[vas4vans]

Hello,

I bought an RV-10 about 2 years ago. I love flying it and have put around 300 hours on it since I got it. I used to fly aerobatics and have been lately thinking that it would be great if I could get a share in an aerobatic RV (6/6A/7/7A/8/8A) at some point. To be able to have it make financial sense (well, to the extent that plane ownership makes any financial sense ), I am loosely thinking about adding a partner to my -10.

I have read some previous threads about how one share could costs in a partnership but I didn't find anything about the mechanics of "moving" a plane from individual ownership (it's in my name now) to an entity (club, etc.) that would support a partnership. Any ideas, suggestions or pointers on how that could be done would be much appreciated (if it matters, I am in California).

Also, I have never been in a plane partnership so any tips on how to operate successfully in a partnership would be helpful.

Thanks,
Vas

 

[rocketman1988]

Hello,

I bought an RV-10 about 2 years ago. I love flying it and have put around 300 hours on it since I got it. I used to fly aerobatics and have been lately thinking that it would be great if I could get a share in an aerobatic RV (6/6A/7/7A/8/8A) at some point. To be able to have it make financial sense (well, to the extent that plane ownership makes any financial sense ), I am loosely thinking about adding a partner to my -10.

I have read some previous threads about how one share could costs in a partnership but I didn't find anything about the mechanics of "moving" a plane from individual ownership (it's in my name now) to an entity (club, etc.) that would support a partnership. Any ideas, suggestions or pointers on how that could be done would be much appreciated (if it matters, I am in California).

Also, I have never been in a plane partnership so any tips on how to operate successfully in a partnership would be helpful.

Thanks,
Vas

Unless you intend on detailing every facet of the partnership agreement in writing, don’t do it.
You will find that people’s priorities change over time, and that can and will put a strain on the partnership. It is a good way to lose friends, as well.

If you proceed, make absolutely sure that everything is spelled out in the agreement. Example: your partner is flying the plane and maintenance occurs; could be a failed battery, blown cylinder, regulator failure leading to fried radios, or an off airport landing. How will things like this be dealt with?

What about upgrades? It’s time for a new radio but the old one still kind of works…what is the solution?

How about your partner has financial challenges and cannot afford the aircraft anymore? How will this be handled?

There are countless other examples. Do NOT assume that your partner is on the same page as you.

A detailed partnership agreement can help to alleviate some of the stress. That way, everyone starts on the same page, stays on the same page, and can refer back to the page if a disagreement arises…and it will.

Sounds like a “Debbie Downer” but, unfortunately, it is reality. Over the last 40 years of aircraft ownership, I have personally witnessed every one of the listed examples. Some were resolved, others cost a friendship. One caused the sale of the aircraft.

Think it through carefully, much like a single point of failure analysis.

 

[Mel]

Unless you intend on detailing every facet of the partnership agreement in writing, don’t do it.
You will find that people’s priorities change over time, and that can and will put a strain on the partnership. It is a good way to lose friends, as well.
If you proceed, make absolutely sure that everything is spelled out in the agreement. Example: your partner is flying the plane and maintenance occurs; could be a failed battery, blown cylinder, regulator failure leading to fried radios, or an off airport landing. How will things like this be dealt with?
What about upgrades? It’s time for a new radio but the old one still kind of works…what is the solution?
How about your partner has financial challenges and cannot afford the aircraft anymore? How will this be handled?
There are countless other examples. Do NOT assume that your partner is on the same page as you.
A detailed partnership agreement can help to alleviate some of the stress. That way, everyone starts on the same page, stays on the same page, and can refer back to the page if a disagreement arises…and it will.
Sounds like a “Debbie Downer” but, unfortunately, it is reality. Over the last 40 years of aircraft ownership, I have personally witnessed every one of the listed examples. Some were resolved, others cost a friendship. One caused the sale of the aircraft.
Think it through carefully, much like a single point of failure analysis.

This is absolutely top notch advice. I've know a few airplane partnerships that worked, but I've known many, many more that didn't.

 

[BobTurner]

Hi Vas,

As you may or may not know, I was in a successful 182 partnership for 25 years. A few suggestions:
It very much depends on personalities. My partners were friends before they were partners. You cannot be too upset if a partner pushes the plane into a ‘parking spot’ and let’s it get away from him, crunching the rudder (this happened). You need a ‘system’ for scheduling (we used a ‘priority pilot by the week’ system,), agree on hourly costs, filling the plane with gas after use, how to leave the partnership, …
Since it’s an EAB you’ll need to agree on who will do what when it comes to working on the plane, how upgrades will be decided, etc. A lot of stuff, but it can be done with the right mix of people.

 

[bimmer1980]

Here's a couple of details on our Vintage Cherokee 140 Club:
We have updated the rates of the club to better reflect our costs, but are still working to keep it economical for all members:
Membership Buy-in cost. $4500 to enter and will receive $3500 upon exit.
Tach time rate is $45 per hour, plus the equivalent cost of 10 gals of fuel. Roughly $105 per hour Tach time operating. $70 monthly dues.
Pretty reasonable considering the Flight school is north of $150 block time per hour.

We use Flight Circle for scheduling the time. The hangar, insurance and annual is paid from the monthly dues of the 12 equity share owners.

Pending your quantity of partners, just need to figure out your required costs, etc...

Thanks,
Brad