Investments Don’t Always Work Out…
investing in equipment for a small business can be risky
Check out more of our tractor videos here:
https://youtube.com/playlist?list=PLmYnhJtNUq7c2n8UTJASTf9qJQXQ_ngFP
To interact with me personally, join the Rockhill farm Facebook group here:
https://www.facebook.com/groups/1270496403596230/
Rockhill Farm is a daily equipment and rural living vlog. We mainly focus on tractors and working outdoors.
I really appreciate you taking time to watch this video. If you enjoy this type of content Check out some of the following links to support our channel.
If you are interested in a rock Hill Farms T-shirt check out our merch store
https://rockhill-farm.creator-spring.com/listing/rockhill-farm-logo
Please subscribe to our channel here:
Follow on Facebook at
https://www.facebook.com/Rock-Hill-Farm-102050688356056/
You can now support the channel by buying us a coffee at the following link:
We participate in affilitate programs including the amazon affiliate program. If you purchase products using our links we may earn a commission
There's an old saying that goes all the Way back to the Bible that the borrower Is slave to the lender and I believe That to be true I've also held some Other beliefs like debt is a tool that Can advance you getting to your Goals but you become a slave to that Debt and it's very risky and it causes Stress in your Life and you know when you're in Business it can be a little bit Different than as an individual and I Want to kind of talk about all of that And I want to talk about how it's going To affect my equipment that I use every Day on the channel because there's some Big changes coming there that we'll get Into later right now I want to talk About this house this house right here I Bought 5 years ago for $14,000 and it was in pretty rough shape I called it the fun house because it was Like walking through a fun house and This wall over here was bowed out where It wasn't even on the concrete block Anymore anymore it was hanging out about 10 or 12 in and you could see the bow From The Edge I had to take the wall Apart inside and out and draw it back in And reattach it and the amount of work I Did on this house honestly was pretty Insane I lived here for well I didn't Live here but I was here every day all Day for about 6 to n months doing it all
Myself we replaced a bunch of siding we Put all new windows in the house new Doors the doors weren't brand new they Were used but all new doors and windows I added the gutters I put in a raised Rock driveway because the yard was all Muddy I replaced all of the electrical I Replaced every bit of the plumbing with Pecs from inside the house out to the Road and I did this as an investment Because I got really bought into the Idea of investing in real estate as a Way to build wealth over time and I Believe all those principles are true But the way it's affecting my stress Level on an everyday basis has not been Worth it when I have well I guess I have Two but if you had 100 of them and you Could pay someone to manage them it Might be different so investing in real Estate actually builds wealth in four Ways you have appreciation of the Property you have tax savings you have Monthly rental income and you have Debt Pay down so technically there are four Ways you're increasing your net worth But for me personally it's happening on Such a small scale with this property That it's not worth the extra stress That it brings so the realtor is Supposed to be here in the next 15 Minutes and he's going to help me set a Sale price on the house and we're going To see if we can get out from under this
And maybe leave the deal with a little Bit of cash and it might have been Confusing earlier when I talked about it But I did all of this paid cash I bought The house cash I did all the repairs Cash everything and I spent about $335,000 on it and it appraised I Believe for 55 and I was able to borrow 85% of the home's worth and that allowed Me to walk away from this with more Money than I started with and have a Cash flowing rental house and that's a Method called bur which is buy Renovate refinance repeat it's a a Process of how you build a real estate Portfolio but I only did it once so Anyway real estate agent's on his way Here let's take a quick look around the House inside the house so I can admire One last time the work I did and then We'll go back to my house and we're Going to take a look at my equipment and What I have loans on and what I think About That okay so here's how I raised this I Put down railroad ties and then about 12 In of Rock we added a gutter on the front to Divert water away that gutter here's Broke off but that runs out to the Ditch and the house was a different Color after replacing the windows and The some of the siding painted it this Blue color did all the trim in white we
Painted the eaves they're all energy Efficient Windows I pressure washed all the Concrete and then sealed it up with a Concrete Cocking didn't do a whole lot back here I did paint the underside of the back Porch see all these are new windows this Is a solid wood door it was old when I Got it but we did replace that Too it had the old electrical setup that Was like 40 amp service it wasn't even 100 amp and we went with a 200 amp Electrical Service They keep the house immaculately Clean this Is my grandkids names there's Zaden that You see helping me out all the Time we put wall to Wall luxury vinyl plank flooring in new Cabinets these were just cabinets from Lowe's it had big metal cabinets in it That were from the 1950s I Think when I bought the house when you Stood right here and walked this way to The cabinets you dropped like a Foot so we got the new electrical Service Here got a brand new hot water heater Whenever I was working on it so by doing All the work myself and living in a Place with the low cost of living I Didn't show you the whole house but this
