1 01:00:03,766 --> 01:00:06,302 What would you say about tariffs and how 2 01:00:06,302 --> 01:00:08,571 they've affected some of the transactions 3 01:00:08,571 --> 01:00:09,238 that you've been around? 4 01:00:09,906 --> 01:00:11,407 Initially, you know, people were very 5 01:00:11,407 --> 01:00:13,042 confused on what's going on. 6 01:00:13,042 --> 01:00:15,912 I actually had two separate transactions 7 01:00:15,912 --> 01:00:17,380 I was working on at the time, 8 01:00:17,747 --> 01:00:18,448 which were both 9 01:00:18,448 --> 01:00:20,149 cross-border transactions. 10 01:00:20,683 --> 01:00:22,151 One in Europe and the other one was in 11 01:00:22,151 --> 01:00:23,820 South America and both 12 01:00:23,820 --> 01:00:25,254 transactions just halted. 13 01:00:25,621 --> 01:00:27,824 The party said, "We're confused. We don't 14 01:00:27,824 --> 01:00:28,691 know what's going on. 15 01:00:29,225 --> 01:00:30,994 We'll revisit this in Q3, Q4." 16 01:00:31,961 --> 01:00:33,162 Welcome to Own the 17 01:00:33,162 --> 01:00:34,764 Jet by Aspen Aero Group, 18 01:00:35,031 --> 01:00:36,399 where we share perspectives from some of 19 01:00:36,399 --> 01:00:37,967 the leading voices in private jet 20 01:00:37,967 --> 01:00:39,435 ownership and business aviation. 21 01:00:40,336 --> 01:00:42,205 I'm your host, Derek Savage, along with 22 01:00:42,205 --> 01:00:43,539 my co-host, Jason Spoor, 23 01:00:44,140 --> 01:00:45,174 president of Aspen Aero Group. 24 01:00:46,075 --> 01:00:47,143 Our guest today is Netta 25 01:00:47,143 --> 01:00:48,444 Raglin from Aero Law Center. 26 01:00:49,545 --> 01:00:51,214 Netta helps protect jet buyers during the 27 01:00:51,214 --> 01:00:52,181 process of purchasing 28 01:00:52,181 --> 01:00:53,249 an aircraft and is a 29 01:00:53,249 --> 01:00:55,084 strong advocate for educating clients on 30 01:00:55,084 --> 01:00:55,985 the opportunities and 31 01:00:55,985 --> 01:00:57,120 pitfalls of jet ownership. 32 01:00:58,121 --> 01:01:00,156 Join us as we dive deep into the 33 01:01:00,156 --> 01:01:02,325 mechanics, mindset, and moments that 34 01:01:02,325 --> 01:01:03,760 define jet ownership. 35 01:01:04,360 --> 01:01:05,728 And together, we'll learn 36 01:01:05,728 --> 01:01:07,897 what it takes to own the jet. 37 01:01:07,930 --> 01:01:10,900 Welcome, Netta Raglin to Own the Jet. 38 01:01:12,101 --> 01:01:16,372 So, Netta, you are an attorney in the 39 01:01:16,372 --> 01:01:18,241 aviation space and deal 40 01:01:18,241 --> 01:01:20,643 specifically with all things 41 01:01:20,677 --> 01:01:22,478 aviation as opposed to all the other 42 01:01:22,478 --> 01:01:23,713 things that you could do as an attorney. 43 01:01:23,846 --> 01:01:26,649 Yeah, exactly. So, my experience solely 44 01:01:26,649 --> 01:01:28,217 is in aviation, which 45 01:01:28,217 --> 01:01:29,385 means that I do a lot of 46 01:01:29,385 --> 01:01:31,487 aircraft transactions, mergers and 47 01:01:31,487 --> 01:01:33,589 acquisitions with aviation companies, 48 01:01:34,123 --> 01:01:35,358 working with certificated 49 01:01:35,358 --> 01:01:37,160 companies such as charter operators, 50 01:01:37,427 --> 01:01:38,861 repair stations, and 51 01:01:38,861 --> 01:01:40,563 then also litigating in all 52 01:01:40,563 --> 01:01:43,299 aspects of that. So, yeah, focus on 53 01:01:43,299 --> 01:01:44,801 aviation, my firm, all the 54 01:01:44,801 --> 01:01:45,868 attorneys, that's all we do. 55 01:01:46,135 --> 01:01:47,637 So, if I'm in the situation where I'm 56 01:01:47,637 --> 01:01:48,671 wanting to own the jet, 57 01:01:48,905 --> 01:01:50,440 right, and, you know, let's say I 58 01:01:50,473 --> 01:01:53,309 want to buy, you know, a global or 59 01:01:53,309 --> 01:01:55,311 something like that, 10 plus million 60 01:01:55,311 --> 01:01:57,346 dollar jet, why do I need 61 01:01:57,346 --> 01:01:59,315 to work with somebody that is aviation 62 01:01:59,315 --> 01:02:02,185 specific? What's the purpose for that? 63 01:02:02,185 --> 01:02:04,821 It's really important to work with an 64 01:02:04,821 --> 01:02:06,022 attorney that's experienced 65 01:02:06,022 --> 01:02:07,623 with aircraft transactions 66 01:02:07,724 --> 01:02:09,659 specifically. The reason for that really 67 01:02:09,659 --> 01:02:11,260 is that, you know, it's 68 01:02:11,260 --> 01:02:13,463 unlike any other asset or personal 69 01:02:13,463 --> 01:02:15,364 property that you're purchasing. They are 70 01:02:15,364 --> 01:02:17,100 a huge investment, you 71 01:02:17,100 --> 01:02:17,900 know, for the most part. 72 01:02:18,434 --> 01:02:21,137 And also, they're incredibly regulated. 73 01:02:21,738 --> 01:02:23,806 So, it's important to work with a 74 01:02:23,806 --> 01:02:25,074 experienced aviation 75 01:02:25,174 --> 01:02:27,510 attorney that, first of all, knows how to 76 01:02:27,510 --> 01:02:29,946 structure the ownership of that aircraft, 77 01:02:30,179 --> 01:02:32,615 how to structure the operation, depending 78 01:02:32,615 --> 01:02:34,217 on what you plan on 79 01:02:34,217 --> 01:02:35,184 doing with the aircraft. 80 01:02:35,718 --> 01:02:37,386 Again, it's highly regulated, especially 81 01:02:37,386 --> 01:02:38,554 with operations. So, 82 01:02:38,554 --> 01:02:39,622 you have to be careful 83 01:02:40,123 --> 01:02:41,758 with how, you know, what you're doing 84 01:02:41,758 --> 01:02:42,625 with that aircraft. 85 01:02:42,625 --> 01:02:43,993 Otherwise, you'd get a very scary 86 01:02:44,060 --> 01:02:45,762 letter from the FAA and have to call me 87 01:02:45,762 --> 01:02:48,464 anyways. But, you know, I 88 01:02:48,464 --> 01:02:50,233 think the complexity of the 89 01:02:50,233 --> 01:02:51,968 transaction itself, because we're dealing 90 01:02:51,968 --> 01:02:53,936 with such an interesting 91 01:02:53,936 --> 01:02:55,438 and different asset that, 92 01:02:55,438 --> 01:02:57,006 you know, you don't find in real estate a 93 01:02:57,006 --> 01:02:58,608 lot of these issues, and 94 01:02:58,608 --> 01:02:59,375 the fact that there's so much 95 01:02:59,375 --> 01:03:01,244 regulation behind it, it's important to 96 01:03:01,244 --> 01:03:02,111 work with an experienced 97 01:03:02,111 --> 01:03:05,248 attorney. Also, I've found, 98 01:03:05,248 --> 01:03:07,683 and I've worked with, you know, on the 99 01:03:07,683 --> 01:03:08,351 other side, if I'm 100 01:03:08,351 --> 01:03:09,719 representing a seller or a buyer, 101 01:03:10,520 --> 01:03:12,288 if I'm working with an attorney on the 102 01:03:12,288 --> 01:03:13,489 other side who is not 103 01:03:13,489 --> 01:03:14,557 an aviation attorney, 104 01:03:15,458 --> 01:03:17,360 typically, and I don't want to make a 105 01:03:17,360 --> 01:03:18,928 general statement, but typically, 106 01:03:19,495 --> 01:03:21,731 the transaction runs a 107 01:03:21,731 --> 01:03:22,999 little bit less smooth. 108 01:03:23,900 --> 01:03:26,002 You spend some time trying to educate. 