1 01:00:04,033 --> 01:00:05,001 I have watched so many 2 01:00:05,001 --> 01:00:06,869 people lose millions of dollars 3 01:00:07,270 --> 01:00:08,471 because they had the wrong 4 01:00:08,471 --> 01:00:10,106 transaction team around them. 5 01:00:10,106 --> 01:00:11,040 And that's not even financing. 6 01:00:11,040 --> 01:00:13,443 If you're paying cash, real 7 01:00:13,443 --> 01:00:14,210 estate guys are really bad 8 01:00:14,210 --> 01:00:15,745 at this, anybody who does 9 01:00:15,745 --> 01:00:17,046 like deal junkie type guys 10 01:00:17,046 --> 01:00:17,914 are really bad at this. 11 01:00:17,914 --> 01:00:18,448 They're like, oh yeah, I'm 12 01:00:18,448 --> 01:00:19,382 gonna run my own transaction. 13 01:00:19,949 --> 01:00:20,750 Be sure to assemble a 14 01:00:20,750 --> 01:00:21,584 good transaction team 15 01:00:21,584 --> 01:00:23,286 that you can trust and it 16 01:00:23,286 --> 01:00:24,754 will take you a long way. 17 01:00:25,822 --> 01:00:26,656 Welcome to Own the 18 01:00:26,656 --> 01:00:28,057 Jet by Aspen Aero Group, 19 01:00:28,391 --> 01:00:29,425 where we share perspectives 20 01:00:29,425 --> 01:00:30,693 from some of the leading voices 21 01:00:30,693 --> 01:00:31,494 in private jet 22 01:00:31,494 --> 01:00:32,929 ownership and business aviation. 23 01:00:33,796 --> 01:00:35,031 I'm your host, Derek Savage, 24 01:00:35,431 --> 01:00:37,033 along with my co-host Jason Spoor, 25 01:00:37,367 --> 01:00:38,668 president of Aspen Aero Group. 26 01:00:39,736 --> 01:00:41,037 Our guest today is Preston Holland 27 01:00:41,204 --> 01:00:42,572 from Prestige Aircraft Finance 28 01:00:42,805 --> 01:00:43,606 and the author of the 29 01:00:43,606 --> 01:00:45,008 Private Jet Insider Newsletter. 30 01:00:45,575 --> 01:00:47,310 Preston is passionate about making sure 31 01:00:47,310 --> 01:00:48,878 his high net worth clients are getting 32 01:00:48,878 --> 01:00:49,679 the right finance 33 01:00:49,679 --> 01:00:51,280 solution for their situation. 34 01:00:51,814 --> 01:00:53,316 Join us as we dive deep 35 01:00:53,316 --> 01:00:54,751 into the mechanics, mindset, 36 01:00:55,051 --> 01:00:57,186 and moments that define jet ownership. 37 01:00:57,820 --> 01:00:59,188 And together, we'll learn 38 01:00:59,188 --> 01:01:01,224 what it takes to own the jet. 39 01:01:01,591 --> 01:01:02,225 Hey Preston Holland, 40 01:01:02,492 --> 01:01:03,126 thank you for joining us 41 01:01:03,159 --> 01:01:03,693 on Own the Jet. 42 01:01:03,693 --> 01:01:04,661 Yeah, thanks for having me. 43 01:01:04,794 --> 01:01:05,161 This is fun. 44 01:01:06,029 --> 01:01:06,629 The cool thing about 45 01:01:06,629 --> 01:01:08,464 having you on the program here 46 01:01:08,664 --> 01:01:11,200 is that you have a unique ability 47 01:01:11,801 --> 01:01:13,269 of taking all of these 48 01:01:13,269 --> 01:01:15,538 crazy, amalgamous things 49 01:01:15,705 --> 01:01:16,305 that people don't 50 01:01:16,305 --> 01:01:18,441 understand and distilling it down 51 01:01:18,808 --> 01:01:20,276 into something that's easy 52 01:01:20,276 --> 01:01:21,677 for someone like me to get, 53 01:01:21,677 --> 01:01:22,712 right, that doesn't know 54 01:01:22,712 --> 01:01:24,313 anything about private aviation, 55 01:01:24,580 --> 01:01:25,248 the finance world 56 01:01:25,248 --> 01:01:26,716 surrounding private aviation. 