common advice on this web site

[shade_tree]

hi there everybody
im new and thought id would contribute my 2 cents.
the most common advice givin to newbies is to drive for an owner for 6 months then if you like it buy your truck. well thats good advice BUTTTTT..... my exp. is by driving for an owner you are most likley going to be a subcontractor. wich meen the standard proof of income needed to get a loan will be different. i was told for self employed people they needed to have proof of income such as tax returns.. well thats fine but the problem with that was i only been driving expedite for 6 months so i didnt have tax returns showing proof of income. and infact to show them a full year of income i would have to work 2 years self employed ( because the irs works on the previouse year) so i actually had to quit truckin and get a 9-5 hourly job for 6 months to get the financing i needed to buy a van.
i hope me experiance will help a newbie out there.
or maybe i just went about it wrong.

today i realized an art thief is a guy who takes pictures...

 

[Larry]

I am a bit surprised by what you have said. Normally, if you need proof of income as a self employed individual, you can also go to the person doing your taxes (i.e. accountant) and have them provided a letter regarding proof of income. You can also use your pay stubs as well as a letter from the person for whom you have been driving.

Drive Safe

 

[shade_tree]

well like i said i may have went about it all wrong but what i did worked. i didnt have check stubs because i was paid via comdata. and the bank said i could use a tax return showing what i made doing the job. i didnt have any cause id only been drivin 6 months. i didnt even think about a letter from my owner that may have worked for me if i would have asked my owner to prepair something for me to verify my income. thats just what i had to do to get my loan. i got a 9-5 job and showed them an hourly wage then they financed me.
does anybody else know a better way i could have went about this. ill bet im not the only guy who has had this kind of run around by the money man...

when you step on the brakes your life is in your foots hands...

 

[teacel]

When applying for a loan weather it be a car, truck or house, and with a bank, GOOD LUCK!!!!!!!!!!!!! Remember the person doing the interview, gets paid weather you get the loan or not. The best way to apply for a loan is through a private broker, because he/she will only get paid when you sign on the dotted line. There is also a very big play on words, when it comes to self-employed versus an (IC) independent contractor. If you apply and tell someone you are self-employed, all of the above post will apply, and more. If you are working for an owner and driving his vehicle by law you are supposed to be an employee. Most owners pay drivers as IC’s and give out a 1099mis. at the end of the year. How they get away with it is there business, but if you tell the loan interviewer you are an IC when applying for the loan. Your pay sheet will count as a pay stub, and it will be a bit easier, to get the loan.

 

[Larry]

I was thinking a little more about this and thought to add a couple more things.

There are several reasons why it is recommended that a newbie drive for someone else before jumping head first into the expediting business. First, the person needs to see if they are compatable with the lifestyle of an expeditor, i.e. can you live on the road for several weeks at a time, without going home. Secondly, can the newbie put up with the unforseen difficulties associated with this type of business, i.e. mechanical problems, shippers & receivers, feast or famine loads, long hours driving & long hours sitting. Thirdly, you will begin to get the picture of what is needed to run your own expediting business (as an owner/operator).

It is better to answer these types of questions before taking a huge financial risk and buying a new or used truck.

It is unlikely that driving for someone else for 6 months is going to give you a large financial cushion to help buy a truck and have the additional cushion to fall back on when times are slow (and there will be slow days or weeks). You should have the financial resources set aside before you start driving for another person (if the goal is to buy your own truck in a short time). Otherwise you will drive for someone else for a much longer time before you are able to make that next big step - buying your own truck.

Good luck & Drive Safe

 

[shade_tree]

thank you all
everything you all have said is true.
thanks neibor's....

have you noticed guys dont seem to be called lefty anymore?

 

[guest]

Just some thoughts on working as a sub contractor for a while first. If you have any doubt that you can handle the lifestyle of expediting you should drive for someone else for a while. From my experience in selling trucks to expediters over the years. I can tell you most credit sources look at your credit scores, have you borrowed comparable amounts of money, and the biggie in buying a truck is OTR experience. This may not be quite a prevelent in buying a van as in a straight truck. The commerical truck lending sources know you have to have the truck to make money, they know if you run the truck you will make money. So I can tell you that a self employed person trying to buy a truck is not tough to get financed if that self employment is OTR and can be verified. Your can buy a truck if:
You have OTR experience at least a couple of years (without experience if your credit is strong)
Have a good down payment usually at least 10% sometime will want more if your lack credit or OTR experience
If your credit sucks, your opportunities are limited. Even in cases of bad credit there are places you can get financed. I can point you in the right direction.

Happy exepediting and Be Safe always,
Dan Tilley
Hope it helps!