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LetsFly in Costa Rica

Eldon's Blog — Sun, 15 Mar 2009 03:54:00 GMT

LetsFly.org Aircraft Ownership Now Available In Costa Rica

Local Cooperative Owner: Francisco Casasa and LetsFly Costa Rica Team Cooperative # 333

LetsFly.org President, Eldon Corry, meets Deputy Ambassador Of Costa Rica, Jairo Hernandez, establishes the first LetsFly.org aircraft cooperative in Costa Rica and lay's the ground work for a cooperative pilot/retirement community.

What an amazing experience and what an amazing people. The day started out early in the morning as my wife Michelle and I boarded an uneventful flight from Idaho Falls, Idaho to San Jose, Costa Rica.

Upon our arrival in Costa Rica, we were met by my son Sheldon and the Deputy Ambassador of Costa Rica, Jairo Hernandez. The six days we spent together will forever be etched in my memory. The Ambassador and my son drove us to the Hotel Los Angeles where we were treated like gold by the owner of the hotel and distinguished Costa Rica businessman, Caesar and his lovely wife Erica.

The time spent at Caesars Hotel Los Angeles was very enjoyable as was the dinner at his personal residence. I highly recommend his hotel to anyone visiting Costa Rica. The hotel is located in the middle of San Jose and is close to some excellent restaurants and other big city activities.

The main purpose of our trip was to check into the possibilities of introducing the Letsfly.org aircraft cooperative ownership program to Costa Rica. In addition, we wanted to get to know people and the area.

After meeting with several local businessman the next day and discussing the Letsfly.org program, we headed off with the Ambassador to stay at one of his favorite resorts, the Guanacaste Tree Resort. The two days we spent at the resort were amazing. This resort is nestled in the beautiful Costa Rica countryside. It is a small retreat in the country that has hiking, horseback riding, swimming, excellent home-cooked meals as well as many other activities to satisfy just about anyone.

While sitting around the resort pool under beautiful clear skies and 80° temperatures, a fresh coconut was cut down and then cut open and handed to us by one of the locals. The taste was exquisite. This prompted a discussion with the ambassador about residency and retirement in Costa Rica. I quickly realized that the average United States citizen could easily retire in Costa Rica and live like a King for pennies on the dollar.

I asked the Ambassador if he would take us on a tour of the surrounding area. He readily agreed and took us to some of the most beautiful pristine beaches and countryside in Costa Rica. In fact, the beaches were within a 45 minute drive of the resort. My next question, being a pilot, was about the local airports. I soon discovered that there was a nice 3200 foot strip within about five minutes of the resort. That means that the pristine beaches were within 10 minutes by small plane. We proceeded to take a tour of the many other airports within an hour drive of the resort. Some of these airstrips were right on the beach.

It didn't take long to realize that the tiny resort and surrounding beaches were like the California coast, countryside, and prices were 50 years ago. I asked the Ambassador if he would agree to arranged a conference call with the owners of the resort. A short time later I was on a conference call with the owners.

I explained to the resort owners how the Letsfly.org program provides the most economical way to own and fly an aircraft and that every discount and benefit is passed on to the cooperative owners. They liked the idea of utilizing cooperative principles to make ownership affordable. After a two-hour conference call, the resort owners agreed to help put a resort ownership plan together that will be available exclusively for LetsFly.org owners and members. This exclusive opportunity could be the starting of the most economical pilot paradise and retirement community available anywhere in Costa Rica.

What started out to be a trip to Costa Rica to evaluate the possibilities of the traditional LetsFly.org Cooperative may very well create a whole new lifestyle for pilots and retirees. Let's look at the advantages:

A healthcare system equal to the United States: FREE

A stable democratic form of government

Incredibly nice weather 70° to 85°

Extremely friendly people with very little violent crime

Excellent property values

A laid-back lifestyle that is second to none

Beautiful airstrips and pristine beaches

Low cost of living

At the conclusion of our trip, we set up the first LetsFly.org cooperative in Costa Rica, enjoyed a beautiful sunset on the beach, fruit from a local farmer, incredible dinners, and visits with some of the most friendly people I know. Then early in the morning, the Ambassador picked us up from the Hotel Los Angeles and we were on our way back home.

