How liquid is a partnership / why don't I see shares for sale?

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Noah Gray

Filing Flight Plan
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Noah Gray
Title says it all! I'm looking for my first plane as a new PPL and IFR student, and I think fractional/partnership would suit me well in multiple ways. My months of searching for partnerships on FB, TAP, Controller, and Barnstormers aren't turning up any existing partnerships looking to sell shares to a new member. I see new buyers interested in forming, but a paucity of fractional transitions. I am settled with the possibility that a partnership/fractional ownership may actually be less liquid than an entire plane, but I want to go in with my eyes open.

I just can't figure out a good reason why either of the two following things aren't true:
1) I don't see shares in partnerships come up for sale because they largely aren't available. Everything is ideal, nobody ever moves out of the area, nobody wants a faster plane, it's nirvana.
2) When transitions are needed, exiting partners are losing their equity or selling it at some pre-negotiated price to existing partnership members or other known parties.

Thoughts?
 
My guess is that people usually would partner with people they know. As an aircraft owner myself, I would be uncomfortable advertising for a stranger to come fly my plane. I think the key is to network and meet people at the airport, on forums, local fly ins, etc. I know in the flying club I was in, there were always at least a few people interested in doing partnerships or talking about buying a plane. There were also airport managers who told me about people they knew who might want a partner.
 
All the aircraft partnerships that I can think of involve people who already knew each other.
 
I see shares for partnerships come up periodically, it’s common. That said, just because they open an advertisement up offering a certain share, doesn’t mean that you’ll be selected if you don’t meet whatever their minimum requirements are. Most partnerships aren’t going to open up their aircraft to someone who’s still undergoing primary flight training and without a certificate. Your better bet is a flying club of some flavor at this point.
 
Getting the IFR requires frequent - several times a week - flying. That might not fit in with partners who want to take the plane out as well, take it for a week somewhere, etc.

And you’re probably not attractive as a new and low time pilot.

Agree with above - get your training with renting from a club or school.
 
I went into a partnership by looking online. Our partnership starts off people who don’t know each other. The founders were two guys looking to have a plane instead of renting. And the rest of us found them by word of mouth or via online ads.

So far it’s worked out pretty good everyone pitches in and does stuff. We have our own hangar and everything.

When I was looking I saw openings where partnerships had issues or someone decides to quit the hobby for any number of reasons. Where the partnerships had issues it can be big like a deadbeat partner.

I think what you will find is that the good groups are stable and the ones you do see available will have to have some reasons for the vacancy. You need to be careful what those reasons are. It will take time to find the right group. I talked to multi groups and had prebuy done on a 150 (and backed out) before I found this group. And I am glad I didn’t rush into anything as it has works out very well so far.

And if you find it is actually hard to find a good group. You should consider the starting a group yourself route. I think there is a lot to be said about starting a group and being able to define the parameters of it.
 
Our partnership usually turns over 1 partner per year. Every single one has sold their share for more than they paid for it, partly due to our financial reserves growing and partly due to the market. We *think* share prices are probably going to stabilize about where there at for the near future.

Every share that turns over has been word of mouth. We do maintain a list of prospective members, but we don’t actively market anything.

Most people find out about us while talking to other pilots at the airport.
 
Local partnerships are among folks who were already friends and bought or leased an airplane together. Another option is a club, where members can sell their share to qualified buyers.

If I were looking for a partnership, I would be searching local airports and getting to know local pilots so they could recommend me or let me know of opportunities. You can't do that online. You have to go to the FBO for coffee and introduce yourself to other pilots and let them know what your interest is.

Networking works. My first airplane was with a guy I met through the QBs, and I wasn't even a member, just a guest. Local EAA chapters are another possibility.
 
Thanks for all the thoughtful replies, I'd clarify a couple things:
  • I'm in northern Tampa Bay
  • I've got my PPL this summer, and will have my IFR in the next 2 months.
  • I've been to AOPA events, EAA events, and a couple fly-ins, and have every intention of enjoying more.
  • I'm already talking with 4 other low-time pilots already about forming partnerships.
A few takeaways I'm hearing:
  • Shares in a partnership are moderately liquid, taking a several months or perhaps a year to move.
  • Brokering any transition is networking-based, few will show up online.
  • My fear that they were unmovable has been calmed, I feel better about getting into one.
  • The low-time factor is real. I know that nobody wants a newbie near their prize, and I get it.
Appreciate these, keep em coming.
 
