Don't Know How To Start
Posted: Wed Mar 24, 2021 12:47 am
So I figured I would just put this out here and hope that someone knows a way around my problem.
I have been flying for 2 years now, IFR pilot who primarily flies an SR-20 currently from my local flight school. Due to the higher renting costs the SR-20 is virtually always available so I don't usually have a problem getting the plane. That being said based on how much I pay for renting the plane, I've done my cost breakdown and 36 hours is my breakeven point. Any time after that and owning is cheaper. I came across the sling TSI while I was training. I trained out of Long Beach airport and flew into Torrance often so I saw the plane on the airport and loved it.
Now comes my problem. I am self employed and while I make enough each month to easily pay for a plane loan and all my other expenses while keeping my debt to income about 34%, banks hate me. When I started by business back in 2016 I was very much in a cash in more cash out situation. Savings went quick and I had four months of being late on payments. Because of that every time I have tried to even start the process I get a letter or email back saying "Due to delinquencies on your credit report we cannot provide funding at this time." When I was hunting this funding it was for a Cirrus since that is what I've been flying. I was hoping to get into a used 22. Then I contacted for the heck of it Sling in Torrance and got a quote for a build assist Sling TSI that is right in the same budget I was looking at for a 22 and I've wanted a sling for a while.
Now of course entering this world of kit builds... no one even finances these things apparently until you basically built it... which seems a rather interesting choice. So here is my question(s).
1) Does anyone know a lender who would finance a kit build if it is going to be done using a builder assist program
2) How did you finance your kit build? Right now my goal is to pay off my house and I am only a couple of years away from it being 100% paid off so I'd rather not take out a HELOC. I'd rather the debt go on the business anyways so I can write more off expense wise. Once I pay off my house then I will be able to pay for the plane cash rather quickly I would think... but the prospect of 3ish years of renting just makes me sad......
I am willing to keep waiting it out until I save the money to just buy it outright, I just know through renting I am throwing money away and there have been multiple trips my family would love to have done but we decided to drive instead because we didn't want to pay the clubs minimum $825 fee per day we keep the plane. I know I would be flying way more then I currently am if I was in my own plane and the Sling checks virtually every box I want (minus the small baggage compartment and not being as fast as a 22). Plus I'd rather have a new plane that costs me virtually the same as a used 22 with who knows how much more it will need as time goes along.
I have been flying for 2 years now, IFR pilot who primarily flies an SR-20 currently from my local flight school. Due to the higher renting costs the SR-20 is virtually always available so I don't usually have a problem getting the plane. That being said based on how much I pay for renting the plane, I've done my cost breakdown and 36 hours is my breakeven point. Any time after that and owning is cheaper. I came across the sling TSI while I was training. I trained out of Long Beach airport and flew into Torrance often so I saw the plane on the airport and loved it.
Now comes my problem. I am self employed and while I make enough each month to easily pay for a plane loan and all my other expenses while keeping my debt to income about 34%, banks hate me. When I started by business back in 2016 I was very much in a cash in more cash out situation. Savings went quick and I had four months of being late on payments. Because of that every time I have tried to even start the process I get a letter or email back saying "Due to delinquencies on your credit report we cannot provide funding at this time." When I was hunting this funding it was for a Cirrus since that is what I've been flying. I was hoping to get into a used 22. Then I contacted for the heck of it Sling in Torrance and got a quote for a build assist Sling TSI that is right in the same budget I was looking at for a 22 and I've wanted a sling for a while.
Now of course entering this world of kit builds... no one even finances these things apparently until you basically built it... which seems a rather interesting choice. So here is my question(s).
1) Does anyone know a lender who would finance a kit build if it is going to be done using a builder assist program
2) How did you finance your kit build? Right now my goal is to pay off my house and I am only a couple of years away from it being 100% paid off so I'd rather not take out a HELOC. I'd rather the debt go on the business anyways so I can write more off expense wise. Once I pay off my house then I will be able to pay for the plane cash rather quickly I would think... but the prospect of 3ish years of renting just makes me sad......
I am willing to keep waiting it out until I save the money to just buy it outright, I just know through renting I am throwing money away and there have been multiple trips my family would love to have done but we decided to drive instead because we didn't want to pay the clubs minimum $825 fee per day we keep the plane. I know I would be flying way more then I currently am if I was in my own plane and the Sling checks virtually every box I want (minus the small baggage compartment and not being as fast as a 22). Plus I'd rather have a new plane that costs me virtually the same as a used 22 with who knows how much more it will need as time goes along.