If this trip to Costa Rica is any thing like retiring would be in this wonderful country, then sign me up. According to my calculations a person could live like a King in Costa Rica as compared to the United States, enjoy a laid-back lifestyle and experience the freedom and opportunities that were available in the United States 50 years ago. And now, with the addition of a new local Costa Rica LetsFly.org cooperative, a person can enjoy the freedom of economical flying, any time, anywhere, including some pristine beaches and lush green country airstrips.

For information on the new Costa Rica Cooperative, or any of the hundreds of other cooperatives, visit our website at www.letsfly.org or e-mail eldon@letsfly.org.

How to Sell an Aircraft in a Sluggish Economy

Eldon's Blog — Thu, 12 Feb 2009 13:52:00 GMT

Selling an aircraft is very similar to selling a piece of real estate. It requires some special tools and specific knowledge. Let me share some of the tools and knowledge I have gained over the past 30 years.

Before we continue, many people might ask “what makes you an expert in this area?" The answer is simple, I have been involved in most every aspect of aviation for over 30 years. I have personally owned over 50 aircraft. I have appraised aircraft for some of the largest banks in the country, have been involved with aircraft sales my entire career and have helped hundreds of people with their cooperatives. With that, lets talk about how to sell an aircraft in a sluggish economy.

With real estate the key is location, location, location. With aircraft sales, it is an acronym I call CAPTON. And yes, I know how to spell Captain. However, for this discussion Captain spelled CAPTON, stands for the six tips that will help you sell your aircraft. The six tips are as followed:

Condition

Advertising

Pricing

Terms

Options

Non-aircraft trades

Let's take a look at each area of concern. Please keep in mind that there are other areas that need to be addressed, however, these six areas are critical, especially in a bad economy. If you address each of these areas, you will put your aircraft on a pedestal and have a much better chance of procuring a sale or generating a positive cash flow.

Condition: in a buyers market and or a sluggish economy, it is imperative that you pay attention to condition. When purchasing an aircraft I always ask about the paint and interior. I have been told many times, even by professionals, brokers and people that should know better, that “the paint is in good shape, but could use a good buffing.” If it needs buffing, then buff it. Even if it doesn't need it, do it. Looks and conditions sell the vehicle. This is especially true with aircraft, and most important is the exterior. My simple recommendation is to spend $200 and have a good detail shop come out and do a good detail on it. If the stripes are faded, I highly recommend a company called just stick it. They provide aerospace quality stripes that you can apply yourself for under $600. The number one rule concerning condition is to make the exterior shine.

Advertising: advertising is a must and should not be expensive. I have very seldom used the high-priced aviation magazines, newspapers and websites. There are plenty of very inexpensive sites that get excellent exposure, such as barnstormers or as a LetsFly cooperative owner your advertising is free and is automatically posted on over 300 sites.

Pricing: a good place to start with pricing your aircraft is through AOPA and their aircraft evaluation calculator called Vref. I also like to go into the market and see what other aircraft are being advertised that have similar times and equipment. I usually put my aircraft on the market for less than the other advertised prices and offer some good terms.

Terms: if you are in any position to offer terms and options, you will have a much greater chance of selling your aircraft. This is proven out in other industries as well. For example: if you have two homes side by side, and they are both selling for $100,000, and one requires 5000 down and the other requires $100,000 cash, which one will sell quicker? The answer is obvious. I personally believe this is one of the factors that make the Letsfly.org program so successful. An initial investment of $2900 and no qualifying financing is very attractive. In addition, they are one of the few organizations that offer a cooperative ownership option.

Options: there are two options that greatly improve the chances of selling your aircraft. They are financing and shared ownership. We talked about the importance of financing under the terms. If you are unable to provide personal financing, then arrange for other financing options. It's important. The other option we need to discuss is shared ownership. If you're thinking about forming a partnership, don't! It is not worth the bad feelings and frustration. I have personally been involved in over 20 aircraft partnerships. Now I know better, and I avoid them like the plague.

