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Has any one financed a mill through woodmizer?

Started by jdw, September 01, 2016, 09:36:44 PM

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jdw

I've been looking at the woodmizer lt35hd and 99% sure I'm gonna buy one. Went to my bank to see about the loan they didn't seem to thrilled about loaning 23,000 on a sawmill. So I went through the whole spill with them they eventually said we will loan the money but you have to show it will pay for itself before hand😟 Not sure how your supposed to do that lol. So I call woodmizer to see about there financing they seem like good people to work with but the interest seems kinda high @ 9.9%. But I plan on paying off after the I sell my Frick and Norwood at the sawmill auction in February so Intrest is not a big deal. Any one know what paper work you have to have for woodmizer? Are they hard to finance through?  I have good credit I'm just kinda wondering what to expect.

WV Sawmiller

   Didn't finance mine through WM. I had some cash already coming I was going to use but my financial advisor pointed out I could make more on it from my investments than the interest on an LOC at my local bank would cost so I went that route. I think my LOC was a little over 3 and certainly less than 4 percent. I just pay back the LOC from my sawing income.

   Everybody's situation is different. The WM folks are great and I love my LT35HD but I'd think there should be better interest rates out there if you shop around and aren't already over extended. Good luck.
Howard Green
WM LT35HDG25(2015) , 2011 4WD F150 Ford Lariat PU, Kawasaki 650 ATV, Stihl 440 Chainsaw, homemade logging arch (w/custom built rear log dolly), JD 750 w/4' wide Bushhog brand FEL

Dad always said "You can shear a sheep a bunch of times but you can only skin him once

ellmoe

   I financed a couple of mills through them many years ago, fine to deal with, but interest is high. As an option, you might try a equipment leasing company, usually lower rates and only a couple of payments up front. Warning, check up on any leasing companies you deal with, some are frauds, especially, Calif. co's.
Mark
Thirty plus years in the sawmill/millwork business. A sore back and arthritic fingers to prove it!

drobertson

Yes, back then it was a 700 buck monthly payment, an easy one to make so long as you are sawing and selling, if you become idle its an expensive toy to look at,
only have a few chain saws I'm not suppose to use, but will at times, one dog Dolly, pretty good dog, just not sure what for yet,  working on getting the gardening back in order, and kinda thinking on maybe a small bbq bizz,  thinking about it,

1Cross1WayLT15

I just financed with WM 2 months ago. It was straight forward and very easy! My intention was to pay it off before the first payment was due, so I was not worried about the 9.9%. 25 days later I paid it off completely with no pre pay penalty. Interest does accrue per day. So, I think I ended up paying $30-40 total in interest. It was worth it!
Rookie -
WM LT15 (w/ Power Feed).

jdw

25 days that's pretty good what ya been cutting?

clintnelms

Don't you have to be sawing as a business to finance with them? Or can you finance as a hobby mill.

jdw

Hobby can finance through them business goes through direct capital or atleast that's what they told me.

RPowers

I had my LT28 financed through them. The payment was easy and it started as a hobby mill. Once I got busy and decided to look at a larger mill the payments weren't going to be all that easy anymore, plus I've built my credit score way up so I was able to get a good rate on a lease thru my banks equipment side on the LT50. They are easy to work with, it was pretty painless to set up my Lt28's financing and my credit wasn't very good at the time.


RP
2013 Woodmizer LT28G25 (sold 2016)
2015 Woodmizer LT50HDD47

Chop Shop

Put in as much time as you can till Feb on that Frick and Norwood and take the loot earned by then and the auction and buy it outright.

Be debt FREE.   It feels great.  And a slow month cant kill you.   Consider it a 9.9 percent raise. 8)

jdw

Problem is the Frick is dead I'm almost certain it needs a new husk. For the money I've spent on that thing  could have bought a new woodmizer. So I'm gonna try to rebuild the husk before the auction. I couldn't cut the lumber I need fast Enuff on the Norwood. The grade lumber buyer said he wants a tractor trailer load a week. That's I believe 7500 bf of oak and if it's been cut longer than 7 days he will reject it. I just don't see any possible way to make this work while also working a full time job. That's the situation I'm in I hate to let this opportunity pass me up.

starmac

Just a thought, but if you are going to be under the gun sort of for a load a week, doing so part time, wouldn't you be better off looking at say a diesel LT 50 than a 35??

I would be afraid that I would be getting something and stuck with it for a while, when I really needed something geared for more production to meet my obligations.
Old LT40HD, old log truck, old MM forklift, and several huskies.

jdw

Well the lt50 would be great. It's kinda one of those situations where you try to walk on the safe side I guess. I know I can make it with the lt35 money wise even if something falls through. If I go to the lt50 it's ify at best. I guess the fear of the unknown, however this guy that wants the lumber owns the company his grandpa started in 1921 they have a great reputation and they dry and ship massive amounts of lumber a month. So he said if I send good lumber he would buy all I could cut seems like a good offer to have.

red

Honor the Fallen Thank the Living

Percy

I financed two mills thru woodmizer. First in 1997 and then 2003. The banks were willing but there was too many hoops to jump thu. No regrets.

On the risk thing, I cant see a well equipped LT35 costing more than a decent new American built pickup truck. For the most part, a truck doesn't earn anywheres near what the LT35 is capable of earning. Prioritize your budget/spending. The mill is a good investment IMO for anyone who likes the work and has access to logs.
GOLDEN RULE : The guy with the gold, makes the rules.

stavebuyer

Keep in mind that you will need to saw considerably more than 7500' of total products to get 7500' of grade lumber. That's a tall order if your working by yourself. A fully automated LT70 with 2 helpers will cut 5-6'k Ft a day and as much as 10k cutting long logs. An LT35Hyd  with dead rollers, single blade edger, and one helper about 2500' a day. I have both mills and those are hard numbers including lost time for breakdowns etc.