109 01:03:26,002 --> 01:03:28,905 Exactly, exactly. And we're, you know, 110 01:03:28,905 --> 01:03:29,806 going back and forth on 111 01:03:29,806 --> 01:03:31,140 a point that, you know, 112 01:03:31,574 --> 01:03:33,676 as an aviation attorney, you know that, 113 01:03:33,676 --> 01:03:35,077 well, that's standard in a purchase 114 01:03:35,077 --> 01:03:35,945 agreement. You know, 115 01:03:35,945 --> 01:03:37,413 there's not much we can do about that, 116 01:03:37,413 --> 01:03:38,247 but you have to argue 117 01:03:38,247 --> 01:03:39,148 with the other side and 118 01:03:39,515 --> 01:03:41,551 kind of just makes the road a little bit 119 01:03:41,551 --> 01:03:43,586 bumpier. So I would say the most 120 01:03:43,586 --> 01:03:45,421 important part is to have 121 01:03:45,488 --> 01:03:48,357 a, to clear out all of those roadblocks 122 01:03:48,357 --> 01:03:50,593 is working with an experienced aviation 123 01:03:50,593 --> 01:03:51,527 attorney to navigate 124 01:03:51,661 --> 01:03:53,229 all of the parties that are involved. And 125 01:03:53,229 --> 01:03:54,697 that's another thing, you 126 01:03:54,697 --> 01:03:56,098 know, when you're doing a 127 01:03:56,132 --> 01:03:58,367 aircraft transaction, you have several 128 01:03:58,367 --> 01:04:00,536 different components to it. 129 01:04:00,536 --> 01:04:01,637 If there's financing involved, 130 01:04:01,637 --> 01:04:03,439 you're dealing with a lender. There's a 131 01:04:03,439 --> 01:04:04,740 whole host of loan 132 01:04:04,740 --> 01:04:06,309 documents that an experienced 133 01:04:06,776 --> 01:04:09,145 aviation attorney can look at and 134 01:04:09,145 --> 01:04:11,480 negotiate key points that may be 135 01:04:11,480 --> 01:04:12,648 important to you that you 136 01:04:12,648 --> 01:04:13,883 wouldn't even think of. You know, for 137 01:04:13,883 --> 01:04:15,451 example, is there something 138 01:04:15,451 --> 01:04:17,119 in the loan documents that, 139 01:04:17,186 --> 01:04:18,487 you know, restricts some of your 140 01:04:18,487 --> 01:04:20,790 operation of that aircraft? And maybe we 141 01:04:20,790 --> 01:04:21,791 want to rework that. For 142 01:04:21,791 --> 01:04:23,392 example, if there's certain regions that 143 01:04:23,392 --> 01:04:24,660 you can't fly to, but 144 01:04:24,660 --> 01:04:25,962 you're planning on flying there, 145 01:04:25,962 --> 01:04:27,230 you know, that's, that's something to be 146 01:04:27,230 --> 01:04:28,698 mindful of. Then you have 147 01:04:28,698 --> 01:04:30,066 your technical side of things. 148 01:04:30,399 --> 01:04:32,468 So making sure if you're representing the 149 01:04:32,468 --> 01:04:33,402 buyer that they're taking 150 01:04:33,402 --> 01:04:35,037 it to the correct repair 151 01:04:35,204 --> 01:04:37,907 station or MRO to do that inspection, to 152 01:04:37,907 --> 01:04:39,108 have a solid pre-buy 153 01:04:39,108 --> 01:04:40,610 inspection. So you have your 154 01:04:40,610 --> 01:04:42,945 technical team and then you have escrow, 155 01:04:43,179 --> 01:04:43,846 you know, you want to make 156 01:04:43,846 --> 01:04:45,848 sure title is clear. And then if 157 01:04:45,848 --> 01:04:47,416 there is issues of title, your 158 01:04:47,416 --> 01:04:49,752 experienced aviation attorney can, you 159 01:04:49,752 --> 01:04:51,287 know, clear that up and fix that 160 01:04:51,287 --> 01:04:54,423 up for you. So it's, it's more so of, I, 161 01:04:54,624 --> 01:04:55,391 you know, an aviation 162 01:04:55,391 --> 01:04:57,326 attorney will have the experience of 163 01:04:57,326 --> 01:04:59,962 knowing what to look for and what to 164 01:04:59,962 --> 01:05:03,099 anticipate before it happens. Whereas a 165 01:05:03,099 --> 01:05:03,799 real estate attorney 166 01:05:03,833 --> 01:05:05,902 or an estate attorney or, you know, your 167 01:05:05,902 --> 01:05:07,536 in-house counsel may just 168 01:05:07,536 --> 01:05:09,105 not be very much aware of that 169 01:05:09,338 --> 01:05:11,207 or even the regulations around it all. 170 01:05:12,041 --> 01:05:14,076 Nice. Now, Jason, as a broker, you've 171 01:05:14,076 --> 01:05:14,677 probably worked with 172 01:05:14,677 --> 01:05:16,512 attorneys quite a bit. Oh yeah. Yeah. 173 01:05:16,846 --> 01:05:18,981 Well, again, you know, going 174 01:05:18,981 --> 01:05:20,049 into buying an airplane, we're 175 01:05:20,049 --> 01:05:22,218 looking at LOA, LOIs, right? So we're 176 01:05:22,218 --> 01:05:23,119 going to start with that and 177 01:05:23,119 --> 01:05:23,986 that's going to be an attorney 178 01:05:23,986 --> 01:05:26,122 driven function. And then move it in 179 01:05:26,122 --> 01:05:27,623 there. We're going to next work on a 180 01:05:27,623 --> 01:05:28,758 purchase agreement, right? 181 01:05:28,791 --> 01:05:32,695 Yep, exactly. Yeah. And the earlier you 182 01:05:32,695 --> 01:05:33,930 have these key component 183 01:05:33,930 --> 01:05:36,332 pieces in place in the process, 184 01:05:36,465 --> 01:05:38,501 it's going to be a smoother transaction 185 01:05:38,501 --> 01:05:40,036 for sure. And you mentioned 186 01:05:40,036 --> 01:05:41,938 the LOI phase and people think, 187 01:05:41,938 --> 01:05:44,273 oh, it's a non-binding one pager. What's 188 01:05:44,273 --> 01:05:47,243 the big deal? But I'm sure you've 189 01:05:47,243 --> 01:05:48,244 experienced this as well, 190 01:05:48,444 --> 01:05:51,514 but that LOI really sets the tone for the 191 01:05:51,514 --> 01:05:52,481 entire transaction. 192 01:05:53,082 --> 01:05:54,383 Exactly. And it's important to get 193 01:05:54,383 --> 01:05:55,918 that right and make sure you're covering 194 01:05:55,918 --> 01:05:57,053 the right commercial terms. 195 01:05:57,053 --> 01:05:58,421 Because if you don't agree 196 01:05:58,554 --> 01:06:01,757 on the pre-buy or the deposit or when it 197 01:06:01,757 --> 01:06:03,960 goes hard, you're going 198 01:06:03,960 --> 01:06:04,760 to have a hard time through 199 01:06:04,760 --> 01:06:08,364 the entire transaction. Agreed. Yeah. You 200 01:06:08,364 --> 01:06:08,965 run into situations 201 01:06:08,965 --> 01:06:10,032 where it's like the LOI, 202 01:06:10,399 --> 01:06:13,369 like they're not agreeing with it and it 203 01:06:13,369 --> 01:06:14,236 just blows the whole deal up 204 01:06:14,236 --> 01:06:14,971 before you even get started? 205 01:06:15,237 --> 01:06:18,140 Yeah. I mean, I've had a few situations 206 01:06:18,140 --> 01:06:20,876 where I was not brought in 207 01:06:20,876 --> 01:06:22,878 or engaged by the buyer until 208 01:06:22,945 --> 01:06:26,248 we were at the pre-purchase inspection, 209 01:06:26,482 --> 01:06:27,917 the APA phase. So they 210 01:06:27,917 --> 01:06:29,518 already had an LOI executed, 211 01:06:30,619 --> 01:06:33,723 but the LOI didn't actually provide 212 01:06:33,723 --> 01:06:35,257 acceptance rejection 213 01:06:35,257 --> 01:06:38,227 rights. So it didn't say that, 214 01:06:38,694 --> 01:06:40,363 and this is something that I always would 215 01:06:40,363 --> 01:06:41,097 want to negotiate 216 01:06:41,097 --> 01:06:43,366 beforehand. What are the expectations 217 01:06:43,366 --> 01:06:45,101 of the parties? From a buyer's 218 01:06:45,101 --> 01:06:47,269 perspective, my expectation would be that 219 01:06:47,269 --> 01:06:48,337 I would like to have 220 01:06:48,838 --> 01:06:50,606 agreed upon work scope for my pre-buy, 221 01:06:51,073 --> 01:06:53,009 where I can take a look at 222 01:06:53,009 --> 01:06:54,110 the condition of the aircraft, 223 01:06:54,377 --> 01:06:56,879 open up panels if we negotiate that, look 224 01:06:56,879 --> 01:06:58,581 for corrosion, whatever might be. Totally 225 01:06:58,581 --> 01:07:00,316 reasonable stuff. Absolutely. Yeah. If 226 01:07:00,316 --> 01:07:01,083 you're going to pay that 227 01:07:01,083 --> 01:07:02,785 much for aircraft. You want 228 01:07:02,785 --> 01:07:04,220 to make sure it's in the condition it's 229 01:07:04,220 --> 01:07:05,521 in. Kick in the tires a bit. 230 01:07:05,521 --> 01:07:08,190 Exactly. So that's key. You 231 01:07:08,190 --> 01:07:10,993 have to agree on that. Also, the second 232 01:07:10,993 --> 01:07:12,061 piece of that, which was 233 01:07:12,061 --> 01:07:13,262 missing in this particular LOI 234 01:07:13,362 --> 01:07:16,332 that I'm referencing, was what's the 235 01:07:16,332 --> 01:07:18,868 procedure after the pre-buy? Typically 236 01:07:18,868 --> 01:07:20,369 for a buyer, I would 237 01:07:20,369 --> 01:07:23,239 like to have an acceptance rejection 238 01:07:23,239 --> 01:07:25,741 period where once you do the inspection, 239 01:07:26,008 --> 01:07:26,942 you get the inspection 240 01:07:27,009 --> 01:07:29,779 report, and the buyer has the ability, 241 01:07:30,046 --> 01:07:31,347 depending on how significant 242 01:07:31,347 --> 01:07:32,982 the findings are in that report, 243 01:07:33,582 --> 01:07:35,618 to walk away from the deal. Makes sense. 