Howdy--I finally found a plane to buy! I'm going to enter a Cub share near my house I don't know the other three guys in the share (and haven't been part of a share before), but would love any tips for making the process a smooth one.

Any tips or questions I should ask beforehand much appreciated!

Sir,

I only speak from "friends" asking to enter a partnership with my existing flying plane. I am simple/less is more type of guy and my buddy likes glass panels. So make sure everyone is after the same things. Is there a written contract how monies will be provided for maintenance/repairs, & who is going to sh!t down both legs the afternoon you bring it back with June grass in the tail wheel?

In short make sure organization is well defined, or just buy a cheap PA-12/J-5 that is yours to go camping in & upgrade a little from year to year. Airplanes are cheap today compared to some headaches.

My 2 pesos.

viewtopic.php?f=46&t=6601&p=84515&hilit=partnership#p84515

GOOD LUCK

It's best to have doctors for co-owners. With known exceptions around here doctors usually don't fly much. You'll probably have to take them up every six months or so for a refresher because they are really going to get back into flying. Then you won't see them again for awhile. This is great because they still pay for their share of hangar fees, annuals, and insurance. It makes for pretty cheap flying while having your own airplane with most of the cost taken care of for you.

I'm not making this up. I was in partnership with 4 guys on a Franklin powered 172. Three of them were doctors. The fourth guy had no medical so I was his safety pilot for the occasional trip. This was great because he was a far better pilot than me and I always learned something. If it could get any better he was also one heck of a fine human being.

So partnerships have been good to me. When I sold out of mine I made about 20% on my investment. It also helps to have at least one of the guys who's a perfectionist about washing and waxing the airplane.

EB

when we talked about this in the past. "like a marriage, the good ones are great, the bad ones are horrible" author unknown, sorry

viewtopic.php?f=46&t=7729

A partnership is likely to be like a marriage without the SEX.....

I must admit EB's sounds like a major exception!...

lc

Emory Bored wrote:So partnerships have been good to me. When I sold out of mine I made about 20% on my investment. It also helps to have at least one of the guys who's a perfectionist about washing and waxing the airplane.

EB

My step brother had a similar good deal on an RV 10 with a doctor and large housing contractor, both friends. He flew a lot and maintained the aircraft and even put up and owned the hangar but it was difficult for him to get out of the arrangement when his income declined and needed to sell his share. The other two did not want to either buy him out or to sell the plane to dissolve the arrangement. They also did not want to accept a new partner if he sold his share to another individual because they were losing their perfectionist and safe pilot. It took him more than two years to get out when finally he found a buyer for the plane above the price the other two set. My advice is provide the exit strategy up front if one partner wants/needs out for whatever reason.

I'm convinced - now where do we find these guys? Actually - I think it would be better if they were female doctors with big boobies. I mean if we are shooting for the moon - why not go to Mars?

I am looking for 3 perfectionist big-boobied doctors with no medicals to go in on a Carbon Cub with me. I have cash - am ready to buy now.

Emory Bored wrote:It's best to have doctors for co-owners.

Emory Bored wrote:So partnerships have been good to me. When I sold out of mine I made about 20% on my investment. It also helps to have at least one of the guys who's a perfectionist about washing and waxing the airplane.

EB

I have never been in a partnership to own an airplane, but customers who were in partnerships said that the best way is to have everything spelled out in a contract before diving in. Things like buy-outs, buy-in's, determining what shop is going to work on the ship, paying for add-on/updgrades, etc. I saw one partnership dissolve when there was no agreement between the two guy and one kept buying upgrades until the other could no longer afford it and the guy basically gave the 1/2 share to the other because of the "debt." I thought that was pretty sh***y.

My advice is provide the exit strategy up front if one partner wants/needs out for whatever reason.

The above is very good advice....

If you have a 2 person partnership you can set this agreement up in advance......
The person who wants out picks a 'value' for his half the partnership. The other partner has a choice of 'buying the half from' his partner at that price or 'selling his half to' his partner at that price......

More partners,obviously more complex....
lc

Do you have access to the AOPA documents site? You can download a partner agreement there that is really thorough and complete. It is tempting to go into it casually... because it is always the honeymoon phase at the beginning.
Ending them gets complicated... and they always end, no matter what you think now.
Look up the agreement there or get a member friend to print you one. If you can't find someone... PM me and I will get it for you.
Good luck and have fun. Life is short... fly more, eat less.

fly more, eat less.

That is good advice,
but unless you have a small underpowered airplane, is there a relationship?


Well, I guess there is the livin longer thing...
lc