If you look around you will find wholesale markets that will take less than trailer load lots and during the winter grade lumber will "keep" longer than a week. Sawing alone the LT35 is a good choice and money spent on edger, decks, rollers, etc. will do more for production than a bigger mill without them.

jdw

I got to say I'm buying a new mill to try to avoid breakdowns. And as far as the wholesale markets I keep hearing about them but have never been able to find any. Any advice where I could look?

red

Keep sawing part time and making connections. Most guys find a Niche market where they least expect it. Also look into selling anything you don't need to put more money down on new equipment. Make a solid business plan but always be open to new ideas. Clear as Mud . If it was easy everyone would be doing it . Good Luck
Honor the Fallen Thank the Living

jdw

Heard back from woodmizer today were good to go on the new mill. So I got to send a deposit and wait to pick it up.

tnaz

Good for you; what mill did you decide on? 8)

Good Luck in your future milling, 8)

Terry 8)

jdw


Chuck White

A friend of mine just bought a new LT35HD.

Very impressive and very heavily made!
~Chuck~  Cooks Cat Claw sharpener and single tooth setter.  2018 Chevy Silverado and 2021 Subaru Ascent.
With basic mechanical skills and the ability to read you can maintain a Woodmizer  LT40!

4x4American

Quote from: jdw on September 04, 2016, 12:34:40 PM
I got to say I'm buying a new mill to try to avoid breakdowns. And as far as the wholesale markets I keep hearing about them but have never been able to find any. Any advice where I could look?

Look in the ads of the hardwood market report
Boy, back in my day..

OlJarhead

I used WM -- easy to work with and no problems at all.  Yes the rate is high but the mill is paying for itself and will be paid off early (just over a year if it continues as is).  I put down a decent chunk on the mill though, which helps, after a sold my LT10.
2016 LT40HD26 and Mahindra 5010 W/FEL WM Hundred Thousand BF Club Member

jdw

Well as I was about to put my down payment on the woodmizer my logger I get 99% of my logs off of called and said he's gonna retire. So I'm not sure what's gonna happen now gonna have to make some calls see what I can get worked out. I may end up out of business guess we will see.  :-[

Magicman

You are very wise to hesitate.  No business should be built depending upon only one supplier for raw goods or only one market for the finished goods.  (Logs and lumber in this instance.)  You need various suppliers and various markets available.
Knothole Sawmill, LLC     '98 Wood-Mizer LT40SuperHydraulic   WM Million BF Club Member   WM Pro Sawyer Network

It's Weird being the Same Age as Old People

Never allow your "need" to make money to exceed your "desire" to provide quality service.....The Magicman

paul case

It is kinda a sad fact that we who are making lumber are dependant on other businesses to buy our lumber and to sell us logs. Folks who do their own logging have an advantage for sure. I have found that even with 3 or 4 different buyers of my products that when it gets tough they all slow down and we get full of logs in a hurry.

It is a pretty difficult balancing act.

PC
life is too short to be too serious. (some idiot)
2013 LT40SHE25 and Riehl edger,  WM 94 LT40 hd E15. Cut my sawing ''teeth'' on an EZ Boardwalk
sawing oak.hickory,ERC,walnut and almost anything else that shows up.
Don't get phylosophical with me. you will loose me for sure.
pc

starmac

Talk to your logger, if you had a good relation, surely he can get you hooked up with some more loggers in the area.

This area is short on loggers and extremely short on log markets. My main logger, the one I originally bought my log truck to haul for retired this year and will not be logging this winter. My next main logger I haul for, is a great guy, but it barely pays enough to make it feasible, even thinking of it as a hobby.
He threw me for a loop this year also, a couple of months ago, I bought 2 old cat blades from him and a dump truck, that he had upgraded, These were to be traded out in trucking, I hauled the two blades home, then went and loaded the dump truck the next day. He then informed me he was taking all his equipment to the auction. He had just come to this decision overnight, because of his wife has some serious health problems and really needed to go outside to some special doctors. It was a very understandable decision, and he was torn by it pretty bad, plus he knew he would be takeing it in the shorts on his equipment. I asked how was I supposed to pay if he wasn't going to need a truck, his answer was he wasn't concerned, because I would be hauling for somebody, and ofcoarse he was right. Luckily his wife found a good doctor hear and has improved greatly, so he is going to log this winter after all.

I am seriously considering buying the loggers equipment that is retiring and doing some contract logging for the mill, but am torn by the fact that I will be under the gun depending on just one source to make the investment pay.
Old LT40HD, old log truck, old MM forklift, and several huskies.

jdw

Made some calls today but seems hard to get these loggers to commit to anything. They all act like there willing to haul logs to me but never say for sure. Guess I'll keep calling tomorrow see what I can come up with.

killamplanes

I'm a logger and own a mill. So I can play both sides of the fence. I personally will not loose any sleep going down the road a little further with my log truck to make another hundred bucks. With my mill I will sell my lumber to another guy for 5 cents more a foot.  That doesn't mean I will not provide logs or lumber to a past customer, I will just ease my way toward the better markets. But that's just me and here.  Other places may not have the compitetion.  And I owe it to myself because of the work evolved in logs or lumber.  Moral of the story, I will leave in a heartbeat for a nickle. It's business not personel
jd440 skidder, western star w/grapple,tk B-20 hyd, electric, stihl660,and 2X661. and other support Equipment, pallet manufacturing line

jdw

I understand that every ones got to make money. Thing is I'm offering just as much if not a little more than the log yards. But I'll keep calling I'm bound to find someone. I guess if I had to I could go the portable route but I'd rather not if I can keep from it.

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