What's new
Van's Air Force

Don't miss anything! Register now for full access to the definitive RV support community.

Kit Financing

S

sstellarv10

Well Known Member
I know financing my build is not the ideal situation but unless I want to extend things out for years these are things that have to happen considering the state of the economy. Lets face it, the engine and avonics are a big chunk of change to wait until you can save cash. Is there anyone utilizing a finance company for this reason.

Steve
#40654 Wings
N521RV reserved
 
Yep. It was that or wait another 10 years, if ever. I went through 1st Pryority Bank of Pryor OK. The chairman is a Mooney owner so they are aviation friendly.

http://www.1st-of-pryor.com/

What I got was a 2 yr construction loan. Basically I requested a set total amount and I draw advances on that amount as I go. It's interest only and I only pay on the amount I've been advanced. Once the project is complete, the construction loan (whatever the final outstanding balance is) will roll over into a new conventional loan with a 20 yr term.
 
Financing

I used Nafco to finance some of my project. I got a 10 year loan for my engine, avionics, prop, and finish kit. I paid 10% of the total as the downpayment. When I get my airworthiness certificate I can roll it over to a 20 year loan as well as wrap the paint up in there as well.

Eric Kallio
Finishing canopy and door fiberglass.
 
Don't forget about taking advantage of a home equity loan or a re-fi if your lucky enough to be able to do it in todays home market decline. The rates are low AND the interest is deductable,,,,,well at least for now!
 
And we wonder why the US banking sector lead the way........ :eek:


............ of course those who can actually service their debt what need not be offended! :)

Flame suit on and into the bunker!
 
Last edited:
Say David...

RV10inOz said:
And we wonder why the US banking sector lead the way........ :eek:
Click to expand...

...Y'know, if it weren't for financing, I couldn't have started my own crop-dusting business back in '78. Life is short and having an airplane to fly, trumps having no debt and no pleasure.

Servicing the debt is another story and a folly if you're only a dreamer with no forethought. No flames, just my opinion.

Havagoodun,
 
Exactly...

pierre smith said:
Life is short and having an airplane to fly, trumps having no debt and no pleasure.
Click to expand...

I'm glad someone said this. Not all of us are wealthy enough to build an RV without accumulating some debt, and there is nothing wrong with that if we are responsible about what we owe. With any luck, I will only have to finance my engine, but I may also take 10 years to finish.:(
 
Don't worry...Contrary to popular belief, there are a ton of people that can properly manage a little debt. Nothing wrong with that.

Some here would lead you to believe that unless you are retired with no mortgage, no wife, no kids, no bills, no debt at all and you have $100K in instantly available cash and 2 million in your 401K, you have no business attempting to build or own an RV.

Just ain't so!

I am at 8+ years and expect the first flight in the Spring...

esjacoby77 said:
I'm glad someone said this. Not all of us are wealthy enough to build an RV without accumulating some debt, and there is nothing wrong with that if we are responsible about what we owe. With any luck, I will only have to finance my engine, but I may also take 10 years to finish.:(
Click to expand...
 
ugh I am going get flamed for this but I gotta say it........ Just make sure you are not the kid in the candy aisle stamping his feet cause he wants it.
Everyone makes their own choices and I don't judge anyone on that but just be smart about debt.
 
I think I would have been a little naive if I thought was going to complete this project without some debt. I dont intend on dying rich.:D
 
Pierre et al

I never ever said some financing decissions were bad and foolish...... Refer part two.

Its all about debt to equity ratio's, and ability to service the debt, and were the debt recoverable, is it income producing etc etc.

When you have a debt to equity ratio in your life approaching that magic number that gives a divide by zero error...... well thats when the alarm bells should go off.

Now my first point was a little inspired by a cheeky sense of humour, but for those who take a wider look at the world, they might see the truth hurts when its close to home. The US lending systems have certainly been found wanting in recent times.

Am I suggesting that taking a loan for your engine makes you an idiot....absolutely not. But those who get sucked in ... eyes wide shut....well thats a different story!

