Should I Buy A Skid Steer As A Builder? Is It Worth The $75,000?

[@HomelessWhiteMaleStartingOvera]

No. When I bought this vacant land with the goal of building up my own homestead back in 2008 the first equipment was a Kubota KH50 grey market midi sized excavator. It was $7000 at the Richi Bros auction. New undercarriage, new tracks, new bushings I machined myself and new motor all in I have $12,000 into this one. If I sell it tomorrow should be able to get $25,000 for it. A must for an excavator is a hyd thumb I made one on the waterjet installed it myself. Next was a CAT 247B skidsteer and attachments for it ie brush/rock rake, pallet forks, concrete mixer, post hole auger. All in the skidsteer and attachments was $30,000. I did get a 6 way bucket paid $4000 for it but ended up bending it but was able to sell it off again for what I paid for it. Skip the 6 way bucket they are just not strong enough to hold up. With these two main equipment I can do everything I need to here on the homestead. When I built my shop I needed a manlift. Back to the RB auction $8000 for a JLG and sold it 2 years later for $11,000 after the shop was completed. Then 2 years ago needed a manlift again, found a non working Genie Z34 for $6K. Nothing worked it was dead. $4000 later in new batteries and new rewire I have perhaps $10K into this should be worth $16K if I were to sell it tomorrow. Last item a few days ago was a 500lb Chicago Pneumatic model 224 packer. Yep at the RB auction. Paid $2000 for it incl buyers premium, taxes and shipping to here. Should be able to sell it for $4500 after I am done building. It is a 2017 model and the start pull cord was broken. Just did all the maintenance on it and replaced the pull cord looks really good and I can find nothing else wrong with it. Next item on the list is ICF bracing. If I cannot find reasonably priced used will just make my own. Rental rates are almost what used prices are makes no sense to me to rent. I do not hire contractors I do everything myself. Being independent and acquiring all the tools and equipment then being able to make what parts I need has made this economical. I do not go to the dealer for parts. Also have my own bandsaw style sawmill no need to go to the lumberyard. Have all the chainsaws, picks, shovels, rakes, power tools, electrical repair tools, garden tools like hedge trimmer, string trimmer, roto tiller, etc. Built my own pipe rollbender so I could form the arches for our 20ft x 60ft greenhouse and another 30ft wide x 40 ft shelter building. With my own sawmill have not bought lumber since 2015. Buying non-operational equipment and then fixing it up myself has been quite affordable have not lost money on anything here yet.

[@ralphjessee2688]

Nice!

[@JamesG1126]

I wouldn't touch a grey market item. It's worthless.

[@BigTee-lp7qu]

I'm not bragging but.... LOL

[@HomelessWhiteMaleStartingOvera]

@@JamesG1126 I agree James I agree. This is why they are the same equipment, same factory but at the fraction of the price. Please do keep disparaging gray market so we can continue to buy them cheap.

[@HomelessWhiteMaleStartingOvera]

@@BigTee-lp7qu No not bragging at all. I have less than $50K into all this equipment and it is paid for itself several times over in saving contractors rates. But you do you and keep hiring the contractors they need the money.

[@ernieforrest7218]

I was in the home building business for over 45 years in SE PA. For about 20 of those years we had equipment on the job every day. Some days multiple pieces on different jobs. We used a sub contractor for all of the excavating grading etc. For one thing, i didnt personally have time to be operating equipment. Secondly, i didnt want to have a shop for servicing the equipment. And of coarse employ the qualified people for doing that work. I never knew an excavating contractor who was wealthy. But i knew builders who were, and they didnt own any equipment either. Mind you i did know a few builders who did, but they enjoyed playing the roll of an operator. I feel that is a big reason many builders buy equipment. There are lots of things a builder can do to save money while building a home. Learn to do your own electrical work for example, you can even use the same truck you already have. Better yet be your own sales agent, and sell more houses.

[@macgyver03ga]

When I built my personal house, my buddy would let me use his “spare” skid steer. He has 2 kubotas, an SVL75 and an SVL97-2. He lives like 2 miles from my build site so he could usually deliver either machine to me within 24 hours of my needing it. He’s a solo operator so he’s never using more than one machine on his jobs at a time. He just charged me for fuel and a nominal “rental” fee to cover wear & tear. Having that machine available when I needed it was soooo helpful. I did quite a bit of grading here myself. Spreading gravel. Freshening the gravel. Used it for cleanups countless times. Forks for unloading trucks and moving materials around. You name it. I’m so grateful to have been able to use that machine.

[@SpartanHomesInc]

Where can we get info on what the plus is on a cost plus. I am fixed fee. In our market that is most prevelant

[@jimb9283]

When you own your own you can train your crew on equipment and have more well rounded employees. Just make sure you plan and stay on top of maintenence.

