[JR OTR]

I do still work for Hill Bros (well, technically I work for myself and work with them as an independent contractor). Most of my runs are in the midwest still (sigh) and yes, I do a lot of travel on I-80. I don't know what percentage of HB freight runs along I-80 but Chicago and Omaha are big markets.

Good luck,

Jim

[jims34]

There is a different option. What I did was I found a leasing company and leased a good used truck through them. Then I leased my truck onto the company of my choice. It is never a good idea to lease from the company that pays you.

[stewey1982]

For what it's worth, I have to agree with Logbook and Jims34. Seeing as how I have a background in business, and namely Accounting, I would advise any person considering a lease purchase to look at the numbers. While I don't have exact figures, I can tell you from the vast majority of lease purchase operators fail b/c they lack enough start up capital to begin with. Over 72% of business start ups (not just trucking) fail because they don't have enough start up capital and begin their business venture in the hole owing this person and that business x amount of money. The advantage JR OTR had when he did his was he didn't have ANY debt, if I remember reading his posts correctly. That is a big deal because if you look at his financials some weeks he didn't get a paycheck, but that was b/c in his first year he wanted to fill up his escrow accounts. The vast majority of people that get into these lease purchase programs have car payments, student loan payments, house payments, etc.

The rest of this post assumes you have good to excellent credit and a nice chunk of change to put down ($10K-$15K, the more the better)

In my opinion the best way about becoming an O/O would be to buy a truck put some money down on it, but also have at least enough to fill the maintenance account to whatever the company requires. I've been doing some research and I've seen it anywhere from $5K-$10k. This alleviates the necessity to withhold the 5-10cpm out for maintenance escrow funding. The faster a business can generate more revenue and retain it to reinvest, the more likely the business is to succeed. Which leads to the next point. MINIMIZE operating costs which I've seen a lot of truckers for one reason or the other show the inability to do because they want to get this piece of chrome or that newest and greatest CB, or better yet, they eat at the damn truck stops too much. I must commend JR OTR for his success and that was because he made very clear and concise business goals EVERY QUARTER, as well as set long term goals. Theirs my two cents worth

[stewey1982]

Just found some updated numbers from Trucking Company Lease Purchase Programs for Owner Operators They state lease purchase drivers have an 87% fail rate.

[JR OTR]

Originally Posted by stewey1982

The advantage JR OTR had when he did his was he didn't have ANY debt, if I remember reading his posts correctly.

Sixteen months before I started my lease I began my trucking career with a whopping $500 to my name. During that sixteen months I paid off the small amount of debt I had and banked $10,000 (and blew the rest; I'm no saint lol). HB required $3,000 down to lease a new truck at that time, so when I started with them as a company driver I simply had them take the net pay from my first four paychecks until they had $3,000 and I lived frugally. The next month I more than earned enough money to bring my savings up to about $11,500 so just before the transition to lease I took a week-long Alaskan cruise, bringing my net worth back to about $10k.

During the next four years my quarterly net income varied from about $12.5K to $18.5K. It is true that some weeks I ended up with a negative balance and thus no pay, but it was never a burden. Since almost all of my bills are on automatic pay through my credit union, I merely watch my bank account level fluctuate as the weeks and months pass.

If you're still slogging your way through my posts you'll see in August of '09 I had so much cash laying around I was in prime position to benefit from the housing crunch (I purchased a nice 4 bedroom house with lots of upgrades in a great neighborhood for about 2/3 the price it was going for a year earlier; I got my 15-year fixed mortgage under 5%; best of all, the government paid me $8,000 in cash to help with everything via the refundable mortgage credit that year). I would never have considered buying a house in the economy back then if I wasn't fairly certain how well the rest of my lease would go. Heck, I even dropped a ton of money into my SEP-IRA and Roth during my lease so I was able to take advantage of the historic stock market lows (I bought Ford stock at $1.60... today it is trading around $14! I wuv U Ford! :P )

All of the self-congratulatory backslapping aside, I do have one area of disagreement with many of you out there and it has to do whether to lease a new truck or buy an old truck. I agree completely that a used truck offers smaller risk and larger potential upside but the one factor that sways the decision to "new truck" for me is that I'm no mechanic. I really don't want to inherit someone else's problems with a truck and a lengthy warranty is a huge plus for me. My truck is done with its lease and I still have warranty left on the engine and a lot of warranty miles left on the rears.

