[jsharkey]

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 ) 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!!

Great story - Why "Lady Godiva" with her link to Coventry?

 

[freegespeed]

Financed two thirds

This is very interesting topic and is almost as important as the building process. I bought a complete, modestly equipped RV6A three years ago with one third personal savings and two thirds from an aviation loan company.

What I have to add here is about how my fixed cost overhead, that being quite a bit higher then some of you commendable pay-as-you-go types, is leaving me with significantly diminished disposable income, a.k.a., "fun tickets",to go places and build hours. Its the price to pay for instant gratification. Truly I fit in the modern American mold.

Consider my fixed costs include the manditory full hull insurance required by the bank, the wonderful monthly loan payment, and California's special luxury tax on all planes and boats. These costs mean I'm flying out of a monthly financial hole. Of course there is the stuff everybody pays for like hanger rent and annual's...no, you builders get a break there too. I have an A&P friend that does my annuals very resonably so that's not a problem.Then there is the gluttonous, "up-grade fever", which sucks even more money out of me.

Another kind of Irony is that the old adage, fly a bunch and the price per hour goes down. Well not if you don't have 200 hours of fuel and oil changes money bugeted to pay for it in the first place.

All is not doom and gloom for me as I find ways to share expenses at times, and also I can do local sub-one-hour fun flights to fill in between the bigger more satisfying adventures. And then there is the pride and prestige in being an aircraft owner thing, -which should be milked since your not flying a whole lot anyway-. I've heard the ego stroking line many times, "Wow, you actually own an airplane", which I might say in return in understated fashion implying old money elegance,"Yes miss I do". Meanwhile my Jeeps tranny just went out so I'm driving my 1979 Dodge rattle bucket, but I won't tell her that.

Flying my RV is always a blast, but for me to be a truly euphoric RV owner I've got to work two jobs or something to pay down that darn loan!

Just thought I'd share my experience for what it's worth.

 

[N941WR]

How did I do this

I didn't win the lottery, an airplane, or have an inheritance to help me. I just saved and paid cash for everything as I went along. Even my credit cards are zeroed out. I know, how un-American of me.

Back when I made my selection I looked around at the kits and the cost of all the major parts. I occurred to me that there was no way I could pay $23,000 for an engine so the 7 and 8 were out. Then Van's came out with an O-235 powered RV-9. (It was an "A" but they simply called it a -9 back then.) I promised myself that if they ever put the little wheel in the back I would build one to replace my old '41 T-Craft.

Then one day while bored out of my mind at work I was surfing Barnstormers and found a 0 SMHO O-290-D2 for $3,500 and bought it even before I had the fuselage.

The other thing I did was to build the plane I could use and didn't go crazy on IFR equipment, auto pilot, etc. I figure I can always add that stuff later, if I find I will actually use it and/or need it. For now, I just want to fly the thing!

Everything has worked out and now I have a very nice looking RV-9 sitting in my hangar waiting for me to fly it for the first time this weekend.

 

[Pmerems]

A combination of saving, consulting, new business

I was able to afford my project through weekend design engineering consulting jobs and starting ExperimentalAero.

 

[jcmcdowell]

Income projections, build projections, time value of money

1. I'm self employed
2. I had no children (or thoughts of children) when we started.
3. My business generates lump sums of income versus steady cash flow (paychecks).

In real estate and construction, I get paid lump sums at the sale of real estate.

I would 'forecast' sales, compare that to my airplane build projection (I was far worse in scheduling airplane construction than my building construction, thankfully), plan ahead to receive the next kit "just in time" and put the kit on credit card (paid off by my equity loan or carried for awhile).

The individual kits weren't that painful to swallow compared to ONE BIG LUMP SUM purchase (like the flying RV7 I ended up buying) because they were so spread out.

What was painful was the prospect of paying for the finish kit, firewall forward, and collecting avionics at the same time. That's a chunk of change in a short amount of time.

 

[rmartingt]

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.

Was that the little red one with the right-side drive I saw at the fly-in barbecue a couple months ago? I think it was at Ansley park or something like that...

 

[DaX]

Was that the little red one with the right-side drive I saw at the fly-in barbecue a couple months ago? I think it was at Ansley park or something like that...

Yep that was it - Kenley Park Pig Pickin' Fly-In back in May. Here's a picture from that weekend - it's in the foreground:

 

[glider4]

How to pay off the RV-8A loan?

Several thoughts crossed my mind -
1. Become an unregistered neighborhood pharmaceutical salesman.
2. Rent out wife by the hour - wait, I'm not married - wonder why?
3. Go into business with nice Nigerian oil minister - he keeps sending me all the e-mails!
4. Use my retirement savings to buy 20,000 Super Lotto tickets - one of them would just have to be a winner!
5. Write a book on how to make millions flipping foreclosed houses.
6. Buy an unimproved section of land in sunny Arizona/New Mexico and sell ten acres lots over the internet.
7. Talk kids into taking jobs in garment industry in East LA.

Any one have any better ideas?

Al Thomas
N880AT
RV-8A QB (Finishing & FWF)

 

[apatti]

Write a book on how to make millions writing how to books.

