Aircraft Brokers

[bogi0912]

What are some of your thoughts on brokers. Are they a necessary evil? Or have some of you completed transactions by just using an attorney?

The owner is considering upgrading our aircraft and buying/selling is something I have not been through.

 

[hiflyer731]

The actual transfer of ownership is quite simple. Bill of Sale and Registration need to be filled out and filed. Of course with a higher dollar asset there are more things to consider. Prebuy inspection is a big part and knowing what kind of inspection to do and what kind of "gotchas" to look for can be tough. Odds are you will be purchasing from a broker and there are some shady guys out there that will try to sell you a POS and you won't realize it until everything is complete and you are left with the mess. With a good aviation attorney and a good amount of research about the type of aircraft you are buying and the respectable brokers out there, you should be able to do it yourself.

I personally sold aircraft for almost 4 years. I dealt with mostly piston aircraft but was involved in some turboprop and light jet sales as well. I would feel reasonably comfortable buying or selling a light jet for someone but I would have to do a lot of research about the particular type of jet before making an attempt.

So, if you want to do a lot of research and take on the responsibility of possibly buying a lemon then go for it. Otherwise, finding a good broker you can trust and that has bought/sold several of the type of aircraft you are looking for will help avoid headaches down the line.

 

[bogi0912]

Thanks. I feel comfortable and fairly knowledgeable about the aircraft in question, Falcon 50EX. I am also trying to familliarize with the process of the acquisition. I was just stunned to here the costs of a broker, in the 5 percent range! Seems like a lot of dough for a few weeks of work.

I was hoping to save the owner some cash by getting a good aviation attorney to handle the paperwork side of things. The obvious downside is that everything needs to go smoothly. With such a huge asset I can understand why many go with a broker. I was was hoping to hear about experiences for and against using a broker.

 

[patq1]

What are some of your thoughts on brokers. Are they a necessary evil? Or have some of you completed transactions by just using an attorney?

The owner is considering upgrading our aircraft and buying/selling is something I have not been through.

Get a good broker. In my opinion, you will not be doing your boss any favors by saving him the money. And no, I am not a broker.

 

[ditchpilot]

I have done it with and without a broker and it is much easier with one .
I would at least get a buyers agent (who knows 50's) who would assist yourself buy the 50ex then get a falcon specialist to audit the books on a day rate.

 

[LXApilot]

I've been an aircraft broker on the side for many years and believe that a good aircraft broker can 1) often find off-market aircraft that may be available through their networks, 2) can help you identify and avoid disasters in your aircraft selection. I know of a friend, who didn't use a broker, and now they've got a CE-650 in the MCO service center which has been sitting for two months with corrosion issues and has caused their owner to miss five trips... so far..., 3) 5% is a little high for a broker commission; a good broker should be clear about who they are representing- in your case- he is helping to assist YOU, the purchaser, acquire the airplane and so should be representing your best interest. If a broker is representing both you and the seller, watch out. 5% might be the total of commissions between the selling and acquiring broker. Maybe 2.5% for your side of the equation., 4) the broker can navigate the extensive legal, regulatory and tax issues that might permeate your particular sale. In some cases, this could save hundreds of thousands.

Yes, I am a broker and I do have a Falcon 50EX available if you're interested. PM me. Hope this info helps and good luck operating the Falcon- it's a remarkable airplane.

- CH

 

[Rick James]

I can tell you that a bad broker can put your job/ department in jeopardy. I won't name any particular broker but I had no idea how much damage a third party could do.

 

[StarHustler]

I can tell you that a bad broker can put your job/ department in jeopardy. I won't name any particular broker but I had no idea how much damage a third party could do.

Amen to that Brother!!

 

[gern_blanston]

I know of a friend, who didn't use a broker, and now they've got a CE-650 in the MCO service center which has been sitting for two months with corrosion issues and has caused their owner to miss five trips... so far...

So your friend is an idiot? No pre-purchase?

I can tell you that a bad broker can put your job/ department in jeopardy. I won't name any particular broker but I had no idea how much damage a third party could do.

+1

 

[gret]

Use a broker. Repeat...use a broker as something almost always gets messed up and don't ever buy without a pre-buy.

Check out the references carefully...a bad broker is worse than none at all. There are a handful of good brokerage firms out there that will save you money and aggravation. Jet Effect, Boston Jet Search, AvPro, Leading Edge and a couple of others can do the job.

Fees should be in the range of $100K-$200K at the most. Remember the effort of buying a smaller a/c is just as much for a larger one. Don't use a percentage on the buy side for obvious reasons.