Saturday meeting with Tim

[James Carlson]

Bob Irving writes:
> I met again today with Tim and Sean. First,  if we wished to purchase
> something other than 976, Tim can NOT guarantee that purchase.  (That's just
> a business decision on his part - he doesn't want to risk using any
> remaining credit he might have with his bank because he might need it for
> operating capital).  Since none among us would be willing to provide the

Yep; I think that's what we all understood, and it makes sense that he
wouldn't be interested in guaranteeing anyone else's plane.

> personal guarantees necessary to finance the purchase of a used plane -
> further consideration of the 40k/50k/60k options is an exercise in futility.

That seems a shame.

> 15k additional cost (probably a low estimate), EE is expecting that we would
> pay the current note balance (18,000) plus the cost of the new engine
> (15,000) as the "down payment". That's a total of $33,000 or more in down
> payment . ($2,200 each for 15 members/$3,300 each for 10 members/$4,700 each
> for 7 members).  He would be willing to take a note for the balance owed -
> whatever that might be. They will have the hard number for us on Tuesday. 

Ouch.  Maybe there's some wiggle room in there.  I realize they want
to get the $18,000 debt itself off the books in case they need to
borrow, but if we were to just take over the payments for that note
instead, then that'd help their immediate cash position.

$3000 would be a lot to ask for a down payment, but I might be able to
manage it if things ahead look brighter, and especially if we can
figure out how to return that money over time.

> I will hold off on any survey until we get these latest issues figured out.
> Personally, I might go for $2,200 but more than that is a stretch under this
> form of ownership. Comments ????

Maybe we need to talk with a bank.  Depending on the exact liability
involved, I would probably be ok with signing for a loan.  (It seems
that BoA requires insurance on the loan itself, but I'm not sure who
is liable first, and that makes a big difference.)

-- 
James Carlson         42.703N 71.076W         <carlsonj at workingcode.com>