57 01:01:27,050 --> 01:01:28,084 It's like you have a gift for that. 58 01:01:28,484 --> 01:01:29,419 Yeah, for sure. 59 01:01:29,585 --> 01:01:30,486 Happy to have you on the show, 60 01:01:30,486 --> 01:01:32,388 happy to be talking to you about this. 61 01:01:32,422 --> 01:01:33,322 Super glad you're here. 62 01:01:33,456 --> 01:01:34,590 Yeah, I think the cool thing is, 63 01:01:35,425 --> 01:01:36,292 one of the things that 64 01:01:36,292 --> 01:01:37,026 you guys are doing here 65 01:01:37,326 --> 01:01:38,995 that I think is gonna be really helpful 66 01:01:38,995 --> 01:01:39,629 for you over the long 67 01:01:39,629 --> 01:01:41,030 term is it's a muscle. 68 01:01:42,265 --> 01:01:44,233 Explaining things in a really simple way 69 01:01:45,034 --> 01:01:47,203 is only achieved by repetition. 70 01:01:48,004 --> 01:01:49,338 And so I was actually 71 01:01:49,338 --> 01:01:49,906 having a conversation 72 01:01:49,906 --> 01:01:51,374 with a friend of mine and he was like, 73 01:01:51,708 --> 01:01:53,910 "How do I find my voice in my industry?" 74 01:01:54,544 --> 01:01:55,411 And he was like, "I don't 75 01:01:55,411 --> 01:01:56,746 feel like when I say things, 76 01:01:56,746 --> 01:01:58,281 "I don't exactly say them right." 77 01:01:59,549 --> 01:02:00,149 And I told him, I said, 78 01:02:00,149 --> 01:02:01,484 "Look, if you look back 79 01:02:01,617 --> 01:02:03,419 "on the history of any 80 01:02:03,419 --> 01:02:04,554 sort of content that I create, 81 01:02:04,887 --> 01:02:06,489 "the early stuff is terrible." 82 01:02:07,090 --> 01:02:09,258 It's not good, it doesn't read well, 83 01:02:09,492 --> 01:02:10,259 it doesn't get any 84 01:02:10,259 --> 01:02:11,928 engagement, all that kind of stuff, 85 01:02:11,928 --> 01:02:12,829 but you literally have 86 01:02:12,829 --> 01:02:13,796 to put the content out. 87 01:02:14,197 --> 01:02:15,131 And as you do that, 88 01:02:15,131 --> 01:02:16,099 you'll find your voice 89 01:02:16,099 --> 01:02:16,966 and you'll see what 90 01:02:16,966 --> 01:02:18,534 resonates and you'll understand. 91 01:02:18,768 --> 01:02:19,836 And so what I think is 92 01:02:19,836 --> 01:02:20,670 cool about what you guys 93 01:02:20,670 --> 01:02:23,372 are doing here is this is 94 01:02:23,372 --> 01:02:25,508 a regularly cadenced show 95 01:02:25,508 --> 01:02:27,076 and it's not just one 96 01:02:27,076 --> 01:02:28,044 part of the industry. 97 01:02:28,511 --> 01:02:31,647 And as it continues, it gets better 98 01:02:32,148 --> 01:02:33,683 and it's really hard in the beginning. 99 01:02:33,883 --> 01:02:35,451 It's really, really hard to get started, 100 01:02:35,751 --> 01:02:37,453 but you have to push through that point 101 01:02:37,653 --> 01:02:39,922 and then it becomes understandable. 102 01:02:40,623 --> 01:02:41,491 It becomes a big muscle. 103 01:02:41,891 --> 01:02:42,625 Yeah, exactly. 104 01:02:43,326 --> 01:02:43,826 Exactly, it's like 105 01:02:43,826 --> 01:02:44,861 working out or it's like, 106 01:02:45,461 --> 01:02:47,463 you have to train that 107 01:02:47,463 --> 01:02:48,431 and it's inside your brain. 