Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
The Competition
FedEx Discussions
Have Fedex Routes been taken or not renewed?
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="dmac1" data-source="post: 3081491" data-attributes="member: 60252"><p>All you are buying is the right to finish out the contract, which fedex CAN cancel anytime, if they declare that they are changing business models(again), and the vehicles, which go down in value every day, bringing the value of your business down every day. The 27% net probably doesn't include that even though it is VERY real. If you buy the business today and have no debt on the vehicles, and a replacement fund needs to come out of that 27% net. or worse, you don't have a replacement fund, when one of those vehicles dies, you will take on more debt, reducing the value of the business. Asset depreciation is real, is accounted for in your taxes, and is where a lot of newcomers to business get 'tricked' into thinking their net is higher than it really is. </p><p>I worked as an independent individual delivery contractor for years and it is really a job. Fedex takes all the fun out of it. All the years I was in the delivery business, I was also investing in real estate, mostly rehabbing properties doing 95% of the work myself, then hanging onto to them, letting tenants pay for my real estate, plus appreciation, plus appreciation on the improvements I made. I loved it, set my own schedule, and managed the properties myself, except for one 6-plex that was about an hour away. But even that one I did all the prep work/repairs when tenants moved, but left day to day maintenance to the mgr.</p><p></p><p>I started with nothing but $1500 and good credit and a total wreck of a property the owner financed because banks wouldn't finance for any buyer. I made more money for less work, liked it better. I even made $84k profit without lifting a finger by finding an undervalued property that had about $100k of timber on it. Paid a company to harvest the timber, then sold the property for what I had paid. There were some carrying costs-interest, tax, insurance- because I didn't have a tenant. but netted at least $40 k after everything just for keeping my eyes open. If you buy with the idea that you can pay for it with other people's money(rent) and don't need to sell, you can make money even in a down market. Multi-family properties are the best for holding for cash flow imho.</p><p></p><p>If you have the ability to run a fedex ISP business, you can easily run a real estate business. It is less stress, and you might be able to buy 3-4-5 properties using the cash you have to buy the ISP. Banks are back to financing rental properties again, and loaning on rehab properties if your credit is good. With $150k cash, you can control about $1 million in real estate with a little work and time</p><p></p><p>The fedex contract gives them ways out that you won't be able to use. Can you afford to walk away if you buy this ISP and fedex violates the contract? They can violate with impunity because your investment binds you to them. But they don't need you at all. Not a fair and balanced arrangement at all. You are nothing to your 'business partner' under the ISP contract. Remember that.</p></blockquote><p></p>
[QUOTE="dmac1, post: 3081491, member: 60252"] All you are buying is the right to finish out the contract, which fedex CAN cancel anytime, if they declare that they are changing business models(again), and the vehicles, which go down in value every day, bringing the value of your business down every day. The 27% net probably doesn't include that even though it is VERY real. If you buy the business today and have no debt on the vehicles, and a replacement fund needs to come out of that 27% net. or worse, you don't have a replacement fund, when one of those vehicles dies, you will take on more debt, reducing the value of the business. Asset depreciation is real, is accounted for in your taxes, and is where a lot of newcomers to business get 'tricked' into thinking their net is higher than it really is. I worked as an independent individual delivery contractor for years and it is really a job. Fedex takes all the fun out of it. All the years I was in the delivery business, I was also investing in real estate, mostly rehabbing properties doing 95% of the work myself, then hanging onto to them, letting tenants pay for my real estate, plus appreciation, plus appreciation on the improvements I made. I loved it, set my own schedule, and managed the properties myself, except for one 6-plex that was about an hour away. But even that one I did all the prep work/repairs when tenants moved, but left day to day maintenance to the mgr. I started with nothing but $1500 and good credit and a total wreck of a property the owner financed because banks wouldn't finance for any buyer. I made more money for less work, liked it better. I even made $84k profit without lifting a finger by finding an undervalued property that had about $100k of timber on it. Paid a company to harvest the timber, then sold the property for what I had paid. There were some carrying costs-interest, tax, insurance- because I didn't have a tenant. but netted at least $40 k after everything just for keeping my eyes open. If you buy with the idea that you can pay for it with other people's money(rent) and don't need to sell, you can make money even in a down market. Multi-family properties are the best for holding for cash flow imho. If you have the ability to run a fedex ISP business, you can easily run a real estate business. It is less stress, and you might be able to buy 3-4-5 properties using the cash you have to buy the ISP. Banks are back to financing rental properties again, and loaning on rehab properties if your credit is good. With $150k cash, you can control about $1 million in real estate with a little work and time The fedex contract gives them ways out that you won't be able to use. Can you afford to walk away if you buy this ISP and fedex violates the contract? They can violate with impunity because your investment binds you to them. But they don't need you at all. Not a fair and balanced arrangement at all. You are nothing to your 'business partner' under the ISP contract. Remember that. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
The Competition
FedEx Discussions
Have Fedex Routes been taken or not renewed?
Top