244 01:07:35,618 --> 01:07:37,787 If we're talking about an aircraft that's 245 01:07:37,887 --> 01:07:40,689 riddled with corrosion, and being in 246 01:07:40,689 --> 01:07:41,457 Florida, we see it 247 01:07:41,457 --> 01:07:42,725 quite a bit. Yeah, sure. 248 01:07:43,826 --> 01:07:45,327 The value of that aircraft just 249 01:07:45,327 --> 01:07:48,631 completely, it's not the value that you 250 01:07:48,631 --> 01:07:50,166 wanted to buy it at. So you 251 01:07:50,166 --> 01:07:52,168 either renegotiate the purchase price, or 252 01:07:52,168 --> 01:07:53,269 you can reject it and move 253 01:07:53,269 --> 01:07:55,337 on. Anyway, so this particular 254 01:07:55,337 --> 01:07:58,040 LOI didn't have any of that in there. 255 01:07:58,040 --> 01:07:59,708 Okay. And so now we're at the pre-buy 256 01:07:59,708 --> 01:08:00,876 phase. They're trying 257 01:08:00,876 --> 01:08:03,079 to negotiate the APA. The buyer is now 258 01:08:03,079 --> 01:08:04,780 pushing to put that into 259 01:08:04,780 --> 01:08:06,882 the APA. The seller is saying 260 01:08:06,882 --> 01:08:09,885 absolutely not. The APA is the purchase 261 01:08:09,885 --> 01:08:10,586 agreement? Is that 262 01:08:10,586 --> 01:08:11,554 right? That's correct. Yeah, 263 01:08:11,587 --> 01:08:14,590 aircraft purchase agreement. So that's 264 01:08:14,590 --> 01:08:15,658 why it's important to 265 01:08:15,658 --> 01:08:17,159 hammer out those very important 266 01:08:17,159 --> 01:08:18,694 details from the beginning. And it really 267 01:08:18,694 --> 01:08:19,028 is setting 268 01:08:19,028 --> 01:08:22,164 expectations. Sure. How did you get 269 01:08:22,164 --> 01:08:26,469 into this field? How does somebody find 270 01:08:26,469 --> 01:08:29,805 themselves being a partner? I'm a 271 01:08:29,805 --> 01:08:31,006 partner, yes. I'm a partner 272 01:08:31,006 --> 01:08:33,342 at Air Law Center. In an aviation 273 01:08:33,342 --> 01:08:36,779 specific law firm in Fort Lauderdale. So 274 01:08:36,779 --> 01:08:38,714 the short answer is, 275 01:08:38,948 --> 01:08:42,384 I fell into it. Okay. It was the perfect 276 01:08:42,384 --> 01:08:43,819 moment where luck meets 277 01:08:43,819 --> 01:08:45,721 preparation and hard work. 278 01:08:46,222 --> 01:08:47,857 I was interviewing all over the place 279 01:08:47,857 --> 01:08:50,192 looking for a law firm to 280 01:08:50,192 --> 01:08:52,661 land at. And I happened to find 281 01:08:52,661 --> 01:08:54,363 Air Law Center that was looking for an 282 01:08:54,363 --> 01:08:56,198 associate attorney. I went on the 283 01:08:56,198 --> 01:08:57,700 interview, didn't realize 284 01:08:57,733 --> 01:09:01,003 that aviation law was even an area that a 285 01:09:01,003 --> 01:09:02,304 lawyer could practice in. I 286 01:09:02,304 --> 01:09:04,273 didn't have that much, you 287 01:09:04,306 --> 01:09:06,942 know, knowledge about aviation, except 288 01:09:06,942 --> 01:09:07,943 for the fact that I like 289 01:09:07,943 --> 01:09:09,845 to fly around and travel. 290 01:09:10,679 --> 01:09:14,750 Right, right. Exactly. So besides that, 291 01:09:14,750 --> 01:09:15,284 my knowledge of 292 01:09:15,284 --> 01:09:16,719 aviation law was very limited. 293 01:09:17,052 --> 01:09:20,089 And I decided to go on this interview. I 294 01:09:20,089 --> 01:09:21,557 ended up landing the job. 295 01:09:22,324 --> 01:09:23,926 And ever since then, I've 296 01:09:23,926 --> 01:09:25,828 been practicing aviation law with Air Law 297 01:09:25,828 --> 01:09:27,963 Center and loving it. And 298 01:09:27,963 --> 01:09:29,565 now I have such a passion for 299 01:09:29,598 --> 01:09:31,567 it. I love business aviation 300 01:09:31,567 --> 01:09:33,135 specifically. I love working in this 301 01:09:33,135 --> 01:09:35,004 space. The people that I work 302 01:09:35,004 --> 01:09:37,406 with are great. It's a very small 303 01:09:37,406 --> 01:09:39,842 industry in a way. So you get to know 304 01:09:39,842 --> 01:09:41,777 people, faces constantly. 305 01:09:43,078 --> 01:09:45,581 Yeah, it just so happened that I joined 306 01:09:45,581 --> 01:09:47,550 the firm. I was an 307 01:09:47,550 --> 01:09:48,784 associate attorney at the time. 308 01:09:49,218 --> 01:09:51,020 My founding, the founding partner was 309 01:09:51,020 --> 01:09:52,454 there. We had one paralegal 310 01:09:52,454 --> 01:09:54,990 and became, you know, kind of 311 01:09:55,024 --> 01:09:56,725 worked up the ranks in the firm and 312 01:09:56,725 --> 01:09:59,061 became partner. And now we 313 01:09:59,061 --> 01:10:00,462 have about eight attorneys 314 01:10:00,462 --> 01:10:03,899 total, two of counsel and a staff of 15 315 01:10:03,899 --> 01:10:06,335 total. So we've certainly grown. Yeah. 316 01:10:06,602 --> 01:10:09,838 That's awesome. Yeah. So if I'm looking 317 01:10:09,838 --> 01:10:10,906 to own the jet, right, 318 01:10:10,906 --> 01:10:11,607 if I want to buy a jet, 319 01:10:13,008 --> 01:10:14,877 am I reaching out to you guys directly? 320 01:10:14,877 --> 01:10:16,111 Or is it my broker that 321 01:10:16,111 --> 01:10:17,246 reaches out to you? Or like, 322 01:10:17,246 --> 01:10:18,948 how do I even get in touch with Arrow? 323 01:10:19,248 --> 01:10:20,749 You know, it's a mixture. So 324 01:10:20,749 --> 01:10:23,285 I think the simplest answer is 325 01:10:23,352 --> 01:10:25,387 give us a call. You know, we do offer 326 01:10:25,387 --> 01:10:27,089 free consultations. And 327 01:10:27,089 --> 01:10:28,490 again, my firm, we handle 328 01:10:28,691 --> 01:10:30,926 transactions, we handle regulatory work. 329 01:10:31,160 --> 01:10:32,127 So you have trouble with 330 01:10:32,127 --> 01:10:33,329 the FAA for any reason, 331 01:10:33,829 --> 01:10:35,364 pilot actions, things like that. We've 332 01:10:35,364 --> 01:10:36,999 worked with those. We also 333 01:10:36,999 --> 01:10:38,467 litigate. So if there's any 334 01:10:38,467 --> 01:10:40,169 kind of situation where you just have a 335 01:10:40,169 --> 01:10:41,270 question about it, or you're 336 01:10:41,270 --> 01:10:42,538 looking to buy an aircraft, 337 01:10:42,538 --> 01:10:44,139 you don't know where to start, you can 338 01:10:44,139 --> 01:10:44,940 give us a call. We do 339 01:10:44,940 --> 01:10:46,041 offer a free consultation. 