Gasp! We FINANCED Our First RV - Here's Why.
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- Опубликовано: 12 ноя 2018
- Last week we bought our first RV at auction with a dealer's license. We signed up for what's called a "floor plan" which is basically a revolving line of credit just for vehicles.
Basically we have 120 days to sell the RV and pay back the loan. Why bother when we have the cash to pay for it? Two reasons:
1. It confirms we are buying at profitable prices. If we can't afford $100-200 in interest on an RV, then we bought too high. The numbers need to make sense financed even if we eventually move to an all cash business model.
2. We'd like to build the line of credit in case we ever want to expand this business. If we wanted buy property and open a real dealership, we'd need 1-2 million dollars to fill the lot with RVs. By using the floor plan now, we keep our options open.
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So happy to see you guys posting regularly again. Missed your videos Mike.
This makes me happy. I love seeing a plan and a ton of hard work come together!
Nice! Those are made here in my home town. I used to upholster the sofas and pullout for most of the RV's. Enjoy!
Awesome video keep it up. Haven’t seen anything like this on RUclips before. Very cool to see your journey
Thanks!
Best of luck! Working with a RV Center does not eliminate the possibility of getting screwed over by the dealer. But hopefully your positivity prevails!!! Let’s Camp!!
I like this new video series. You put a lot of work into them .
I have not been watching you guys very long but I absolutely love your content. Very motivating
Super tidy! Looking forward to more videos
dude you have to be the best tow driver i have ever seen, who can just pick up a 5th wheel and then back it into a tight alley on the first day!!!! Thats super slick!
Y'all's bidness gonna be a success!
Looks like a great deal so far!
Very cool series! Makes me want to try something like this.
Congratulations on the first buy! Glad things worked out. Funny part was knowing via social media you guys were already traveling in it and that all the drama with the financing gets resolved while your pacing around haha.
Haha thanks!
Wow! Great deal. You shouldn't have any problem selling this one for a tidy profit if you can bring yourself to part with it.
Great job. Good new series
Thanks!
We love our Anderson Hitch. We Bought a Thirty foot Cross roads cruiser. We paid it off in a year. Didn’t like the finance charges.
I would definitely like to see more of the financial videos you guys did.
Very Nice, as a travel nurse who pulls an RV for assignments, I would highly recommend you look into buying an HDT to use as a tow vehicle for the RV. The modern trucks just don't cut it towing RV's these new electronics they have added over the years, its not an issue for the people who tow an RV maybe once or twice a year, but once you get on the road you will find that many of the full-time RV peeps that travel a lot in them have lots of truck issues. I've been through 2 diesel pickups in my time of owning an RV, both were under warranty and were costly in the $8,000+ range for the repairs under warranty. Since buying our HDT with 700k miles for 15k, we have put over 100k on it without a single need outside of tires and normal maintenance and it gets better towing mpg than both the diesel pickups I had. Plus we double the truck as a camping vehicle for short trips after we detach the RV, the bunk bed that ours has is very comfortable for 2 adults when you upgrade the mattress. We used ours back when Hurricane Irma hit us in Florida, our main home didn't have power for 8 days, so we slept in the semi using the aux a/c system to stay cool for 8 days.
I’ve always wanted one. We’ll look into it more for sure.
@@MikeAndLaurenTV If you do then get a Volvo truck, thats what most people towing RVs buy and they are usually cheaper to buy than a regular diesel pickup.
Whatever happened to the trailer they were given and he was converting? Just curious...
Also based on experience with RV's, look into these 5 as the better quality brands to purchase in the future... Jayco, Winnebego, Newmar, Airstream, Forest River/Keystone... these brands seem to be the more reliable RV's over the years, We own a Spacecraft, but its mainly because we like that they are built on a semi trailer manufactured frame instead of an RV frame, so they seem to tow better in our opinion with the HDT.
Grand design trumps the Jayco and forest river
Also Grand Design, at the moment they seem to build the best RVs obviously not including the super high end RVs like Spacecraft and New Horizons etc.
Towing is a piece of cake. I’m 75 and drive a Ford F-150
How did you decide on a fifth wheel versus travel trailer? I would guess that there’s three travel trailers sold for every fifth wheel?
How’s the Mobil wood shop
Would running the numbers like you had a loan not have the same effect as getting a loan? If you just compare the ROI to a financed method, you could just have the same goal for a "good deal". It just adds more risk.
The second reason make some sense. I'd be careful with "take off" though. Rapid expansion could be a major risk as well. I'm sure you're thinking years down the line. Just try not to rush it.