If you can afford it .... You can afford it. In the past the banking dudes have said you can afford it....and they lied!

I am sure you all agree. Just my 2cents plus GST.

Cheers!
 
I am not sure if they do kits, but check out airloan.com . Randy the owner is a nice guy and avid pilot.

I agree with some of the others, in my area of the US it is way to easy to get money to spend. It's the paying it back part that is the hard part!!!
 
I agree...

RV10inOz said:
If you can afford it .... You can afford it. In the past the banking dudes have said you can afford it....and they lied!!
Click to expand...
Yes, the banks gave loans to many people that could not afford the loan and they should shoulder much of the blame. On the other side, many people accepted loans which they should have known they could not afford to pay. It's not hard to make a budget and determine your incoming vs. outgoing. When you accept the loan, the bank assumes you have determined that you can afford the monthly payment. Budgets are not rocket science...why leave it to the banker or mortgage broker to tell you what you can afford?

An easy way to find money to start your build is to look around your house for things you can sell. I sold my motorcycle:( and kayak:( for money to start my build. I really miss my motorcycle now that the Texas summer is over, but I would rather be flying an RV (without debt if possible) 5-10 years from now. This airplane building stuff is pretty fun in the meantime!
 
Last edited:
My Motorcycle is next on the chopping block. Its nice to have but it is just a big piece of furniture that never gets used since I started my build.:(


Steve Stella
#40654 Wings
N521RV reserved
 
sstellarv10 said:
My Motorcycle is next on the chopping block. Its nice to have but it is just a big piece of furniture that never gets used since I started my build.:(
Click to expand...
On the bright side, you'll have more space in your garage and you can always rent a Harley for a day if you need a motorcycle fix.
 
Motorcycles

I have two motorcycles, a Harley Fatboy and a Suzuki GSXR-600. I look at them from time to time, and they magically morph into a set of wing ribs, or a new Lycoming engine (part of one anyway). I have to shake myself out of that dream and back into reality. I'm putting off the selling of my bikes as long as I can. I know it will slow me down a bit, but I'm just getting started. I plan to order my empennage next week. I won't sell them until I feel it's absolutely necessary. Maybe for the engine or some avionics.

Build on!
 
When I look at my Harley I see a fuselage. I been debating on selling it for the last 3 years and its still there.:D
 
how did you do it????

some ask me how the heck I afford a plane on my income.
......interesting to hear all the stories.
with prompting from my wife, ( I won't pass the medical forever!) I bought a flying RV with funds that were sitting in a bank account Decreasing in value. If I find after selling my boat and camper that I can't afford to fly, it's time to find a partner!
I'd definitely finance at today's rates, as long as I thought I could 'cash-out' in an emergency and be ok with that loss.
 
pay as you go

I've been paying for my project as I go.

No money - no go.

I could do it in about 7 to 8 years with a new engine & fancy panel

OR...

I could do it in 3 to 4 years with a used engine & a simple panel.

I elected the 2nd option.

I'm spending the money I'd normally save (at about 0.75% interest).

At least when its over, I'll have an airplane.

Then, I can resume socking away the bucks to earn that big interest:D

These airplanes are "toys" like a motorcycle, boat, etc. I'd never go into debt
something like this but to each his own.

However you do it, just DO IT and enjoy the journey...

Dave
-9A finish kit
just ordered seats & prop
 
Did someone mention a GSX-R????

