Primarily for general aviation discussion, but other aviation topics are also welcome.
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By cotterpot
FLYER Club Member  FLYER Club Member
#1834119
Yes the ad has changed.

2019 I went to Sun & Fun and I was reminded by one of the group that went that this aircraft design was there.
The 600 hour finished kit was estimated then to be around $230,000 assuming a rotax 915 and Garmin avionics were fitted, but no paint or registration fee.
#1834156
Now it's not such a bad deal. £100k for the whole, brand new, 4-seater with a 915is.
But, take care (we know the seller is watching....):
He says:
"Share cost is £25000 (Maximum 3 shares)"
and:
"Maximum group of 4 members."

It's currently owned by a Ltd co with 2 share holders. :scratch:
By letpmar
FLYER Club Member  FLYER Club Member
#1834163
I don’t know if the add on Afors has been changed but it now says equity share.
I think for that aircraft/engine/avionics a £100k valuation is not unreasonable, I guess what’s in the small print is the important thing

Pete
#1834165
Does any of the owners/pilots’ associations offer a service where they check the small print of a share agreement for you? I could see that being valuable - someone who knows what the pitfalls are would spot them straight away.
#1834217
flyingearly wrote:Is there any legal/regulatory block on this as well? E.g. under the 51% rule, if you're taking funding for the build then either the syndicate members aren't contributing to the build, or you're effectively becoming a commercial builder for the syndicate?

Yes, you are right. CAP659 Para 3.3.2 is quite clear:
Projects that are jointly owned by a number of individuals will be considered to be
acceptable, provided that each individual makes a contribution to the building of the
aircraft relative to the proportion of their financial investment in the actual aircraft.
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#1834240
NDB_hold wrote:But once built shares can be sold?


Presumably yes, which is perfectly normal - it's an asset like any other.

So you then have this weird situation with no real justification, which is that you're not allowed to take funds to support your build unless those contributing co-build with you, but the second you've funded and built on your own you can sell shares to recoup some of your costs.

Easy to look at this and think it's just another regulatory niggle, but actually this impacts quite a few people like me as it restricts the flow of new aircraft onto the market.

I'm sat here with cash wanting to get a share of an aircraft, but struggling to find anything, but I know of several RV builders living around the block from me who I'd happily give some money in return for a share....except they are incentivised (or legally required!) to fund and build on their own, by which point they'll ask why they should share with others!

What would be great is the ability of a builder to recruit the syndicate early on and use the contributions to part-fund the build, less their own contribution. But then, I guess you're effectively building to order and that might expose you to some sort of manufacturing liability....ah!
#1912876
Rob L wrote:
Dodo wrote:There is an RV8 with non equity shares advertised at Headcorn on AFORS today. Have things changed since this was last discussed?

https://afors.com/aircraftView/55169/Vans-RV8-Headcorn-based-non-equity-shares


Legally, it's just easier to have equity shares. The old 5% rule suffices; this may have changed in recent times.


My error: I thought this was a recent post; I see it was started in March 2021; I withdraw my above comment/post