Post by markgraham on Mar 20, 2018 7:16:34 GMT -5
Hello,
I have recently completed construction of my new home. Majority of the work was done my a civil contractor who is also a good friend. During construction, I found out that just a few contractors have certain heavy equipment and that they make rather good return renting and working with them. I spoke with my contractor and we have roughly calculated that ROI should be approximately 2 years. I have proposed to buy machine and hand it over to him, while he would give me the percentage of every job he completes using it. Also, we would rent the machine to other companies. The price of the brand new machine is around $30,000, however there are second hand pieces that could be bought for roughly $20,000-$25,000. I have noticed that their value does not depreciate a lot over time.
Also, my contractor has been in business for over 25 years, and is very established and stable. I do not see his business slowing down in near future. He would take complete care of the machine including transport, storage, maintenance, fuel etc. I would just periodically collect agreed percentage, so I would not put my time in this venture. I could possibly market it instead of him, just to bring in more prospects.
Even though there are associated risks, does this sound like a reasonable investment? It seems less stressful than property rental since my contractor would do all the work.
Should I go for it? If not, why and would would be the preferred alternatives?
Any help will be apprecited.
I didn't find the right solution from the Internet.
References:
www.bogleheads.org/forum/viewtopic.php?t=228433
Medical Device Marketing
Thank You
I have recently completed construction of my new home. Majority of the work was done my a civil contractor who is also a good friend. During construction, I found out that just a few contractors have certain heavy equipment and that they make rather good return renting and working with them. I spoke with my contractor and we have roughly calculated that ROI should be approximately 2 years. I have proposed to buy machine and hand it over to him, while he would give me the percentage of every job he completes using it. Also, we would rent the machine to other companies. The price of the brand new machine is around $30,000, however there are second hand pieces that could be bought for roughly $20,000-$25,000. I have noticed that their value does not depreciate a lot over time.
Also, my contractor has been in business for over 25 years, and is very established and stable. I do not see his business slowing down in near future. He would take complete care of the machine including transport, storage, maintenance, fuel etc. I would just periodically collect agreed percentage, so I would not put my time in this venture. I could possibly market it instead of him, just to bring in more prospects.
Even though there are associated risks, does this sound like a reasonable investment? It seems less stressful than property rental since my contractor would do all the work.
Should I go for it? If not, why and would would be the preferred alternatives?
Any help will be apprecited.
I didn't find the right solution from the Internet.
References:
www.bogleheads.org/forum/viewtopic.php?t=228433
Medical Device Marketing
Thank You