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Old 11-28-2019, 02:06 PM
 
12,527 posts, read 22,172,816 times
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Quote:
Originally Posted by Lowexpectations View Post
We also have the port as well so a ton of trucking as to go in and out of there.
TX has a lot of things going for it. We looked at Dallas a couple years back. Just couldn't get over how bland it was.
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Old 11-28-2019, 02:34 PM
 
Location: on the wind
8,455 posts, read 3,657,017 times
Reputation: 28956
Quote:
Originally Posted by hotzcatz View Post
If you've got $25K in savings, find some way to make that work. Does someone need a loan to buy a house? Loan out the money and collect interest. For a house loan, that could garner around 6% and set up the paperwork so there's a lien on the house so if they don't pay, you get the house.
Great advice. Risk your savings giving out some unsecured loan! Why would someone pay you 6% when they can get traditional mortgage financing for 3-4%? If they can't qualify for a 4% mortgage there's probably a reason! You don't want them borrowing anything you might want back.

Last edited by Parnassia; 11-28-2019 at 03:12 PM..
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Old 11-28-2019, 02:41 PM
 
Location: State of Transition
80,377 posts, read 73,368,452 times
Reputation: 79528
Quote:
Originally Posted by supertrucker212 View Post
I'm a 40 year old single parent, with only a high school diploma and my occupation is a truck driver for a local construction company. I'm just burned out from going to a job and working for someone else everyday. I want my money to make money so I can work when I want. Travel when I want, around my son's school schedule of course lol. I have been driving truck for 15 years it's the only skill I really have. I've been reading a lot that freelancing your skills is becoming the new thing to do, but it's a hard to freelance being a truck driver. I just want to change course and earn more $$$ and have more freedom but in my situation is it even possible. I have a 401 with around 25k if it matters. Thanks in advance
Don't fall for the self-employment hype about being your own boss, and so forth. IMO, having been there and done that, there's a lot to be said for picking up a paycheck from an employer, that has automatic SS contributions figured in, and at least with some employers--a decent health plan. When you're self-employed, you have to pay a self-employment tax, which amounts to close to BOTH your and your (former) employer's contribution to SS. Some years, if your income doesn't pass a certain threshold, so your self-employment tax payment is low, you get no credit with the SS admin for any contribution. Seriously, you get a big fat "0" for that year on your SS tally sheet. Also, having to hustle jobs for yourself can be stressful. It's a lot of pressure, vs. going in to a guaranteed schedule every day/week.
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Old 11-28-2019, 02:46 PM
 
74,935 posts, read 74,434,662 times
Reputation: 52371
Quote:
Originally Posted by Parnassia View Post
Great advice. Risk your savings giving out some unsecured loan! Why would someone pay you 6% when they can get traditional mortgage financing for 3-4%? If they can't qualify for a 4% mortgage there's probably a reason!
I agree , why would anyone give their life savings to someone , when a bank won’t loan them money
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Old 11-28-2019, 02:52 PM
 
Location: State of Transition
80,377 posts, read 73,368,452 times
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Quote:
Originally Posted by hotzcatz View Post
If you've got $25K in savings, find some way to make that work. Does someone need a loan to buy a house? Loan out the money and collect interest. For a house loan, that could garner around 6% and set up the paperwork so there's a lien on the house so if they don't pay, you get the house.



Better yet, put that down on a house and then rent it out. Be sure to do the numbers first and make sure you can rent it for more than the mortgage amount. Or buy a fixer upper house and fix and up then either rent or sell it.
DO NOT DO THIS, OP! Don't risk your precious savings on a personal loan!

RE: making a downpayment on a home as a rental; this can work. The renters pay your mortgage, so basically, you get a house for the cost of the downpayment. This can work especially well, if you're able to work it so that you pay off the loan in 15 years instead of 30, by paying a little more toward the principal of the loan vs. the interest each month.

HOWEVER: be aware, that there can be turnover in renters. During that time, as you (or a management agency, if you hire one (I'd recommend it if the math works out)} advertise for new renters and review their applications and assess their income stability, etc., you'll have to pay the mortgage yourself for a month, maybe longer, unless you're able to get someone in right away. You'll need to keep some money in reserve for that, and also for maintenance and repairs. You may have headaches to deal with occasionally, if an eviction is called for, unless you hire a management company, who will handle that for you and will be up to snuff on all the legal details. If the monthly loan payments are significantly less than the going rental rate in your area, though, this route can pay off well.
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Old 11-28-2019, 08:12 PM
 
6,868 posts, read 5,453,445 times
Reputation: 14339
Quote:
Originally Posted by supertrucker212 View Post
I'm a 40 year old single parent, with only a high school diploma and my occupation is a truck driver for a local construction company. I'm just burned out from going to a job and working for someone else everyday. I want my money to make money so I can work when I want. Travel when I want, around my son's school schedule of course lol. I have been driving truck for 15 years it's the only skill I really have. I've been reading a lot that freelancing your skills is becoming the new thing to do, but it's a hard to freelance being a truck driver. I just want to change course and earn more $$$ and have more freedom but in my situation is it even possible. I have a 401 with around 25k if it matters. Thanks in advance
Would need more info.

