How to buy, rent or lease equipment the RIGHT WAY!

I did a podcast a few years back that fundamentally changed how I think about buying renting and leasing [Music] equipment in 10 minutes I'm going to teach you everything this guy taught me cuz there is a right way and definitely a wrong way to do it one of the things I learned from the guy that I interviewed was that buying equipment can either be the absolute most profitable way to go or the most expensive way that you can go there's a right way and a wrong way to buy equipment the wrong way to buy equipment is to go out and buy a piece of equipment and then modify the heck out of it because after market mods actually don't add value they detract value but let's clarify this a little bit so what he said is it's not about what you buy but how you sell it that's important and the easiest way to get the absolute most value back out of your equipment is to keep it 100% stock OEM and don't do aftermarket mods because those aftermarket mods might be cool to you but somebody else might go what the heck did they do and so when you can buy something right you first need to analyze how much you're going to sell that piece of equipment for and when you're going to sell it for so it's not about buying it it's about selling it and I asked him I threw every scenario you possibly could at this guy I said all right you're going to buy a Peterbilt dump truck do you put Chrome stacks on it do you bling it out and the guy looked at me and he said yes if it brings you the most value back out at the time of sale it's not about how much you pay for it I and I say so wait a minute you don't buy the cheapest you don't buy the most expensive he say the price you buy it for doesn't matter it does not matter what you buy it for it's about what you can sell that piece of equipment for and the difference between those two things is the actual cost of your piece of equipment so if you buy a piece of equipment wrong it's going to be it's going to cost you it's going to be expensive it's not going to be worth it in any way shape or form but if you buy a piece of equipment the right way you can actually make money on it you know guys I was always under the impression that buying was the best way to go simply because you're investing into yourself but are you really investing into yourself if you buy something and you're losing money or if you don't really have a need where it can pay for itself off that's when renting becomes your best friend cuz there's a lot of options to both renting and leasing but leasing has some dangers associated with it as well and although renting may seem like the most expensive option at times it actually in the long run turns out to be a very good very viable option now since I've did that podcast I have leased and rented more equipment in the last two years than I did in the 20 years prior to doing that podcast because the realization came pretty quickly that both renting and Leasing have advantages over buying all day and night one of the advantages of renting or leasing it's completely 100% tax deductible another advantage that you guys probably know is no maintenance you don't have to mess with anything so I had gotten a a backo that I had boughten back in the day when I always firmly believed that buying was the way to go and I used it for a couple decades and then I went up to sell it and I got the same amount of money out of selling that back hole as I did when I initially bought it so in practicality I had gotten the back hole for free but now I'm air quoting because before I sold that back hole I had to move it off from one job site to another and the easiest way to move it was just to drive it down the road the main hydraulic hose is busted on that back hole I got that fixed then a secondary set of hydraulic hoses busted on that back ho I got that fixed then there was an electrical problem in the back ho where the mice chewed through that I got that fixed me and Sam ended up spending over a day just repairing this Backle to move it a couple blocks down the road now if I had rented that backhoe would I have done any of that no if I was renting that backhoe I would have made a phone call sat back and waited for the rental company to come out and fix their piece of equipment but there was no rental or anybody coming out to fix that piece of equipment besides Sam andai and both Sam and aren't the best mechanics we can get by in a pinch but I W call us up to do any major repairs so did I actually get that back ho for free in my opinion absolutely not I've got two decades of repairs of Maintenance of upkeep of changing tires of insuring it of doing everything that requires you to keep a piece of equipment up and running for decades so although I was able to buy that piece of equipment and sell that piece of equipment for the same price it doesn't necessarily mean that that piece of equipment was free and the thing that really cost me the most was the lost time time is a finite resource and the most valuable thing that we have and time away from jobs time away from bidding estimating from refining your business cost you more than a little bit of money that you can potentially make off from buying or selling a piece of equipment if you're stuck doing all of the repairs and maintenance having all of the headaches and Hassle and having your attention drawn away from what really makes your business tick and you my friends are the thing that makes your business tick more than anything so I realized pretty quickly renting made my life way easier now I rent every chance I get and I buy very very cautiously but there's an easy way to rent and there's a difficult way to rent so let's go over that next all right guys I just pulled up to ABC Rental and I realized one thing anytime that I've ever had a question about renting a piece of equipment I would call Chris you guys probably don't have your own Chris guys this is Chris how are you Chris good Stan good to see you Chris how long have we been friends 35 years 35 at least so so Chris you worked at ABC for how long 29 years 29 years and anytime I've ever had a question I call you up I was texting you last night yes yes just like hey Chris I need this hey Chris I need that but you guys probably don't have your own Chris and I'm not borrowing you my Chris so is there a resource if guys have questions about renting what's available what's the price what's going on out there is there a resource for these guys yes it's called rental HQ okay it's a website uh no matter what town you're in if there's a rental company that's a membership of the arra American Rental Association okay they have a a website that you can type in what kind of equipment you're looking for type in a zip code where you are and it'll show the rental stores that store can you show us that website okay so let's see how this thing works what are you working on today anyway um nothing today I I didn't have a plow to put on no no that when I just got a test