For now, at least he pretends to be happy because if he says it sucks, he'll never recoup his money.
Looking at Opportunity to become FedEx ISP
- Thread starter Mama Llama
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For now, at least he pretends to be happy because if he says it sucks, he'll never recoup his money.
Using other people's money to reduce risk is a time-honored tradition in the USA> Just look at Trump. He borrowed milions to build casinos, took out huge amounts of cash, and then let the company go bankrupt. The salary and profits he took out as compensation were then personal assets, and not subject to the lenders being able to seize them upon bankruptcy. Romney did something similar. It is easier to do with a group of investors or as a corporation with many stockholders than as a single owner.
It is a cutthroat business. And that's what X wants. Investor owners. They want those who see a 10% return of $120,000 as good money. And in 5 years see a 8% return of $135,000 as good money. Yes, the rate of return is reduced but it's still good money and better than what other investments return.
Right. But he can afford to lose it. That's what investment capital is all about and it's the way Fred thinks.
That's why I asked.
I have doubled my money in nearly every real estate investment I have made, from single family homes, to apartments, to timber properties. Having other people pay for your property is great. I have more than quadrupled my cash outlay in several in short periods. I had only one loss that was caused by a city planner delaying development because another property owner wanted in just before the real estate crash. The investment on the property came back, but I lost some cash outlayed in readying the development. Without the delay, the property would have been sold before the crash. Anyone with a good eye and a little cash can do the same, and without the potential unknowns of working with a 'business partner' like fedex.
So all or most property investment go like that?
Crozz
Well-Known Member
One I have bought 50% of my routes ranging $20k-$80k. In the process of buying out another. I have made chest moves in two of my terminals to get where I am today. I'm in an IC world and I'm still making it work it isn't perfect and I've never said it is. But the bitter guys that failed it is what it is you failed and guys that get on here and rant saying its a scam and has never been a contractor makes me laugh u know nothing about making fedex a success. If someone wants to ask questions of the pros and cons give them the pros and con if u have the experience. Fedex was at one time a one man show, today it's a 7+ show not everyone is ment to be a owner/boss/driver.
My ears are burning. I will allow you to speak for me, somewhat. You have intelligence and and can see both sides of an investment.
You shut your dirty mouth, not allowed to talk for me.
Too busy to give my take right now. Will respond a little later tonight.
If you are careful and find a property with hidden potential
For example- the timber property I mentioned was a rural home with about $90,000 worth of timber but the price of the home didn't reflect the timber value. I bought it, paid a company to cut the timber, haul it to the yard, and do the replanting. I netted over $40k just from the timber, then sold the property less than a year later for enough to cover my sales expenses and purchase price.
I visited the property a total of four times, and only needed $4500 down, with the owner carrying a second mortgage so I ended up with a 60% hard money loan @9% for the months I owned it. If anything went wrong, I could have moved into the property and rented out my current home for more than the mtg payment.
Much easier than running 3 routes plus a supp. Greater profit too. One deal like that every year is easy.
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I'm a former multi route owner, not bitter, but glad I am away from the hassles. No one needs it. Certainly not if you have $750,000 to invest.
That would be a "no" to the question.
Doesn't that go for every investment?
You talk in circles. You disagree just to disAgree.
dmac1; Thank you. You have explained the entire dilemma in the clearest terms possible. Nothing's binding. Your contract if you want to call it that is only good for one year. At the end of that year your territory is anyone's game. Once the ISP format is in place nationwide, the downward pressure on settlements will be withering in turn putting contractor margins under heavy pressure. You can so called "negoiate" but they will already have in their heads what they think it costs you to operate your routes and it will be very hard to move them off of those numbers. As you said ask more than what they are prepared to offer they will go looking for someone they can convince can operate on the money they offer. The risk/reward ratio will continue to be overweighted on the side of risk and each and every individual will have to decide for themselves just how unbalanced they will allow that ratio to become before they say " I've had enough".
Where I am, there are constantly ads looking for drivers by ISPs. They can't find really good people because really good people don't need to work for what the ISPs can afford to pay. The highest pay was a $50,000 a year 'salary' meaning no overtime pay , with fine print saying that amount included performance bonuses, attendance bonuses, no benefits and 11 hour days. Doesn't even add up to $15 an hour. At the other end, another ISP is offering the generous amount of $30k per year including bonuses, no benefits, and only 50 hours per week. 10 years ago I was paying $12 an hour, plus a daily bonus if they exceeded a certain number of packages. I made sure that they never worked more than 9 hours a day, and was there every day to ensure that they knew where every stop was on the rural routes. How can these guys stand themselves for taking money while paying starvation wages?????
Actually his answer suggests that he knows I'm right and would rather not admit it.
It's easy, really.
It will be fine
Well-Known Member
As often as new drivers are needed for turnover they are needed for growth. I've heard multiple times from guys that come work for me they have never made this much money in their life. In the last 6 months I've had 5 guys call me looking for a job. They ask my drivers on the street and get my number. It can't be that bad.
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