108 01:02:48,698 --> 01:02:49,766 And so I write a newsletter, 109 01:02:49,999 --> 01:02:51,100 it's called The Private Jet Insider. 110 01:02:52,235 --> 01:02:53,836 You can find it at pressinholland.com. 111 01:02:53,836 --> 01:02:56,038 It's distilling down complex concepts 112 01:02:56,606 --> 01:02:57,240 and making them 113 01:02:57,240 --> 01:02:59,976 digestible for the everyday human. 114 01:02:59,976 --> 01:03:01,043 That's what I like to do. 115 01:03:01,043 --> 01:03:01,844 So anyways, it's a 116 01:03:01,844 --> 01:03:02,612 little background on me. 117 01:03:03,346 --> 01:03:04,614 Excited to be here, thanks for having me. 118 01:03:04,914 --> 01:03:05,648 Let's talk about prestige. 119 01:03:06,048 --> 01:03:06,849 So because prestige 120 01:03:06,849 --> 01:03:07,784 is your day job, right? 121 01:03:07,784 --> 01:03:09,252 I mean, that's like what you do. 122 01:03:09,285 --> 01:03:09,485 Exactly. 123 01:03:09,786 --> 01:03:12,155 This is what people may know you for. 124 01:03:12,822 --> 01:03:14,157 I create content for fun. 125 01:03:14,724 --> 01:03:16,592 Like it's literally a block and I'm a 126 01:03:16,592 --> 01:03:18,027 practitioner by trade. 127 01:03:18,294 --> 01:03:20,863 Right, but your company is prestige. 128 01:03:20,963 --> 01:03:22,832 Yeah, so I own an 129 01:03:22,832 --> 01:03:24,033 aviation finance brokerage, 130 01:03:24,934 --> 01:03:25,968 debt advisory service. 131 01:03:27,336 --> 01:03:28,404 Essentially what we tell people is 132 01:03:28,404 --> 01:03:30,373 when you call your bank, they will do 133 01:03:30,373 --> 01:03:31,774 your RV, your house, 134 01:03:32,575 --> 01:03:33,576 your line of credit, 135 01:03:33,576 --> 01:03:34,544 they'll probably do anything 136 01:03:34,644 --> 01:03:35,578 business banking that 137 01:03:35,578 --> 01:03:36,579 you could possibly need. 138 01:03:37,613 --> 01:03:38,815 And then you're gonna call them and say, 139 01:03:38,815 --> 01:03:39,615 I'm buying an airplane. 140 01:03:40,316 --> 01:03:41,384 And the president of 141 01:03:41,384 --> 01:03:42,151 the bank is gonna go, 142 01:03:42,385 --> 01:03:43,719 well, we have one on the 143 01:03:43,719 --> 01:03:46,088 books, we have no idea. 144 01:03:47,390 --> 01:03:47,924 How to help you. 145 01:03:48,558 --> 01:03:48,825 Exactly. 146 01:03:49,525 --> 01:03:50,760 And so we help people 147 01:03:50,760 --> 01:03:54,430 navigate the fairly complex world 148 01:03:54,530 --> 01:03:55,565 of aviation finance and 149 01:03:55,565 --> 01:03:56,632 structuring and understand 150 01:03:57,066 --> 01:03:59,035 we create market efficiency, right? 151 01:03:59,035 --> 01:04:00,369 So we work with a platform 152 01:04:00,369 --> 01:04:02,138 of about 35 to 40 lenders 153 01:04:02,638 --> 01:04:04,407 that we do consistent transactions with, 154 01:04:04,407 --> 01:04:05,474 and then a network of 155 01:04:05,474 --> 01:04:07,910 another probably 20 on the backend. 156 01:04:07,910 --> 01:04:10,246 And that ranges from household names 157 01:04:10,513 --> 01:04:12,215 to banks you've never heard of, 158 01:04:12,315 --> 01:04:13,816 to private debt funds, 159 01:04:13,816 --> 01:04:15,218 to leasing companies, 160 01:04:15,585 --> 01:04:16,786 kind of across the spectrum. 