multiple owner/operators for TLB around homestead....Good Bad or Ugly?

[ofenback]

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!

 

[tradosaurus]

I wouldn't do that personally. If its only a few thousand you need just finance a portion with a big down payment. What if one of the neighbors use it 40% of the time but only put in 5% of the money? Too much risk of damaging the relationship of your neighbor.

 

[bcp]

Big backhoe on a hillside with inexperienced operators sounds scary.

Bruce

 

[EddieWalker]

No, don't do it. The one thing every older machine has in common is that it will break down all the time. Hoses are quick and easy to change, but they still require somebody to take it off and bring it to the shop to have a new one built. Somebody has to pay for it. Cylinders will all be worn and ready to rebuild. This is a lot more work to remove and have rebuilt. Who will do this? How will you know who was using it when this happened, and will the person using it be responsible for fixing it? What about how well they operate it? There is a right way and a wrong way to use the loader and the hoe. Do it wrong and it wears out quickly, or fails miserably. Who fixes it? Who pays for it? The engine, transmission and hydraulic pump need maintenance. Who is buying and replacing filters? Who pays for the repairs when something breaks, or it just wont start? One of the number one complaints that you will hear from the owner of a construction company is that his operators never grease the equipment. Who buys the grease, who stores it, and what do you do about a guy that doesn't grease the 30 or more zirk fittings before using it?

Price out filters. Price out basic repair parts? Cylinder rebuilds. Will your neighbors pay for these things? How do you get them to pay if they don't have the money when the tractor breaks down and they where using it?

 

[ericm979]

The very best case is that your neighbors are super awesome and you only feel that you have to maintain it to a higher standard so you don't feel that you're slacking. Similar to how you keep the boundary fences nicer than your cross fencing. It's still more work than you'd do for yourself.

That one is unlikely and all other possible scenarios are worse.

 

[Industrial Toys]

A (weekend) neighbor was "supposed to" get a Diesel chipper from a golf course of which he is on the board. He would pay for it and I would store it and maintain it. The cost of maintenance was never discussed.

That would not have been a bad deal (for me). Anyway, years of being jerked around and I figured the guy is just a talker, full of BS and I finally acquired my own chipper. Just one more reason to look after yourself. I am still a bit bitter over this.

Your deal? No way! I have an old VOLVO AD on my wall here. It boasts a backhoe (similar to 580) to be had for $1399.00/month cdn. I keep it there, aside from being a nice picture, as a reminder to what equipment COSTS! You might as well register for a NON-PROFIT charity now.

 

[fried1765]

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!

These things NEVER work out well!
DO NOT DO IT!
(Do not loan money to family members either).

 

[oosik]

I'm going to have to side with the majority. Don't do it. Good way to damage equipment - good way to injure inexperienced operators - good way to have to pay for ALL repairs/maintenance/fuel yourself. Who will be paying for the insurance. Good way to ruin current friendships. THIS IS A NO WIN SITUATION.

 

[Fallon]

Shared equipment rarely works out. To many potential maintnance issues crop up & varying levels of skill & expected maintnance.

A friend loaned me his old beater backhoe & I'm about the only one he'd loan it to as he knows I have the skill to not mess up equipment & to fix it. I promptly broke a bucket linkage, but was able to weld it back together (my fix was better than the 3-4 previous fixes in the same spot). Would the other co-owners be able to do similar fixes when (not if) things broke?

Cheaper older machines break a lot. My friends 40 year old hoe had a lot of cracks in the boom, brakes that stopped you but wouldnt hold, bushings/pins that you could almost stick a finger between & the list goes on.

I do tractor work as a side gig & wouldnt loan my tractor to anybody, probably not even my friend who loaned me his backhoe. But I do happily haul my machine over to friends places & operate it myself for operating costs (1/3 of what I'd normally charge more or less) or barter. For several neighbors I dont even bother charging if the stuff is under an hour.

If you go towards that route, you might consider getting the neighbors to kick in some $$$ to pre-pay you for some work with your machine. Leaves you in control of the machine, its maintnance, repair & safe operation.

 

[ovrszd]

If they have immediate projects that need done figure out a way to buy it yourself, then hire out to your neighbors. The money they'll pay you will get your money restored. Then you can decide whether to hire out for their future projects or simply donate your time/machine.