976 update - Friday

[Bob Irving]

Spoke to Tim via phone late today. He confirms that the 976 note is about
$18,000. He confirms that EE would act as "the bank" if we decided 976 was
the way we wanted to go. His vision of "the bank" is that we would raise the
$18,000 he owes from members initially and pay that amount to him to pay off
his note.  He would then accept a note from the EEFC for the balance of what
we agree to purchase the airplane for - say a total of $45,000 with 0 time
engine.  (No figure has been proposed by EE yet - this is just an
illustration). We would, in this example, owe him an additional $27,000
after the initial $18,000 down payment.  With ten members, our individual
initial cost would be $1,800 each. We would probably not take title to the
airplane until it was paid in full.

 

Frankly, I don't see that we have much choice.  If we elect NOT to buy 976,
who among us will offer to personally guarantee a bank loan for the
40k/50k/60k alternate plan?  No lender will finance our purchase as a club
without personal guarantees from one or more officers.  If you are willing
to personally guarantee a loan for the club and your credit score is
780/820. please step forward.  

 

There is another option that I will investigate with Tim. I will try to
convince EE to guarantee a non-976 purchase. That is, if we purchase via the
40k/50k/60k example route.  As I envision it, he (EE) would buy the plane
and we would make a down payment and make the monthly payments to him.  It
might be a pipedream but I will ask.  If the answer is no, I'm pretty sure
we are stuck with 976 . or an ultralight.

 

Comments ????  Suggestions ????

 

Bob

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