340 01:10:46,442 --> 01:10:47,643 On the other side, if you are working 341 01:10:47,643 --> 01:10:50,312 with a broker, I do work with brokers 342 01:10:50,312 --> 01:10:51,547 constantly and they, 343 01:10:51,914 --> 01:10:54,850 you know, bring a lot of buyers my way. I 344 01:10:54,850 --> 01:10:55,784 think the important 345 01:10:55,784 --> 01:10:57,519 thing is to just engage, 346 01:10:58,287 --> 01:11:00,022 just get that process started as early as 347 01:11:00,022 --> 01:11:00,889 possible. You don't 348 01:11:00,889 --> 01:11:01,757 want to wait until the last 349 01:11:01,757 --> 01:11:03,792 minute to bring in your lawyer. Yeah. 350 01:11:03,993 --> 01:11:04,627 Well, you mentioned the 351 01:11:04,627 --> 01:11:06,895 LA, right? So would it be 352 01:11:07,096 --> 01:11:09,265 a good idea that like somewhere between 353 01:11:09,265 --> 01:11:11,800 talking to like, hey, I'm 354 01:11:11,800 --> 01:11:13,469 looking to buy, you know, 355 01:11:13,669 --> 01:11:17,039 a challenger or whatever, prior to 356 01:11:17,039 --> 01:11:18,274 signing anything, would 357 01:11:18,274 --> 01:11:19,942 that be a good kind of like? 358 01:11:20,142 --> 01:11:22,678 I think the perfect time to call me is 359 01:11:22,678 --> 01:11:24,480 when you have identified the aircraft 360 01:11:24,480 --> 01:11:25,347 that you want to buy. 361 01:11:25,648 --> 01:11:28,884 Okay. Okay. I need to wire up. Yeah. I'm 362 01:11:28,884 --> 01:11:29,785 in the gym. I'm deleting 363 01:11:29,785 --> 01:11:31,287 Facebook. I'm lagging up. 364 01:11:31,287 --> 01:11:33,322 We're gonna buy this plane. Yeah, 365 01:11:34,223 --> 01:11:36,025 exactly. Okay. So if 366 01:11:36,025 --> 01:11:37,226 you finance your purchase, 367 01:11:37,226 --> 01:11:40,663 how important is it to understand what's 368 01:11:40,663 --> 01:11:42,264 in the flight documents as 369 01:11:42,264 --> 01:11:43,632 it pertains to your flight 370 01:11:43,666 --> 01:11:45,901 mission? If, if, if you're going to do 371 01:11:45,901 --> 01:11:48,003 the finance. Yeah. So, uh, with 372 01:11:48,003 --> 01:11:49,138 financing, obviously you're 373 01:11:49,238 --> 01:11:51,240 going to have a ton of loan documents. 374 01:11:51,240 --> 01:11:51,640 You're going to have to 375 01:11:51,640 --> 01:11:53,108 sign a bunch of documents with 376 01:11:53,108 --> 01:11:55,077 the lender, the bank, whoever is funding 377 01:11:55,077 --> 01:11:57,346 that. And those long loan 378 01:11:57,346 --> 01:11:58,981 documents, it's going to have 379 01:11:59,081 --> 01:12:02,351 pages and pages and pages of obligations, 380 01:12:02,351 --> 01:12:04,219 you know, of what you have to do. 381 01:12:05,087 --> 01:12:05,954 Maintaining the aircraft, 382 01:12:07,156 --> 01:12:08,290 probably putting on a maintenance 383 01:12:08,290 --> 01:12:09,958 program. They're going to require a lot 384 01:12:09,958 --> 01:12:11,026 of things from you because 385 01:12:11,093 --> 01:12:12,828 that's collateral that they need to 386 01:12:12,828 --> 01:12:15,597 protect. But also in those lengthy loan 387 01:12:15,597 --> 01:12:16,665 documents, you'll also 388 01:12:16,765 --> 01:12:18,667 find things that you can't do with that 389 01:12:18,667 --> 01:12:20,469 aircraft. Right. And basic 390 01:12:20,469 --> 01:12:22,037 things are obviously don't fly 391 01:12:22,037 --> 01:12:25,874 it into Iran, you know, things like that. 392 01:12:25,874 --> 01:12:29,845 Oops. Right. So, you 393 01:12:29,845 --> 01:12:30,979 know, definitely operating it 394 01:12:30,979 --> 01:12:33,849 within the scope of the law, you know, 395 01:12:34,149 --> 01:12:35,584 but it also, sometimes they 396 01:12:35,584 --> 01:12:36,985 have, and I've seen this with 397 01:12:36,985 --> 01:12:38,887 particular clients that I've worked with. 398 01:12:39,388 --> 01:12:40,689 Some lenders will 399 01:12:40,689 --> 01:12:42,624 actually restrict operations into 400 01:12:42,791 --> 01:12:45,461 certain countries or areas. For example, 401 01:12:45,961 --> 01:12:47,096 I had a loan document, 402 01:12:47,296 --> 01:12:48,464 um, for a client that I was 403 01:12:48,464 --> 01:12:51,367 reviewing that restricted his operation 404 01:12:51,367 --> 01:12:53,802 in the Caribbean. And this 405 01:12:53,802 --> 01:12:54,937 particular client of mine had 406 01:12:54,937 --> 01:12:57,740 a second home in the Caribbean and his 407 01:12:57,740 --> 01:12:59,074 plan was to fly there, you 408 01:12:59,074 --> 01:13:00,109 know, every other weekend and 409 01:13:00,542 --> 01:13:02,344 go to a second home. And the bank didn't 410 01:13:02,344 --> 01:13:04,113 want him to. So that was 411 01:13:04,113 --> 01:13:05,547 just in their standard form. I 412 01:13:05,547 --> 01:13:07,249 don't know why, you know, they developed 413 01:13:07,249 --> 01:13:08,484 these forms over time. So 414 01:13:08,484 --> 01:13:09,618 I'm sure there was some sort 415 01:13:09,651 --> 01:13:12,888 of instance where, yeah, so they put that 416 01:13:12,888 --> 01:13:13,822 in there. They lost a plane 417 01:13:13,822 --> 01:13:16,125 somewhere. Something happened. 418 01:13:16,558 --> 01:13:19,027 Yeah, something happened. But when you 419 01:13:19,027 --> 01:13:20,262 have someone kind of 420 01:13:20,262 --> 01:13:21,330 looking over those documents 421 01:13:21,330 --> 01:13:22,931 that knows what to look for and 422 01:13:22,931 --> 01:13:25,000 understands what your operation, what 423 01:13:25,000 --> 01:13:26,068 your intent is with that 424 01:13:26,068 --> 01:13:28,904 aircraft, right? Um, you know, I'm able 425 01:13:28,904 --> 01:13:30,639 to point those things out and 426 01:13:30,639 --> 01:13:32,474 make sure that we go back to 427 01:13:32,474 --> 01:13:34,209 the lender and kind of explain to them, 428 01:13:34,209 --> 01:13:34,977 well, this can't go in 429 01:13:34,977 --> 01:13:36,178 there because he's, you know, 430 01:13:37,012 --> 01:13:38,881 explain the whole situation. And of 431 01:13:38,881 --> 01:13:40,015 course, you know, they tell 432 01:13:40,015 --> 01:13:41,083 you these are standard forms, 433 01:13:41,083 --> 01:13:42,851 which for the most part they are, but 434 01:13:42,851 --> 01:13:44,420 there are certain aspects that you can 435 01:13:44,420 --> 01:13:45,487 negotiate. And that's 436 01:13:45,487 --> 01:13:47,790 when working with aviation council makes 437 01:13:47,790 --> 01:13:49,892 sense. Yeah. Because for real estate 438 01:13:49,892 --> 01:13:50,826 lawyer looked at that, 439 01:13:51,460 --> 01:13:53,429 you know, they wouldn't really know what 440 01:13:53,429 --> 01:13:54,463 to do with it. They don't 441 01:13:54,463 --> 01:13:55,364 actually know how to read 442 01:13:55,731 --> 01:13:57,900 a loan document specific to aircraft. So 443 01:13:57,900 --> 01:14:00,169 yeah, so that's a, that's 444 01:14:00,169 --> 01:14:02,104 a good example of read that 445 01:14:02,137 --> 01:14:04,139 document. I know it's lengthy. I know 446 01:14:04,139 --> 01:14:06,241 it's boring. Well, and that's, that's 447 01:14:06,241 --> 01:14:07,009 like people tell you 448 01:14:07,009 --> 01:14:08,477 things are boiler plate. I mean, you see 449 01:14:08,477 --> 01:14:09,511 this in all areas of the 450 01:14:09,511 --> 01:14:10,779 law. It's just boiler plate 451 01:14:10,779 --> 01:14:12,347 standard language. Go ahead and sign it. 452 01:14:12,581 --> 01:14:15,384 Hold on. Yeah, because you 453 01:14:15,384 --> 01:14:16,285 never know until you read a 454 01:14:16,285 --> 01:14:18,220 sentence in there. That's restricting me. 455 01:14:18,520 --> 01:14:20,122 Right. Right. Yeah. One 456 01:14:20,122 --> 01:14:22,891 thing that's been on a lot of 457 01:14:22,891 --> 01:14:25,294 people's minds lately has been the whole 458 01:14:25,294 --> 01:14:27,329 situation regarding tariffs. That's 459 01:14:27,329 --> 01:14:28,063 something that's like 460 01:14:28,463 --> 01:14:30,499 new to a lot of people that are operating 461 01:14:30,499 --> 01:14:31,166 in a lot of different 462 01:14:31,166 --> 01:14:33,402 