How did you get the money to buy/build your RV?

  • Total voters
    300
If you look at the expected total cost, and your expected project duration, you may be concerned at how you will come up with the needed money to meet schedule. I have good news, and bad news.

The good news is that most people find that the project takes two to three times longer than they expected. And this is a recursive rule, in that it still applies even if you applied a factor of two or three when you made your initial estimate. So you have a lot more time than you think to come up with all the money.

The bad news is that the project will cost more than you expect too, but the error is only perhaps 20% (tools you didn't know that you "needed", things from the accessory catalog you hadn't considered, parts to rebuild builder booboos, bigger engine and CS prop so you can out perform your friends, etc).
 
I figured it would take longer and more money... I want to build one soooo bad! But I work about 50 - 60 hours a week, M-F... so the only time I'd be able to do any work would be Sat & Sun, which I'm sure the old lady wouldnt be happy with that! So if I figured working 8 - 10 hours on Saturday OR Sunday, then I should finish by the time im 50 or so... (Im 25 now) :D
 
It's OK you keep calling her the old lady and you'll probably find soon enough you'll have as much time as you need.
 
It can be done

I misused my college tuition in my last semester to buy a RV-6 tailkit. I would buy what I needed as I went. I also did side jobs, like concrete work, pressure washing, building decks, cutting fire wood, and other odd jobs to come up with cash. I also built other airplanes for people to make money. What ever I could do, I was not to proud, I just did it and then purchased parts. I ended up with a IO-360, C/S, full panel RV-6 when I was done. So it is possible to start from scratch and get an airplane in the end. BTW, it took me 6 years to get it done due to all of the other projects to make money to pay for the RV. Aden Rich.
 
danielhv said:
Just curious how you guys do it! :)
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Paid cash on the pay as you go plan. One inspiration to finish and fly is the growing pile of equity sitting static in the garage and basement, especially after you add an engine, prop and avionics. The basic kits are much less painful. I have enjoyed every minute of the experience so far though. Van has a great concept and product.
Jim Sharkey
 
I sold my pride and joy, my 1991 Honda Beat (extremely rare car for the USA) so that I could purchase the tail kit and tools. The wife said only one project at a time for me, and after riding in Don Roberts' -7A, I knew I had to have one. It's not TOO bad though, I can still visit my Beat - a gent up in Nashville, TN purchased it and is going to display it in his car museum.
 
I sold my Tri-Pacer.
I worked overtime and stashed the extra cash.
I took out a $5k 2nd mortgage for the engine.

Steve
 
I am paying cash for now but will probably borrow the money for the engine. Coming up with $5,000-6,000 is not so bad but $25,000 at one time is going to be tough. Having $40,000 some-odd dollars equity and owing $25,000 for a plane that should be worth $80,000 to $90,000 doesn't bother me.
 
I haven't actually started yet, but as soon as the -12 kit comes out I was planning on paying cash as I went with the exception of the engine until I just read somewhere that Vans will not be selling the -12 in as many kits as the others. While this makes sense I guess I'll now have to wait until I see the breakdown of costs before I decide to borrow a loan or not. Hopefully they can break it down a little more than just one kit for one lump sum...maybe wings as one kit and tail + fuse. kit as another?? :) That would still make it possible to get a lot of the construction done without debt, and then worry about the engine later.
 
Pay as you go...

I bought the kits one at a time and payed as I went.

I owned a Cheorkee Six.

Only had weekends to build. I sold the Six to pay for the engine and finish kit. I built in flew in 18 months.

I was out of a job the day the Finish kit arrived. Was able to work full time the last 3 months.
 
So far I have paid for my tools, tail & wing kits (both kits bought used, I saved almost $2k) by doing consulting projects (database & programming). This keeps me out of the doghouse most of the time. The downside is that it takes away from building time, since I still have my normal 45-50 hour a week job.

I'm a 'pay as I go' type of guy and very adverse to debt,so I am still not sure how I will pay for that engine! Or year 2010 avgas!
 
I am on the pay-as-you-go plan until I get to Engine, Avionics and Paint. Then I hock the house (Home Equity line of credit). Pre approved by Spousal Unit.
 
Aden Rich said:
I misused my college tuition in my last semester to buy a RV-6 tailkit. I would buy what I needed as I went. I also did side jobs, like concrete work, pressure washing, building decks, cutting fire wood, and other odd jobs to come up with cash. I also built other airplanes for people to make money. What ever I could do, I was not to proud, I just did it and then purchased parts. I ended up with a IO-360, C/S, full panel RV-6 when I was done. So it is possible to start from scratch and get an airplane in the end. BTW, it took me 6 years to get it done due to all of the other projects to make money to pay for the RV. Aden Rich.
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Dude!...In this world of excess credit and instant gratification I'm proud of you for doing it the hard way...But now it belongs to you...Not the bank!

