hey folks, just a quick question regarding the purchase of an older case 580k for our 30 acre hillside homestead. I'm considering going in on this machine with my 2 neighbors. I know every situation is different and it all depends on specifics of chemistry and friendship etc but here's the basic scoop. I've only got about 80% of the $$ needed for this purchase and I pitched it to my two neighbors and they're interested in kicking in a few thousand to be part owners. they've got some earthmoving projects around their properties but it will be used at my place for the lion's share of her duties, and I'm spending the lion share of the $$. there's even a high probability that when they need something done, it will be me behind the wheel, but not 100% they're both great folks, and incidentally they'r very wealthy. they're not going to miss the $2k or so they'l spend on this. our plan is to use this bigger rig to get all the big projects out of the way and then sell/trade to get a smaller tlb (Kubota-ish) for upkeep and general maintenance around our properties. at that point we would share the profit or loss on the resale of the 580 and possibly kick in some extra $ for a newer smaller machine. and obviously I could buy them out at any point along the way if either of them want out, just hopefully not both at the same time.... does anyone have experience doing something like this? horror stories? dumb idea? **** show? or great way to build up the community, get some projects done and pool our resources to get the most value? thanks!
How to lose friends: go into business with them...
I see no upside from what you said other than a few $'s saved now.. I see ALOT OF DOWNSIDE that could come in the future..
In simple words... Don't do it!!!
0 upside in that scenario your better off yo just stay neighbors
So two weeks in, it throws a rod out the side of the engine block. A month later the hydraulic pump goes. Guess which neighbors aren't on speaking terms. And to say that they are wealthy people and won't miss the 2 grand- most wealthy people I know, got to be that way by missing the 2 grand. If they are really wealthy, they can hire you to do it. No need for you to do it for free for them. If you can afford all of it but the last 4 grand, wait until you have the rest. Or buy a lot cheaper machine. Or borrow the rest from a banker. If you really can't come up with the other 4 grand, you really can't afford a backhoe, because a $2,000 repair is probably in your future. No way would I want partners, especially not partners that have way more money than I do.
Definitively a **** show, don't do it. That is words of wisdom right there Crane Op. The only thing I can add is don't have partners at all - ever.
I own my own derelict machine. Once you own a piece of equipment, everyone is going to ask you to borrow it, or for you to bring it over. I have loaned out and used my old backhoe at zero other people's property. Because I know dang well something will break out on someone else's property or when there are using it. Then, I will be responsible for the repairs, paying someone to haul it, or whatever. Worst of all, is that when I actually need my machine to do work on my own land, it wont be available. In certain circumstances, my time is more valuable and when I need to do something, I only have that small window to fit it in. I agree with all the wisdom above my comment. Hold off until you can buy it out right. I, just like you only have the backhoe for some work around my own property and am a hobbyist mechanic at best.
I agree it's a bad idea. One neighbor puts in 2k and something breaks when he's using it, do you pay 80% of the repair? You really need it and it's at the neighbors but he's not done yet or he forgot to tell you it blew a hydraulic hose, then what? Only needed it for a few hours so didn't bother to grease it, etc., etc. Neighbor does something and wrecks a rear tire, who pays for a new one? I have equipment and will let others use it on occasion but I am very particular about who I will let run it. One guy I'll let run it comes from a farm background and is a diesel tech. I'll show him how to run it and it only takes once because he pays attention and knows to look at gauges and listen for weird sounds. Other people I wouldn't borrow a shovel to.
I am the sole operator on my machine. If a friend or neighbor needs some dirt moving, I & my machine do it. Misuse, abuse or bad luck is mine and mine alone. You'll have two other entitled operators with varying skill level and interest in avoiding MABL. …. Only a partner in marriage is worth having. Getting screwed pleases both. Screwing in a machine / business partnership only pleases one.
I waited years until I could afford to own my t/l/b. Before that I rented one. I never, ever loan it out. When I am asked to do a job for someone I simply tell them, NO sorry I don't have any insurance on it. crane operator expressed my thoughts exactly.
I completely understand what your going thru.. BUT.. the consensus is..NO, don't do it. IT SURE WOULD BE NICE THO to have a machine around that everyone could use.. OH WAIT>> they have a place like that.. its called A RENTAL YARD.. Use & abuse it & turn it in when your done or its broke.. {think about it} Have you projects "scheduled".. you & your neighbors get together & RENT the machine.. Saves your friendship..keeps cost down on delivery & pick-up & everybody gets their sh*t done..
wow! I am impressed. not a single vote in favor....I am truly laughing out loouD if I asked "what's the best dozer?" or "what's the best stick config on an x?" I'd get a thousand different answers. but not on my question. nope. everyone seems to be in FULL agreement. "DON'T JUMP KID!!" well, I guess that settles that. there are some other specifics to this situation which make it better then it reads on paper but momma taught me not to be argumentative so i'l just heed the advice of the vets. I guess i'l cough up the dough somehow, it will def be simpler mathematics.. thanks for clarifying fellas
and a sincerest thank you to everyone who took time out of their day to craft a thoughtful response to my question, it is much appreciated. see you round campus!
Faster way to lose friends.....buy a boat together
or let them store it in your yard.. Some of you might remember that story.. BTW> they took it to be repaired about a year or 2 ago I think.. it hasn't been back.. just FINE w/ me..
Fastest way to lose your sanity... buy a boat together
some REALLY GOOD advice in this thread
What's that old saying??? If it floats, flies, or f*cks, it is cheaper to rent than buy.... Let your neighbors rent, or pay you to do it on YOUR machine.
Have my own farm where have MY own machinery, have a neighbor with derelict equipment, he actually asked to borrow my disc I said no, he tried to borrow it anyway and as I caught him trying to get it off the place he tried to say I really did not say no. Made a enemy of him as he "HAD TO BUY" his own and could not "Rent" mine, that went over as a lead balloon where the remaining neighbors called him out on the 'Rental'. He now will not speak to either me or the wife but also does NOT borrow anything. BTW he still has NOT used that new to him disc(two years now), is/was busted and cannot find anyone to repair the "Small issues" with it. I loan NOTHING, I will offer service with MY machines or on MY tractor and ME driving but that is the only way.
Partners are for dancing-I promise you that when the smoke clears you will all hate each other and the machine will be sitting on one of the other people's property....BROKE DOWN....you'll have 80% of the money tied up in it and you'll be standing there looking like 14 carat stupid. BAD,BAD idea.Remember,you can stay out of a bear trap a lot easier than you can get out of one.
Man it's bad enough with a good Wife in a marriage . I sure as hell don't need anyone else to argue with !
all of the above is good advice. after three times at trying to be good neighbor or friend none of my equipment leaves the property with out me operating it.