industries. And I can imagine 463 01:14:33,402 --> 01:14:35,737 that it affects aviation quite a bit 464 01:14:35,737 --> 01:14:36,772 because there's such large 465 01:14:36,772 --> 01:14:38,740 sums of money being tossed 466 01:14:38,740 --> 01:14:41,143 around here. Yeah, absolutely. So what, 467 01:14:41,143 --> 01:14:42,444 what have you experienced or 468 01:14:42,444 --> 01:14:43,745 what could, you know, in terms 469 01:14:43,745 --> 01:14:44,980 of the people that you're working with, 470 01:14:45,380 --> 01:14:47,149 what would you say about 471 01:14:47,149 --> 01:14:48,784 tariffs and how they've affected 472 01:14:49,418 --> 01:14:50,686 some of the transactions that you've been 473 01:14:50,686 --> 01:14:52,154 around? There was so much 474 01:14:52,154 --> 01:14:53,722 confusion around exactly what 475 01:14:53,755 --> 01:14:55,757 was happening. You know, we all saw the 476 01:14:55,757 --> 01:14:56,925 numbers were going up and 477 01:14:56,925 --> 01:14:58,327 down and, you know, certain 478 01:14:58,327 --> 01:14:59,895 countries were being hit and other 479 01:14:59,895 --> 01:15:00,796 countries were kind of 480 01:15:00,796 --> 01:15:02,865 sliding by. There was just a lot of 481 01:15:02,865 --> 01:15:05,133 confusion around it. So I think that, uh, 482 01:15:05,334 --> 01:15:06,568 in, in the industry, what I 483 01:15:06,568 --> 01:15:08,203 experienced with my clients 484 01:15:08,203 --> 01:15:10,439 that were in the process of purchasing 485 01:15:10,439 --> 01:15:12,541 aircraft, um, and attempting 486 01:15:12,541 --> 01:15:14,743 to import it from Europe or 487 01:15:14,843 --> 01:15:17,179 South America or, um, even the Asian 488 01:15:17,179 --> 01:15:18,814 markets was that initial 489 01:15:18,814 --> 01:15:22,484 shock of, we don't want to pay a 490 01:15:22,484 --> 01:15:26,088 135% tariff on this, you know, $10 491 01:15:26,088 --> 01:15:28,223 million aircraft that we're purchasing 492 01:15:28,223 --> 01:15:29,691 and importing to the U.S. 493 01:15:29,691 --> 01:15:31,693 It's already a very expensive and complex 494 01:15:31,693 --> 01:15:33,462 process. And then to throw 495 01:15:33,462 --> 01:15:34,897 that wrench in there was kind of 496 01:15:34,997 --> 01:15:37,232 shocking for everyone. Initially, you 497 01:15:37,232 --> 01:15:39,401 know, people were very confused on what's 498 01:15:39,401 --> 01:15:40,369 going on. I actually 499 01:15:40,536 --> 01:15:43,372 had two separate transactions that I was 500 01:15:43,372 --> 01:15:44,406 working on at the time, 501 01:15:44,840 --> 01:15:46,108 which were both cross border 502 01:15:46,308 --> 01:15:48,744 transactions, one in Europe and the other 503 01:15:48,744 --> 01:15:49,678 one was in South America. 504 01:15:50,345 --> 01:15:51,780 And both transactions just 505 01:15:51,880 --> 01:15:54,249 halted. The party said, we're confused. 506 01:15:54,550 --> 01:15:56,451 We don't know what's going on. We'll 507 01:15:56,451 --> 01:15:58,120 revisit this in Q3, Q4. 508 01:15:58,387 --> 01:15:59,588 We're not, we're not touching this right 509 01:15:59,588 --> 01:16:01,023 now. So it did have an 510 01:16:01,023 --> 01:16:02,357 effect on the industry. I think, 511 01:16:02,357 --> 01:16:03,792 I mean, I saw it personally, uh, 512 01:16:04,192 --> 01:16:05,761 firsthand. I do think, 513 01:16:05,761 --> 01:16:07,729 however, now that we're sort of 514 01:16:08,297 --> 01:16:10,699 past that initial shock and people are 515 01:16:10,699 --> 01:16:11,700 sort of, you know, 516 01:16:11,900 --> 01:16:13,168 looking into a little bit more, 517 01:16:13,168 --> 01:16:14,403 reading up on a little bit more and 518 01:16:14,403 --> 01:16:16,705 planning a little bit better, I think 519 01:16:16,705 --> 01:16:17,940 it's softened. I think 520 01:16:17,940 --> 01:16:20,375 the industry is, is getting comfortable 521 01:16:20,375 --> 01:16:22,344 somewhat with the tariffs and our 522 01:16:22,344 --> 01:16:23,378 understanding this may 523 01:16:23,378 --> 01:16:25,380 just be the cost of doing business. Just 524 01:16:25,380 --> 01:16:26,748 treat it like any other kind 525 01:16:26,748 --> 01:16:28,350 of like additional tax fee, 526 01:16:28,383 --> 01:16:31,086 whatever. Right. Yeah. I think also it 527 01:16:31,086 --> 01:16:34,089 had an effect on volume 528 01:16:34,089 --> 01:16:37,826 because, uh, what we, I saw was 529 01:16:37,826 --> 01:16:39,161 a lot of those, like I said, I was 530 01:16:39,161 --> 01:16:40,796 working in the Asian markets at the time. 531 01:16:41,763 --> 01:16:43,265 Um, a lot of the Asian 532 01:16:43,265 --> 01:16:46,201 sellers, you know, in China and India 533 01:16:46,201 --> 01:16:47,402 specifically, which is a 534 01:16:47,402 --> 01:16:49,338 booming business aviation industry 535 01:16:49,338 --> 01:16:52,374 right now, a lot of, you know, those, 536 01:16:52,374 --> 01:16:53,875 those sellers over there 537 01:16:53,875 --> 01:16:55,243 just did not want to deal with 538 01:16:55,444 --> 01:16:57,679 American buyers, you know? And so they 539 01:16:57,679 --> 01:16:58,614 decided we're only going 540 01:16:58,614 --> 01:17:00,015 to sell to, you know, anyone 541 01:17:00,015 --> 01:17:02,050 outside of America, essentially, and just 542 01:17:02,050 --> 01:17:03,118 not deal with the tariffs or 543 01:17:03,118 --> 01:17:04,853 any of that. Um, so I think it 544 01:17:04,853 --> 01:17:07,589 did kind of affect the, uh, the inventory 545 01:17:07,589 --> 01:17:08,857 that we saw for a little 546 01:17:08,857 --> 01:17:10,025 bit. But again, I think it's 547 01:17:10,025 --> 01:17:11,360 softening and I think people are, it's 548 01:17:11,360 --> 01:17:12,661 like, wait, come back. You 549 01:17:12,661 --> 01:17:16,398 can't close off huge industries 550 01:17:16,398 --> 01:17:18,400 like that. Like I said, India right now 551 01:17:18,400 --> 01:17:19,601 is like number one in 552 01:17:19,601 --> 01:17:20,969 business aviation. They're doing 553 01:17:21,336 --> 01:17:23,705 so much over there. And plus it seems 554 01:17:23,705 --> 01:17:25,273 like with the tariffs too, they're, 555 01:17:25,273 --> 01:17:26,508 they're volatile, right? 556 01:17:26,908 --> 01:17:30,245 So we're going to do 135% on Canada. And 557 01:17:30,245 --> 01:17:31,079 then a couple of weeks, 558 01:17:31,079 --> 01:17:32,314 well, we came to an agreement. 559 01:17:32,314 --> 01:17:33,849 It's only on this, this, than this. And 560 01:17:33,849 --> 01:17:35,484 so, I mean, tracking 561 01:17:35,484 --> 01:17:36,785 that and keeping, keeping, 562 01:17:36,785 --> 01:17:39,121 keeping small, so to speak is kind of a 563 01:17:39,121 --> 01:17:41,623 difficult, seems to be, I have a deal 564 01:17:41,623 --> 01:17:42,491 right now, another one 565 01:17:42,691 --> 01:17:45,560 in Europe and it's, um, a Piaggio. So 566 01:17:45,560 --> 01:17:46,628 it's, you know, it's 567 01:17:46,628 --> 01:17:49,064 definitely, it's prime for tariffs. 568 01:17:50,065 --> 01:17:52,968 And with that even, you know, we are 569 01:17:52,968 --> 01:17:54,302 trying to work the closing 570 01:17:54,302 --> 01:17:56,271 around the volatility of the 571 01:17:56,271 --> 01:17:58,340 tariffs. Um, you know, there was a pause. 