Is forming a partnership hard for everyone?

Terry M - 3CK (Chicago)

Terry M - 3CK (Chicago)

Line Up and Wait
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Nov 19, 2006
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NE Illinois
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Terry
Granted, I've only been seriously trying for about 4-months, but the clubs around here are full with waiting lists.

Seeking partners has been difficult.

To be fair, I want the partnership to be at 1 of 3 airports for it to work, or I'll rent. It has to be economically close to renting (I don't want to contribute $60k for a 1/5 share of a beat up old 182 or $40k for a 172).

Do people really just take the plunge on a $200k downstroke and $300/month hangar, insurance etc on their own?

Just bumming right now.
 
I’ve known a few folks who bought a plane first and then found partners. Don’t know if that’s better, but it’s an option.
 
When I was looking for partners to form up and look for a plane, I had absolutely zero interest from anyone.

When I bought a plane and let it be known I’d consider taking on a partner or two, it happened pretty quickly.
 
You’re in one of the largest metro areas in the world. If anyone can find a partner, you should be able to. As noted above, “if you buy it, they will come”.

You need the financial wherewithal to take the initial plunge, and take on the risk that you’ll be partnerless for a while (and have to eat the cost of unscheduled maintenance).

Other risks include drop in market prices after purchase and prospective partner sparsity due to economy.

No pain, no gain.
 
@455 Bravo Uniform true . . . But I need it to be at 3CK, 06C, C81 or PWK or it's too far.

There's A Cirrus / Bonanza contingent, a go fa$$$t contingent . . . And I can't hang in that crowd.

Skylanes/Dakota would be nice. Archer/Skyhawk could be ok (but I can easily rent those) or a Citabria / Decathlon!

Having that come together at 3CK seems impossible.

But I'm whining! Just surprised.
 
I purchased the plane. Then the partners showed up. So far it has been one of my better ideas. Forming a partnership to make a large complicated purchase gave me the willies. But then I am not a fan of committee’s. I purchased for $20K less than what I sold to the partnership. If you are taking the risk and doing the work of purchasing the plane, I would expect to be compensated for that. What you paid for the plane is not relevant to the new partners.
 
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I’ve written this in other threads, but consider a non-equity partnership where you rent your plane to a few known pilots. You get the financial cushion of splitting operational expenses, but have the freedom to fully own & manage the plane. I had a traditional equity partnership that had to be unwound after 2 years and it was a big hassle. Since then I’ve always had non-equity partners & found it much easier.
 
Terry M - 3CK (Chicago) said:
Granted, I've only been seriously trying for about 4-months, but the clubs around here are full with waiting lists.

Seeking partners has been difficult.

To be fair, I want the partnership to be at 1 of 3 airports for it to work, or I'll rent. It has to be economically close to renting (I don't want to contribute $60k for a 1/5 share of a beat up old 182 or $40k for a 172).

Do people really just take the plunge on a $200k downstroke and $300/month hangar, insurance etc on their own?

Just bumming right now.
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4 months? It took me almost a year to find the right aircraft. Patience. I would keep trolling the partnerships. Given the stock market/economy, an opening may be forthcoming.
 
AlleyCat67 said:
I’ve written this in other threads, but consider a non-equity partnership where you rent your plane to a few known pilots. You get the financial cushion of splitting operational expenses, but have the freedom to fully own & manage the plane. I had a traditional equity partnership that had to be unwound after 2 years and it was a big hassle. Since then I’ve always had non-equity partners & found it much easier.
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Are most non-equity partnerships a monthly amount and an hourly component without any chunk of change up front (like an equity partnership) or simply just an hourly amount?
 
TrueCourse said:
Are most non-equity partnerships a monthly amount and an hourly component without any chunk of change up front (like an equity partnership) or simply just an hourly amount?
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It can be done either way. I have done it a couple of times and I always went the monthly plus an hourly rate route. It encouraged use of the aircraft. In fact I made it a point to have a requirement of one hour minimum per month. this encourage some level of currency.
 
I looked for a long time, couldn’t find anyone. After plane purchase everyone wanted to fly the plane. Mostly tire kickers though.
 
Morgan3820 said:
It can be done either way. I have done it a couple of times and I always went the monthly plus an hourly rate route. It encouraged use of the aircraft. In fact I made it a point to have a requirement of one hour minimum per month. this encourage some level of currency.
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Yes same here. Monthly fixed fee plus hourly dry rate (whoever flies leaves it full). One decision is what you want to recoup with the monthly fee. I just try to recoup a portion of fixed expenses (tie down, insurance, annual), but you could also include payments to a reserve fund for an overhaul, or even trying to recoup some of the purchase price. Of course the more you ask, the less attractive it is for your renter.
 