There are four types of aircraft ownership (full, fractional, cooperatives and partnerships) Cooperative ownership is an excellent option for a person wanting to sell their aircraft. It may allow you to sell the aircraft, generate a positive cash flow and still be able to fly the aircraft. Aircraft cooperatives utilize the principles of a cooperative and are coupled with the practices used in real estate. Let me give you an example: an investor buys a four plex, leases out three units, and his or her unit is paid for. This model is very successful in real estate because it provides a win-win situation and like real estate, the cooperative owner can enjoy the same benefits with one exception: they can still experience the freedom of flying. This is an excellent option to consider.

Non-aviation trades: being willing to think out side the box and accept non-aviation items and trade such as motorcycles, four wheelers, motor homes, bicycles, services, etc. will also enhance your ability to sell your aircraft. If you have any questions or comments about this article, feel free to contact Eldon at 208-523-3073

Five Reasons Why Aircraft Partnerships Fail and Why You Should Avoid Them

Eldon's Blog — Thu, 08 Jan 2009 18:59:00 GMT

The dictionary describes a partnership as: “a legal relation existing between two or more persons contractually associated as joint principals in a business or a relationship.”

That may be the “official” definition of a partnership, however, I describe it as a lesson in frustration and patience between two or more parties, who should probably know better than to enter this type of arrangement in the first place.

So what qualifies me to make such a bold statement about a business entity that thousands of people are actively engaged? My personal experience with partnerships goes back to my high school days. I was assigned various partners for projects in school and remember well what the outcome was. One of us would do most of the work and yet all of us got the credit. Sometimes none of us did the work and no one got the credit and a lot of finger pointing took place. The outcome was always the same. (Bad feelings, frustration and failure)

I have been involved in all four types of aircraft ownership, (full ownership, fractional aircraft ownership, partnerships and cooperatives) with ownership in 22 aircraft partnerships and 53 aircraft over the course of my thirty-three years in aviation. I have also had multiple business partnerships outside of aviation. I think I can speak with some authority on the subject.

The partnerships that lasted the longest were the ones where one of the partners became the dominant worker in the group. The concept of working together in a partnership is great. The reality is not so great.

I finally learned my lesson about 10 years ago. It was the straw that broke the camel’s back. Without being overly negative, let me just say that I finally heard every excuse in the book and we called it quits.

Let’s discuss the problems with partnerships and why I would make such a bold statement about avoiding partnerships.

The number one problem with most aircraft partnerships is lack of clear leadership. There are either too many chiefs and not enough Indians or too many Indians and no chief.
Another major problem is not setting up the partnership correctly in the beginning. The reason for this may have a lot to do with the associated cost of making it legal. A good aviation attorney with a business background typically charges between $9,500-$12,000 dollars to get things set up correctly.
A third issue that arises to complicate a partnership is personality conflict. Many partnerships are started because the money or the aircraft is there but no consideration is given to the compatibility of each partner on a personal level.
Finances can put a strain on partnerships as well. One partner may shoulder more of the load for one reason or another and resentments run rampant.
Last but certainly not least are problems such as scheduling, bookkeeping, communication, etc. These potential problems can and do crop up on a regular basis and may also lead to the failure of a partnership.

My advice is to run as fast as you can from anyone asking you to join them in an aircraft partnership. The majority of the time it leads to an in-flight break-up.

If partnerships have so many pitfalls, what else can be done?

I am personally involved in multiple cooperative aircraft ownerships through the LetsFly organization. Of the four types of ownership (full, fractional, partnerships and cooperatives), cooperatives are by far the best solution. I highly recommend them to anyone that is interested in economical aircraft ownership and flight time. Use the resources at www.letsfly.org to find out more about cooperative ownership.

Welcome

Eldon's Blog — Sat, 20 Dec 2008 01:07:34 GMT

Welcome to my blog. Please check back soon for new entries.