Jetprop partnership

[kmead]

Has anyone had any experience with partnerships? Good/ bad experiences? Have you ever had to buy a partner out?

I think we are ready to start the ball rolling, but it's a lot of money. I've never had a partner before on an aircraft, unless I count my wife. We have two other people ready that want to form an LLC and 3 Jetprops picked out.

I need to decide what to do with the Malibu, it doesn't owe me anything. This market is really down making it a good time to buy, but not to sell. It breaks my heart to sell such a great airplane, When I bought N25LH I told the old owner that I spent the last 13 years fixing it up for me. I may just sit on it for a while.

Kevin

 

[wabower]

Seven of the last ten turboprop deals I have worked (structured) have been co-ownerships, including my own. The mix was one B-90, 2 C-90's, four B-200's and 2 KA-350's. Oops, make that 8 of 11. I forgot the F-90.

So far, they have worked as planned. Two of them had a co-owner bail within a few months of buying the airplane, but that contingency was covered in the agreements and everybody honored their commitments. The key to any deal is to pick the right partners. If they are good people, the deals usually work. If they aren't, anything is possible. Good luck.

Has anyone had any experience with partnerships? Good/ bad experiences? Have you ever had to buy a partner out?

I think we are ready to start the ball rolling, but it's a lot of money. I've never had a partner before on an aircraft, unless I count my wife. We have two other people ready that want to form an LLC and 3 Jetprops picked out.

I need to decide what to do with the Malibu, it doesn't owe me anything. This market is really down making it a good time to buy, but not to sell. It breaks my heart to sell such a great airplane, When I bought N25LH I told the old owner that I spent the last 13 years fixing it up for me. I may just sit on it for a while.

Kevin

 

[TangoWhiskey]

The key to any deal is to pick the right partners. If they are good people, the deals usually work. If they aren't, anything is possible. Good luck.

And that right there is the trick. Given your experience, do you have any advice on how to make sure, sans personal experience / knowledge of the potential partner?

 

[wabower]

From a personal standpoint, I can't imagine doing a deal with anybody I didn't know very well or have a real strong vouch from somebody else I trusted. Every so often I hear about some shylock duping his partners, but it's normally among the least of the problems.

The normal background checks are easy to get, and the guys will get as close as you tell them to get, including whether or not the subject knows he is being checked.

The final test is whether his check clears. We always know that well before any papers are signed.

That said, if somebody had asked a year ago whether it would be prudent to do a deal with Bernie Madoff, what answer would you have expected?

And that right there is the trick. Given your experience, do you have any advice on how to make sure, sans personal experience / knowledge of the potential partner?