You do have a plan for accumulating assets. Rentals is just one tool.Definitely agree, although i am scratching rental properties off the list.
Tenants are no easier then employees....
Had enough after 8 years. Not for me!!!
I'd consider partnering up with a trusted established OO.I must know that after 2 years my shoulders are already killing me. Maybe too many years of football, surfing, baseball and martial arts but I feel like 37 going on 50. Even if I get a rotary, I still need to rake after. When I have a helper to vacuum and rake, my day is 200x easier it seems. All that to say, I need to find a way off the wand soon haha. My customers love me and I feel if I don't make a mini me or better then I will lose whatever I have attained so far
My plan was about 10 doubles or 20 apartments long term but i just dont like it.You do have a plan for accumulating assets. Rentals is just one tool.
Maybe that is why you have more employees and I have more tenants. Only so much patience to go around.
My rentals will fund a comfortable retirement for me so maybe it will be worth it. All though I will not consider myself retired until every unit is sold and I am living off the $$$. Always seems to be some jacka$$ with some problem when dealing with tenants.
Love this post, may not make 10k pages like 212.0 but chalk full of good ish. I'm curious to how long it took each of you to take these next steps. Just finishing my second year, I'm still trying to find the right helper that I can make a tech.
Glad to see you've got yer finger on the pulse of the stock market, "JT Marlon" . I save and invest like everyone does. Haven't found one that kicks back 150k in dividends each year though.One does exist
It's called investing...
You gotta have more then $10k in the account chiefGlad to see you've got yer finger on the pulse of the stock market, "JT Marlon" . I save and invest like everyone does. Haven't found one that kicks back 150k in dividends each year though.
This is why I recoil at so many of yer posts.
In addition to being a malcontent , you are easily the most pretentious member here.
Now go back in yer hole where you belong.
This is probably one of the best posts I have read on the forum that really shows the difference.Lets use @crash1big as an example to show the difference
Just for argument;s sake we will compare 2 operations.
A. truckmount mike- 1 truck
B. multi-truck matt- 3
Both NET the same around $70k year and work around same hours m-f 9am -5pm.
Ok, so whats the difference?
1. Lifestyle- truckmount mike HAS to work every single hour to make money, no workie no monies.
Matt on the other hand should only have 1 bad day a week, most days he sends crews out.
Then answers phone couple times, checks on his crew, plays video games in between....
Then he forwards his calls to cell phone and meets wife for lunch.
Hangs out rest of afternoon working casually then has a big rush at the end of the day when crews come back.
2. EBIDTA- earnings before taxes
Truckmount mike nets $70k and has no write offs. Pays full taxes so in bank = $55k
Matt- has 3 trucks so every year at least 1 of them is under write off. Pays 0 or very little taxes= $68k in bank
3. Selling out- Its simple supply/demand when it comes time to sell
Even though they each Net similar amounts of money matt's business is far more marketable to the general public. Anybody can do his job.
Mike is pretty much stuck selling to someone already in biz. or wants to buy a job.
Matt will sell for far more money, guaranteed.
He just has a larger pool of people who want to have that lifestyle.
** Was it for Creative?**I totally disagree. And again I'm just going from personal experience. Not just from My own as previously stated but from also being the GM for 3 years at a 30 truck operation that was the largest of it's kind here in Atlanta.
Again, I gots no issue with someone wanting to take that ride, I just refuse to spend My lifes time building a multi truck capet biz beyond 3
Ain't for Me
Now My successor in waiting has such ambitions...but thats a whole nother story thats a loooooooooooooooooooooooog ways from now not even worth Me thinking about currently
I have been in business 2 trucks full time with 1 employee and now solo par time.I'm far from a business guru and this isn't meant to demean anyone. I just wanted to know more about what a multi truck operation can expect for real life profit.
I did some rough math on a projected fictional company that is successful running 4 vans with 4 techs, two helpers (floating back and forth to the busy routes) and a couple office people.
These 4 trucks are producing 150K per year, $600K total.
600K is a great gross total if yer not doing WDR,I would guess.
In order to keep all the vans busy, you'd be at around 30% of your gross to ads.
40% would go to payroll
Fuel, chems, supplies, insurance, etc.. Would be at around 15%
Without factoring in a salary for the owner or property lease, I've got the profit at around 90K before taxes.
What part of, if not all of my math , is wrong?
My profit is much higher since advertising is around 3%. Was much higher back when we started because I was more aggressive AND my prices were so low.I have been in business 2 trucks full time with 1 employee and now solo par time.
In class they told me this:
1 truck sole operator 50% profit
2 truck employe. 40% profit
Take off10% profit margin for each van till you get to aroud10-20% profit margin
After talking to other carpet cleaners this is pretty close
With 4 vans you will get 10-20% profit