Aircraft Broker Commission - Aviation brokers work with clients from all different backgrounds and cultures to sell private aircraft. From providing professional guidance in legal aspects to helping sellers market their aircraft, aviation brokers have a vast knowledge of flight and help clients both sell and acquire private aircraft.
Assets America guided us every step of the way in finding and leasing our large industrial building with attached offices. They handle all of the complex lease negotiations and contractual paperwork. request, we received exactly the space we needed along with a lower than market per square foot pricing, lease length and end of term options we requested.
Aircraft Broker Commission
In addition to the real estate lease, Assets America utilizes their decades-long financial expertise to negotiate fantastic rates and terms on our large and very unique multimillion equipment purchase/lease. We were thankful for how promptly and consistently they kept us informed and up to date on each step of our journey.
Is High Performance Aviation A Dealer Or A Broker?
They were always available to answer each and every one of our questions. Overall, they provided my team with a fantastic and highly professional service! Furthermore, it's likely that buyers aircraft chartering or own a fractional share of an aircraft.
Moreover, some buyers may own a jet card, which is prevalent in private aviation. To clarify, a jet card holder can use different jets and other aircraft at fixed hourly rates. This is a post by guest authorDean Kantis, founder and owner of Micro Jet Network, IncandCharter My Jet.
Dean was asked to contribute to this blog because of his expertise in aircraft brokerage and matching aircraft owners and operators for charter operations. Any thoughts expressed below are entirely Dean’s and do not definitely reflect the views of Universal Weather and Aviation, Inc.
Both. At High Performance Aviation, we preeminent broker planes, which has some advantages for our clients. On a trade-in, a client has to give up more value from their plane to account for the risk being taken on by a dealer.
It’s Vital To Know What Type Of Market We Are Currently In
Depending on the plane, typically 15-25% of the airplane's retail value will need to be allotted for the risk taken on trade-in. Therefore, trade-in values may be lower than desired for some clients. In brokering a plane, the client ownership ownership of the aircraft and usually can continue flying it.
There would be some time required to sell it, but eventually the client would retain more of the value, and would likely save approximately 10% of the airplanes value by brokering it instead of trading it in.
Dean Andrew Kantis is the CEO/Founder of TheJetNetwork. Since 2007, this Fort Lauderdale, FL based company provides experienced aviation acquisition, consulting and “jet - matching” services. TJN specializes in providing light, medium, heavy and commercial aircraft, aviation financing, ACMI and Dry Leases, as well as aviation entities such as Part 121, Part 135, Part 141 and Part 145 entities.
TJN works with buyers, sellers, lessees and lessors. TJN has been involved in over $250 million dollars of aviation transactions. Kantis, also founded Charter My Jet in 2015, which “matches owners looking for subsidized charter revenue aircraft with the best Part 135 charter operators.”
Dean Kantis [Guest Author]
Dean can be reached at dk@thejetnetwork.com.This guest author's views are entirely her own and do not certainly reflect the views of Universal Weather and Aviation, Inc. If you're looking to sell your private aircraft you may be wondering how much commission aviation brokers take from final purchases.
While some aviation brokers take around 1%-2% of commission, others take a flat fee upfront before marketing your aircraft. You'll need to chat with you or aviation broker before it to hash out the details when it comes to aviation broker fees.
Resources: Airplanes for Sale | Private Jet Broker Services | Corporate Aircraft | Cessna for Sale | Challenger & Learjet for Sale | King Air and Hawker Jet for Sale | Bombardier for Sale | Embraer Legacy Jet & Phenom Jet for Sale |
The Best Business Jet | The Best Personal Aircraft | Model Information | IADA Accredited Dealer | Blog When you use a private jet brokerage, you might be better able to realize your asking price or higher.
What Makes A Private Jet Broker Cost-Efficient?
When you compare the price advantage to the cost, you can easily come out ahead with a private jet brokerage. Clearly, aircraft brokers must be good at one thing–closing deals. This creates some tension for sellers because the broker only makes money if the aircraft sells.
In other words, you must ask whether you can trust the broker. The answer is yes if you work with a reputable brokerage. Great experience with Assets America. Fast turn around. Had a lender in place in 30 minutes looking to do the deal.