[@TonyFarese]

I let my trades use my skid. Block guy loves it! Framer likes it. Slab Mason likes the mini-x. They're all happy to come to my jobs because I help them help me and the basic equipment is a big part of that.

[@sentienthamster]

If you are a small shop, look into a TLB like the Kubota L47 (M62 if you can stomach it) or pick up a used Deere 110 for $25K. They are not as capable as a steer or excavator at their specific jobs, but at 1/8 to 1/4 of the total cost to do both and the ability to pull a plow can't be beat.

[@NuttyElf]

Im a builder and i bought skid steer 3500 flat bed and mini ex few years back. Funnily enough im doing the opposite of the video. Downsizing (selling mini ex, parking skid steer for personal use). Having to store, trainsport, maintain everything costs me more in time than the little extra money to hire my grading contractor. This guy may be building for people on aceage the majority of the time though.

[@user-tv5dt3nm9y]

I'm a landowner who is going to develop and build on his own property. I own a skid steer and a mini excavator. Contemplating a small dozer. I don't know how a builder who builds homes approaching a million can not own some basic equipment.

[@pbpx]

if the rental breaks they bring you a new one. thats the easy argument.

[@JamesG1126]

Matt's homes cost well over $1 million.

[@Knappconstruction]

I bought mine and I have to say it’s useful when you use it. When it’s sitting it sucks

[@pacodefrancis7235]

I’d say for a builder a mini excavator would be a better more versatile option to help with small things and address drainage issues that arise during the build. However I’m very intrigued with JCB’s “teleskid”. That could be a real Swiss Army knife, especially for the taller buildings and steep roof pitches we do here in the Northeast

[@ItsAllAboutBrandon]

do you give a customer a total house build cost range before starting a job or do you surprise them with 500k invoice when they budgeted for 250k for example. interested to learn more about cost plus billing.

[@buildshow]

Check out my Podcast where I took an hour to review CostPlus vs Fixed price. We give an initial estimate and include a contingency. Then before we goto contract we bid out as many phases as possible. Changes still generate a change order. No one is surprised at the end of the job.

[@danlake7970]

Unfortunately, I've been completely screwed multiple times by contractors by agreeing to "time and materials" or "cost plus" even on the smallest project. They would give me a list of materials and hours and estimate a cost range, but by the first invoice or progress check-in the cost would have doubled or even tripled from their highest estimate. In a landscape contract, a few weeks into the job we asked about the costs and they had already exceeded our high end budget and had not said a word to us that it was trending 3x the cost at 1/3 into the project. The Landscape Contract Board here in Oregon fined them and they went out of business the following year, but not before walking away with our savings and leaving our yard a mud pit.

[@DrMJJr]

@@danlake7970 Yes, this is precisely why I'd never sign a cost plus contract for my retirement home. It's fixed price or nothing, and its in excess of 750k at the current architectural design phase (although I suspect that will increase substantially). I will NOT be caught unawares by unscrupulous builders and am HAPPY to sue them into oblivion (I have 2 cousins that are attorneys). Glad that the state got involved in your case, despite losing your savings - I'm SO sorry!!! Absolutely frightening story that others should consider carefully when bidding their building contracts.

[@clcphoto]

When we built our hose 2 years ago the builder gave a fixed bid for labor and I bought the materials. Probably not a typical arrangement but there were places where I was able to save thousands by using a different supplier

[@JamesG1126]

@@DrMJJr The problem with fixed price is that the contractor has no incentive to build quality. They want to build fast to capture as much profit as possible. If you want fast and cheap, fixed price is the way to go. If you want quality and craftsmanship, cost plus is the way to go.

[@owenmorehart1224]

Great info. Thanks Will and Matt.

[@Treehandler]

Buy a used one, it’s always nice to have on the jobsite for moving materials especially for sub contractors when accessibility can be challenging. I was recently on a planting job that we had scheduled far in advance, well when we showed up they had installed all the railings and benches so we couldn’t get any of the equipment we had into the work area. Thankfully they had their mini skid and skid steer available for us, otherwise we wouldn’t have been able to finish the job on time. When you break down the payments, insurance, and cost of repairs to an hourly rate, you’ll realize the man hours you are saving when the equipment is being used. When you are at the point that it’s far cheaper to keep a skid steer on a jobsite without being used than having laborers that can perform The work exactly when needed, then it’s worth buying a new one. The hardest part is finding a competent operator who won’t always be running the equipment

[@JamesG1126]

I always buy new and trade it in every 3-4 years. Let somebody else deal with the maintenance and repairs. Uncle Sam pays for it.

[@bobdobbs7828]

@@JamesG1126 Uncle Sam pays for it? SBA loan?

[@JamesG1126]

@@bobdobbs7828 Tax deduction. Section 179.