This paycheck to paycheck quote is not enough

You might be doing okay and not even know it.
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Old 11-28-2019, 10:00 PM
 
1,627 posts, read 1,040,830 times
Reputation: 3196
Quote:
Originally Posted by hotzcatz View Post
If you've got $25K in savings, find some way to make that work. Does someone need a loan to buy a house? Loan out the money and collect interest. For a house loan, that could garner around 6% and set up the paperwork so there's a lien on the house so if they don't pay, you get the house.



Better yet, put that down on a house and then rent it out. Be sure to do the numbers first and make sure you can rent it for more than the mortgage amount. Or buy a fixer upper house and fix and up then either rent or sell it.


Hmm, maybe buy a coin operated candy machine and ask your boss if you can put it at work? Or a soda/water machine.


Since you're driving a truck, can you move things along your route in addition to what you're trucking company carries? Maybe put the coin operated candy machines along the route you drive?
Not $25k in savings but rather $25k in a “401” which I think OP means in a 401k retirement plan.

If so, good for OP for that. Keep building it as you can.

But most 401k plans cannot be touched while still with the employer. You can cash out when you leave the employer but then pay taxes ( because it is pre-tax retirement savings) and pay a big penalty for early withdrawal. Under some conditions you may borrow against it but those are limited and you have to pay back to your plan with interest.
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Old 11-29-2019, 01:49 PM
 
7,559 posts, read 4,172,513 times
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Two suggestions for the OP: At almost every stop you make every day to pick up or drop off they need drivers. Some are better jobs than the one you have, some may need an extra guy from time to time to supplement your current job. Keep your eyes and ears open and let the right people know you could be available.

The other is to keep track of how much you spend every week on coffee, water, soda, lunch and snacks. A couple of bucks here, another dollar there doesn't seem like much until you add a week's worth up and multiply by fifty to see how much you lay out every year. You can keep a small cooler with you and bring all that from home for a tenth of what you're paying. If you're a smoker you don't even want to know how much that's costing you. In general, any kind of prepared food you might be buying is just blowing up your budget and is no doubt less healthy for you and your kid than buying basic food and making your own quick, healthy meals.
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Old 11-29-2019, 03:16 PM
 
Location: Los Angeles
3,694 posts, read 2,379,456 times
Reputation: 11148
Quote:
Originally Posted by Parnassia View Post
Great advice. Risk your savings giving out some unsecured loan! Why would someone pay you 6% when they can get traditional mortgage financing for 3-4%? If they can't qualify for a 4% mortgage there's probably a reason! You don't want them borrowing anything you might want back.
It works in the right situation. I have a buddy who cared for an older gent for years and when he died last year, the family gifted my friend a paid off condo. I did the appraisal for the estate and valued it at $ 450,000. My friend didn't have the cash to handle the escrow/title costs and also wanted to consolidate his credit card bills. With a 525 credit score, the best loan he could get was 9% + 2 points. So, I loaned him $ 150,000 at 9%, no points. I feel perfectly safe being in first position with a 1st trust deed on a $ 450,000 property. If he can't pay, I get the condo. Besides, how could I pass up 9% in this interest rate market ?
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Old 11-29-2019, 03:27 PM
 
Location: Los Angeles
3,694 posts, read 2,379,456 times
Reputation: 11148
Quote:
Originally Posted by Ruth4Truth View Post
Don't fall for the self-employment hype about being your own boss, and so forth. IMO, having been there and done that, there's a lot to be said for picking up a paycheck from an employer, that has automatic SS contributions figured in, and at least with some employers--a decent health plan. When you're self-employed, you have to pay a self-employment tax, which amounts to close to BOTH your and your (former) employer's contribution to SS. Some years, if your income doesn't pass a certain threshold, so your self-employment tax payment is low, you get no credit with the SS admin for any contribution. Seriously, you get a big fat "0" for that year on your SS tally sheet. Also, having to hustle jobs for yourself can be stressful. It's a lot of pressure, vs. going in to a guaranteed schedule every day/week.
With respect, I disagree. I've been self-employed since I was 28, almost 40 years now. It all depends on what you want out of life. With some notable exceptions like bank presidents, etc, the ordinary worker will never get rich working for someone else. When you have your own business, the sky's the limit. When you work for a company, they set the limit and always will. It really depends on one's temperament I think. If you can find something you're good at and are willing to work way harder than you would in a regular job, then self-employment can work wonders.
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