28 Mar 2024, 06:34 [ UTC - 5; DST ]
|
Username Protected |
Message |
Username Protected
|
Post subject: Off Market Aircraft Posted: 21 Nov 2018, 09:27 |
|
|
|
|
Joined: 05/23/13 Posts: 6713 Post Likes: +7244 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
|
|
The market for popular airframes remains very hot. The finding airplanes part of my job has become very difficult this year. I tell our clients that if a retail ready airplane hits Controller priced right, it’s probably gone within days.
We have to find these aircraft before they hit the market, hence the term “off market aircraft”
The other reality is that if it’s still on Controller, it’s probably already sold or there’s a reason it hasn’t sold. I would say that more than half the airplanes on Controller are sold or over-priced. There’s reasons why, but we can cover that in another thread.
We have made a couple of good buys this year on advertised airplanes that had been on Controller for over six months. In both cases it was timing and catching the owner when he was very motivated to sell. Ironically both were King Air 300’s, one we tried to buy a couple of times in the nearly two years it was for sale.
These buying a stale airplane right opportunities are rare, most of the airplanes we have bought this year have been off market.
I’ll share a couple of off market stories on this thread and as always try to answer questions and help you guys be savvy buyers!
_________________ It’s a brave new world, one where most have forgotten the old ways.
Last edited on 21 Nov 2018, 10:36, edited 1 time in total.
|
|
Top |
|
Username Protected
|
Post subject: Re: Off Market Aircraft Posted: 21 Nov 2018, 09:43 |
|
|
|
|
Joined: 05/23/13 Posts: 6713 Post Likes: +7244 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
|
|
Here’s my first off market story.
Stacie is our off market airplane hunter and she is great at her job! We are buying a Citation Ultra right now that Stacie found after over two months of tirelessly working that market. We are very careful and respectful when contacting aircraft owners, we never want to be pushy or bothersome. The fact that we do not sell airplanes is really the X factor in our success in locating off market aircraft. The aircraft owner doesn’t worry that our end game is to trick him into a listing, therefor they are much more open to talking to us.
Last week she sent the third very polite email to the chief pilot, letting him know that we had a qualified and ready buyer for his aircraft. He responded to this email on Tuesday November 13, he let Stacie know that they were about to take delivery of their new jet and they were weeks away from being able to let the Ultra go.
I called him, he described the aircraft, one operator for over a decade, Citation Service Center Maintained. Nice paint and interior, etc. He sent me the Cescom and photos. We promptly added it to our client’s portal, he loved it. We sent an offer on Wednesday, it was accepted on Thursday and I travelled all day Friday 16th to get to it and do my initial inspection. We should finalize the purchase agreement today and have it into Citation for a Prebuy inspection on Monday. If all goes well we will close by the end of the year.
And that is how you buy an off market aircraft!
_________________ It’s a brave new world, one where most have forgotten the old ways.
|
|
Top |
|
Username Protected
|
Post subject: Re: Off Market Aircraft Posted: 21 Nov 2018, 18:49 |
|
|
|
|
Joined: 05/23/13 Posts: 6713 Post Likes: +7244 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
|
|
Username Protected wrote: Will the market loosen up after Jan 1? Maybe, and more likely so should the stock market continue its poor performance and interest rates continue to rise. We've seen it loosen some already, we have a B200 acquisition with a $2M budget and we are considering several options, where as earlier this year we couldn't find anything to buy. Obviously we are talking about finite markets so a couple of airplanes can make a big difference. Most of what we have seen is people selling so they can or have upgraded. The piston market sounds like it is on fire!
_________________ It’s a brave new world, one where most have forgotten the old ways.
|
|
Top |
|
Username Protected
|
Post subject: Re: Off Market Aircraft Posted: 21 Nov 2018, 20:09 |
|
|
|
|
|
Joined: 11/09/09 Posts: 3145 Post Likes: +3996 Location: KHII & KREI
Aircraft: RV6A, C182M
|
|
My recent Cessna 182 purchase was an off market airplane. It was never advertised and the seller was a good friend a couple of hangar rows over. I caught him at a weak moment. He now drives by my hangar when I'm there and yells out the window that he wants wants to buy it back. And he's not kidding. Dave
|
|
Top |
|
Username Protected
|
Post subject: Re: Off Market Aircraft Posted: 22 Nov 2018, 11:04 |
|
|
|
|
Joined: 05/23/13 Posts: 6713 Post Likes: +7244 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
|
|
Username Protected wrote: My recent Cessna 182 purchase was an off market airplane. It was never advertised and the seller was a good friend a couple of hangar rows over. I caught him at a weak moment. He now drives by my hangar when I'm there and yells out the window that he wants wants to buy it back. And he's not kidding. Dave That’s when you KNOW you made a good buy! Congratulations! Love the 182!
