I don't own an NSX yet, but I've been coming here for years and have always found helpful advice, NSX-related or not. I'm hoping someone can give me their opinions.
I graduated in Finance from UW a year ago, and have a great job in finance for an insurance company making $50-60k/yr. I own 50% of my condo in Seattle purchased 9 months ago, the other half is shared with my parents. My plan is to get an MBA in a top 25 school in California (USC, UCLA, Berkeley, Stanford) in 2 years. I have about $60k invested in mutual funds and am saving over $1k/mo on average. Only debt is a $6k loan from college.
I am considering buying a proprietary freight/shipping route locally. The business is for sale asking $92,500, grosses $94k/yr, cash flow is $77k/yr, and revenue has grown at least 10% every year for the past 5 years. The business comes with a van and a driver paid $43.5k/yr including taxes. Seller claims passive earnings of $33k/yr for the owner. I am always looking for smarter ways to invest my money, and at this point with a decent personal cash flow and no wife/kids/debt, I feel maybe it's not a bad time to take on something like this. It seems like the cash flows and expenses are pretty stable with not much risk. My only worries I can think of would be filling the driver's position if he were to quit unexpectedly/suddenly, and maintaining/repairing the van, which is a 1993 International said to be well-maintained.
My questions are, do you think this is a good time for me to buy a business like this, or is it too risky? Would I be making a mistake by buying this business, then moving out of state in a couple of years (I plan to rent out my condo, should just about break even with mortgage once tax breaks are factored in)? Anybody have experience in the shipping/freight business? Any input would be appreciated. Thanks!
I graduated in Finance from UW a year ago, and have a great job in finance for an insurance company making $50-60k/yr. I own 50% of my condo in Seattle purchased 9 months ago, the other half is shared with my parents. My plan is to get an MBA in a top 25 school in California (USC, UCLA, Berkeley, Stanford) in 2 years. I have about $60k invested in mutual funds and am saving over $1k/mo on average. Only debt is a $6k loan from college.
I am considering buying a proprietary freight/shipping route locally. The business is for sale asking $92,500, grosses $94k/yr, cash flow is $77k/yr, and revenue has grown at least 10% every year for the past 5 years. The business comes with a van and a driver paid $43.5k/yr including taxes. Seller claims passive earnings of $33k/yr for the owner. I am always looking for smarter ways to invest my money, and at this point with a decent personal cash flow and no wife/kids/debt, I feel maybe it's not a bad time to take on something like this. It seems like the cash flows and expenses are pretty stable with not much risk. My only worries I can think of would be filling the driver's position if he were to quit unexpectedly/suddenly, and maintaining/repairing the van, which is a 1993 International said to be well-maintained.
My questions are, do you think this is a good time for me to buy a business like this, or is it too risky? Would I be making a mistake by buying this business, then moving out of state in a couple of years (I plan to rent out my condo, should just about break even with mortgage once tax breaks are factored in)? Anybody have experience in the shipping/freight business? Any input would be appreciated. Thanks!