How can you successfully invest for passive income in today’s crazy marketplace? Stable, passive income is what many savy investors are looking for these days. Many people are open to investing in businesses other than the typical ones like real estate, crypto or the stock market. Hey guys, my name is Gerard Fairley, my company helps investors get into the trucking business, and safely invest for passive income. While we focus only on semi trucks (big rigs), both of the strategies that I talk about in this article can be applied to box trucks as well. The thing you really have to have either way, is knowledge of the industry specifics, and have the right budget for start up, and ongoing maintenance. Essentially, if you use logistics as your business model to invest for passive income, it means you are not operating it day-to-day, and yet it still generates steady income for you (passively). Let me give you a quick run down on two different ways to invest for passive income, in the freight and trucking industry.
One good way to approach truck investing for passive income is to invest into an existing truck and freight company that is already doing business and generating revenue. This is what my company does. My company has two programs, one for an active investor (he/she wants to own the truck and all equipment) and one just for passive investors. A passive investor for us, is a person who wants a fixed rate of return (ROI) on their money, does not want to be involved much, and is not really interested in owning any truck equipment. In this article I’m going to focus on the passive investor model, which generally has lower risks, faster launch, and a faster payout. A passive investor wants to have his money protected, make a nice return on it and then be able to get out; with the option to get back in agin, if they wanted to. The passive investor model kinda operates like a traditional 12-15 month bank CD. An investor deposits a certain amount of funds with the project manager, and within 30 days the investor starts receiving a fixed predetermined payback (annuity). On the 13 month, with 12 monthly payouts, the passive investor would have received his original principal and total ROI paid back in full.
As I said earlier, if a person wanted to generate passive income in the trucking business, a good way to do this is to find a successful trucking (logistics) company and invest in that infrastructure. You would then agree on a ROI on your investment. Most companies in this space are offering anywhere from 10-50% ROI depending on size of the investment. The logistics project manager could then take this money and rent or buy more equipment and generate additional funds. For example, if a passive truck investor invested $25K into our logistics company, we could for arguments sake, lease a late model semi truck and a car hauler trailer, staff it with a team of 2 professional drivers..and have them drive back and forth cross country…generating 15-18K weekly gross revenue. This is truck investing for passive income, where you, as a passive investor would get back a portion of your principal and ROI every week or month, based off of the “truck investment unit” that you funded. That is just one example of how invested funds can be used. This way you know your investment is tied to actual durable assets (truck equipment) that can be sold and salvaged in the event of a financial emergency if necessary.
Another way to make passive income from trucking, is if you already have a truck or two in storage, then you can rent them out in the meantime, as you think of a more permanent solution or business model. I know plenty of guys doing well with this method. And of course you have big players like Penske and Ryder, who are making big bucks every year with just their truck rental divisions. You can do the same thing on a smaller scale. This works best if you already own a truck. Just have your lawyer draw up some good contracts to protect your interest. Go on to Google and check the average daily rental rates of your vehicle, and then you are ready to make money. If you have good credit (750+) then you can lease a couple of semi trucks and then lease them to other people (CDL holders). There are a lot of people who don’t have the credit worthiness or whatever to go and get a truck on their own. The larger truck companies who have a lease-buy-program, typically want a larger down payment and/or lock you in for a longer term, or have other financial qualifiers. This shuts a lot of people out of the market, who unable to get a truck. The demand is there, they jut can’t meet the necessary minimum requirements. These same people typically, may not have what it takes to lease or rent from some of the larger companies like Penske. So they turn to alternative markets, they turn to a person like you. Because of your good credit, you were able to secure a fleet of trucks inexpensively and essentially rent them or lease them out to others. Typically truck investing for passive income involves some risk, and here, you are serving a more “at risk market”. Make sure you charge accordingly and take other necessary precautions (like having a good contract in place). Every market, has this under served consumer…who has limited access to the more “main stream” goods and services.
The world we live in is constantly changing, and if you want to stay ahead you have to be be willing to think more creatively. As an investor looking for passive income, you have to find ways to protect and grow your income in an increasingly more complicated world. Mutual funds, stock, bonds, real estate is where most investors typically look. But I invite you to look into how you can safely (and greatly) profit from truck investing for passive income.
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Gerard Fairley