Frank 7a
 
Debt adverse

...So much so I had a very hard time getting a loan to buy a house....That was 10 years ago..Got renters, worked overtime...(I'm a slumlord!)

Saved and built Zenair zodiac

Doubled size of house (all by ourselves)..My Wife is quite a roofer!

Saved and sold Zodiac to buy engine

Built 7a...Renters now paying for fuel.

Saving for retirement.

I know this is not for everyone but it suits my risk adverse style.

Frank 7a
 
I know ya'll might hate me, but....they pulled my name out of the cement truck at OSH last year. Sold the Husky because we would rather have an RV. After taxes (the big deal) and paying off a small mortgage I took to build a new shop, there was enough left to buy all the RV-8 QB kits, a new prop, and about half the engine. The rest will be pay as we go. Have another airplane toy for sale right now, the easy way to get some of it.

Frankly, I doubt we would have done this right now if we had not been so lucky......we're currently in life's "daughter in name-brand college" window. Prior to this huge stroke of dumb luck I was scratch-building a bplane to save money.

Do send in your EAA sweepstakes tickets.
 
Pay as I go

I started on my 9A Labor Day weekend 2006. I bought the tools and empennage. When we were close to ready for the wings, I ordered that kit. We finished the empennage about two weeks sooner than I thought so we had a bit of a break before the wings arrived. My timing was better when I ordered the fuselage and we only had a few days off before that kit arrived.

I'm building with my Dad and brother and we moved along at a good clip until the middle of May. That's when I had to dedicate my time to a second business I started, an Ace hardware store. The store is providing the extra money I'll need to finish the plane, but now I have very little time to build.

So, my conclusion is you can either have the time to build, or the money, but not both.

The time is freeing up a little bit now, we've made some progress the last two weeks. I can't believe how much I miss building, though.
 
hmmm

doug has the best advice on this one but i couldnt go that route. instead i worked more and cut out what I could. now i am trying to give gulf coast avionics about 10 grand but they dont seem to want it. guess i'll give someone else a try.
 
I could check enough of the boxes to vote.

Took over 5 years and so a lot was paid as I built.
I had some money saved before starting so that went into it also.
I also borrowed about 17,000 from my 401K.

Only a couple more years to go and the 401K is paid back and I am not making payments to the bank.

Kent
 
Advantages of the "slow build" kit

Here's how I am doing it.

The empennage is $1500 + $2000 for tools, and you are out $3500 the first 6 months. Next year you order the wings and a few more tools, and you're out another $5K. Then, the third (and forth) year you knock out the fuselage for another $5000-$6000.

Now, you have to make a decision about the engine, which is close to 30 big ones, or you put another $5K on you credit card for the finish kit. This is starting to get serious, so you have to decide if you should get an aircraft loan for the engine and avionics, or maybe refinance your house. Well, there is anouther solution for the pay-as-you-go crowd. You can choose to put in an "alternative" engine. This way, you can buy and fabricate parts a little at a time. So, $5k for the next three years, and your engine is built and paid for.

All you have to do now is fork over $5K for the finish kit, and another $15K for the avionics, and you are all set. Wait, $15K for avionics, all at once? No way, you can't put that much on your credit card. Ok some of us can, but now we are talking more than three months to pay off the credit card. This is why, way back in year one or two, you started putting $100-$200 a month in you avionics savings account.

So, 6-7 years and $50,000-$60,000 later I should have a used RV-7A, and no bills. Yeah, it's used, I mean it is 7 years old, but "hardly flown".

Tracy.
 
I spread the cost over the 8 years it took me to build.

The bad news is that the airplane costs as much per year after you build it as it did during the building. Add up hangar rent, insurance, gas, taxes, upkeep, plus the $4-6k per year in lost revenue due to the fact you've got $50-70k tied up in a non-earning asset. . . My $50k RV6 costs me $11k per year, or about $140 per hour for the 80 hours I fly. . .

. . . Oh. . .sorry, the bean-counter in me took over for a moment. Never mind.

