Gotta have Useful Load

The details are immaterial, the point is that the owner is required to fund the repairs when the event occurs, assuming he wants to continue to use his airplane. For most owners, the options are limited to using personal funds or borrowed funds. If the airplane is already mortgaged based on typcial loan-to-value ratios, borrowing may not be an option. If the owner doesn't have the cash, he's toast.

Henning said:
No different than boats. There are marine diesels that cost more than turbines (and we have turbines as well) and you have to cut a hole in the side of the boat to do anything with it. Still,all in all it works into the 10% /annual average if you start with a good unit. You just may be using some on credit from future years that won't be so much. Any "catch up" items and upgrades are exclusive of the 10%.
Click to expand...
 
wabower said:
If the airplane is already mortgaged based on typcial loan-to-value ratios, borrowing may not be an option. If the owner doesn't have the cash, he's toast.
Click to expand...

Thus the reason for my much debated 50K initial price cap. If I spend more initially, I'll have to borrow some of it and I want to still to be able to borrow money if any gotchas crop up. I look at it like this. If I spend my 50K, I might be able to get a plane that has zero problems and nothing for me to spend extra money on, but there's a possibility that it may have issues to fix. So I'm only out 50K and I still have the ability to go borrow some cash if something craps out. If I expand my initial budget to 70K, I might get a better quality airplane, but that's a gauranteed 70K already spent and the possibility of having problems to fix still exists, and now I may not be able borrow any money to pay for it because I've already borrowed 20K. Whether I spend 50K or 70K initially, the possibility for major failures is probably about equal because either way, it's going to be an old airplane with a used engine. If I spend 50K, I know I have an out. Does this make any sense? It sounds like sound logic in my head.
 
Last edited:
To do what you require I think you need $70 of capital without any debt. Sell the raider.
 
You must log in or register to reply here.
Back
Top