[@bakid470]

@bobo lol tax benefits 🤡

[@WOLF-rm8nn]

Can't believe you dont own one now. Kubota SVL 75 and a mini X-- KX 40. Never look back

[@glengoforth3092]

Builders need to remember when that sub asks x dollars to do a job for you they have the same issue, tools are not cheap.

[@douggibson9084]

Thanks Matt, great information.

[@Sc-jf3yk]

I usually figure the machine should be payed for after a 1000 hours. $100000 piece of equipment goes for $100 an hour. Obviously it isn't payed for because of insurance, maintenance and fuel but you get the idea. That $75000 skid loader bill out would be $75 an hour. Operator is on top of that plus drop and pick up fee or forget the drop off and start the clock when you start the truck.

[@briansalgado2408]

Mini ex paid for itself in a year, just got a skid steer and hoping to pay it off in a year as well, maybe sooner now that we have 2 pieces of equipment

[@SolarTechFL]

I bought a case backhoe It says construction king on the side lol I Used it to build my Homestead and still use it often. Only $16k Case 680l

[@jonathanzappala]

In the last 4 years or so excavation has become their biggest cost of a job. There are many jobs I pass up because I can’t get someone. I have driveways waiting for replacement because my concrete guy can’t get the excavator lined up to rip pout the old. I can’t build a garage since I can’t line up the pad going in.

[@bothellkenmore]

I'm curious as to what happens to that pile of trees, some looked straight, and debris. Maybe too skinny for lumber but maybe let some fire wood folks take what they want? Maybe the logs are already gone and that's just the branches and are going to get burned.

[@fitter70]

Isn't all the equipment you buy for your business tax-deductible? Why is this even a question?

[@ArthurDentZaphodBeeb]

Yup, having equipment around makes you money. Just schlepping materials around a jobsite rather than using manual labor pays for equipment. How any builder justifies rental equipment or subcontractors has always boggled me (besides the high cost, the lack of schedule control is a budget killer). And don't be an idiot and buy from a dealer. Go buy good used equipment (a few thousand hours or less) from a large rental outfit that does regular maintenance (Sunbelt etc). I always tell people to talk to a good trim carpenter to know who the (few) good builders are - trim carpenters know who the real hacks are, and who to avoid.

[@altinaoutdoor]

12:03 what kind of subs do you have that are including trips to Hawaii? I feel like that comment is uncalled for. If a sub purchases equipment, they should be making money with it

[@forallyall6143]

if your business is revolved around you subbing everything out no, you will do three jobs then it will sit , if you are a self performer than this was never a question to begin with

[@matthelms4167]

Don’t forget when an employee gets their CDL, they can go out and get a much higher paying job 😁 You gotta be a solid company to work for to keep those newly minted CDL’ers happy & still working for you.

[@dlg5485]

having a CDL doesn't pay that great nowadays. Most blue collar jobs that use to earn you a comfortable middle class living are sh*t jobs now.

[@danslickers8166]

Did not watch the video but will answer a question you should be asking yourself. Yes you should have your own crew of guys. They should be on your payroll and have Christmas parties each year. Put some skin in the business don’t just be a builder to make money. Merry Christmas wish you well Grace and Peace Slick

[@bascodelagamma]

👍

[@JamesG1126]

$75k skid steer actually costs 1/2 that with the tax deduction.

[@MerkDolf]

🎉 😄 👍 👌

[@Joseort1234]

Matt, don't give builders stupid ideas. Let the contractors make their money. This S****p builder already don't want to pay !!!!!

[@patrickbellefleur5508]

Back in the day builders had a background trade that they would perform on their jobs. Its might be plumbing, electrical, or carpentry, then everything else was subbed out. To me thats a true "builder". If your not doing anything and subbing it all out, its more of a construction manager/management which 95% of builders are. If your busy enough the other option is self performing but hiring experienced people to run that specific trade.

[@JamesG1126]

It takes years to become an expert at operating heavy equipment. Nothing funnier than watching a rookie operate a brand new $75k piece of equipment. I could do better with a shovel.

[@ryankelly5303]

1st comment and like. 😊

[@buildshow]

Thanks for the support!

[@magabu99]

First

[@Foche_T._Schitt]

A friend of mine had a bunch of equipment and was making good money with it until Jimmy was elected and the interest rate sky rocketed and he lost it all...

[@BigTee-lp7qu]

And what about all the folks that are still operating under these new circumstances and making money, maybe a solid long-term business plan and matching performance old have kept hi mmm in business. Dumb doesn't last..

[@Foche_T._Schitt]

@@BigTee-lp7qu Do you know who I'm even speaking of?

[@BigTee-lp7qu]

@@Foche_T._Schitt nope, just a general truth FDS, it happens a lot... like more restaurants fail than succeed. Everyone's a chef until they have to do it every day to make a living.

[@Foche_T._Schitt]

@@BigTee-lp7qu *Jimmy Carter.*