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#1
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I'm a new plane owner, and in an unusual stroke of luck I own the plane
outright. The problem is that financially I'm not in a position to maintain it (or own it for that matter...), so I'm looking into various partnership setups to help offset costs such as fractionals, co-ownerships and leasebacks. Thought I'd post "yet another question" about which of these partnerships might be more viable than the others given my ownership. most of the reading that I've done thru this group and in various other articles thru out the web seem to be geared towards a partnership where the plane is still being paid for by the partners. I'd assume that a partnership where the plane is already paid for would allow for a more attractive buy in given the possibility of a lower buy in price to cover the operating expenses, as well as a lower cost per hour to the partner. If I form a partnership where the other partners pay some amount in to a general fund as the seed money how would my share get paid in? I'm not interested in putting X grand into the pot since I'm placing the plane into the partnership with a paid in full status and wanting to keep my share of the valuation - how would this work? these questions and more I'm sure, thanks in advance |
#2
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"BigGuy" wrote in message
oups.com... [...] If I form a partnership where the other partners pay some amount in to a general fund as the seed money how would my share get paid in? I'm not interested in putting X grand into the pot since I'm placing the plane into the partnership with a paid in full status and wanting to keep my share of the valuation - how would this work? If you own the airplane outright, then it's your asset. You can charge partners whatever you like to own whatever fraction of the asset you like. Of course, the closer to fair market value you make the base value of your airplane when calculating the cost to own a specific fraction, the more likely you'll find a partner willing to pay your price. If you can find someone to pay $100K for a 25% share of a $50K airplane, there's no reason you can't charge that. ![]() your best to charge a fair price for the fraction. Charging more than fair market value will discourage partners from joining, while charging less than fair market value will undermine your own equity in the partnership. Any partnership needs a solid contract to make clear the relationship between the partners, their rights and responsibilities, and how the partnership can be modified or dissolved altogether. AOPA has lots of resources to help with that. You might also try rec.aviation.owning. It's a much more appropriate newsgroup for this discussion than this one. Pete |
#3
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"BigGuy" wrote in message ...
I'm a new plane owner, and in an unusual stroke of luck I own the plane outright. The problem is that financially I'm not in a position to maintain it (or own it for that matter...), so I'm looking into various partnership setups to help offset costs such as fractionals, co-ownerships and leasebacks. Well here is the kicker, you'll always have to put in your share of the maintence cost. And your share of the fuel used by you, when you fly. Now if you sell 1/2 to another partner, then you're no longer the soul owner. But that half of the total value of the plane should get you some decent amount of flying hours and maintenance work. If after you have used up the money from selling half of a share you still can't afford it. Then you sell the other half and spend that money renting versus owning. Or you can sell the whole plane now and spend the money renting some newer, different, faster, roomier and no worries about tie down fees, maintenance fees all you'll have to do is pay the owner to rent his plane. Ownership is nice, but renting is worry free. David |
#4
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Sell 1/2 the plane to one other partner (or 1/3 each to two more
partners). Bank that money and use it to pay your costs. When your kitty runs out, sell your remaining share to yet another partner and you are out of the plane entirely. You will probably need a lawyer to set up the partnership, but it shouldn't be too costly. If you are really struggling to make ends meet, you should probably sell the plane. Aircraft ownership is expensive and pretty much a luxury. |
#5
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Big Guy
Find a buyer for the aircraft and just keep renting as the need arises. From what you say, you are in no position to incur or carry the costs of private aircraft ownership. Best bet is to just sell your share of the action. |
#6
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Its much easier to get partners for an existing plane than for one you
are thinking of buying. People just don't seem to want the hassle of selecting and getting the plane. The partners need to have ownership in the plane in order for the insurance to work. Otherwise you'd be renting the plane and paying 3X for insurance. Personally, I wouldn't partner with someone who couldn't afford a plane on their own. You just never know what could come up. I've partnered because a plane turns to crap if it doesn't get 150ish hours per year. However, I may need to write a $10,000 or more check at any moment if something happens. A Mooney owner near here just paid $40,000 to replace a rusting rear spar. That kind of thing can pop up at any time. -robert |
#7
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Talk with an aviation lawyer, you need legal advice. The
AOPA can get you a list of lawyers that specialize in aviation. -- The people think the Constitution protects their rights; But government sees it as an obstacle to be overcome. some support http://www.usdoj.gov/olc/secondamendment2.htm See http://www.fija.org/ more about your rights and duties. "BigGuy" wrote in message oups.com... | I'm a new plane owner, and in an unusual stroke of luck I own the plane | outright. The problem is that financially I'm not in a position to | maintain it (or own it for that matter...), so I'm looking into various | partnership setups to help offset costs such as fractionals, | co-ownerships and leasebacks. | | Thought I'd post "yet another question" about which of these | partnerships might be more viable than the others given my ownership. | most of the reading that I've done thru this group and in various other | articles thru out the web seem to be geared towards a partnership where | the plane is still being paid for by the partners. I'd assume that a | partnership where the plane is already paid for would allow for a more | attractive buy in given the possibility of a lower buy in price to | cover the operating expenses, as well as a lower cost per hour to the | partner. | | If I form a partnership where the other partners pay some amount in to | a general fund as the seed money how would my share get paid in? I'm | not interested in putting X grand into the pot since I'm placing the | plane into the partnership with a paid in full status and wanting to | keep my share of the valuation - how would this work? | | these questions and more I'm sure, thanks in advance | |
#8
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"FLAV8R" wrote:
Ownership is nice, but renting is worry free. It's worry free? I dunno about that! Having rented, owned and worked at a flight school, no one sees to maintenance like *most* pilot/owners. Yeah, I know about mandatory regulations, but in the gray areas, where a decision can be made as to whether to fix something now or wait till next annual, which decision do you think the flight schools go with? |
#9
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On 17 May 2006 09:22:53 -0700, "BigGuy" wrote
in .com:: so I'm looking into various partnership setups to help offset costs such as fractionals, co-ownerships and leasebacks. Here are some issues to consider: 1. Each member of a true partnership is responsible for debts incurred by other members. 2. Each time a 'share' in the aircraft is sold it is subject to state personal property/use tax, unlike the transfer of corporate stock certificates. 3. The state of Nevada (and Oregon) has no personal property tax for aircraft. 4. ... Do a little research here http://www.corpmakers.com/ before you reach a final decision. |
#10
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This is not true in the state of California. (I called the FTB to
verify this). 2. Each time a 'share' in the aircraft is sold it is subject to state personal property/use tax, unlike the transfer of corporate stock certificates. |
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