Totally amazing. Highly recommend them to anyone looking for financing. Ronny is fantastic. Give them a call if the deal makes sense they can get it funds. Referring all our clients. Yes, certainly. I have seen countless times where using a broker/buyer's agent for a purchase, even if buying a factory new airplane, results in tremendous savings for the buyer.
Even if you have bought several airplanes in the past and negotiate transactions in your day job, it is helpful to have an aircraft broker who has the connections to get the best deals and knows the pitfalls in certain deal structures.
If I’m Buying A Brand-New Plane From The Factory Do I Need A Broker?
In addition, the broker can likely assist with arranging delivery and acceptance of your aircraft to make the process as painless as possible. Aviation acquisition consultants accept payment from buyers. specifically, their job is to facilitate the aircraft acquisition process while protecting the interests of the buyer.
Crucially, this Advising the buyer to walk away from an unfair or unjustified deal. The aviation acquisition consultant typically helps the buyer find the right aircraft for the buyer's needs and budget. Often, buyers are completely new to the aviation market.
When it comes to selling or acquiring a private aircraft you can't trust just anyone to get the job done. Aviation brokers have an extremely specialized career in aviation sales that requires extensive knowledge in aviation sales and acquisitions.
From legal aspects to technical aspects, and more, your aviation broker can guide you and offer professional advice when it comes to buying or selling private aircraft. The following are some of the most common questions that private aircraft owners and buyers have about aviation brokers.
What Are The Obligations Of An Aircraft Broker?
An aircraft broker must pursue the interests of the seller. The broker must facilitate the sale, providing support services that ensure the smooth closing of the deal. Buyers can get similar support from an aviation consultant.
An aircraft broker is a business or individual who assists buyers or sellers with aircraft transactions. You can think of this arrangement as being similar to a real estate agent for airplanes. They will be your guide through the sales process.
Aircraft dealers are typically businesses that take in airplanes in trade, or proactively buy inventory for the purpose of resale. Dealers are granted Dealer Registration Certificates from the FAA which exist as temporary registration documents during the period between buying and selling the plane.
Aircraft brokers play an important role in the aviation industry. In this article, we'll discuss the job of a jet broker. We'll include airplane broker specialties like private jet broker, commercial jet broker, helicopter broker and aviation consultant.
What Is An Aircraft Broker?
Then we'll explore the signs of an excellent aircraft broker and why you need an aircraft broker. Next, we'll review aircraft broker fees and commissions, and how Assets America® can help. Finally, we'll conclude by answering some frequently asked questions.
The primary benefit of working with an aircraft dealer is that they may have the capability and interest in taking your existing airplane as a trade-in. In addition, they might have certain OEM factory-affiliations which allow you to purchase a factory new airplane through their business if they are an authorized reseller.
The job of an aircraft broker is to bring together aircraft buyers and sellers. In addition to facilitating sales, an aircraft broker provides industry, reasonable pricing, and offers peace of mind. Frankly, we must acknowledge that the aircraft sales industry is completely unregulated.
Indeed, the industry: Assets America was incredibly helpful and professional in assisting us in purchasing our property. It was great to have such knowledgeable and super-experienced, licensed pros in our corner, pros upon which we could fully rely.
What Is An Aircraft Dealer?
They helped and successfully guided us to beat out 9 other competing offers! They were excellent at communicating with us at all times and they were extremely responsive. Having them on our team means that we could always receive truthful, timely and accurate answers to our questions.
We would most definitely utilize their services again and again for all of our real estate needs. Corporate Fleet Services is equipped with a team of experienced aviation brokers that work with your best interests at heart.
Dealing with all aspects of aviation sales and purchases, there is no team of aviation brokers more dedicated to getting you in the air quickly, efficiently, and safely. Contact CFS Jets today to chat with an aviation broker about your needs.
In today's internet environment, services like JetNet and Amstat provide basic information about aircraft for sale. Theoretically, online marketplaces and technical information threatens the need for an aircraft broker. But the brokerage industry has not disappeared because it provides important benefits.
What Is The Advantage Of An Aircraft Dealer?
