phrogpilot73

My wife and I are completely prepared to walk away from the $3200, the way we look at it - don't have to worry about scheduling as much as with the local FBO, meets our needs for useful load/range/speed, and we're going to have fun if nothing else. He and I both agree an agreement needs to be in place, and we're definitely going to include right of first refusal, and out clause, etc. I've joined AOPA and am going to start getting working on that. Thanks for all the info guys, you made me realize I'm NOT crazy - but I hadn't thought of everything!

The leaseback thing is what the insurance underwriter explained. Our "rough" (again, we've only talked back and forth about it) agreement is: 10% Buy In 50% Hangar (unless it's moved to NC, then it's 10%) 50% Upgrades (unless we can't agree on the upgrade, then it's up to him 100% - i.e. ADS-B, I want a new transponder, he wants the wingtip light) 50% Flight Hour based maintenance (we're going to define this more, but 100 hour, etc) 10% Calendar based maintenance 10% Insurance (insurance would be lower if I was the primary - I have 2,000 hours and a CSEL, he has 175 and a PPL) Unscheduled maintenance will be % of our flight time - if I fly 75% of it in a year, and he flies 25% then I'd be responsible for 75% The "out" clause includes reimbursement of the 50% paid towards upgrades based on when installed (i.e. within 3 years, if he decides not to sell and we've agree upon the ADS-B transponder that I paid half for, I get that back) and the 10% Buy in payment. Right of first refusal for sale My wife and I are prepared to eat any loss and walk away if the deal goes sour, but knowing where he stands financially (he overextends himself with toys) and also knowing that he is facing no job in 2 1/2 years, makes it seem like a good idea to get in now, if for no other reason than the right of first refusal clause. His original plan was to not take the continuation, go to an aviation college full time that will pay for his certificates and "prep" him for the airlines, then work as a CFI until he can get on with a regional. He said that's still his plan, but that his plan will be executed later rather than sooner. Because he was passed over twice, he's not eligible for promotion and Title X says he'll be out of a job. None of what he has planned is really conducive to owning your own plane, hence why I'm pretty certain he's going to be selling. His plans all changed when the meltdown in the airlines started happening. Had coronavirus not happened, I probably would own the plane outright right now.

Oh yeah, as everyone is bringing up things I didn't even think of - I'm joining AOPA and getting their help. I don't THINK this guy will screw me (he approached me about buying it outright, just before I got my medical so I was still hesitant), but there's always the case that he does.

WOW! Thanks for all the quick replies... The 10% rule was what the insurance underwriters said. That they wouldn't cover a loss if I've paid for anything, unless I'm a minimum of a 10% owner. I've been debating about an AOPA membership for a while, and I guess now I'll have to pull the trigger before I put any money down. No money has changed hands yet, and I even told him that if I do buy a stake - it's going to be a cashier's check going direct to the lien holder. We've been talking a lot about what each of us would be willing to agree to with regards to shared costs/use of the plane. Even further back story - he's an active duty Marine (I'm retired) who was passed over twice for Major. Normally, that means in 6 months - you are involuntarily separated (jobless). The Marine Corps is now offering automatic continuation, so three more years of active duty. That's why in 3 years, he's likely going to be in a position that he's forced to sell. He just executed orders to Camp Lejeune, NC and the aircraft is hangared in Norfolk, VA. Since he's deploying for a year in a couple of months - he doesn't want to move it, not to mention his girlfriend is still up here so he comes up every weekend. He wants the plane flown while he's gone, hence the agreement. And the fact that he's thinking about selling it before the 3 years is up was a surprise to me. As we hashed out all the details - when it comes to maintenance/hangar, I'll be responsible for the percentage I bought in with (i.e. 10%). We've also talked about upgrades (it needs ADS-B Out) and how we're going to handle those. Was planning on getting everything written out, have both of us agree and go through a lawyer. My wife is insisting on an "out" clause to protect us in case he decides not to sell, and the agreement already has a clause to prevent him from selling it out from under me. Been shopping for a Mooney M20 ever since Mom lost her mind with the inheritance, because the useful load/speed/efficiency meets our needs. This one is so affordable, and is in really good shape, which is the reason my wife and I are getting ready to pull the trigger.

Long time lurker, first time poster... My wife and I have been planning on buying an airplane for a while, and my father had said that he wanted me to purchase a plane with my inheritance. We were looking at Cherokee 6/300's until Dad died, Mom got the estate... And quickly started changing all of the beneficiary allotments to favor the grandkids over the kids. So - our price point has changed for shopping. Anyway, a friend and coworker of mine owned a 1962 M20C and offered to sell it to me. I didn't have a medical at the time, and didn't have a timeline to get it back (long story) so I turned him down. He ended up selling it to another friend/coworker. Once I got my medical back, started flying with him and he added me to his insurance. Well the insurance underwriters came back and said I can't even buy fuel unless I'm a part owner (min 10%). The hull value of the plane is $32,000 so I have to spend $3200 to become a 10% owner. It just finished up its annual, and outside of engine mounts that needed to be replaced - it's in good shape. Engine and prop have about 800-ish hours until overhaul. He and I talked a long time about it, and I told him that I'm only doing this because I expect that he'll be selling the plane in 3 years (work related stuff), and that if he isn't planning on selling the plane within 3 years, then I'll go in another direction. He told me he plans on selling the plane within the next 2-3 years. So, the 10% ownership will give me the opportunity to be the first to buy it. Am I crazy, or am I making a decent decision? My thoughts are that I am NEVER going to find an M20C where I am intimately familiar with maintenance/upgrades that were performed for the last 6 years, as well as know that the same A&P has been working on it, and he does all the Mooney work in the area, for the price he will be selling it to me for. Only thing I can think of that would screw me is if he doesn't decide to sell... What does everyone think?