I'd take on a partner... but they'd have to be silent, and not fly my airplane, and not have any control in anyway of the aircraft, or have a key to it, or the hangar... Weird that I haven't gotten any bites yet.
 
@kaiser my first lesson with Sean K at Holiday Airways was supposed to be yesterday, but we rescheduled. He was returning from a corp trip and storms were forecast (which didn't seem to fully impact the Western burbs).

On his schedule twice next week. There was a guy who mentioned wanting a partner in a C140 at 06C (going through a divorce). That might scratch my itch for a bit with minimal financial risk.

I'm overweight, so checking out and getting the TW endorsement in a C140 isn't realistic at my current weight, but it works in a C170 (and apparently a clipped wing 90hp Cub? I've specifically asked the question and they told me it works).
 
Terry M - 3CK (Chicago) said:
@kaiser my first lesson with Sean K at Holiday Airways was supposed to be yesterday, but we rescheduled. He was returning from a corp trip and storms were forecast (which didn't seem to fully impact the Western burbs).

On his schedule twice next week. There was a guy who mentioned wanting a partner in a C140 (going through a divorce). I'm overweight, so checking out and getting the TW endorsement in a C140 and ins't realistic at my current weight, but it works in a C170 (and apparently a clipped wing 90hp Cub? I've specifically asked the question and they told me it works).
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That's awesome! Enjoy the process!

Mtns2Skies said:
Wait until you see the insurance quote for low time tailwheel pilots in those planes ;).
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It's only money.. plus isn't that why we're talking partnership? ;)
 
Mtns2Skies said:
Jobs. But anyway CO is a bit on the crowded side... Western & Northern WI is kind of a hidden gem... so stay away!
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I have family up in North Central Wisconsin, around Merrill. It is beautiful up there. Head up past Tomahawk and it gets even prettier. Lots of fishing, hiking, boating, great food and beer. I want so bad to fly around there sometime and circle my grandparents old farm. So many memories. Heading up for a family reunion at beginning of July.
 
Terry M - 3CK (Chicago) said:
I've seen @rwellner98 's Maule tied down there a few times too! I think he's living the dream life with homes here, in Mexico, property up North and flying like crazy with no partners, so . . .
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Yeah, man. I did the flying club thing first (Fox Flying Club at DuPage) and don't regret it a bit. But when you're ready to get out and really stretch your legs there is nothing like being the only owner.
 
Terry M - 3CK (Chicago) said:
Granted, I've only been seriously trying for about 4-months, but the clubs around here are full with waiting lists.

Seeking partners has been difficult.

To be fair, I want the partnership to be at 1 of 3 airports for it to work, or I'll rent. It has to be economically close to renting (I don't want to contribute $60k for a 1/5 share of a beat up old 182 or $40k for a 172).

Do people really just take the plunge on a $200k downstroke and $300/month hangar, insurance etc on their own?

Just bumming right now.
Click to expand...
I tried for a long time. Every one I looked at was a I/we haven't been managing my/our plane and finances very well and I/we need some fresh $$ to bail us out.
 
I've been trying for months to get a couple partners on my Mooney. It's like pulling teeth. I'm about ready to give up and just sell the thing.
 
@steingar are you near Chicago? I've wanted a Mooney since seeing one do a low pass while pre flighting for a lesson back in 1991 . . . It's always just out of reach with life goals (3 kids approaching college age).
 
Terry M - 3CK (Chicago) said:
@steingar are you near Chicago? I've wanted a Mooney since seeing one do a low pass while pre flighting for a lesson back in 1991 . . . It's always just out of reach with life goals (3 kids approaching college age).
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Sorry, but I'm in Central Ohio. I have one guy lined up pretty well but I need another.
 
what I’ve heard is the only partnerships that really work are the ones where you can kiss and make-up and even those are suspect @ times.
 
Trying to create a partnership has been difficult getting a few folks to agree on (1) an airport, (2) hangar vs tie down and (3) type of plane but really . . . Committing funds to start something vs join something that already exists.
 
Terry M - 3CK (Chicago) said:
Trying to create a partnership has been difficult getting a few folks to agree on (1) an airport, (2) hangar vs tie down and (3) type of plane but really . . . Committing funds to start something vs join something that already exists.
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As I said before it’s doing things by committee which I hate. Nobody’s willing to compromise for the greater goal.
 
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