SOLD: 1/4 Ownership in a 1963 Mooney M20C
Posted on 12/21/2017
SOLD: This equity share has now been sold, effective July 2018.
The Mesquite Metro Flying Club now has one equity ownership share of our 1963 Mooney M20C available to purchase! This is a wonderful opportunity for any pilot looking to become a first time aircraft owner, while avoiding most of the heavy costs associated with aircraft ownership. Whether you’ve been a member of a flying club before or not, this is a chance to gain further experience as a pilot, as an aircraft owner, and contribute to the social camaraderie and fellowship of the club, and help promote a culture of safety and confidence among all fellow members.
About the Club
We’re currently a 4 member club, based out of Mesquite Metro Airport (KHQZ) on the east flank of the Dallas/Fort Worth Metroplex. Collectively we own 1 aircraft, a 1963 Mooney M20C. Our club was founded in late 2016, with heavy assistance from the APOA You Can Fly initiative. The club is established as a 501(c)(7), recognized by the State of Texas as a Non-Profit Social Club, with a Board of Officers and Bylaws. We purchased our 1st aircraft in March of 2017. Our club currently operates on an equity share basis, meaning each member owns an equal share of the aircraft. On paper, the flying club owns the aircraft, and each member buys a 1/4 share from the club. In practice, all equity owners of the aircraft have equal voting rights into any decisions involving the aircraft. While our goal in the immediate future is to continue to maintain a 4 member club with 1 aircraft, we have designed our club bylaws to allow for potential unlimited growth for any combination of equity and non-equity members, and with any number of aircraft. We’ve toyed with the idea of expanding our membership to allow the purchase of a 2nd aircraft, but there are no current plans for that at the moment.
Since we’ve maintained a smaller club size, we’ve enjoyed virtually no scheduling conflicts between members. We designed the club to encourage overnights, weekends, and week long trips without financial penalty. Scheduling is performed on a first-come first-serve basis, using an online scheduling tool. Members can easily view the schedule from any computer or mobile device, and book any times desired.
Aircraft maintenance is scheduled by a designated Maintenance Officer, and performed on a regular basis, based on best practice, maintenance of aircraft value, and federal regulations. The club maintains a maintenance reserve in the club’s bank account, which is regulated by the club’s Board of Officers, and collected based on yearly, monthly, and hourly dues from each member.
Financially speaking, we collect dues in the following major categories:
- Equity Share – A 1 time purchase of a 1/4 equity share of the aircraft, making the purchaser a 1/4 owner. The cost will be negotiated with the seller of the share, but the price is based on 1/4 of the aircraft’s current appraised value. The purchase price will need to be negotiated with the current equity share seller. This aircraft currently would appraise between $57,500 and $68,000, meaning the equity ownership price might work around $15,000, plus or minus.
- Monthly Dues – These dues cover a variety of typical planned scheduled expenses, such as annual insurance premiums, hangar fees, budgeted annual inspection fees, registration fees, and maintenance reserves, divided by 12. Monthly dues are split evenly between each member. Current monthly dues are $150/mo, but may fluctuate each month based on expected or unexpected expenses. These costs typically do not vary more than 10% each month.
- Hourly Rate – This rate is based on tachometer time, for aircraft usage by each individual member, charged each month. The hourly rate is considered a “wet” rate, meaning that it includes Fuel, as well as building a maintenance reserve for planned engine overhaul, an additional maintenance reserve for unexpected repairs, and so forth. If a member does not fly in any given month, no hourly rate is due from that member. We currently charge ourselves $85/hr to operate the aircraft with a wet rate, which includes all fuel.
Our flying club offers a tremendous opportunity to become a first time aircraft owner. All of our existing members are now first time aircraft owners, and collectively we have learned quite a bit about it. Each of us brings a unique collection of knowledge to the club, and together we all contribute to the greater pool of knowledge, wisdom, and safety. First time aircraft owners are welcome to join us!
If you’ve never been a member of a flying club before, there are many tangible benefits such as lower hourly wet-rates to operate the aircraft. There are also many less tangible benefits that a club naturally offers, such as helping to develop and maintain higher safety standards between all members, by fostering an environment where members are encouraged to help each other improve their skills. Flying clubs help mitigate financial risk, by distributing costs between the equity members for nearly all expenses. Individual member financial liability for any aircraft damage events is also minimized, since we use one collective insurance policy with each equity member as a named individual.
To read more about the aircraft, please view our Club Aircraft page
Contact Us for More Information
If you would like to learn some more about the club, get some more information about the aircraft, and would like to talk to us about this opportunity, please send us a message by clicking this link and submitting this brief contact form.