 

[rv8r]

...well, sounds a little problematic to call my RV 'Lady Godiva' with it's Coventry linkage (and the Luftwaffe/Coventy history), I know, but The story of Lady Godiva is basicly about taxing someone to death, that's what the government does if you have to import nearly all the parts from the US, so it fits. And there's the great QUEEN-song 'Don't stop me now', which gave me a lot of motivation during those long nights, and if you listen to the text you know what I mean )

 

[mgomez]

To borrow a line from Richard Bach...

I paid for the kit with the money I saved by not buying a Cessna 150.

I will pay for the engine with the money I save by not buying a Cessna 172.

I will pay for the avionics with the money I save by not buying a Cessna 182.

If that isn't enough, I plan to not buy a Cessna 310.

 

[Harold Lanfear]

I robbed banks (just kidding)

I loved Martin's response and couldn't resist. I actually am paying for my-8 almost entirely from flying a helicopter part time Isn't that an anomaly; to fly a helicopter so I can build an airplane?

 

[prporter]

Well, to get my CFO to go along with it, I had to promise to have only one project at a time. I was a bit short of funds, so she made me decide between my Harley or the plane. THAT was a TOUGH one...

Anyway, I'm not building an RV, but a Titan T-51... planning to to have it runnung next summer..

 

[Steve A]

Home Equity Loan Channel may be Closing

With the current real estate "deflation", I am wondering if taking out the loan based on equity in a house is the prudent way to go. Real estate had been appreciating at a much higher rate than the "historical average". Now is the appreciation going to be far less making borrowing against the house impractical?

Most people who are building RV's are more mature and practical. And the real estate "correction" is not universal. My observation is the areas that had the most appreciation in the last few years are the one's who are hit the hardest. But the crulest cut of all would be losing your house when you can't finish your plane.

Building a plane is a risk, you are saying you will have the energy to finish, stay healthy so you can pass the medical, and have the money to purchase expensive avionics, engine, interior etc. It is a small miracle anyone finishes these projects. Maybe that is the big part of the RV grin, the thought of no more expensive parts (other than gas).

Steve Anderson
RV 7A
Fairings

 

[Bruce333]

Where's the "I have no freaking idea" choice on the poll?

That's my answer too!

I've got 4 more years till my Daughter is College aged, gotta think that into the equation too.

Paying off debt right now, then I'll attempt to save some money to actually start on a 9A.

 

[panhandler1956]

conventional loan

I agree that home "lack of equity" loans wouldn't be prudent with the state of the market in most places. That will likely change, but who knows when.


With that in mind, does anyone have any detailed info on how getting a loan from one of the "kit friendly" loan institutions works? Money down required? sweat equity from partially completed kit ok in lieu of down payment? approximate rates? terms? etc?
Do they make you buy everything at once, like engine, avioncs, etc or do they allow you to draw on the total amount?
How much is builders insurance?

Any info is appreciated.

DR - money is on the way....love this site!

 

[SvingenB]

Did I really need to redecorate my bathroom? No. And that was pretty much the whole kit + tools and then some (Have to admit the initial tool budget have been multiplied by two and three by now). Now I'm building and saving up for avionics and engine. Avionics will be very simple, glass and radio from MGL and a separate GPS + transponder (a wide screen TV and sound system that I don't really need), maybe I even will be able to get a CS prop

 

[videobobk]

I bought a 1956 Porsche Speedster back in 1970 from a guy desperate to sell it as he was moving overseas with a week's notice. It had less than 10,000 miles on it. I put a couple thou more on it and sold it a couple of years before I built the 9A. Amazing how much it had appreciated! That made the cost of the plane pretty much a non-issue.

Bob Kelly

 

[panhandler1956]

I agree that home "lack of equity" loans wouldn't be prudent with the state of the market in most places. That will likely change, but who knows when.


With that in mind, does anyone have any detailed info on how getting a loan from one of the "kit friendly" loan institutions works? Money down required? sweat equity from partially completed kit ok in lieu of down payment? approximate rates? terms? etc?
Do they make you buy everything at once, like engine, avioncs, etc or do they allow you to draw on the total amount?
How much is builders insurance?

Any info is appreciated.

DR - money is on the way....love this site!

Can't believe someone out there can't comment on this method? Help me out guys...............how did you do it if you got a "kit loan"?

 

[hydroguy2]

Alright, already here ya go.
http://www.airloans.com/

I haven't used them, but -7A builder near me used them for his QB($28K). I think he said he put 15% down and got a 9%loan for 7yrs. He plans on doing another withdrawl for the engine and avionics. As soon as it has an airworthiness cert, they will refi for a better term and rate. 7.5% and 15 or 20yrs....something like that.

My wife would shoot me if I got a loan for a plane, so it's pays as I go. Anyone got a winning lotto ticket, I need an engine.

 

[szicree]

I looked into the loan thing a while back and, as I remember, they said that the down payment could actually be the portion that you've built so far. I assume they put a lien on it or something, but who cares as long as you make the payments. Obviously this would require insurance.