And yes, you're the exact opposite person I'd expect to finance stuff like this. Just breaks an expectation I had. I'll ride with you though!
Cool.
Nicely done! Is the sales window fixed with the floor plan? Do you absolutely HAVE to sell that thing within 90 days? Or is that just your preference to reduce carrying costs?
You’re required to pay it off within 120 days with 5% “curtailments” at 45 days. The curtailment requires you to pay down the principal a little bit each time, it’s not a fee or interest.
I work out west for an RV dealership. You could have bought that Hideout brand new, with a free warranty, for nearly as much as you paid. The Hideout is a very basic, cheap 5th wheel.
Would you suggest a person flipping trailers and rv’s
you might not have a story if there's nothing wrong to be fixed!! ;-) On the other hand that could be a quick and easy flip.
Intellectually, you understand that there are all kinds of people in the world, but it still feels bizarre to have have someone buy an RV, never use it, and then lose it to reposession.
Exactly. This wasn’t what I thought our first “project RV” would look like.
Sweet RV! Did you guys have your 2nd kid in Costa Rica as well?
Yup. She just got her second passport a couple months ago :)
Does the credit you are trying to build come from your personal credit score or is it a separate business credit you are building? Just curious. Love the new series.
The initial credit is determined by our personal FICO but the business is building credit from here on out.
16.5K sounds like a hot buy.. But why would a repo lot sell for less than market.. where's your profit?
Lets Start out by saying this ------------------------------------------------------------------
Based on the Steps you were willing to take...
There would seem to be an OVERALL ( G A P ) in what you Said you were doing versus what you actually could or would based on Information , Knowledge , and Ability. Every person who has ever purchased anything using Cash or Credit can attest to this One Thing. When You Least Expect It ( EXPECT IT ) To be the least or Last thing you wanted or needed to hear when it came time to sign the papers and walk away in a Reasonable Amount of Time. From the Newbie to the seasoned professionals - All have one single thing in common . Things Rarely go as planned ( UNLESS ) you have planned for every possible set back , hiccup , and Detour , being front and center to the process. Words of Wisdom : Take it for granted that what ever it is you are doing ( WILL TAKE ) longer than anything you have done before. Financing at best is a Crap shot with a slot machine handle that continuously changes ( Each and Every time ) you try . Having 20/20 hindsight might appear to be a Clearer Vison from the past to the present - YET - No One Can Predict to a level of Certainty Un-Matched by what the Market , The Rates , the Availability , and the Cost - Overall will be at your disposable in the beginning , the middle , and the end . What you pay for it , What it costs to fix, what is possible to sell it for, How long it takes, what takes place once a buyer comes on board , and what headaches or issues lay in wait after the sale is complete. Many a Lawsuit has been started by a Handshake , a persons word , or the sellers Rating being rung thru the wringer , because one transaction was the Bad Apple in the barrel you drew from . Its Honorable to Reach for more and yet ( STUPID ) to ASS - U - ME that it will happen with little more than a fork in the road to get you to where it needs to be. Long term goals change more so from the short term detours and pot holes life has for all to endure. You Want Less Stress and More Profit ? Get out of personal Sales and get into the Behind the scenes Property / Real estate Game. Buy it - sell it , Have others do the work , you get the rewards. On site Management will ruin your personal life by sucking it dry . People / Tenants tend to Make there Business ( YOUR ) business by seeing you there and knowing you are only steps away from a Complaint ( INSTEAD ) of a Compliment 9 out of 10 times hands down. Your afraid of raising rates yet, are willing to work yourself to death to benefit others who In a Heart beat would do it to you No Questions Asked if the shoe were on the other foot. ADVICE ( Listen to It ) Or die by its Sword of Truth ..
Super proud Mike way to go I need to talk to you so please hit me up
Congrats y'all! If no one's dropped a deuce in that thing then the value just doubled IMO. :)
So you paid 16. What do equivalent models sell for new?
Haha exactly. Looks like they sell around 28 new and it’s worth between 19 and 24.
Aren't they the ones saying they retired and how to live debt free.
Retirement means different things to different people. Retirement to them (and myself) means getting to do things you find interesting. It doesn't mean sitting on the couch at home.
PhotonJohn it must mean you’re full of shit
Don't most people finance their RV's?
Should of just bought a ram to begin with
15$ turned into 45$ for keys ?
Two different sets. One for the entrance and one for the hatches. Then duplicates.
OverPaid
how much did he pay for it?
$16,000
@@JoshuaaaT damn thats cheap