Is two bedrooms one Bathroom and we turned the there was a Hallway that served no purpose and we Used that to build in an a big closet For one bedroom and then to we built Like a little Pantry with shelves where The closet used or the hallway used to Be but by doing all this myself I was Able to have this entire thing in the Condition you see it now for under $40,000 which is not too shabby so that Rental house is in a tiny little town of 4,000 people and there's one guy who Does most of the houses in the town and So he's got a really good grasp on on The market and the pricing and he said I'm going to come out really good on That house selling it which may take Away some of my other concerns but I'm Going to go ahead and talk about the Other equipment I've got loans on so We're mainly going to talk about four Things today you've already seen the Rental house I have no regrets on buying That and the fact that now it's going to Have a return for me this is the only Thing that I do have a regret about Whenever I started doing what I do and I Haul equipment from here to there I Regretted the purchase of this truck Because doing that I needed an HD truck That I could rely on but I didn't need The most expensive truck I could find Which you can spend 120k on a truck but
I spent $83,000 on this truck and I Didn't have 83,000 I put 5,000 down and I got a great interest rate But this is going to be upside down it's Upside down now I couldn't sell it if I Wanted to but I would Gladly sell this truck for what it's Worth and get myself a $25,000 truck I Think that's a case Of getting ahead of myself I was making Some pretty good money with my other Business and I felt like I got this Mindset that if I can make the payment Then I can afford it and that's true if You can make the payment you can afford To get it but on a I don't remember if This loan's five years or six years I Think it might be five years but Regardless that entire time that becomes A noose around your neck life changes You shut down a business you lose a job Someone in your family gets sick the Economy drops The debt on this becomes a new surround You and every time you look at the Truck you think about that debt not how Much you like the truck and this is the Nicest vehicle I've ever been in the ex The features on it the performance Everything about this truck is Phenomenal and it's perfect for what I Do but I shouldn't have spent this much Money on it I took offense to some of The comments about my truck because
People made it so personal like only an Idiot would buy a truck like that that And I came out pretty strong with the Stance that it's if someone can afford Something it's not your business to Complain about it but at the heart of it If I really look at it I'm not wealthy That's a wealthy man's truck and I'm not Wealthy now all the green equipment in This Building is financed with my tractor the Mower is not I had two John Deere mowers That I had loans on and that's because I Was going to start a mowing business and If you have a mowing business you might Be able to make the case that financing Two mowers make sense but if you don't Have if they're not making you any money That's a lot to carry two payments so That you can cut grass I was an Extremely lucky person I got a deal with Hustler I sold both my mowers I came out Of that pretty good and this is a Phenomenal mower but in this position I Was in I had an $8,000 Mower and A7 $1,000 Mower and a $4,000 mower would Have been just fine so that was just my Eyes being bigger I thought I was going To have a mowing business I really did I Believed it I had the trailer it was all Set up Perfectly but I was having trouble being Profitable and the math wasn't working It was hard work for the amount of money
I was making mowing so I gave up Mowing And sold everything the trailer almost All the equipment and that was a weight Off my shoulders now let's go look at The tractor all right next thing we need To talk about is the tractor Itself I love this tractor like one of My Kids it's like your first car that you Always think man I wish I could get that One back maybe depending on what it was Mine was a 72 Mustang that was in pretty Rough shape but it make some noise and It' move pretty Quick and uh kind of have a Nostalgia For something like that I love this tractor I will always love This tractor it's a case Of a lot of people seem to think I have A negative opinion about it because Whenever I go look at another model of Any brand I say these are the things I Like about this one better than mine and I'm kind of enthusiastic or positive About almost Everything but this machine has been Phenomenal it's had a few problems here And there but 750 hours it's taught me How to tractor it's taught me about Tractors in general it's gotten done all This work that I've needed to do do it's Made me money I couldn't have probably Started this YouTube channel without a Nice machine like this
