Friday, December 19, 2008

The 'for sale" sign


I've put 7 -- almost 8 -- years of work into the RV-7A project and I intend to continue working on it, but I have to prepare for the obvious -- that I'll have to sell it. The economy is bad -- a dozen folks got gassed at my place today and more are due -- my health and that of my wife have been deteriorating to the point where it's obvious my plans for how we'd spend our senior years are not in sync and not really possible, and the economy has pretty much destroyed our retirement funds and although there's enough time before we retire (I hope) to get them back where they were, there's nowhere near enough time for the fund to get anywhere near our being able to live at the level we'd hoped.

I'd hoped to be able to finance the engine purchase but that hasn't worked out well either and this is not a good time to carry debt.

I've sketched out roughly what I've put into it and that's what I'd likely sell it for -- what I put into it. No profit, no charge for the work and no discount.

Here's what I've put into it:

Tru Trak single axis autopilot = $1,500
Icom A210 Radio - $1,200
Artex 406 mxh ELT - $950
Whelen System 6 Strobe package - $950
GRT EIS - $1500
VP-50 - $1,500
Dynon D100 Super Bright pkg - $2500
Garmin 327 Transponder $2,300
Airflow high-performance boost pump - $415
Equipment Subtotal --> $12,815

==Interior==
Seats (Flightline) $507
Hooker harness w/ crotch strap - $750
Oregon aero cushion core -$580
Interior subtotal -->$1,837

Mattituck IO-360 FP engine (but can be a CS) fuel injected with one Lightspeed ignition - $24,500
Engine subtotal --> $24,500

RV-7A project
On landing gear (nosewheel breakout force has not been set), canopy frame is done and the front fairing completed. Tip-up. Tops skins not riveted on (I need access to the tail). 1,800 hours of work invested so far
Total -->$20,000

I get about $60,000 in my calculation and that's about what I'd sell the project for. No tools are included because I need to hang onto the hope that I can build an RV-12 and do the kind of flying that I'm more likely to be doing -- by myself, in the daytime, in the vicinity of the airport.

Alternatively, I'd consider taking on a partner in the plane, although I have to admit I have no idea how such a partnership works. So you'll have to supply the brains.

If you'd like to take a look at things, I would encourage you to plan to come up to the hangar at South St. Paul (KSGS) and assess it for yourself.

Like I said, I'm not anxious to sell it and cash out, but at the moment I'm willing to and I probably should before I absolutely have to.

10 comments:

  1. Sorry to hear this, Bob, but I certainly understand where you are coming from. Hang in there...

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  2. You know, I have seen just about enough of Bob's crying. Earlier this Year he cried about Dan C's comments. Now he brings his tough times to the table so he can sell his 1800 hour 1/2 done project just so he can change to an RV12. Many of us are in jeopardy of losing our jobs and suck it up. Quit praying on others with your words! We (yes we) are tired of hearing your whining when things don't go your way. If you need people to pick you up every time something goes wrong in your life then turn to somewhere else. You will hear a few heartfelt comments on Vansairforce but I guarantee you that the majority are tired of you.

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  3. Bob, I am betting you will not need to sell.

    Ignore whoever put that comment up there and wasn't adult enough to put their name to it.

    I am sure it is difficult to see people's lives being turned upside down, and not being sure when your turn will be.

    All I can say is that when times get tough, tough people show what they are made of. Anybody with enough determination to build an airplane, surely has what it takes in difficult times.

    I admire you for making tough decisions to help your family. Bring it home, put it on hold if you have to. Even sell the engine. Keep that plane. It is a product of your own hands, and will never have as much value to someone else as it has to you.

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  4. Brent, Sorry about that ... My name is Rick

    Rick

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  5. Oh, anonymous, you're such a tough guy. Except when it comes to having the courage to reveal your identity.

    And "you've had about enough." And yet it seems that either (a) someone has a gun to your head forcing you to come to this blog or (b) you actually have an odd fascination with me.

    In either case, you're a troll who attains whatever life value from these weird rantings. So, thank you, it reminds me that at least my problems are mere economic ones.

    Best of luck in getting some help for yours. I mean that..... Rick.

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  6. The partnership approach with another pilot might be a good idea - a timeshare for the air, I guess.

    If you do bail (which I suspect you won't...sometimes things just work out) I hope you'll make an exit plan for yourself and your mindset. Changing dreams means having a new one in queue.

    No one else can make this decision for you. We can walk & talk and I'll listen, but I'm not going to try to cheer you on to keep it or to sell it. You have to come to that.

    -Julia

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  7. Again, I'm finding out what the market is to figure out options. There are some good ones here:

    -1- Slow the building process and try to budget engine and hangar rent payments. (Pretty likely)

    -2- Find an equity partner (somewhat less likely).

    -3- Get someone to take the project off my hands and build an RV-2 instead.

    I don't know which option will work, but the prudent course of action is to find out which one is more pragmatic while I don't have to make the final decision.

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  8. Hi Bob,
    It ain't a democracy, but my vote is for you to finish the plane (if at all possible) before you sell it cause you can get more money out of it. It looks like you pretty much have all of the parts, just need the time to do it?

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  9. Time I'm not to worried about. It's going to need another $10,000 to finish it (some avionics, alternator, FWF stuff). If the work situation doesn't change, I should be OK. But, like I said, if the work situation changes, a lot of stuff has to happen in a hurry.

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