Welcome! A work forever in progress, but a place to see what interests me, my family, and friends. I'm a professional singer with over 20 years of experience and a career member of the U.S. Navy. I'm a fixed-wing CFI/MEI pilot and have found that not only is Aviation the next big chapter in my life, but it relates to my personal finance and entrepreneurial interests, as well! Hope you enjoy!
How’s your business going now? Every lender I’ve contacted limit hours for flight club use. Have you found lender that does not? I’d like to get your input.
I have many planes in this set up. You need to treat it like a rental. That’s it nothing else. Reliable and CFI that wants to fly your plane. That’s it nothing else. Fill it up with time and CFIs.
One of the aircraft at the flight school I just finished up at has a never-ending stack of new tires in the hangar. Probably goes through 2 sets a year or more.and a never-ending revolving list of small INOP items. They get treated like rentals. So you have to ask yourself, do you want to be a seasoned pilot that's always got your airplane in use, in maintenance, or down for repairs. And when the weather is nice and you'd like to fly, so does everyone else so you're essentially living in a renter pool. Its just not for me if I can only own 1 airplane.
Thanks you, very informative video. I am about to start a lease back with my flight school. They are all DA40 fleet. They have 2 currently. One thing I am still thinking is, when it comes to the training. Do I use my airplane or I use their plane? Using their plane is basically pay 20% of the rental rate. Using my plane, I am paying the actual operating cost and losing the ability to make money(the hours for other renter to rent my plane). Have you thought about this? This sound counterintuitive that use their plane is actually cheaper than using my plane.😂
So I'm not looking to make tons of money if I were to go this route, but I am looking to offset costs or make enough money to cover future maintenance issues. With that said, how much control and flexibility do you have with your aircraft's use? Can you cap the total number of hours it can be used in a month? Could you arrange for it to not be used as a base trainer aircraft and only used for things like IFR and complex aircraft training?
Beautiful job and great design. Well done Mike. The Comanche’s classic design and this paint job make it look like it just rolled off a factory assembly line yesterday.
I'm from South Sudan 🇸🇸 and I have just started my aviation company last month and I have been wondering how I can rent a small plane and how much does it cost?
I’ve jumped into this by accident but I feel lucky. Would love to pick your brain and learn if you’re willing to share. I’m hoping you still check your RU-vid Channel.
Ok so you own the plane.. I would like to do this if possible to pay for the loan on a plane to eventually own it. Can you do this? Also why flight school lease backs and not rent for private flights?
Very nice upgrades to this day! I got a question for you. On the leaseback you have, do you rent it out at the same price point as the other less advanced aircraft? I know you said in one of your other videos that you scheduled your training on your plane the same way as the other students. So would you schedule it for a set time when you wanted to take it on a long vacation as well? Also, who set the terms and wrote out your agreement for the leaseback? Thank you
Thanks for the questions, favbal2450. My rental price was at a similar price point to the others, so as to keep the activity strong. I scheduled the same as others, and if wanted to take it a long trip the same would apply. I don't think I ever took it for more than 2 nights on a trip -- so it wasn't an issue. The terms of my original agreement were provided by the school, the same as others before me. Over time, I've managed to tweak the terms in ways that I wanted, but it was after establishing a relationship with the school(s).
@@MikeWebb-FlyingFinanciallyFree I know prices are inflated, but I looked to put in a 530 and new CDI and antenna a few years ago, was $15k without any other work. Can’t understand why it would take two full working weeks for a relatively simple install. Avionics shops gouge. My PA28 was probably worth 35. Needless to say I use FF and VORs.
I own a bonanza c35 I don’t think I can justify paying the ultra uber high prices for modernizing to modern avionics but I can dream😂. For the rest of you I guess that taking out a second or third mortgage is well worth it!
math makes about zero sense. You basically are getting paid, but it goes to 100 hour inspections, etc... he mentions adding value such as a 172 with a g1000 but a decent one used goes for about 260K so when you throw the cost of the plain itself in the mix, it is a total loss leader. Anyone who says they are making money doing a leaseback is (in my opinion) ignoring a lot of the numbers.
With all due respect, as someone who has been doing this for years now, the math does make sense. IF, you have a good fit. A $260k plane will almost certainly struggle to make money, but I’m not taking about anything like that, as the video describes.
I would love to see detailed number. I have a lot of clients that don't view all of the number so remain positive. Did you do a NVP (net present value) or IRR (internal rate of return) of the investment. Would you care to share your P&L, balance sheets and cash flow statements? FYI, when someone says "with all due respect" everyone know that you are actually calling other person an idiot. @@MikeWebb-FlyingFinanciallyFree
another way to look at is by is the hour. For ever you rented you have to put in $18 for upcoming inspections (every 100 hours), fuel $49, oil $3.5, insurance (hull $14 for only $80K so for a 250K plane you could estimate this to be about $50), reserve's for maintenance $20. So say the school is renting this at $165/hour and the school gives you a 80/20 split that leaves you with 132 gross profile per hour when your expenses are 132. That dos not include the financing of the plane at say 9%. This is whey you do the NVP and IRR mentioned so you can see the true cost in opportunity lost by doing the investment or the actual profit over time. So even if you are gifted a plane, you cannot rent for whatever you want to...the schools compete with each other and I am in Washington DC (a major market) so I have a strong grasp of what the rentals and actually know very specifically the rental history of each plane. The G1000s are more popular and a lot more expensive than the "steam gauge" planes, etc.. the complex and twin engine planes rent, but not nearly as much as the 172s with the G1000s. @@MikeWebb-FlyingFinanciallyFree
and I did not take a lot about the costs going up faster than the rental rates...ie cost of oil and gas. So at best you supplementing the plane by the leaseback. At worst you have huge exposure with very little upside.
@@hanshoffmeyer8258 I don't even know where to begin on countering your perspective, here. Your numbers are assumed on a basis that I can't track the logic of, and are nowhere near what I actually have been paying for years. And, yes, I'm in DC, too, so that aint the problem. How many planes do you own that are on leaseback? How has your actual experience (not hypothetical/theorized) worked out? I appreciate the interest in my video -- tell me how your real-world experience has been.
I do agree about your airplane getting torn up through leasing. A guy leases his really nice Archer II to the school, students leave their trash, tear up the landing (me included), and one student spilled a cup/bottle of coffee in the plane.
Hi Andy. A 310R, while a great plane (my uncle had one for a few years and I got to fly it once or twice), is a tough sell in a leaseback. As discussed, if the goal is to actually make money you want a plane that is flown often and is accessible to as many pilots as possible. A twin with turbocharged engines does not fit that bill. However, if there's a school that wants to specialize in "higher-end" multi-engine training with something like a 310, it could attract some good attention. Your goals determine whether a leaseback is a success; my normal criteria would say a 310R is not a good candidate.
Are there particular model plans that do better financially in leasebacks? For example, would a higher end plane like a SR-22 do particularly well as I assume there are fewer available and presumably command more $? Or are the 172s of the world do better financially?
Generally speaking, the planes that fly often and regularly are the ones that have the best chance to be successful in a leaseback. Something like a SR-22 is harder because it won't fly as often (usually) and generate enough income to offset the expenses. But it could work in the right environment.
I got less than 5 hours on mine when the compression release on the head quit working - GB420-3 Chinese engine. (and yes, I release built up water pressure when starting) It tried to break my hand several times until finally the rope broke. I called Simpson - absolutely worthless support team. They told me to call a repair shop in my area. I saw in a video if the valves are out of adjustment the compression release also won't work. Will be looking for a Honda engine now.
