Cloud One spot open in KC - $4,500

[labbadabba]

http://kansascity.craigslist.org/for/5712697985.html
http://www.cloudone.org/index.php

501c3 flying club with a really nice 172M and fully refurbed Piper Arrow. Club is limited to 18 members.

This is not my ad. From what I've heard this is very well run organization and looking at the schedule, the planes seem to be available more often than not.

 

[superdad]

4500 is cheap since on their website the buy in is valued at 11K

 

[MooneyDriver78]

4500 is cheap since on their website the buy in is valued at 11K

Shouldn't buyin be total value of planes divided by number of members?
I don't think a 172M and Arrow are worth $198K, $85K yes.

 

[Bonchie]

Looking at the website, it looks very outdated (except the calendar that's linked).

Some of it hasn't been updated since 2009.

The website shows higher dues and dry rates then that ad does, but it's possible due to depreciation, better insurance deals, better hanger rates, or whatever that they've lowered the prices to what the ad is now saying.

 

[bradg33]

Shouldn't buyin be total value of planes divided by number of members?
I don't think a 172M and Arrow are worth $198K, $85K yes.

Cash in the bank, etc. But also, there should be some discount for the fact that you're buying a minority interest in a corporation, which doesn't always equate to total value/number of interests.

It's also very important that people buying into these arrangements really understand what they're buying and how the corporation is structured. In this instance, it appears to be formed as a Missouri non-profit corporation, which is different in some ways from an LLC. Based on a read of the website, even the club management doesn't really understand the corporate structure (the statement that "you own 1/18th of all assets", for example).

 

[labbadabba]

Looking at the website, it looks very outdated (except the calendar that's linked).

Some of it hasn't been updated since 2009.

The website shows higher dues and dry rates then that ad does, but it's possible due to depreciation, better insurance deals, better hanger rates, or whatever that they've lowered the prices to what the ad is now saying.

Agree, the site is a little old. I think dry rates are $40 & $50 after speaking to a member. I think the $4,500 is probably the amount he paid for his share.

 

[labbadabba]

Shouldn't buyin be total value of planes divided by number of members?
I don't think a 172M and Arrow are worth $198K, $85K yes.

They list the planes as fixed assets at around $65k and $75k from what I recall seeing of their financial statement. They have a cash reserve and some other fixed assets. The $11k is a bit steep for me but $4500 sounds much more fair. Maybe they raised the share price due to appreciation?