Business move advise wanted.

southsoundtree

Well-Known Member
Blades and peaveys are cheap. Add up a price on the blades, and peaveys. Add to depreciated mill price. Note that cost of the mill is not the cost of getting it operational on a permanent, purpose-built location.
 

evo

Well-Known Member
Yes I am taking that into account. Freight on one cant be cheap either, and here it is ready to work on site. I'm not saying it isn't worth it. More so is it worth it to me?
I have peaveys, and other odds and ends too. I could also use them for tree work too... This guy is saying he is doing 12K just as a random weekend gig.
 

evo

Well-Known Member
I am not too worried about that, as I am not looking to keep his business intact. I would rather buy the equipment and roll it into my business. Such as putting a forestry box on the truck, and using the mill for my house or other "art" projects. I may not make a huge profit from the investment of the mill and forklift, but I would make it pay for itself.
 

ROYCE

Well-Known Member
I am not too worried about that, as I am not looking to keep his business intact. I would rather buy the equipment and roll it into my business. Such as putting a forestry box on the truck, and using the mill for my house or other "art" projects. I may not make a huge profit from the investment of the mill and forklift, but I would make it pay for itself.
Not to get too personal, but are you married? Have a partner? If so, what does she/he feel about this move or decision. I have found that my best decisions with my business have been made with the support of my wife.
 

evo

Well-Known Member
Yes I am, and we have a 8 yr old son. The buildings would be perfect for a couple, or just a single person. But with a kid, that's where all the construction talk is coming into play. She is all about the mill, so-so on the truck, and ambivalent on the forklift. I personally cannot see having the mill without the truck, as it would limit how I'd move logs from point a to b, and since the mill is basically stationary it makes since.

I spoke more with the guy, and he will finance the land, but not the equipment. Which does change things a bit, but perhaps not a deal breaker. I do think we will get the land!
 

mattbever

Member
Best wishes evo. I am looking for some land for my family and business as well. These are exciting times! Keep us updated
 

evo

Well-Known Member
UPDATE:
I stopped by DOL and asked about the truck. I had the plate # on a photo in my phone, so she looked it up. It's registered at 24,000, and is net weight is 15,800. According to the DOL person at the desk CDL is dependent on the registered weight not the tag on the door. Is this true for WA? I called the state troopers, they didn't know and said it's a DOL issue. So the people enforcing the laws don't know?

Taking the next step on the land. Still looks good, not perfect (but what is)? Also it's up hill from a gun club, (1/2 mile away) Thursdays and Saturdays are their big shooting days. Glad we don't have PTSD (yet)..

Putting a plan together, for my investors on the equipment to see if they are interested.

I should know more on the land next week!
 

Evan Sussman

Active Member
UPDATE:
I stopped by DOL and asked about the truck. I had the plate # on a photo in my phone, so she looked it up. It's registered at 24,000, and is net weight is 15,800. According to the DOL person at the desk CDL is dependent on the registered weight not the tag on the door. Is this true for WA? I called the state troopers, they didn't know and said it's a DOL issue. So the people enforcing the laws don't know?

Taking the next step on the land. Still looks good, not perfect (but what is)? Also it's up hill from a gun club, (1/2 mile away) Thursdays and Saturdays are their big shooting days. Glad we don't have PTSD (yet)..

Putting a plan together, for my investors on the equipment to see if they are interested.

I should know more on the land next week!
I'm pretty sure it's a DOT thing not a DOL thing, though if you don't have it registered for enough tonnage as your carrying you can be fined.

If I am correct CDL requirement is determined by the GVWR which is indicated on the door tags, as well as trailer GVWR and combine GVWR or GCWR.

in your case if door tags say 26,000 it is under CDL as over 26k or 26,001 is class B CDL. Since its only registered for 24k, you can legally carry more than that. I would get it upped too 26k at least so you can actually use the truck to its rating, more if you plan to pull a trailer as the powered vehicles registered tonnage has to cover the GCWR.
 

evo

Well-Known Member
UPDATE:
So the guy will not carry the note, with out at least 20% down. It's not a deal breaker, but I don't have the $. He has been saying that he will hold it for us for a while (about a year), but the cost may go up if he improves things. I just inquired with the bank about one of the USDA rural development loans, and got the call today that I'm approved for 100% at 3.25% interest... Not too shabby if I say so myself.
I haven't worked much on the mill, truck, setup. This is because we currently rent, and I'm not interested in renting a yard for logs and milling... Now it looks like time to get this rolling...
 

evo

Well-Known Member
Deal is off. It was nothing more than a carrot on a stick. He's upping the price of the equipment by a total of 10k.. (he is now wanting 6k for that for lift, and 25K for the truck). Never got to the price hike for the land, as all he said if its financed he would need much more to make up for the interest he's loosing. To top it off he's buying a acre of edge trees (20' strip bordering a 25 acre clearcut) for another 30k to add to the real estate.

I could slap him I'm so pissed
 

WaitakKauri

Well-Known Member
Bummer Evo. Sorry it didn't work out, good of you to give an update. I've enjoyed this thread and following the thinking and investigations of the opportunity. I have a hunch this will lead to something better for you and when that time comes you'll be ready again.

cheers bro
 

ROYCE

Well-Known Member
On a personal level my wife and I looked at buying ourselves land for about 6 years. We finally found the piece of land in the town we wanted. It was 5 acres. Well already on site. I just needed to clear some trees and build a house and put septic in.
Well, after 3 months of going back and forth with the seller, and realizing that the deed was not legitimate, and that it was actually only 2 acres of land we had to walk away. We lost 1800 dollars in fees that we paid out attorney to do the deed search and research the survey and such. We were so bummed about not getting that piece of property.
Fast forward a year later an AMAZING piece of land fell into our lap. Same town, closer to the center, 7 acres of land, for just a little bit more money. It has a three season camp on it already (total bonus). I spent the next 6 months fixing it up and we now live in the little house until we build a larger one up on a knoll on the property.
So, everything happens for a reason. You have learned a lot on this process and you can take that knowledge with you when you work on your next purchase. You will look back in a few years and it will be clearer the way things have unfolded for you. Plus, who know you might still get this place. Time will tell. But just be open to new possibilities! Keep us posted.
 

Attachments

treehumper

Well-Known Member
Gotta call BS on that one, Evo. Losing interest??? He gets the money and can invest it so he's not losing anything. Well that's the wonderful world of real estate. Great learning opportunity. Now your educated enough to be able to strike a deal with s legitimate seller. Ask the lender if they'll pre-approve you for financing so you can then approach the next deal as a straight out purchase without revealing the need for financing. Gives you a little more leverage in negotiations.
 

evo

Well-Known Member
Aww shucks guys... Thanks! The shitty part is I had a gut feeling about this SOB all along (3-4 years now), but I let my emotions and hopes take over.
I'm going to let the dust settle a bit, then continue with learning about this, and then start keeping a better eye open for possibilities.
 

SuperK

Active Member
Royce you make me sick lol, that's so awesome!

I love the Vermont scenery.

Hope you find something evo, sounded like an awesome deal. Its my dream too to own land and have a small house with a wood burner.
 
Top