Freefalloz 0 #1 April 2, 2004 My husband and I are starting a new business. We just purchased a 122 acre property with an airstrip and have opened our home as a Fly In B&B and are looking to open a DZ this summer. We have found a 1956,C-182 that we would like to purchase for our venture, but are finding it difficult to find financing. Aircraft financing companies are saying the plane is too old, too inexpensive or just not interested in financing jump planes. As you can imagine, as a business start up,we have put everything into the purchase of our property and start up costs. Moreover, we have been utilizing "boot strap" financing to keep us afloat. Now, we've found the plane of our dreams and are at that point in our business start-up where we are so close yet so far away in making our dreams become a reality and need to finance this plane. Any ideas for us? We have never financed a plane and need advise. You can learn more about us at www.ozhomestay-huntinglodge.com Thank you for your assistance, Celeine Easdon-Smith Quote Share this post Link to post Share on other sites
Yoshi 0 #2 April 2, 2004 do you own the land free and clear or is that being financed currently? the reason I ask is you may be able to take a loan on the land. roughly how much are you looking to finance? have you looked into personal unsecured loans/lines? (I work in financing..primarily mortgages, but I may have a few ideas for you with a little more info. PM me if you would like)_________________________________________ this space for rent. Quote Share this post Link to post Share on other sites
riggerrob 558 #3 April 2, 2004 We have found a 1956,C-182 that we would like to purchase for our venture, but are finding it difficult to find financing. Aircraft financing companies are saying the plane is too old, too inexpensive or just not interested in financing jump planes. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Sounds like the finance companies are only interested in the re-sale value of the airplane. Let's face it, narrow-body Cessna 182s may be the backbone of the skydiving business, but they have almost zero resale value to private pilots. Two suggestions: waste money on a newer, less efficient wide-body Cessna 182 built in the 1980s. At least it will be more attractive to finance companies because of its higher resale value. Alternately, lease a Cessna for your first season. If you rent from another DZ you can be assured that it is properly equipped for jumping and most jump plane owners will insist on participating in training your pilot, vastly reducing risks to both parties. Good luck on your new venture. Let us know how the B&B turns out. Quote Share this post Link to post Share on other sites
skipro101 0 #4 April 2, 2004 Also, dont count out personal friends and family members. Shoot for 5k each....you might have half of the money you need right there. When i was 18, I talked my grandmother into loaning me 5k. I invested it and its now worth 9k. Lucky? Probably But..if i can get 5k at 18....you might be able to do the same with your family/friends. just a thought. Quote Share this post Link to post Share on other sites
rgoetsch 0 #5 April 2, 2004 AOPA has a finance department through MBNA bank. Talk to them- the purchase of the airplane for skydiving doesn't have a lot to do with the finance...the insurance does. If you finance it you have to insure it. The insurance on a jump plane is UNBELIEVABLE. Check with Falcon Insurance for some prices before you buy... you may change your mind. We have a 1969 182 (very nice plane- not just a jump plane) that is insured for $100,000. the jump insurance this year was going to be $8,000 with a $10,000 deductable. the regular use insurance is only $1380 with a $100 deductable. Guess what- we don't use it as a jump plane anymore... MBNA is used to dealing with people buying older general aviation planes- they should not have a problem if the plane you are buying is properly valued. The newer body type of 182 (widebody) actually began in 1962- so I dont think that will matter much. Good luck- you may be better off finding someone to lease you a plane. I know a few people that have owned their 182's for many years and paid them off a long time ago. They just dont insure them and take the risk- that enables them to actually pay the bills."If you're not on the centerline -you're out of control" Quote Share this post Link to post Share on other sites
jimmytavino 16 #6 April 2, 2004 I don't understand,,'the plane of our dreams'... whats so special about it???? if THAT plane is out there.... aren't there others?? It seems that you have found the real estate good...and a plane... good... but if dollars are tight for the plane, I hope you already have a ton of gear... Have you already covered yourself for student gear,,, freefall rigs,,, tandem rigs....??? How much of a deposit can you put on the plane??? How much are they asking???? have you ever bought or sold aircraft in the past???Can the current owner finance it for you.... of will they move on to the next "cash offer"...?? Lots to consider... But if you do finance a plane,,what the heck,,, jump right in there... and get a Cessna 208 Caravan....." people will come ray.. people most definately will come" !!! terrance mann ( James Earl Jones) Field of Dreams I hope all goes well for you....... be succesful...jmy........ Quote Share this post Link to post Share on other sites
Freefalloz 0 #7 April 2, 2004 I knew posting here was a good idea! Lots to think about. I just spoke with MBNA. We'll see how that one goes. Already borrowed from from the family/friends to get started. Got the gear, got a deposit for a plane, looked at leasing - not alot of options there and WOW is it expensive. You'd end up working for the plane and be able to buy one outright with what they want. We've spoke to Falcon. Got the scoop on the that expense. But, are prepared to deal with it. We appreciate all the feedback and will keep plugging along and see how we go! Thanks! Celeine Quote Share this post Link to post Share on other sites
Freefalloz 0 #8 April 2, 2004 Oh, JT I just watched Field of Dreams again the other night. Maybe that's why I said "the plane of our dreams" A little melodramic, I must admit, but..... I keep that quote "people will come..." in my mind and it keeps me going! Cheers, Celeine Quote Share this post Link to post Share on other sites
AggieDave 6 #9 April 2, 2004 QuoteI keep that quote "people will come..." in my mind and it keeps me going! Thats what SD Spaceland did (the new/current one). They built it (huge hanger with facilities), bought it (Otter), all on a big chunk of land and the jumpers came. It can happen, its just hard. Good luck!--"When I die, may I be surrounded by scattered chrome and burning gasoline." Quote Share this post Link to post Share on other sites
Trent 0 #10 April 2, 2004 Yep, that's what happened for Spaceland. 4.5 years later, we own 3 otters and have the busiest dropzone in the state, if not the South (excluding Florida). Good luck with the start-up and let us know if you need a plane for bigger events!Oh, hello again! Quote Share this post Link to post Share on other sites
chuckbrown 0 #11 April 2, 2004 Hi, I think I met you & your hubby when you stopped by Maytown. The property is gorgeous and would be beautiful to jump at. As other posters have said, you may want to check other DZs to lease a 182. Most of the commercial DZs in the Northeast have 182s that they use infrequently during the warmer months when they can support a King Air or Otter, so you can probably find one to lease. I know if Maytown ever needs another 182 for a weekend we call Chambersburg and rent theirs. Quote Share this post Link to post Share on other sites
Freefalloz 0 #12 April 2, 2004 Hi Chuck, Yes, we did meet you at Maytown and thanks for your feedback. We will be visiting again soon. Ash is going to be seeing Dave in a couple weeks. Maybe, we will see you then. We have looked a leasing and didn't want to go there. We spoke to JR sometime ago and it may be worth reinvestigating. Thanks for the suggestions, Celeine Quote Share this post Link to post Share on other sites
Gawain 0 #13 April 2, 2004 Have you considered leasing or contracting a plane from another owner? There is no shortage of jump planes and if there is an active DZ within reasonable flying distance with more than one aircraft, you may be able to use their "B" plane (a DZ that mostly uses its Twin Otter or Caravan but has a C182 or 206 in a hangar...). You may find it easier to manage from an operational cost and it may be less of a burden on credit ratings, and easier to manage for seasonal business as well. Good luck! Your web-site looks pretty cool.So I try and I scream and I beg and I sigh Just to prove I'm alive, and it's alright 'Cause tonight there's a way I'll make light of my treacherous life Make light! Quote Share this post Link to post Share on other sites
