Garmin 430W and notes from 4/08/09 meeting

[Bob Irving]

Let's wait until Tim responds. He seems to be dragging his feet.  

Jim, your calculations imply that you think 976 is worth $40,000 as is. I
don't agree. I don't think 976 is even worth $20,000 as is. And, according
to Sean the balance due on the note is "around $20,000" not $15,000.
Finally, if the balance due is "around 20,000", 8 members would have to pony
up $2500 each just to make the payment Tim wants made (enough to pay off the
note). I don't think any of that is feasible. Speaking for myself, I'm not
willing to dump $2,500 into 976 as is. Don't forget, the engine is fully run
out, logs are missing, avionics need upgrades. 

RE Wednesday meeting - I'm not sure we have anything worthwhile to talk
about until we get these numbers nailed down. I'm willing to meet, but for
what purpose?

Bob

-----Original Message-----
From: eefc-core-bounces at workingcode.com
[mailto:eefc-core-bounces at workingcode.com] On Behalf Of James Carlson
Sent: Friday, April 10, 2009 4:06 PM
To: toddmbs at yahoo.com
Cc: eefc-core at workingcode.com
Subject: RE: Garmin 430W and notes from 4/08/09 meeting

toddmbs at yahoo.com writes:
> I think it was the "act as a bank" part that was confusing me.  Other than
just making the payments on an existing note, I didn't see how EE could play
the bank when there is a lot of work to do on 976 and it has to be paid
for.  Tim is just going to have to spell out exactly how this transaction
can work.  And Tim usually gets right to the point.

It seemed easy enough to understand to me: the aircraft would be ours,
and we would pay Tim monthly as though the equity he has in it right
now were a debt that we owed him.  Maybe numbers will make it more
obvious:

  Current state:
	Bank holds note, ~$15000 remaining to pay (to bank)
	Tim owns plane, pays bank monthly
	Tim has 40000-15000 = 25000 in equity
	We have nothing

  Desired state:
	Tim holds "note," ~$25000 remaining to pay (to Tim)
	We own plane, pay Tim monthly

  End state:
	Tim has equity back as though he sold the plane
	We own the plane

To get from "current" to "desired," we pay off the bank's remaining
balance (~15000) now, and begin paying on the equity that Tim has in
the plane (~25000).  The two things combined end up buying us the
plane.

Maybe a simpler way to look at it is: if we take the plane, the bank
is owed $15000, and Tim is owed $25000.  We need to pay each one.

(Of course, substitute in refined numbers when we get those.  His
equity might not be as large as 25000, and the remaining balance might
not be that much either.)

> Also, I will propose a meeting on Wednesday again.  It seemed to work
easily for us last week. I am available.  I have a few scenarios for how to
set up the initial club buy-in. They mostly depend on the number of
interested members and the financing options available.

Wednesday seems ok for me.

> Bob, perhaps when you send out the first e-mail introducing yourself to
the interested group list (on the next clear sunny flying day), you can ask
them respond so we can get a solid number of potential members.

I thought we agreed that was the purpose of the survey that Steve is
working on.

We already have a list of potential members -- they're the people on
Sean's original list.  The answers to the survey will tell us who is
actually interested.  Those who don't respond or who don't want what
we're considering are likely not interested.

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