John Allen
 
One of the least expensive ways to build a plane is to have a partner. Everything is always have price! Ofcourse you ended up upgrading everything because everythings half-price! Did I really need that supercharger? No, there isn't a real mountain anywhere that I fly but just in case I want to fly over the highest peaks in the U.S. I can do it. But paid mostly cash and some foolish credit card company offered no interest until July 2008. I way pay the remainder off by then.
 
financing the project

need to check more than one box.

sold my 1/2 interest in c310 ('65 J-model), banked it for engine and prop. sold my c150 -- bought empennage, tools, and wings with that. (kept my 1/3 interest in pa-28 to have something to fly until i finish).

wife cashed in whole-life policy. i did the same. bought fuse/finish kits and avionics with that. still have the fwf kit and the efis to buy, but the money's in the bank for those (from the sales).
 
how do I do it again?

I am at the point where I'm ready to order the RV-10 kit ASAP but I don't want to give up my first born RV to do so! We paid for the -7A as we went - it just took focus. Now my wife and daughter want the bigger airplane for trips but I'm back to square one on trying to figure out how to swing an airplane.

Was some talk of a multi-partner alliance but it sort of fell apart.
 
Scott Will said:
Was some talk of a multi-partner alliance but it sort of fell apart.
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You would be amazed at how many people want to be partners AFTER you are almost done. There has to be a bunch of RV owners who need a bigger plane once in awhile.
 
That's something I've considered... build a nice RV-10 for $140k, sell half for $100k, end up with 1/2 of a nice RV-10 for only $40k.
 
After I'd bought my airframe kit and most of the avionics, partly from my bank account and partly from revolving credit cards, I really had no idea where I was going to get another $40k for the FWF. Things were getting slower and slower in my field (database consultant), and it was looking pretty iffy. Then I got an unusual gig working all one winter in Jamaica. Nice break from NH winters. I didn't see much of Jamaica, though, as I worked 12-16 hours a day, 7 days a week, sometimes as much as 18 hr/day. In the 3 months I was there, I had 5 days off. But it was paid hourly and it paid for the FWF ;-)

My panel plan calls for a Garmin 530, but I haven't bought it yet and probably won't be able to for some time. The tray's in there, though.

A couple times, I looked at refinancing my house to pay for it all, but I've managed to barely squeak by without having to do that.

Van's knows what they're talking about when they say "build 'em simple, build 'em light. I've been working on my Quick Build almost 5 years now (2 years on engine). I keep telling myself "keep plugging away on details and eventually you'll run out of details to do." That's how it was on my Finish Kit - it was a big flat box full of parts, and I just kept plugging away at it until the box was finally empty.
 
Check and Go!

I use the Check and Go! method.

No I am not talking about that payday loan company. :(

It works like this; Hunny, :p do WE have enough money for me to order the fuselage kit?

Answer = Yes! :D I GO download the order form the next day and order the kit.

Time has been my biggest issue, but that does make the budgeting easier. :)
 
I paid for my airplane the old fashioned way - by cash or check on the pay as you go scheme. The extra cash came from a second job I picked up teaching evening classes at a local college.

Beyond that, I bought other people's discarded wing and tail kits (tools too), and figure I paid about $0.60 on the dollar for those items. I think I had about $4k in the wings, tail, and all the tools except my painting equipment.

Towards the end of my project, I sold my 1/2 of a Piper Tomahawk, which paid for the parts and machine shop work on my engine and for a portion of my panel.
 
Saved up as I was working on the slow build. Taught extra classes and picked up consulting/grant projects. Money is in the bank now to finish it all. It is still going to hurt to write those big engine and avionics checks!
 
How I paid cash

Back in 1988, I ordered and paid for my RV-6 tail kit. At that time, I asked myself, how much money could I afford to fly the airplane if someone gave it to me? The answer was $75 per week. I went to the credit union and had it setup that $75 came out of my pay check each week. Yes there were some large expenses (radios) that I floated a small loan but paid the loan back out of the $75 per week in less than one year. After 8.5 years, two wives, one girl friend, two houses, three rental properties, and a car; I had a flying RV-6 that was paid for. It was named "My Sanity" becasue it kept me out of bar drinking and chasing wild women. I kept my mind and hands busy with the airplane instead of being down on how bad things were going. At time of completion, if you factored in 4% inflation per year to what I thougth the total cost would be, I was on budget.

After 2,050 hobbs flying hours, I can say that the airplane has been more rewarding to me and worth twice the price in enjoyment. I have met more GREAT people and been more places than I ever dreamed possilbe. Thanks Van for making my dream of owning and flying my own airplane come true.

That is how I did it. There are other ways that may fit you better.
 
Basically paying as I go. Will undoubtedly have to get a loan for the engine when the time comes.
What's really, really been helping me is the strength of the Canadian dollar against the US dollar. We pay hefty sales taxes here, but our dollar is about 0.97 now and pushing for par. I know others in Canada who built when our dollar was below 0.75. It really makes a huge difference.
I just hope it stays this way until i need an engine ;)
 
How I am paying for it...