572 01:17:58,607 --> 01:18:00,208 So it was at 10% for some 573 01:18:00,208 --> 01:18:01,143 time. They just announced 574 01:18:01,143 --> 01:18:03,712 that it's going back to 50%, which goes 575 01:18:03,712 --> 01:18:05,080 into effect August 1st. 576 01:18:05,080 --> 01:18:06,181 And now we're rushing to 577 01:18:06,181 --> 01:18:08,950 meet that deadline. Right. So it's coming 578 01:18:08,950 --> 01:18:10,619 here. Yes. Yeah. It's coming 579 01:18:10,619 --> 01:18:12,654 to the US. So, um, so we're 580 01:18:12,688 --> 01:18:15,223 just trying to move all these pieces. And 581 01:18:15,223 --> 01:18:16,058 of course, you know, 582 01:18:16,058 --> 01:18:17,392 as, as you probably know, 583 01:18:17,426 --> 01:18:19,728 and you know, that, you know, importing 584 01:18:19,728 --> 01:18:20,796 an aircraft into the 585 01:18:20,796 --> 01:18:22,297 United States is not a one 586 01:18:22,297 --> 01:18:24,966 week process. You know, you have to get a 587 01:18:24,966 --> 01:18:27,202 DAR, you have to go through customs. 588 01:18:27,669 --> 01:18:28,503 It's, it's a lengthy 589 01:18:29,104 --> 01:18:32,474 process. So adding the tariffs and 590 01:18:32,474 --> 01:18:33,642 navigating that and making 591 01:18:33,642 --> 01:18:34,943 sure that we're meeting these 592 01:18:35,010 --> 01:18:37,412 obligatory deadlines, in my opinion, um, 593 01:18:38,180 --> 01:18:40,348 just adds complexity to it, but it 594 01:18:40,348 --> 01:18:41,349 certainly can be done. 595 01:18:41,349 --> 01:18:42,617 You know, no one should be deterred by 596 01:18:42,617 --> 01:18:44,986 it. It just, it now is a 597 01:18:44,986 --> 01:18:45,887 cost of doing business. 598 01:18:46,154 --> 01:18:47,823 What are some things that people might 599 01:18:47,823 --> 01:18:50,225 not understand going into 600 01:18:50,225 --> 01:18:51,526 a, uh, buying an aircraft 601 01:18:51,560 --> 01:18:53,462 that, that you tend to help them 602 01:18:53,462 --> 01:18:54,763 understand? Like what are some, what are 603 01:18:54,763 --> 01:18:55,597 some common kind of like 604 01:18:55,597 --> 01:18:57,466 misconceptions or some common things that 605 01:18:57,466 --> 01:18:58,900 you might have to steer 606 01:18:58,900 --> 01:19:00,068 them in the right direction on? 607 01:19:00,068 --> 01:19:01,536 I would say it's kind of two parts, 608 01:19:01,536 --> 01:19:03,939 right? So first is the acquisition. What 609 01:19:03,939 --> 01:19:04,706 do you need to know there? 610 01:19:05,307 --> 01:19:06,742 The second piece is, okay, now you have 611 01:19:06,742 --> 01:19:08,176 this big, beautiful new jet. 612 01:19:08,543 --> 01:19:10,245 Awesome. You know, how am I 613 01:19:10,245 --> 01:19:11,847 going to operate it within the confines 614 01:19:11,847 --> 01:19:13,582 of what the regulators will 615 01:19:13,582 --> 01:19:15,383 allow with the acquisition? 616 01:19:15,984 --> 01:19:17,886 It's, it's very important to have the 617 01:19:17,886 --> 01:19:19,921 right team for that. Um, I call it the 618 01:19:19,921 --> 01:19:20,856 acquisition team. And 619 01:19:20,856 --> 01:19:22,424 I like to say the lawyer is the captain 620 01:19:22,424 --> 01:19:23,959 of the acquisition team. Of 621 01:19:23,959 --> 01:19:25,160 course the lawyer says that. 622 01:19:25,160 --> 01:19:28,597 The broker thinks that the broker is the 623 01:19:28,597 --> 01:19:30,599 captain. So yeah, it depends. 624 01:19:30,966 --> 01:19:32,801 Yeah. But, um, someone needs 625 01:19:32,801 --> 01:19:34,369 to coordinate all these people and all 626 01:19:34,369 --> 01:19:35,604 these moving parts. Uh, 627 01:19:35,937 --> 01:19:36,872 so with the acquisition, 628 01:19:36,938 --> 01:19:38,607 it's important for a buyer, especially 629 01:19:38,607 --> 01:19:41,209 first time buyer to, uh, 630 01:19:41,543 --> 01:19:42,577 keep two things kind of in mind, 631 01:19:42,611 --> 01:19:45,147 in my view. First is the pre-buy 632 01:19:45,147 --> 01:19:47,682 inspection. That is so important. You 633 01:19:47,682 --> 01:19:48,750 want to make sure that 634 01:19:48,750 --> 01:19:51,052 you're working with an independent third 635 01:19:51,052 --> 01:19:53,088 party MRO. You know, you 636 01:19:53,088 --> 01:19:54,556 don't want to use the seller's 637 01:19:54,556 --> 01:19:56,224 maintenance guy. You don't want to take 638 01:19:56,224 --> 01:19:57,926 it to the seller's repair 639 01:19:57,926 --> 01:20:00,162 station. You want an independent 640 01:20:00,162 --> 01:20:02,397 evaluator for obvious reasons, I think. 641 01:20:02,864 --> 01:20:04,599 Okay. And then from that, 642 01:20:04,599 --> 01:20:05,934 you also want to make sure, 643 01:20:06,201 --> 01:20:08,370 uh, that you're getting a title report 644 01:20:08,370 --> 01:20:09,905 pretty early on to 645 01:20:09,905 --> 01:20:11,306 understand if there's any liens on 646 01:20:11,339 --> 01:20:12,774 the aircraft that we need to deal with 647 01:20:12,774 --> 01:20:14,643 before closing. And 648 01:20:14,643 --> 01:20:16,278 typically, you know, if it's, if 649 01:20:16,278 --> 01:20:18,613 there's liens on there, that's not a, not 650 01:20:18,613 --> 01:20:20,215 uncommon. Is that prior to 651 01:20:20,215 --> 01:20:22,217 the LOI or is that after the LOI 652 01:20:22,217 --> 01:20:25,287 gets signed? So I typically will do, uh, 653 01:20:25,287 --> 01:20:27,522 the title search, you know, report back 654 01:20:27,522 --> 01:20:28,590 from the escrow agent, 655 01:20:29,591 --> 01:20:31,927 like after LOI before APA. It kind of 656 01:20:31,927 --> 01:20:33,128 depends on the transaction, 657 01:20:33,128 --> 01:20:35,564 you know? Um, but yeah, you, 658 01:20:35,564 --> 01:20:36,665 you want to kind of be a little bit 659 01:20:36,665 --> 01:20:38,166 further down the line to make 660 01:20:38,166 --> 01:20:39,301 sure that you're going to go 661 01:20:39,367 --> 01:20:41,002 through with that aircraft. But I would 662 01:20:41,002 --> 01:20:41,970 say those are kind of two 663 01:20:41,970 --> 01:20:43,138 key things that a lot of 664 01:20:43,405 --> 01:20:44,940 first time buyers don't really think 665 01:20:44,940 --> 01:20:46,775 about. And then also making, 666 01:20:47,008 --> 01:20:49,911 uh, making sure that the, uh, 667 01:20:49,911 --> 01:20:51,146 like I mentioned before, the acceptance 668 01:20:51,146 --> 01:20:53,014 rejection is, you know, 669 01:20:53,014 --> 01:20:54,549 ironclad in that, uh, in that 670 01:20:54,549 --> 01:20:55,984 purchase agreement, giving them the right 671 01:20:55,984 --> 01:20:58,720 to kind of make that decision post 672 01:20:58,720 --> 01:21:00,155 pre-buy inspection once 673 01:21:00,155 --> 01:21:01,456 they know the condition of the aircraft. 674 01:21:01,823 --> 01:21:03,825 Um, because with used 675 01:21:03,825 --> 01:21:05,860 aircraft, it's an as is typically, 676 01:21:06,228 --> 01:21:09,097 it's an as is sale. Um, you get what you 677 01:21:09,097 --> 01:21:10,265 get and there's really 678 01:21:10,265 --> 01:21:11,867 very little recourse. And if 679 01:21:11,867 --> 01:21:12,901 you didn't check it out beforehand, 680 01:21:12,901 --> 01:21:14,836 that's on you. Exactly. Right. Exactly. 681 01:21:15,103 --> 01:21:15,904 So that's very important. 682 01:21:15,904 --> 01:21:17,806 So from the acquisition perspective, I 683 01:21:17,806 --> 01:21:19,307 think just teeing up the 684 01:21:19,307 --> 01:21:21,509 transaction, um, to give the buyer 685 01:21:21,509 --> 01:21:23,778 as much flexibility as we possibly can 686 01:21:23,778 --> 01:21:25,947 negotiate. Uh, but also making sure that 687 01:21:25,947 --> 01:21:26,448 they're working with 688 01:21:26,448 --> 01:21:27,682 the right team. They have the right 689 01:21:27,682 --> 01:21:29,551 technical person evaluating 690 01:21:29,551 --> 01:21:31,152 that aircraft to make sure that 691 01:21:31,186 --> 01:21:32,687 we're not missing anything. That's going 692 01:21:32,687 --> 01:21:33,722 to be a huge problem for 693 01:21:33,722 --> 01:21:35,323 the buyer post closing. Yeah. 694 01:21:35,590 --> 01:21:37,859 But on the operation side of things, uh, 695 01:21:37,859 --> 01:21:38,526 you know, once you 696 01:21:38,526 --> 01:21:40,228 acquire the aircraft, great. 