don't go thats what makes it awesome i dont have to do it i do it as a hobby
@@oldschoolnaturalbodybuildi4301 how did you get started. how much money did you save to buy an apt?
Excavation equipment is different.
I like his general thoughts on a conservative financial mindset, but he's trying to apply it everything from construction to farming. It doesn't always work in those settings
Rent small equipment per job to start. Get a magnetic sticker to put on it and start
That's fraud
How is that fraud? People rent equipment all the time. I own a company and I rent things I don't need daily all the time
“Brand new doesn’t make sense unless you’re a millionaire”
in this case he said billionaire, because construction equipment can easily reach the millions brand new (and even used)
Needs a truck big enough to haul equipment and needs a trailer big enough to haul a Dover then needs insurance on the trailer and truck then needs to find the cheapest Dover around and needs tools to maintain it so 20 grand minimum is what he needs
@@SarahConnor562 Exactly. Not sure where people are pulling these numbers from.
Dave said South Carolina but the banner says Kentucky 🤔
I'm not seeing how its feasible for this guy who's making $2800 a moth to save up a pay cash for equipment, the type of work he is talking about would require probably $60k for a decent used dozer then he would need a transport truck and trailer so he probably needs $150k to get started and thats using the dave method of buying cheap garbage equipment. Land clearing and earth moving equipment are no cheap venture.
Appearance matters to clients terrible advice to show up with old equipment
Look up Andrew Camatara
I’d look for a good, older piece of equipment but not a worn out one.
Noooooo !!! I didn’t Like his advice this is coming from someone who owns their own business good luck starting a business trying to pay everything in cash
But you have heard the huge failure statistics on starting businesses? Debt contributes to that. Maybe we don't need 50-60-70% of them giving it a go and failing due to leverage. If you made it congratulations, but most would still counsel debt free for best chance of success.
grayandgray yes but at the end of the day it’s all about how u manage your money a lot of people fail becuz the can’t manage their money
My contracting/excavation business is debt free. I can underbid the competition, keep a big cash reserve, and expand when I have a need or find a deal on more equipment.
The other guys are sweating in wintertime when work slows down. I sit back comfortably and don't dread that trip to the mailbox.
Lexington, KY or Lexington, SC? Dave says one and the screen reads the other...
This is horrible advice. Dave ramsey's advice is geared towards W2 employees, not business owners. Utilizing debt is a huge part of running a business, and he knows that.
It's solid advice. Try not to get too triggered over it
@@christophercarrigg3775 not triggered at all, but this is not solid advice at all. This is boomer advice that doesn't work unless you already have a tremendous amount of capital. The return on investment is much lower trying to save enough money to start a business than it is to borrow to build a successful business and then quickly pay it off.
You can rent the equipment you need and just use it when you need it.
A youtuber, Stan Genedek built his business this way. If you see this post Hasten, check out his channel. He started with nothing.
Ya no... Dave you don't understand how this industry works... It's called working capital and investing in your company... If you have the work go finance a brand new machine with a full warranty!
heavy equip op and only 2800 a month ??? join the union brother or get a diff company cause your getting robbed
I want to start a construction rental equipment business. Who can help me? I just need someone to guide me.
Thank you uncle Dave I’m in the same boat as this guy I’m wanting to start a excavation company also
Once again Ramsey is giving good and bad advice.good don't go into debt to buy a new machine. Bad go buy old. This is your business. You never want to be in position were you cant answer the bell
Because the vehicle is broke.
Your hard work is drained by a money pit.there has to be equipment that falls in the middle that's reasonable priced that's not a piece of junk
The thing Christy mentioned isn't correct either, people do care if you show up with a banged up dirty old piece of equipment, especially if you are a newer business, it causes doubt from the get go. Seen this quite a bit in the photography world. While many 10 year old used cameras can still do an incredible job, clients get super worried and get anxiety if you aren't using the latest gear, especially if you haven't built up a reputation yet.
My clients appreciate that I'm 25% cheaper than the competition because my skid steer and excavator are 20+ years old. And I don't rush their jobs because I'm not hurting for $ to make those big payments.
In the end, the dirt doesn't care what moves it.
@@karaayers2867 there a big difference between someone who has been business for a long period of time has a client base and knows there equipment.
This person has none of that.
You should no better than anyone
If you have unreliable machine your
Business is doomed.telling somone to buy a piece of junk because its cheap is just plain moronic .
@@warrenkatz1469 like you said, he doesn't have clients or knowledge. Should he really buy more expensive equipment without those?
And nowhere did I say the word "junk". I don't operate junk, I buy equipment off season with cash. I get great deals due to other guys being hard up for $....usually because of debt. No debt here, and if he wants to start a business that will allow him to sleep well at night, then he should go at it slow, and with cash.
@@karaayers2867 I did not say buy brand new equipment .
Starting a new business from scratch is one the hardest endeavors a person can do.because I did it,!just saying buy with cash is impossible for many people.
Both my partner and myself had to put up our houses as collateral .we took a chance and worked out.
Save you money for the equipment
Or just do something else
Thanks for that valuable insight. Is this the part where we are supposed to go check out your channel? Because we all need more finance channels on TH-cam. 🙄
@@topcomment3816 I didn't ask for anything
@@topcomment3816 why are you like that?
Stop hating
Xavier's Finance
We didn’t ask for you to type a comment repeating exactly what Dave said in the video. But that didn’t stop you from doing it. Is this your financial “advice”? To repeat everything that Dave says??
@@topcomment3816 no
why are you so mad right now
No matter what you pay cash and listen to bad advice on the radio.
Buy used. It's that simple.
You just need to have the cash to buy them... Duhhh...
Dave, would you hire me if I showed up at your jobsite with worn-out equipment??