I bought my emp kit way back in '99. Paid $500 for it. Am currently saving for the remainder. The rule of thumb I have been told to budget for is the 20/20/20 rule. 20 grand for the kit, 20 for the powerplant, and 20 for everything else.
As my higher tells me, once kids are out from underfoot, go out and have fun and fly whatever whenever! :D
 
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I clicked the OTHER category...

I started out buying the empennage, wings, fuselage on my credit card with a prime rate on it. By the time I got the balance up to around $17K, I got an inheritance that wiped out the balance and put the money in the bank for the rest of the project.

Along the way:

1. I went to Oshkosh 2002 to choose which RV model I would buy. When I returned home, I was promptly laid off from my job. I got a job the next day from my old boss who missed me for the 19 months I was gone working for the start-up company that began to implode.

2. My job(s) keep me on the road on a regular basis. Working on the airplane during the days that I am home was OK since I am on duty when the phone rings and I work out of my house (rented).

3. I finished the EMP kit of the RV-9A in December 2002 and begain the wings in Jan 2003. I got laid off from the "old job" during that time and it took about a month to get another job. Fortunately, the boss on that job was an old friend who supported my airplane building job on the RV-9A. I still worked from home for the day job - - same building rules apply.

4. The fuselage arrived in August 2003 and work began immediately.

5. The inheritance came in mid-2004. Work continued on the fuselage and finishing kit. The engine and prop arrived in September 2004.

6. I got laid off from my job at the end of February 2005. The airplane was completely paid off already and I still had plenty of money in savings. The next day was March 1, 2005. My full-time job was to get the airplane finished and flying. It was ready to move to the airport for final assembly on April 27, 2005. The airplane was completed for DAR inspection, which occurred on June 8, 2005. The first flight was the following day.

7. With no job to worry about and money in the bank, I got busy flying off the 40 hours required for phase 1 testing, all completed by July 2, 2005. The airplane went into the paint shop on July 5, 2005. It came out one day before flying to Oshkosh for AirVenture 2005.

My investment is around $75K with a minimal IFR panel, 160 HP O-320-D1A equivalent ECI Titan engine and Hartzell CS prop. I flew to Texas to see my son for Labor Day weekend 2005, and to LOE5 in October, then started seriously looking for a new job after that.

The details for any of you RV builder-wanna-be's are on the web site at www.n2prise.org with plenty of photos.

I finally got a new job in Jan 2006 with about $1,000 left in savings. Since then I have been just a regular guy, living from pay check to pay check just like before all this began. I have this shiny airplane with 234.7 hours on it and not much money for fuel to go flying.

Now, what were those magic lottery numbers?

Jerry K. Thorne
East Ridge, TN.
Satellite, CATV, & Fiber optics engineer
RV-9A - - N2PZ "Enterprise"
 
Just about to take the plunge, Paying as I go.

I am flying up to Van's Friday to take the Factory tour and a Demo ride if that works out. Will be ordering my Tail feathers shortly and jumping in. RV-9A, with a slider. Everything else is still under advisement. Paying as I go right now. Will sell my Cherokee to finish out the project. I have found I enjoy working on the planes almost as much as flying. Love this site and the way the RV group helps one another. Good plane, good group.

Moose (Mel Atkins)
 
One advantage of spreading the build time over a ten year span (so far) is the ability to "pay as you go". I was able to pay up front for all of the airframe kits and most of the other stuff, avionics and such. I did take out a loan to buy the engine, and I'm carrying a balance on a credit card (which I hate doing) in order to try and get this thing finished up before I get too old to enjoy it! I really hate owing money to banks and such.......

Edited to add:
Jerry, if you figure out those magic lottery numbers, could you send me a PM? :D
 
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Magic Lottery Numbers...

Rod,

You know better than that! Remember the scene from Bruce Almighty where GOD went on vacation and left Jim Carey in charge with all his powers. He said YES to all the prayers he was receiving. When 50,000 people all have the winning lottery numbers, it gets UGLY!

:D

Jerry K. Thorne
East Ridge, TN (near Chattanooga)
RV-9A, slider w/Meske Tip-up canopy baggage access modification
N2PZ "Enterprise" with 234.7 hours on the Hobbs meter.
 
Sold my '66 GTO convertible. That was enough to buy the complete kit and engine (well, a run-out engine, anyway).

