Post a new topic
    4 Replies Latest reply on May 12, 2010 1:08 PM by Barky Dog

    What are my options to finance a Fedex route?

    seekingroute Newbie
      I would like to buy a Fedex route but unfortunately do not have a credit history. Not bad credit, just no credit at all.

      My brother is willing to help me by taking out a loan of which I would make payments on. He has a good credit rating, and owns a home appraised at $400,000 with no mortgage. The house has one home equity credit line of $50,000, of which $35,000 has been tapped.

      The routes I have looked at cost about ~$120,000. My brother insists the business should be entirely in my name. He wants to strictly be my financier.

      What are our options?
        • Re: What are my options to finance a Fedex route?
          Amovida Newbie
          Your brother could pull out the money through a Home Equity Line of Credit (HELOC) or look for a second mortgage. Now is a good time to look for this as rates are low. You should find a route that is appropriately priced, negotiate a down payment and financed amount with the seller and begin your career. Do not forget that running the routes are often long days, 5 days a week in whatever weather (I'm not speaking from experience, just what I've read) and you will need to perform and not miss being on time to work or days. After a certain amount of time you will have paid off the seller (and your strong negotiation on price will have helped you do it sooner) and you will begin to make better money. A lot of your deal will be made in the purchase price and understanding the nature of the route being sold to you.
          You may want to take someone on as an advisor, say an unbiased driver to act as your mentor. Good luck!
          • Re: What are my options to finance a Fedex route?
            LUCKIEST Guide
            Fedex route

            Who r u?? Go to Members page and share some info.

            Do you have a lawyer??
            <!--Session data-->
            • Re: What are my options to finance a Fedex route?
              Barky Dog Tracker
              Seekingroute,

              My 2-cents is to just be very careful entering in a business relationship with family. It can we very tricky and can lead to major family divides.

              The issue to consider is- once your brother lends you the money he is not only your brother, but also your lender. He may being to analyze the way you are running your business, your expenses, bookkeeping and the like. The brother/lender line can begin to become blurred.

              If you guys decide to move forward- do both of you a favor and get *everything *in writing up front (down to the smallest detail). Memories can blur over time, but solid planning and written agreements upfront can help you avoid issues down the road.

              Good luck,

              Barky
              • Re: What are my options to finance a Fedex route?
                Barky Dog Tracker

                FYI- I also found the topic below on Fedex routes. Some very good information there.

                Have funds to purchase FEDEX ground routes. Risks involved ?

                Barky