But I way overs spent on this I needed Something to move Freight around with And I needed something to help maintain The property and I bought a package with A brand new tractor that was a premium Brand premium features premium model With in a Brand and got it with every attachment I Could think of all the features I could Think of and spent $53,000 on this Tractor when I might have had $3,000 in The bank I probably the smartest thing Would have been to go buy a $3,000 Tractor that was old my friend Paul case Is always selling these old tractors He He'll buy them do some work to them and Sell them back I could have went and Bought one of those and done the work And then save up some money That's how you live a debt-free life is Just buy what you can Afford and if I'm in business I need Something now I have a lot of I was in Business I was making my living with a Product I made myself I was having Trouble moving materials around I needed Something and the business was making Money so when you have a business that's Making money it feels easy to say the Business can afford this but you still Have to make smart decisions and I've Overwhelmed myself with debt over a Period of time and I'm going to I'm Trying to fix it I want to do this thing
The right way and the reason I look so Favorably on some other brands is Because you can get a machine with the Majority of the features and Capabilities I like about this for a lot Less money and there's an appeal to that And it doesn't mean I don't like John Deere or anything else it's just I Should have stayed within my means a Little better because debt causes you Stress in life just a fact now for the Big Dog I love this machine almost more than The other one because this thing can do Anything it wants I mean it's a powerful Machine and there's guys who run Construction equipment for a living and They're like oh you just have this Little toy of a machine man if you're a Homeowner this is the real deal right Here you can pick 6 7,000 lbs up off the Ground carry 5,000 Around it can it's high flow you can run A forestry muler a Trencher I've got the offset boom mower Like you can do anything you want with a Machine like this and it's fun it's fun To drive it's heated and air conditioned But I was in that same position I was Talking about before where I was making Good money I had a business that was Thriving and then I had a second Business which was making YouTube videos And the YouTube videos were starting to
Pay me pretty well I said' I'm not Really living off the YouTube money I'm Living off the profits from my other Business the YouTube business can afford This skid steer because it will grow the YouTube Channel and uh it made sense to me at The time but it sure doesn't now I love This machine but I spent $98,000 I think is the amount I borrowed For this machine with six Attachments and I got that on 0% and I haven't put a lot of hours on It as far as skid steers go and I've Been Paying you know paying that payment a 0% Interest for what is it a year and a Half now and got some equity in it But my friend Paul Case he needs a skid steer they've got a Between him and his son I think they've Got two skid steers and like 40 tractors I don't know they're all old right and He paid cash for them And he probably has six machines that Total cost what my one machine cost so Who's smart here I think with a machine Like this you either need to be in a lot Better financial position than I was as In just having a lot of money in the Bank that you've saved up or you need to Be making money with this machine Fulltime and I thought I was going to Take this machine out fulltime and try
To make a living with It and part of me still wants to go out And make a living running these machines But it's a little bit Counterproductive between there's a give And take between the videos I make money For and making money running the Machines and when I I can do both but There's another area of Liability Expertise all the times it's like I said About the mowing business you can make Good money running a mowing business People start with one Mower and end up Having 20 Crews And do really well with it or just Bust It Out themselves and you can do that With a skid steer and a tractor but it's Not like oh you just buy the machine and You automatically have a profitable skid Steer business like I can do work on my Own property and think man I did a good Job and the machine's awesome and Everything was great but if i' done that Same job on someone else's Property they may feel like it was Amateur Work And so there's a lot that goes into it And I just have not been at a point Right now where I'm making a living with This so does it make sense for me to Have it Now
Overall regrets a funny thing because I Would not change anything about where I'm at in life like I have I have it Made like I play on these machines for a Living it's crazy but I could have done That without so much debt and that's What I wanted to talk about today not That nobody should go finance a tractor I'm not saying anything like that I'm Just real Life telling you where I'm at telling You what I think about the equipment I Have and buying equipment on debt and The peace of mind that comes with the Idea of having everything paid For that's what I want to get to I think It's a it's just a great place to be So kind of a long video probably but I Appreciate you taking time to watch the Video I'll put links on the screen to a Couple more of our videos and I'll see You next time
