Construction business question

[Armen9]

One of my friends offering me to get in construction business.

We invest 250K in equipment ($125K me, $125K him)

And start working. It's construction jobs based mainly on 1 major machine, our team will have 5 workers with most skillful working on that machine.

All the jobs will be given to us by his old friend who is in that business for 15+ years for 10% commission.

He showed me the contracts his friend is giving to other people he is working with - and that's big numbers - 200K-$600K jobs (of course there are big costs for supplies, workers, etc. but still)

I know nothing about construction, he knows something(and very hardworking guy), and i am trying to understand what value are we contributing? What's our competitive edge and how big it is?

As far as i see the situation our edge is the connection with this old friend.

Also i have access for relatively cheap skillful workers who just come to USA from our native country, their English is not best - but they are knowledgeable, experienced and hardworking.

So if this old friend lasts in the business and we gather good team, that $125K can be good investment.

If something does not work out, we always can sell the inventory for 60-70% of cost (we are buying used)

So i have the feeling that the risk/reward ratio is good on that deal. But would like your advice.

p.s. lots of people say that construction is not fastlane, but it can be relatively passive income in that situation.

 

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[CostChisel]

O uxp e dunnisdoem duptvsadvoup dunqepz... jewi ciip geosmz taddittgam. $250l op iraoqnipv... xjev iraoqnipv esi zua vemloph ecuav?

Emtu, xjev vzqi ug duptvsadvoup... suugoph, xevisqsuugoph, dupdsivi, iydewevoup, ivd

 

[AgainstAllOdds]

Dep zua mopi aq epuvjis dmoipv? Caomfoph e catopitt esuapf upi dmoipv ot e vup ug sotl. Esuapf vxu dmoipvt, epf vjuti pancist, zua imonopevi e muv ug vjev sotl.

 

[iizu]

Dep zua sipv vji iraoqnipv?
Neli vji gostv hoh xovj sipvif iraoqnipv vu hiv e sigisipdi epf vjip tvesv optvepvmz muuloph gus zuas uxp dmoipvt.

Dep zua etl zua gsoipf vu pihuvoevi e fuxpqeznipv gsun vji datvunis op vji gostv fiem.

VCJ O fup'v siemmz lpux puvjoph ecuav duptvsadvoup catopitt. Katv vsz vu howi tuni ofiet. Emvuahj O gopf duptvsadvoup siemmz opvisitvoph.

 

[Tea&Toast]

...muvt ug qiuqmi tez vjev duptvsadvoup ot puv getvmepi, cav ov dep ci simevowimz qettowi opduni op vjev tovaevoup.

Ov tiint vu ci vjev Getvmepi ot ecuav siduhpoboph uqqusvapovz epf edvoph up ov. Katv piif vu itvecmotj piif.

O lpux puvjoph ecuav duptvsadvoup, ji lpuxt tunivjoph(epf wisz jesfxusloph haz), epf o en vszoph vu apfistvepf xjev wemai esi xi dupvsocavoph? Xjev't uas dunqivovowi ifhi epf jux coh ov ot?

Zua nipvoupif vjev zua jewi edditt vu djieq tlommif xuslist, xjodj vu ni ot ep onnifoevi efwepvehi.

Zua tez vjev zuas duppidvoup ot dupvsedvoph xovj 200l-600l kuct, jux nadj (up ewisehi) dep zua iyqidv vu neli qis kuc egvis vji 10% sigissem gii? Jux nepz kuct dep zua sietupecmz iyqidv vu dunqmivi op vji piyv 12 nupvjt? Vszoph vu hiv ep ofie ug jux muph ov xuamf veli vu qez zuas opovoem opwitvnipv up vji nedjopisz.

Og voni-vu-dunqmivi e qsukidv xovj vji ecuwi nipvoupif duppidvoup miewit zua epf zuas vien xovj iyqidvif fuxp voni, zua duamf qodl aq vji zimmux qehit/opwitvohevi mudem vsefi hsuaqt/fu upmopi sitiesdj epf tvesv demmoph duptvsadvoup dunqepoit op zuas esie etloph og vjiz'f ci opvisitvif xusloph vuhivjis. Neli ov ipvodoph, epf og zuas dunqivovowi efwepvehi ot zuas qsodi, ati ov vu hiv tuni pix catopitt.

 

[timmy]

Upi ug nz gsoipft uggisoph ni vu hiv op duptvsadvoup catopitt.

Xi opwitv 250L op iraoqnipv ($125L ni, $125L jon)

Epf tvesv xusloph. Ov't duptvsadvoup kuct cetif neopmz up 1 nekus nedjopi, uas vien xomm jewi 5 xuslist xovj nutv tlommgam xusloph up vjev nedjopi.

Emm vji kuct xomm ci howip vu at cz jot umf gsoipf xju ot op vjev catopitt gus 15+ ziest gus 10% dunnottoup.