697 01:21:40,862 --> 01:21:42,964 Before even finishing the closing, we 698 01:21:42,964 --> 01:21:44,666 need to understand what your flight 699 01:21:44,666 --> 01:21:45,800 mission is. You know, 700 01:21:45,800 --> 01:21:47,669 what, what, what's the purpose of buying 701 01:21:47,669 --> 01:21:48,403 the aircraft? Are you 702 01:21:48,403 --> 01:21:50,272 buying it for business flights, 703 01:21:50,272 --> 01:21:52,540 personal flights? Um, do you plan on 704 01:21:52,540 --> 01:21:54,609 leasing it to a flight school? Do you 705 01:21:54,609 --> 01:21:56,211 plan on conforming it 706 01:21:56,211 --> 01:21:59,247 onto a charter operator certificate? By 707 01:21:59,247 --> 01:22:01,182 knowing that we're able to first 708 01:22:01,182 --> 01:22:02,183 structure the ownership 709 01:22:02,550 --> 01:22:04,419 of the aircraft to make sure that it 710 01:22:04,419 --> 01:22:05,854 complies with whatever you're trying to 711 01:22:05,854 --> 01:22:07,289 do. Right. And then, 712 01:22:07,289 --> 01:22:10,158 uh, also, uh, other key kind of 713 01:22:10,158 --> 01:22:12,527 components of operation is the 714 01:22:12,527 --> 01:22:13,628 regulations, you know, 715 01:22:14,062 --> 01:22:16,298 the federal aviation regulations, they're 716 01:22:16,298 --> 01:22:17,465 lengthy and they tell you 717 01:22:17,465 --> 01:22:19,501 all kinds of things on what you 718 01:22:19,501 --> 01:22:21,469 are able and not able to do with your 719 01:22:21,469 --> 01:22:22,704 aircraft, um, how you can 720 01:22:22,704 --> 01:22:24,940 operate it. And, uh, you know, 721 01:22:24,940 --> 01:22:27,108 one thing that I've noticed in recent 722 01:22:27,108 --> 01:22:28,843 kind of, um, transactions 723 01:22:28,843 --> 01:22:31,379 I've been a part of is your, 724 01:22:31,413 --> 01:22:32,948 people kind of miss some of those key 725 01:22:32,948 --> 01:22:34,949 components. One example is if 726 01:22:34,949 --> 01:22:36,584 you are a, what we call a part 727 01:22:36,584 --> 01:22:39,154 91 operator, which is, you know, using it 728 01:22:39,154 --> 01:22:40,555 for personal business use, 729 01:22:40,555 --> 01:22:41,589 but just, you know, you're, 730 01:22:41,589 --> 01:22:45,126 you're operating it, you, if you want to, 731 01:22:45,126 --> 01:22:46,928 you know, fly, let's just, I'll give an 732 01:22:46,928 --> 01:22:47,862 example. If you want 733 01:22:47,862 --> 01:22:50,098 to operate in a specific manner, for 734 01:22:50,098 --> 01:22:51,566 example, if you want to fly 735 01:22:51,566 --> 01:22:53,868 above 29,000 feet, if you have a 736 01:22:53,868 --> 01:22:56,004 capability and you plan on, on doing 737 01:22:56,004 --> 01:22:59,007 that, well, you're required to obtain a 738 01:22:59,007 --> 01:22:59,808 letter of authorization 739 01:23:00,141 --> 01:23:03,345 from the FAA to authorize you to do that. 740 01:23:04,045 --> 01:23:05,246 Um, and without that, that 741 01:23:05,246 --> 01:23:06,314 would be a violation of the 742 01:23:06,314 --> 01:23:08,249 regulations. And I'm sure they have their 743 01:23:08,249 --> 01:23:09,884 reasons for that, right? 744 01:23:09,884 --> 01:23:11,252 Yeah. But like, I wouldn't know 745 01:23:11,252 --> 01:23:13,788 that. Right. Exactly. Exactly. And a lot 746 01:23:13,788 --> 01:23:15,990 of, a lot of, you know, first time jet 747 01:23:15,990 --> 01:23:17,726 owners won't know that. 748 01:23:18,059 --> 01:23:19,594 So do you work with that? Would you work 749 01:23:19,594 --> 01:23:20,161 with getting into 750 01:23:20,161 --> 01:23:22,230 obtaining those LOIs? Yes, I do. 751 01:23:22,230 --> 01:23:24,499 Yeah, absolutely. Typically, um, a lot of 752 01:23:24,499 --> 01:23:26,668 clients will have, um, you 753 01:23:26,668 --> 01:23:27,635 know, if you're, if you have 754 01:23:27,669 --> 01:23:30,005 contract pilots, for example, if you work 755 01:23:30,005 --> 01:23:31,606 with, you know, a company that will 756 01:23:31,606 --> 01:23:32,507 provide you contract 757 01:23:32,507 --> 01:23:34,409 pilots, they typically take care of all 758 01:23:34,409 --> 01:23:35,443 that for you. It's kind of 759 01:23:35,443 --> 01:23:37,145 part of their package. But if 760 01:23:37,145 --> 01:23:39,180 you have someone that's, you know, uh, 761 01:23:39,180 --> 01:23:41,016 new, new to aviation, I 762 01:23:41,016 --> 01:23:42,283 always like to bring that up to my 763 01:23:42,283 --> 01:23:43,918 clients, even if they are working with 764 01:23:43,918 --> 01:23:45,086 contract pilots or have 765 01:23:45,086 --> 01:23:46,955 their own pilots that already 766 01:23:47,021 --> 01:23:49,424 probably have that in place. Um, I always 767 01:23:49,424 --> 01:23:50,558 like to mention that at the 768 01:23:50,558 --> 01:23:51,926 closing is, okay, if you're 769 01:23:51,926 --> 01:23:54,462 going to be operating in, and I give them 770 01:23:54,462 --> 01:23:55,296 a list, you know, there's 771 01:23:55,296 --> 01:23:56,831 a, a great guy that walks you 772 01:23:56,865 --> 01:23:58,666 through LOIs, I give him a list. If 773 01:23:58,666 --> 01:23:59,901 you're going to operate any of these 774 01:23:59,901 --> 01:24:01,503 ways, we'll have to obtain 775 01:24:01,503 --> 01:24:04,038 an LOA for you. So making them aware to 776 01:24:04,038 --> 01:24:06,241 make sure that that piece is not, um, is 777 01:24:06,241 --> 01:24:07,409 not missed, you know? 778 01:24:07,842 --> 01:24:10,445 Yeah. Yeah. Yeah. So it's, I mean, is, is 779 01:24:10,445 --> 01:24:11,279 there like hoops you 780 01:24:11,279 --> 01:24:12,080 get to jump through to get 781 01:24:12,213 --> 01:24:14,249 that kind of authorization or is it just 782 01:24:14,249 --> 01:24:14,783 kind of like, it's a 783 01:24:14,783 --> 01:24:16,785 request to the FAA. We just, 784 01:24:17,085 --> 01:24:19,421 we just want you to ask us. Is that all 785 01:24:19,421 --> 01:24:21,056 it is? It's a very, it's 786 01:24:21,056 --> 01:24:22,924 how asinine of them. Yeah. 787 01:24:23,091 --> 01:24:24,626 You're, you're saying you're giving them 788 01:24:24,626 --> 01:24:26,594 documents just to sort of, you know, 789 01:24:26,594 --> 01:24:27,996 sure the airplane's certified for that. 790 01:24:28,196 --> 01:24:30,331 Exactly. Exactly. But it's a, it's a 791 01:24:30,331 --> 01:24:31,399 quick, easy process. 