_________________ It’s a brave new world, one where most have forgotten the old ways.
|
|
Top |
|
Username Protected
|
Post subject: Re: Off Market Aircraft Posted: 22 Nov 2018, 11:54 |
|
|
|
|
Joined: 05/23/13 Posts: 6713 Post Likes: +7244 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
|
|
Username Protected wrote: Chip-
forgive my naivete when it comes to brokerage, but what exactly do you do if not selling? Do buyers pay you to locate the aircraft, with certain specs/times/hours? Gary, Not naive at all! I really appreciate the question, one of our challenges as a company is getting the word to aircraft buyers that we exist and why they should use an acquisition agent. We actually refer out a lot of potential clients, our desire is that buyers find the agent most capable of representing them in the purchase. Our business model is rare and though we are seeing more companies focus on acquisitions, the concept of only representing buyers and not selling or brokering airplanes is still very unusual. As I mentioned above we don’t sell aircraft primarily because it greatly increases our success at buying off market aircraft. In a nutshell prospective aircraft purchasers hire our team to find and acquire an aircraft for them. Each acquisition is different, sometimes we have a very well defined criteria and others we assess the client’s mission and suggest aircraft that would fit their needs / budget. We find suitable aircraft, often off market, develop a short list of those aircraft and vet them out for history, lack of damage / stories, etc. and then once we’ve chosen the right one, we negotiate the deal. I travel to do the initial visual inspection, we finalize the deal and execute purchase agreements, relocate the aircraft for a wide array of prepurchase inspections, and once the sellers obligations are met we close, complete any improvements necessary (if any) and put the aircraft into service. We oversee avionics upgrades, paint and interior refurb, the overhaul of engines. We help clients find hangars, pilots, maintenance facilities, fuel deals... you name it. If it has to do with purchasing or operating an aircraft we handle it / advise our clients.
_________________ It’s a brave new world, one where most have forgotten the old ways.
|
|
Top |
|
Username Protected
|
Post subject: Re: Off Market Aircraft Posted: 27 Nov 2018, 01:00 |
|
|
|
|
Joined: 05/23/13 Posts: 6713 Post Likes: +7244 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
|
|
Username Protected wrote: Hey Chip,
Greetings from New Braunfels. When I purchase an aircraft I try to avoid those owned by brokers due to the Occasional Sale exemption. Do you know of a way to avoid that?
John Hey John, just drove through your beautiful town earlier today headed to Citation San Antonio! There is no way to avoid sales tax if buying from a dealer in Texas. One of the first questions we ask our Texas based clients is what their sales tax plan is, we very often look for casual sellers so we can avoid sales tax.
_________________ It’s a brave new world, one where most have forgotten the old ways.
|
|
Top |
|
Username Protected
|
Post subject: Re: Off Market Aircraft Posted: 27 Nov 2018, 21:39 |
|
|
|
|
Joined: 03/25/15 Posts: 531 Post Likes: +130 Company: WillCo Engineering Location: Houston, TX
Aircraft: Rentals
|
|
Username Protected wrote: Anyone have any tips on how a regular-joe can purchase an aircraft off-market? This company appears to be for very high-end turboprops/jets. What about the piston markets? Hang out at the airport and get to know all your hangar neighbors well (grapevine), drop off your card at any nice planes you see on the ramp you may be interested in, etc.
|
|
Top |
|
Username Protected
|
Post subject: Re: Off Market Aircraft Posted: 27 Nov 2018, 22:27 |
|
|
|
|
|
Joined: 02/11/09 Posts: 1350 Post Likes: +457 Location: Tucson, AZ (57AZ)
Aircraft: 1960 Bonanza M35
|
|
Username Protected wrote: Anyone have any tips on how a regular-joe can purchase an aircraft off-market? This company appears to be for very high-end turboprops/jets. What about the piston markets? Post in the "Wanted To Buy" section here, you may get someone to reply with exactly what you're looking for.
_________________ Ken Reed 57AZ
|
|
Top |
|
|
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot post attachments in this forum
|
Terms of Service | Forum FAQ | Contact Us
BeechTalk, LLC is the quintessential Beechcraft Owners & Pilots Group providing a
forum for the discussion of technical, practical, and entertaining issues relating to all Beech aircraft. These include
the Bonanza (both V-tail and straight-tail models), Baron, Debonair, Duke, Twin Bonanza, King Air, Sierra, Skipper, Sport, Sundowner,
Musketeer, Travel Air, Starship, Queen Air, BeechJet, and Premier lines of airplanes, turboprops, and turbojets.
BeechTalk, LLC is not affiliated or endorsed by the Beechcraft Corporation, its subsidiaries, or affiliates.
Beechcraft™, King Air™, and Travel Air™ are the registered trademarks of the Beechcraft Corporation.
Copyright© BeechTalk, LLC 2007-2024
|
|
|
|