Roll your own. I advertised for partners on Craigslist. Found two partners and we made an offer on a plane owned by another partnership. One of them did not want to sell, so we invited him to join us. Almost 10 yrs later three of the four of us are still in. One share has turned over a couple of times; I think the flyer on the FBO bulletin board was the successful advertising medium in both instances.
 
I tried for a year to find people interested in forming a partnership to buy a plane and had zero interest. Not just no takers, zero interest, period.

Bought a plane myself and had an offer to buy a share within a year or so. Now there are four of us. I'm pretty sure if I were to put the word out that my share is for sale, I'd have it sold within a few months.

If you build (buy) it, they will come.
 
Seems like you expect aircraft ownership to be an investment. Not sure that’s a reasonable expectation.

On second read I guess your biggest concern is not finding one. Have you tried checking out the airport bulletin boards regularly? That and asking around at the airport will probably work better than online. But now that I think of it, none of the airports in north Tampa really have good bulletin boards or hangouts. Maybe attend an EAA meeting and ask there?
 
Last edited:
Noah Gray said:
Thanks for all the thoughtful replies, I'd clarify a couple things:
  • I'm in northern Tampa Bay
  • I've got my PPL this summer, and will have my IFR in the next 2 months.
  • I've been to AOPA events, EAA events, and a couple fly-ins, and have every intention of enjoying more.
  • I'm already talking with 4 other low-time pilots already about forming partnerships.
A few takeaways I'm hearing:
  • Shares in a partnership are moderately liquid, taking a several months or perhaps a year to move.
  • Brokering any transition is networking-based, few will show up online.
  • My fear that they were unmovable has been calmed, I feel better about getting into one.
  • The low-time factor is real. I know that nobody wants a newbie near their prize, and I get it.
Appreciate these, keep em coming.
Click to expand...

I'm in Tampa as well. Found a share advertised for an LLC club in a Grumman hangared at ZPH while in the break room at one of the flight schools.
I'm looking to join another similarly set up club or partnership with a more capable plane. For now I'm renting. Maybe enough of us in Tampa area can join forces.

Edit to add: our club in the last three years has sold about 7 out of the 10 shares to new members. Most of them were because the previous shareholders lost their medical or their health deteriorated. Usually, in that case a share is sold by word of mouth.
 
Noah Gray said:
Title says it all! I'm looking for my first plane as a new PPL and IFR student, and I think fractional/partnership would suit me well in multiple ways. My months of searching for partnerships on FB, TAP, Controller, and Barnstormers aren't turning up any existing partnerships looking to sell shares to a new member. I see new buyers interested in forming, but a paucity of fractional transitions. I am settled with the possibility that a partnership/fractional ownership may actually be less liquid than an entire plane, but I want to go in with my eyes open.

I just can't figure out a good reason why either of the two following things aren't true:
1) I don't see shares in partnerships come up for sale because they largely aren't available. Everything is ideal, nobody ever moves out of the area, nobody wants a faster plane, it's nirvana.
2) When transitions are needed, exiting partners are losing their equity or selling it at some pre-negotiated price to existing partnership members or other known parties.

Thoughts?
Click to expand...
Most of the ones I've seen are on Bulletin Boards at FBO's
 
I think I’m familiar with the ZPH 172’s, just weight constrained with a family of 4.
 
A few years ago I found my partnership in a Cardinal on Craigslist. The whole experience worked out great.
 
I’ve seen a couple shares for sale on trade-a-plane, and also in a FBO or pilots lounge. They exist and they do trade.
 
A partnership is local, not national. I really wouldn't expect to find one on the internet or widespread publications. There are almost 20,000 airports in the U.S. That's a wide net to find something at an airport near you. I'd go through the closest FBO, talk to the manager and post a notice.
 
At my old airport several partnerships spawned from the flying club. People would join the flying club, build some time, and then if they wanted something more specific mission focused (like a SR-22 or a twin) they'd join a partnership. Some members of partnerships continued their flying club membership to give them a variety of aircraft to fly.

Point being, a flying club is a good transition to a partnership if such a club exists. You'll get to know other pilots.
 
That's a great point, I'm in that transition myself. I'll keep the club membership and join or form another club type arrangement for a higher performance aircraft.
 
See if there's a facebook group for florida-area partnerships and skulk?
 
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