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 Post subject: Off Market Aircraft
PostPosted: 21 Nov 2018, 09:27 
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Joined: 05/23/13
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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!

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Last edited on 21 Nov 2018, 10:36, edited 1 time in total.

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 Post subject: Re: Off Market Aircraft
PostPosted: 21 Nov 2018, 09:43 
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Company: Jet Acquisitions
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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!

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 Post subject: Re: Off Market Aircraft
PostPosted: 21 Nov 2018, 11:40 
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Sweet!

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 Post subject: Re: Off Market Aircraft
PostPosted: 21 Nov 2018, 15:40 
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Location: Chicagoland
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Same situation in the new and late model used piston world. My company has sold fewer than a dozen planes this year, which is slow. Only one was (and is) on controller. All the rest have been sold off market.

There is a dearth of late model used simply because so few have been made in the last eight years. And in the case of Diamond, a slow ramp-up of production and some massive fleet orders have really drained the pipeline for new salable aircraft.

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.


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 Post subject: Re: Off Market Aircraft
PostPosted: 21 Nov 2018, 18:49 
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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!

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 Post subject: Re: Off Market Aircraft
PostPosted: 21 Nov 2018, 20:09 
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Location: KHII & KREI
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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. :rofl:

Dave


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 Post subject: Re: Off Market Aircraft
PostPosted: 22 Nov 2018, 11:04 
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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. :rofl:

Dave


That’s when you KNOW you made a good buy!

Congratulations! Love the 182!

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 Post subject: Re: Off Market Aircraft
PostPosted: 22 Nov 2018, 11:19 
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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?

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 Post subject: Re: Off Market Aircraft
PostPosted: 22 Nov 2018, 11:28 
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Location: New Braunfels, TX
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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

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 Post subject: Re: Off Market Aircraft
PostPosted: 22 Nov 2018, 11:54 
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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.

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 Post subject: Re: Off Market Aircraft
PostPosted: 26 Nov 2018, 03:57 
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I have purchased two aircraft in the last 5 years. Neither was hard to find. Both were purchased for less that vref.
I found I had my pick of multiple aircraft to choose from, all in annual and priced to sell.
I would never use controller, all the aircraft there are over priced.
Barnstormers was the way to go.
I never buy from a broker. I only deal directly with the current owner.

Both deals were completed on a handshake.

My only recommendation is look at the hours flown recently. See when they really stopped flying it. That will tell you how long maintenance has been "deferred". Price accordingly.


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 Post subject: Re: Off Market Aircraft
PostPosted: 27 Nov 2018, 01:00 
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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.

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 Post subject: Re: Off Market Aircraft
PostPosted: 27 Nov 2018, 21:16 
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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?


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 Post subject: Re: Off Market Aircraft
PostPosted: 27 Nov 2018, 21:39 
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Company: WillCo Engineering
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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.


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 Post subject: Re: Off Market Aircraft
PostPosted: 27 Nov 2018, 22:27 
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Joined: 02/11/09
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Location: Tucson, AZ (57AZ)
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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.

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