Indeed, sellers benefit from using an aircraft broker in several ways: Ronny was a pleasure to work with and is extremely knowledgeable. His hard work was never ending until the job was done. They handle a complex lease and guided us through the entire process, including the paperwork.
Not to mention a below market lease rate and more than all the features we needed in a site. We later used Assets America for a unique equipment financing deal where once again Ronny and team exceeded our expectations and our timeline.
Thank you to Assets America for your highly professional service! If an aircraft dealer claims to be a dealer for a particular OEM, you should verify with the OEM. Many OEMs only sell factory-direct (with a few exceptions, common with international territories).
For instance, Cessna and Cirrus mostly have factory-direct salespeople who are authorized to sell new airplanes in specific territories. If you are not sure, you can always check the manufacturer's website for authorized sales centers or call their sales organization to confirm if a dealer is legitimately part of the sales network for that particular company.
Buying An Airplane With A Broker/Buyer’s Agent
A flight broker, or charter broker, arranges charter flights for customers. A flight broker finds aircraft options for a customer, usually tied to the customer's budget or preferences. Typically, a flight broker works with a network of charter operators to find available aircraft.
On the selling side, a broker will assist with listing your airplane and performing the marketing tasks required to reach a buyer. They will also assist with negotiations, paperwork, and logistics. You retain ownership of the plane until it sells.
The broker is typically paid a percentage of the sales price at closing. The broker may require initial setup or marketing fees depending on their fee structure. The seller pays an airplane broker when the broker closes the sale.
Obviously, this resembles the real estate brokerage industry. There is nothing wrong with the broker representing the seller in a transaction. But the buyer should be aware of this relationship. Problems can develop if a buyer thinks that the broker is looking out for the buyer's best interests.
What Is An Aircraft Broker?
At best, one should insist that the broker be honest and fair. If you are purchasing an aircraft from an aircraft dealer, it might make sense to trade-in your aircraft for simplicity and efficiency of the transaction.
There may also be sales tax reasons to consider doing a trade, if it helps lower the sales tax burden for the aircraft you are purchasing. You should not expect retail value out of your trade.
The aircraft dealer will likely need to make a reasonable profit on both sides of the deal, so expect to get a trade-in value that is a wholesale number which includes some margin for the risk the dealer is taking on your plane.
There are many areas encompassing aviation, from private executive jets that charter flights like an upscale Uber sharing concept, to pre-paying aircraft block hours on cards, to shared ownership, to private use. Depending on what your needs are, there are things you need to consider for buying and selling an aircraft over the next year.
Benefits Of Using An Aircraft Broker
You do not definitely need to hire an aviation broker to sell your private aircraft. However, aviation brokers have a wide network of connections and a vast understanding of the market which can help you get the most out of your airline sales and acquisitions.
If you aren't an aircraft Guru then you should hire an aviation broker to give you a hand and make the process of sales and purchasing a lot smoother for you. We can arrange aircraft financing starting at a minimum of $10 million.
And depending on the purpose of the aircraft and the type of transaction, we can offer up to 100% loan to value (however, the financed amount cannot exceed the purchase price). Please contact us today at 206-622-3000 for a confidential consultation, or simply fill out the below form and expect a prompt response!
This is a challenging question to answer because it depends on several variables, many of which can't be distinctly quantified without an overview of the deal in its entirety. If you want an outsider's opinion on your particular deal, please feel free to call or email us directly.
What Sellers Need To Do In Order To Sell Their Aircraft
Assets America was responsible for arranging financing for two of my multi million dollar commercial projects. At the time of financing, it was extremely difficult to obtain a bank for commercial real estate. Not only was Assets America successful, they were able to obtain an interest rate lower than going rates.
The company is very capable, I would recommend Assets America to any company requiring commercial financing. Some states, like Texas, have benefits related to sales/use tax if buying an airplane from an individual rather than directly from a dealer (check with a tax expert for clarification).
Brokered planes typically meet this requirement, as the final transaction would be between the buyer and seller, while the broker just facilitates the transaction. This can be of significant value to a buyer and can elevate the perceived value of a brokered aircraft in comparison with an identical aircraft sold by a dealer.
How Do I Know If A Dealer Officially Represents A Particular Manufacturer?
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