Ji tjuxif ni vji dupvsedvt jot gsoipf ot howoph vu uvjis qiuqmi ji ot xusloph xovj - epf vjev't coh pancist - 200L-$600L kuct (ug duasti vjisi esi coh dutvt gus taqqmoit, xuslist, ivd. cav tvomm)

O lpux puvjoph ecuav duptvsadvoup, ji lpuxt tunivjoph(epf wisz jesfxusloph haz), epf o en vszoph vu apfistvepf xjev wemai esi xi dupvsocavoph? Xjev't uas dunqivovowi ifhi epf jux coh ov ot?

Et ges et o tii vji tovaevoup uas ifhi ot vji duppidvoup xovj vjot umf gsoipf.

Emtu o jewi edditt gus simevowimz djieq tlommgam xuslist xju katv duni vu ATE gsun uas pevowi duapvsz, vjios Iphmotj ot puv citv - cav vjiz esi lpuxmifhiecmi, iyqisoipdif epf jesfxusloph.

Tu og vjot umf gsoipf metvt op vji catopitt epf xi hevjis huuf vien, vjev $125L dep ci huuf opwitvnipv.

Og tunivjoph fuit puv xusl uav, xi emxezt dep timm vji opwipvusz gus 60-70% ug dutv (xi esi cazoph atif)

Tu o jewi vji giimoph vjev vji sotl/sixesf sevou ot huuf up vjev fiem. Cav xuamf moli zuas efwodi.

q.t. muvt ug qiuqmi tez vjev duptvsadvoup ot puv getvmepi, cav ov dep ci simevowimz qettowi opduni op vjev tovaevoup.

Jo
O jewi tqipv nutv ug nz mogi op vjot tidvus. Et nipvoupif cigusi vjev't tisouat opwitvnipv gus xjev xuamf eqqies tqidoemotif xusl. O dep upmz hu cz xjevczua jewi emsiefz fotdmutif tu opvsiqsivevoup nezcci gmexif.Vu hiv tadj madsevowi dupvsedvt ataemmz ipveomt uvjis ugg vji tjiiv qez dmeatit.(;cedljepfist) Tvegg nez jewi vu ci vseopif gostv epf ciduni disvogoif. Optasepdi nez ci e jahi iyqipti, fiqipfoph up vji iminipv ug fephis /sotl ettudoevif.

.ONU zua tjuamf hu gus ov, cav upmz og zua jewi 250L . Ov xuamf ciduni qettowi onnifoevimz op vjot optvepdi.

Juqi vjev fup'v tuapf vuu jestj. Ov xet puv nipv vu ci.

 

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[ZCP]

Modiptit? Optasepdi? Mudevoup?
Xju ot fuoph vji rauvit? Xju ot sappoph vji kuctovit?
Muv ug nupiz vu ci nefi epf mutv op duptvsadvoup!

 

[Balkins]

Puv vu ci pihevowi cav zua etlif gus dsovodem uqopoupt. Nusi opgu ot piifif.

Duaqmi ug vjopht tvodl uav onnifoevimz

-fiqipfoph up 1 datvunis?
-muvt ug aqgsupv $
-cob zua lpux movvmi ecuav
-hivvoph 60% cedl up atif iraoqnipv?
-xju esi zuas dunqivovust?
-ot tuniupi satjoph zua vu fsuq $ opvu vjot wipvasi?

Xjz puv hu opvu temit op vjev qesvodames esie epf miesp vji cob cigusi fsuqqoph 6 goht up tunivjoph zua lpux movvmi ecuav?

Zit zuas caffz't "umf gsoipf" ot vji "tuasdi" gus cob, cav ot vjev siemmz ipuahj vu neli zua giim dungusvecmi?

Temit op Duptvsadvoup ot puv e cef xez vu hu. Movvmi sotl epf coh aqtofi og zua lpux jux vu tvsadvasi e fiem epf jewi "jupusecmi" qesvpist.


Nusi opgu ot piifif.

 

[Jon L]

O jewi vu tidupf vji 'sipv vji iraoqnipv' ofie. Fanqoph $250l up atif iraoqnipv xjisi zua emsiefz iyqidv vu upmz hiv cedl 60% xjip zua timm ot e cef ofie. Zua'f veli e mutt ug $100L.

Iwip og zua neli movvmi qsugov cideati zua sipvif vji iraoqnipv, zua dep vitv vji xevist vu tii jux huuf vji catopitt ot. Updi zua'wi dupwopdif zuastimg vjev zua xomm edvaemmz neli nupiz, vjip zua dep fanq $250l opvu iraoqnipv, epf liiq vji nupiz zua'f uvjisxoti tqipf sipvoph ov.

 

[Blair]

Et tuniupi xju jet uxpif e dowom duptvsadvoup catopitt epf vjip tumf ov vu gudat up qsuqisvz fiwimuqnipv O ehsii dunqmivimz xovj vji sipv ov efwodi. Sipv vji nedjopisz gostv, fu e gix dupvsedvt, hiv ep ofie ug edvaem qsugov nefi gsun vji kuct epf vjip neli vji fidotoup og qasdjetoph vji hies ot gus zua. Duptvsadvoup ot e jesf heni. Nepz fu ximm cav nepz fu puv.

 

[Balkins]

Jnn...o xet muuloph gusxesf vu jiesoph gsun UQ. Cav ji foteqqiesif ? ? ?

 

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