Heinrich Gerhardt
RV-6, 3.2 hrs
 
Jamie said:
Where's the "I have no freaking idea" choice on the poll? ;)
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Thats me, I need that choice. So far cash only but looks like finish kit will be dipping into retirement and I have no freaking idea how to pay for the FWF, engine, and avionics.
 
Funding

Hi Guys
In Sept of 99' I sold my 1972 7ACA Champ and bought my wife a new bed room set and living room. She said that half the money was hers! I paid $12,300 for my complete RV4 kit. I droved up to Van's and picked it up 12/3/99. A year later a friend of mine orders a throttle quadrant from Van's and after examining it I decided that I could manufacture a superior quadrant. I started DJM Mfg in 2001 and the proceeds from my side business have funded the RV4 project.
 
Jamie said:
Where's the "I have no freaking idea" choice on the poll? ;)
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LOL!!!

When it comes time for the engine, I've been thinking of putting one of my kidneys on eBay. It's only slightly used. :p :D
 
Danger, Danger Will Robinson!

Yep... I'm manufactuering and selling Lost in Space Robot replicas in my basement.

I'm just finishing my tail kit and the SB wings arrived a short while ago. So far I've got the money saved up for the airframe and should have enough for the engine/avionics, before I need it.

Lost in Space Robot Replicas

Is this a great country or what!? :D

MikeJ

RobotFamily.jpg
 
I payed as I went for the kit, then saved up for the engine and prop. Building has taken 4 years so far about 85% done and 100% to go!!!! gone out of town about 14 to 16 days a month so I'm getting around 4 to 6 days a month work done. WILL it ever end??? :D

Pete RV7 N849PC

Hanging the engine soon!!!
 
cytoxin said:
doug has the best advice on this one but i couldnt go that route. instead i worked more and cut out what I could. now i am trying to give gulf coast avionics about 10 grand but they dont seem to want it. guess i'll give someone else a try.
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We'll happily take your money.
 
Well...this is my story:
I bought the tail-kit by money I had, started and had some fun. Then I started to get my pilots licence (a lot of money), because I wanted to fly my soon ready to fly Rv :)o)). It pointed out that A:) I would be not too soon ready to fly, B:) It takes a LOT more money than expected and C:) It will NOT be ready to fly SOON.
OK, always look at the good things: Ready to fly much later means more time to save money! So I climbed up the ladder step by step, empenage, wings, fuselage, and I had to sell my VW Karmann Ghia (sad) and my VW New Beetle (not so sad) along the way. Until that period, no big problems showed up, but then came the engine, avionics, paint, registration and so on.
After all it's still a miracle to me that I managed to raise all the money for that thing without selling everything I owned. In Germany we say:'If you jump over the dog, you'll jump over it's tail', and that's it. Blueeyed as I was I expected to finish my RV4 (used kit, used engine, and by now, used builder..)for under 30.000 ?, but that was wishfull thinking. If you ever could imagine what awaits you when you start your project, you never would start :eek:) It will take more money, more time, more nerves, more everything than you ever imagined, but it's worth every single minute. You will fail our you'll win, and if you win, it's one of the biggest things you can achive, that's what I can say.
I'm an ordinary man with an ordinary job and ordinary money. An aircraft is an extraordinary thing to build in my position, and I spend all of my money to get this thing airborne, but I would do it again.
No holidays for some years, OK
No Cellphone, no problem.
No GYM, it's in my shop.
No SUV, thank God.
If you have to, you can save a lot of money, believe me!
One day you'll fly over over those cellphone-equipped, SUV-driving guys in their GYM, and you'll know that it was worth it!! :p
 
Love this thread!

It's really interesting to read everyone's story. I started last October and I'm about 75% through my wings (Straight 8) and need to get my fuselage on order to keep from running out of work. I have been paying as I go using the Doug Reeves method of budgeting money each month to pay for the next subkit. That has worked pretty good for the tail and then the wings, but there hasn't been anything in the budget for the fuselage (long story). I only have half the fuse money, so I plan to go ahead and order (8 week lag time) and hope something falls out of the sky or I'll put the balance on plastic and budget from there. Frustrating cause these aren't even the really expensive parts, but I am hopeful that "build it and they will come" meaning the money will come.

I am a firm believer if you set your intention things seem to fall into place. It is really interesting how sometimes the money just appears out of thin air sometimes! I am actually exploring a business (consulting-www.theaeroadvisor.com) that hopefully will start paying for some parts (still buying the ole' lottery tickets as backup ;) . If not, I will likely end up with a loan for the big parts (eng/radios).
Good luck to everyone and if you are thinking of building and are worried about the money, just get started and you'll figure it out as you go.
 
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