for a leak so I'm just kind of being a little bit of everything today so now this is the website you recommend these guys go to is called rental HQ right correct okay so open up a new tab so just simply type in rental HQ and it pops up got to put my yes so here what are you looking to rent so let's just say a skid loader yep okay okay so mini and then we can type in we'll just do Sal St Paul okay so anywhere across the United States anywhere across the United States yeah anybody that's a member of the American rail Association is going to be on this website okay so now we hit search and we won't take the survey right now but you can see here these are all all of the rental stores in this within this ZIP code and they're all listed over here so ABC United United South Suburban all of the different so depending upon where you are so if you're up in the north part of the Twin Cities there's there's rental stores up in Blaine if you're over in the Hudson area there some over in Hudson Wisconsin which isn't too far so this dials in the search for these guys instantly absolutely and it gives them all of the options yes for instance you know if we went to sell Suburban Rental um it's going to show them right here and it shows so it shows their address their phone number and then you can actually visit their website so now it takes you right to their website their their website is not going to show you any availability but you least have the phone number to call them and say do you have a skid loader available okay they can tell you so it's that simple huh and that website's rental HQ yep rental HQ right there awesome need it rented what are you looking to rent so really it's the Search tool that you're looking for exactly so it tells you what you what you're looking to rent and your general area and it'll list all of the uh rental stores that would possibly have that y yeah whether it's whether it's good loaders chairs tents um carpet cleaner doesn't matter that that makes life pretty simple when you're on the hunt for a piece of equipment especially if you're a company that's working in a different town y makes a CU we we rent a lot to contractors that are from out of town MH cuz they're here doing a job um and it's amazing how well this works um for people in that industry that are working out of town good deal all right thanks Chris I'll let you get back to doing nothing all right all right we haven't covered leasing yet now think of leasing about the same as renting for tax benefits meaning that 100% of everything that you pay to rent a piece of equipment or lease a piece of equipment is 100% tax deductible that's a 33% savings unless you're in California then it's closer to like a 50% savings but there are some stipulations for one you got to know that you're going to be committed to this product whether that's 6 months or a year number two there's some responsibility that goes along with with leasing as well with rental I'm not saying run it like you rent it meaning beat the heck out of a piece of equipment there is a certain level of responsibility you want to return the equipment in the absolute best physical condition that you possibly can or you're going to get danged there is a difference between leasing a truck and leasing a piece of equipment now I've had an ASV like the one you see back here on lease for the last 3 years but I am also responsible to make sure that that piece of equipment doesn't get destroyed doesn't get bead up doesn't get used and abuse I've got to return that thing back the way I got it but here's the beauty part of it every time my lease is up I have the option to renegotiate that lease and get a different piece of equipment so if I want the latest greatest toy leasing is the way to go if I don't want to deal with the maintenance the headaches the hassles of repairing and running old junky equipment leasing is the way to go but if you want the benefits of owning a piece of equipment you want to have something that you can claim as your own there is something called the leaste to own option and this is beautiful this is absolutely beautiful and what that is is that is a long-term lease with a buyout at the end meaning you own it but every single payment you make is 100% tax deductible I cannot stress dress to you enough the advantages of having all of your payments tax deductible it's a humongous savings at the end of the year some companies very few very far between will lease with a $1 buyout at the end negotiate your lease accordingly if you know you want to own that piece of equipment negotiate it accordingly if you don't care about owning that piece of equipment well then you're going to have some more freedom more flexibility there's actually truck leases out there that automatically require you to turn the truck in as soon as you hit 12,000 mil they use your lease to to compensate for the when you buy a piece of equipment you instantly lose value in it so what these companies do is they like to lease these out to people in the very beginning get big fat payments allow somebody to drive a brand new piece of a brand new truck and then take it back at 12,000 Mi because they're not too abused they're not too used they're not too ran through the ringer so just understand there's a lot of different leases there's a lot of different advantages to renting to leasing buying is not necessarily just the way to go but buying can be the right way to go if you do it right and that means when you initially go into to buy something you buy it with the thought of what's the most value I'm going to get out of it when I sell it but that's going to call it for this video today you guys um we've got a project coming up where we're going to be installing a fence in the yard but we're going to be putting this in at a fraction of the cost of a chain link fence and if you guys want to stay tuned to that project well I'm going to be starting that this afternoon but that'll be on a different video that's all for this one I hope you guys enjoyed going along for the ride and I hope I was able to give you some good information on buying renting and leasing this is a topic that I've wanted to do for a very long time and I hesitated to do it because I wanted to bring you guys some really good strong powerful information that could hopefully change the way you think about acquiring your equipment if I've done that or if I've helped you out in any way shape or form let me know in the comments down below but if I've missed anything put it in the comments down below because I'll tell youall you guys have taught me a wealth of knowledge and in fact I a better person a better business owner because of you guys because you guys comment because you guys interact and I watch them I read I learn I grow I've gotten better thanks to you guys a rising tide raises All Ships you guys and I hope this this video has raised your tide just a little bit God bless go get them 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