This is my baby, probably far too much bike for me.... :D This is apparently a rare model or limited edition..... may be some in the USA, anyone recognise it? The black ones like this were the rare ones otherwise its a '88 J model GSXR750

4525920200a6539599558l.jpg
 
I saved up a stash of "plane money" when I first started the Cozy by cutting back on my out of pocket expenses: Packing a lunch for work instead of going out to the restaurant, no more expensive coffees from the shops, quit drinking beer and stopped smoking! ( Health benefit there ). And the other thing that really helped was that I kept my old vehicle when it was paid off instead of buying a new one with a payment. I put all that money aside in a drawer and after a few months, had enough to place an order for enough materials and supplies to keep me busy for a while. I'm not a golfer but I hear that it can be an expensive hobby. For me it was all about setting my priorities on what I wanted to do. I got rid of all my "toys" when my children were born as they were first priority so that was not an option for me. Take on a part time job and devote that paycheck to your plane. I am retired now but when I worked, I NEVER turned down the chance to work overtime. I am building my -10 on a budget. I keep an eye out for good used/new parts I know I will need and buy them when I can if the price is right. My engine is used that I overhauled myself. I will paint it myself and probably even do the upholstery. There are a number of things we can do to help finance our projects, sometime we have to give up something for another, but you can define your priorities.
 
My RV Thermometer is rising.

My wife and I are the same way David. Our 7 and 9 year old vehicles, house, complete sb RV10 kit is all paid for because we did without the boat, rv(not our kind), 4 wheelers, out of country vacations, packed our lunches(healthier anyway), built our 1 1/2 story 2,000 sq ft house and 24x24 1 1/2 story detached garage/airplane factory over 6 years with mostly cash. We did buy a HD Roadking in 2004, would like to sell it now as my mother in law(our babysitter) passed away from cancer in February this year. We did put 16,000 miles on it and had a ball. I got my priv last Oct and have 100 hours now. My wife is an elementary teacher= low pay in KY. I am self employed in the residential hvac business= med pay in KY. But, since we have no bills other than the usual...that RV-10 account builds super fast. My local bank never cared too much for us paying our loans off in 1-3 years. I keep a page with a big outline of a thermometer on it and as our RV savings account went up I came home and colored it in red. Good motivator for the whole family to save, turn of lights, etc, because at the top is Van's demo -10. I had one for the kit. Now have one going for the engine, prop and fwf kits. I'll make another for the avionics, wiring, paint, interior. Like you said, just set goals and do what you have to do to reach them. By the way, no vacation this year...even a small vacation is $1,000. We want this 10 bad!! I can't wait to fly all over the U.S. with all of you guys. There are so many beautiful places to see. The trip reports motivate me in some ways and depress me in others because I know it is still going to be 2 years minimum and ? maximum before I finish. I am only 39. Hopefully I have some good flying years left. My kids are 9 and 6- just the right age for helping daddy. Bax global to deliver complete RV-10 sb kit week of 11/16/09. Take care.
 
So my kids will have to pay their own way through college, I had to. I live in a modest house, the Jones' don't have a plane in their garage. I buy box wine, wear old clothes and have saved thousands working on my own cars for the past 25 years. Time to cash in on all my penny pinching and finish my plane or go bankrupt trying.
 
So my kids will have to pay their own way through college, I had to.
Click to expand...

Way to go!........ The problem too many younger generations have is they come to expect the give it to me now syndrome rather than work for it your self!

DB:cool:
 
Every time I had a "windfall" - share issue from an insurance company gone public, bit of overtime at work, profit share, small lottery win etc - I put it in the fund. Then my ex-wife, who had taken me to the cleaners in a very acrimonious divorce and was trying again to get more, passed away. From our marriage, I had a small insurance policy. That has gone into the fund. Probably shouldn't say it, but - boy- that's the most satisfying........
 
pierre smith said:
...Y'know, if it weren't for financing, I couldn't have started my own crop-dusting business back in '78. Life is short and having an airplane to fly, trumps having no debt and no pleasure.

Servicing the debt is another story and a folly if you're only a dreamer with no forethought. No flames, just my opinion.

Havagoodun,
Click to expand...

I agree, I couldn't have started my business without a loan. Then again, the airplane isn't going to generate income. Maybe we need RV airlines. Then we can turn our kit-building into an income generator and justify borrowing for the kit.:D All kidding aside, I will more than likely finance the engine and avionics. I've got three little ones that need to be put through college.
 
You must log in or register to reply here.
Back
Top