"Martin Hotze" wrote in message
...
gatt schrieb:
I hear all kinds of horror stories about leasebacks, but this seems like
a much better than average prospect but I want to make sure I know what
I'm doing before I get into something like that.

Comments/experience?

if there is so much expected business than he won't need you for a
leaseback. What's the cost of a usable C150/152?
http://www.aso.com/ lists them from USD 16,500 to USD 65,500. I'd say for
30 AMU you'll get a usable plane. Why does he want a leaseback?

Most flight schools operate with leasebacks to some degree. It allows them
to have a larger fleet with less credit extended, and the risk for them is
zero.

Leasebacks can be a good deal for the owner given the right situation. The
biggest risk is if the plane goes down for damage or something big like an
engine overhaul. The insurance is astronomically high, especially if the
plane is used as a primary trainer, and most insurance companies won't let
you reduce coverage unless the plane is down for more than 60 days. As such
there is a certain degree of risk in them so they shouldn't be entered into
lightly unless you can well afford it. The thing to ask yourself is, if the
engine blows up on day one do I have the cash or credit available to pay for
the overhaul, pay all the expenses, and do without the income for a couple
of months? If the answer is no, you shouldn't enter into the agreement
regardless of how favorable the terms are.