Now, if you are the type that changes your own oil and are comfortable around diesel engines and technology (like all that nifty emissions stuff we have now) then by all means I encourage you to consider a used truck.

[ Sorry for the huge threadjack there, original poster ]

Good luck,

Jim

[flood]

Originally Posted by Dana

I have been out of the seat for close to five years now.

this is the killer.... you will find it almost impossible to find a job as a company driver.....and who will lease a truck to a driver that has no recent driving......

best thing to do if you realy want to do this is you are going to have to retake cdl school (a lot has changed in the last 5 years) then start as a company driver.. run the company truck AS IF YOU WERE A LEASE DRIVER and see if you realy would make more money doing it and if you will then do what jims34 said

What I did was I found a leasing company and leased a good used truck through them. Then I leased my truck onto the company of my choice. It is never a good idea to lease from the company that pays you

that's when we did. if things don't work out where we are i can just take MY TRUCK and work for someone else..

[Dana]

Originally Posted by flood

this is the killer.... you will find it almost impossible to find a job as a company driver.....and who will lease a truck to a driver that has no recent driving......

best thing to do if you realy want to do this is you are going to have to retake cdl school (a lot has changed in the last 5 years) then start as a company driver.. run the company truck AS IF YOU WERE A LEASE DRIVER and see if you realy would make more money doing it and if you will then do what jims34 said that's when we did. if things don't work out where we are i can just take MY TRUCK and work for someone else..

I would like to thank everyone that has given me advice on my situation. The wheels are already turning. I am in contact with one one the major carriers and things are looking very well, if not great. I quoted flood, not as an embarrassment, but as a lesson learned. The company I am talking with has already run my fiances and I do qualify. I need to have 6 months over the road and they will let me get it through their company. I just got off of a 3 day run with a local company but they want to 1099 me and I will have no part of it.

I realize that with any owner of any company, sacrifices must be made. I will talk to the man in the mirror, every single day.

[stewey1982]

If you don't mind sharing, what company are you talking with? I find myself in a similar situation (Been off the road awhile). I know I will have to do at least 3 months OTR, but know that I will become an O/O.

[Dana]

Originally Posted by stewey1982

If you don't mind sharing, what company are you talking with? I find myself in a similar situation (Been off the road awhile). I know I will have to do at least 3 months OTR, but know that I will become an O/O.

I do not mind sharing at all, it is Schnerider. They like to see at least 6 moths of recent OTR before they will set you up in their leasing program. I have been looking into companies for about 2 months now. I would also like to reiterate my "THANK YOU" to all who have given me advice. I have compiled a "Cheat Sheet" and have cut, copy and pasted most of the points that were made, something like a road map for me to look at as I made my decision.

It is truly a Blessing to see more experienced people taking their time, and offering it to someone they have never met, and for that I am truly grateful. JR OTH, I have not started to read your journal yet, but I can assure you that in time I will. I hope to do the same thing through dash cams and youtube. Well, got to roll. Thanks again, take care, God Bless and Drive Safe!

[Dana]

Originally Posted by stewey1982

JR OTR
I've really enjoyed reading your blog. I'm only into the Sept 2008 portion. However, I must compliment you on your writing style. it is very entertaining at times. Do you still work for Hills Bros? Do they run out west more or do they keep you running in that silly Texas, Nebraska, IL/OH Triangle? I have observed you travel up and down I80 quite a bit and was wondering about what percentage of their freight is along the I-80 corridor?

Jim, I just added your site to my favorites list, yep, put it right there on my tool bar. To use the word "Impressive", would be a HUGH UNDERSTATEMENT! Brother, in my humble opinion, you need to take your site and also offer it as an e-book format. I for one, would buy it. Well, I know how I am going to do my site now and I will use yours as a reference. They say that imitation is the best form of flattery and Brother you did it right!