792 01:24:31,633 --> 01:24:34,069 It's very painless. Um, it's just a 793 01:24:34,069 --> 01:24:35,170 matter of, a matter of 794 01:24:35,170 --> 01:24:36,738 actually asking for writing them 795 01:24:36,738 --> 01:24:39,074 documents. And, uh, yeah, it's, it's 796 01:24:39,074 --> 01:24:40,074 really not difficult, but 797 01:24:40,074 --> 01:24:42,043 it's often missed. So it's 798 01:24:42,043 --> 01:24:43,378 something that people need to be aware 799 01:24:43,378 --> 01:24:46,448 of. Yeah. If I'm in the position to own 800 01:24:46,448 --> 01:24:47,248 the jet, right? If I'm 801 01:24:47,248 --> 01:24:48,917 in a position to start researching this 802 01:24:48,917 --> 01:24:49,784 and I'm hearing all about 803 01:24:49,784 --> 01:24:50,919 this bonus depreciation, I'm 804 01:24:50,952 --> 01:24:52,954 hearing about all this stuff that is 805 01:24:52,954 --> 01:24:54,088 going to be a catalyst for me 806 01:24:54,088 --> 01:24:55,623 wanting to pull the trigger on 807 01:24:55,623 --> 01:24:58,960 a purchase. What's the next best thing I 808 01:24:58,960 --> 01:24:59,594 can do from your 809 01:24:59,594 --> 01:25:02,764 perspective? So I would suggest one of 810 01:25:02,764 --> 01:25:05,366 two things. Um, either if you know, a 811 01:25:05,366 --> 01:25:08,169 trusted, uh, good aircraft broker that 812 01:25:08,169 --> 01:25:09,304 has been recommended to 813 01:25:09,304 --> 01:25:11,105 you by other people in the industry or 814 01:25:11,105 --> 01:25:12,707 that you're familiar with, um, 815 01:25:12,707 --> 01:25:13,842 that might be the first step, 816 01:25:13,908 --> 01:25:15,877 right? Is to identify the aircraft if you 817 01:25:15,877 --> 01:25:16,711 haven't already done that. 818 01:25:16,711 --> 01:25:18,446 And a broker would be a great 819 01:25:18,480 --> 01:25:20,949 resource for that to help you. Um, other 820 01:25:20,949 --> 01:25:22,283 way that you could do it is 821 01:25:22,283 --> 01:25:24,953 to call me, um, and kind of get 822 01:25:24,953 --> 01:25:27,689 that ball rolling. I also, when I'm 823 01:25:27,689 --> 01:25:28,790 working with, you know, prospective 824 01:25:28,790 --> 01:25:30,725 clients that haven't actually 825 01:25:30,725 --> 01:25:32,360 identified the aircraft that they want to 826 01:25:32,360 --> 01:25:33,461 purchase, they just have the 827 01:25:33,461 --> 01:25:35,296 idea that I want to purchase 828 01:25:35,396 --> 01:25:38,700 an aircraft. I typically would even, um, 829 01:25:38,700 --> 01:25:39,868 send them to an aircraft 830 01:25:39,868 --> 01:25:41,469 broker and say, all right, well, 831 01:25:42,136 --> 01:25:43,805 identify the aircraft and call me back, 832 01:25:43,805 --> 01:25:45,006 you know, and I'll, I'll 833 01:25:45,006 --> 01:25:46,341 refer them over to, you know, 834 01:25:46,407 --> 01:25:48,109 to you guys. You know, I got no points. 835 01:25:48,376 --> 01:25:51,246 Yeah. I don't have points. They'll find a 836 01:25:51,246 --> 01:25:53,081 plane and then come back to me. So, 837 01:25:53,414 --> 01:25:55,717 yeah, one of two ways. The key really is 838 01:25:55,717 --> 01:25:57,452 just to get in contact with 839 01:25:57,452 --> 01:25:59,821 a trusted person that has a 840 01:25:59,821 --> 01:26:01,089 reputation, good reputation in the 841 01:26:01,089 --> 01:26:02,957 industry. And that's very easy to find 842 01:26:02,957 --> 01:26:04,459 out. Just ask around, 843 01:26:04,759 --> 01:26:06,961 either a broker or a lawyer. Yeah. Yeah. 844 01:26:07,462 --> 01:26:09,030 That's what we'd like you to say. Yeah. 845 01:26:09,130 --> 01:26:10,098 Yeah. You know. Yes. 846 01:26:10,598 --> 01:26:13,334 So, um, closing thoughts here. Is there 847 01:26:13,334 --> 01:26:14,669 anything else that people 848 01:26:14,669 --> 01:26:15,970 need to know prior to entering 849 01:26:16,137 --> 01:26:17,906 into one of these transactions? Because I 850 01:26:17,906 --> 01:26:18,506 know it's a lot of 851 01:26:18,506 --> 01:26:19,541 money. It's a lot of risk. 852 01:26:20,542 --> 01:26:22,277 Um, any, any kind of closing thoughts in 853 01:26:22,277 --> 01:26:24,445 regards to that? A lot of people will 854 01:26:24,445 --> 01:26:26,381 kind of, uh, save on 855 01:26:26,548 --> 01:26:29,217 the attorney's fees in order to kind of 856 01:26:29,217 --> 01:26:30,285 make the deal work for them. 857 01:26:30,518 --> 01:26:32,387 Uh, but that initial front end 858 01:26:32,387 --> 01:26:35,323 investment ends up, you know, saving you 859 01:26:35,323 --> 01:26:37,725 thousands, if not millions on the 860 01:26:37,725 --> 01:26:39,561 backend, because if that 861 01:26:39,594 --> 01:26:42,730 transaction is not done correctly, you 862 01:26:42,730 --> 01:26:44,832 could end up with a lot of 863 01:26:44,832 --> 01:26:47,168 liability and lost income and 864 01:26:47,168 --> 01:26:49,804 lost time. And, uh, a lot of things that, 865 01:26:49,804 --> 01:26:51,306 you know, you're just not 866 01:26:51,306 --> 01:26:52,207 going to catch unless you're 867 01:26:52,207 --> 01:26:53,541 working with someone who's experienced in 868 01:26:53,541 --> 01:26:54,509 that space. You're 869 01:26:54,509 --> 01:26:55,610 spending a lot of money on this 870 01:26:55,610 --> 01:26:57,779 huge asset. Give a little bit more in the 871 01:26:57,779 --> 01:26:59,447 front end investment. Sounds 872 01:26:59,447 --> 01:27:02,317 great. And, and on that note, 873 01:27:02,617 --> 01:27:04,485 what would be the best way for somebody 874 01:27:04,485 --> 01:27:06,554 to reach out to you? Yes. So, 875 01:27:06,554 --> 01:27:08,289 uh, you can go on our website, 876 01:27:08,323 --> 01:27:12,093 arrowlawcenter.com, A E R O and, uh, give 877 01:27:12,093 --> 01:27:13,161 us a call. Like I said, we 878 01:27:13,161 --> 01:27:14,429 do offer free consultations. 879 01:27:15,063 --> 01:27:16,764 So, uh, our phone number is on there. 880 01:27:16,764 --> 01:27:18,466 Just give our, uh, give our office a 881 01:27:18,466 --> 01:27:19,300 call. We'll set you up 882 01:27:19,300 --> 01:27:21,102 with a free consult either with myself, 883 01:27:21,102 --> 01:27:22,704 um, or my managing 884 01:27:22,704 --> 01:27:24,639 litigation attorney or my partner, 885 01:27:24,772 --> 01:27:26,941 um, John. So either one of us will take 886 01:27:26,941 --> 01:27:28,042 care of you. Awesome. 887 01:27:28,409 --> 01:27:30,244 Awesome. Great. And there is going 888 01:27:30,244 --> 01:27:31,646 to be a link in the description below, 889 01:27:31,646 --> 01:27:33,481 uh, on the video, um, and 890 01:27:33,481 --> 01:27:34,582 make sure to like comment, 891 01:27:34,649 --> 01:27:37,285 subscribe, all that stuff. Um, and, uh, 892 01:27:37,285 --> 01:27:38,019 they could probably follow 893 01:27:38,019 --> 01:27:38,820 your own LinkedIn, right? 894 01:27:38,987 --> 01:27:40,088 I mean, you guys have a LinkedIn, you 895 01:27:40,088 --> 01:27:41,289 guys have all your social 896 01:27:41,289 --> 01:27:42,257 channels. We're on all the socials. 897 01:27:42,257 --> 01:27:44,058 We're on LinkedIn, Instagram, Facebook, 898 01:27:44,392 --> 01:27:45,727 we're on all the socials. So 899 01:27:45,727 --> 01:27:47,028 arrow law center, look for us 900 01:27:47,028 --> 01:27:48,830 anywhere and, and yeah, please follow and 901 01:27:48,830 --> 01:27:50,498 like and keep in touch. 902 01:27:51,266 --> 01:27:52,400 Perfect. Nettie Raglan, 903 01:27:52,600 --> 01:27:53,968 thank you so much for joining us. Thank 904 01:27:53,968 --> 01:27:55,303 you so much for having me. 905 01:27:55,303 --> 01:27:56,638 Thank you. All right. Awesome. 906 01:27:57,205 --> 01:27:58,873 Thank you for watching Own the Jet. If 907 01:27:58,873 --> 01:27:59,741 you want to see more Own the 908 01:27:59,741 --> 01:28:00,842 Jet, make sure to subscribe 909 01:28:00,942 --> 01:28:02,577 to our channel on YouTube and leave a 910 01:28:02,577 --> 01:28:03,478 comment telling us what 911 01:28:03,478 --> 01:28:05,079 aspect of jet ownership you'd 912 01:28:05,079 --> 01:28:07,015 like to know more about. Own the Jet is 913 01:28:07,015 --> 01:28:08,116 brought to you by Aspen Aero 914 01:28:08,116 --> 01:28:09,684 Group, your trusted partner 915 01:28:09,684 --> 01:28:11,386 in private and corporate jet ownership. 916 01:28:11,986 --> 01:28:13,087 Learn more at Aspen Aero 917 01:28:13,087 --> 01:28:15,089 Group.com. This has been a 918 01:28:15,089 --> 01:28:16,057 Savage Media production.