161 01:04:17,353 --> 01:04:18,654 We sit down with a client, we say, 162 01:04:18,688 --> 01:04:21,290 what's the right answer for your need? 163 01:04:21,457 --> 01:04:22,325 And we typically 164 01:04:22,325 --> 01:04:24,594 collaborate with the broker, 165 01:04:25,094 --> 01:04:25,928 the tax person, 166 01:04:25,928 --> 01:04:27,964 somebody like KJ, an attorney, 167 01:04:28,297 --> 01:04:29,732 put together the transaction team, 168 01:04:29,732 --> 01:04:31,667 and us, the transaction 169 01:04:31,667 --> 01:04:33,102 team, shapes and forms 170 01:04:33,102 --> 01:04:35,271 the transaction to be the 171 01:04:35,271 --> 01:04:36,873 right structure for the client. 172 01:04:36,873 --> 01:04:37,807 And so we'll work with the 173 01:04:37,807 --> 01:04:39,375 broker on pre-buy inspection, 174 01:04:39,375 --> 01:04:40,276 and we'll work with them on 175 01:04:40,276 --> 01:04:42,245 maintenance tracking and specs, 176 01:04:42,445 --> 01:04:44,146 and all of the technical 177 01:04:44,146 --> 01:04:45,915 aspects of the aircraft. 178 01:04:46,482 --> 01:04:47,850 We will deal with the 179 01:04:47,850 --> 01:04:48,651 capital market side. 180 01:04:49,051 --> 01:04:50,553 So we have relationships with lenders, 181 01:04:50,953 --> 01:04:52,688 we're oftentimes able to 182 01:04:52,688 --> 01:04:54,924 drive market competition, 183 01:04:54,924 --> 01:04:55,925 which creates the best 184 01:04:55,925 --> 01:04:56,826 structure for our clients, 185 01:04:57,894 --> 01:04:58,594 and then hopefully 186 01:04:58,594 --> 01:04:59,729 have a successful outcome 187 01:04:59,729 --> 01:05:00,529 so that when they go 188 01:05:00,529 --> 01:05:01,864 to do their next one, 189 01:05:02,265 --> 01:05:03,332 we're gonna run it back 190 01:05:03,332 --> 01:05:04,033 and do the same thing. 191 01:05:04,033 --> 01:05:04,734 And I probably talk 192 01:05:04,734 --> 01:05:06,936 myself out of 30% of deals, 193 01:05:07,503 --> 01:05:09,405 20 to 30% of deals, I'll sit down with 194 01:05:09,405 --> 01:05:10,606 either the principal 195 01:05:10,606 --> 01:05:11,907 or the CFO or the 196 01:05:11,907 --> 01:05:12,742 head of the family office 197 01:05:12,742 --> 01:05:14,644 or the controller, whoever kind of, 198 01:05:14,977 --> 01:05:15,811 whoever does the cost 199 01:05:15,811 --> 01:05:16,746 of capital calculation, 200 01:05:17,847 --> 01:05:18,547 and I'll say, what's 201 01:05:18,547 --> 01:05:20,149 your cost of capital on XYZ? 202 01:05:20,650 --> 01:05:21,951 And they tell me, and I say, look, 203 01:05:21,951 --> 01:05:22,451 you're not gonna beat 204 01:05:22,451 --> 01:05:23,352 that on an airplane loan, 205 01:05:23,886 --> 01:05:26,222 so you're probably better off doing that 206 01:05:26,322 --> 01:05:28,057 until rates readjust and 207 01:05:28,057 --> 01:05:29,659 maybe we could do a cash out refi, 208 01:05:30,159 --> 01:05:32,028 or your cash isn't really 209 01:05:32,028 --> 01:05:33,896 earning the type of returns 210 01:05:34,130 --> 01:05:35,898 that make sense to put 211 01:05:35,898 --> 01:05:36,899 leverage on the airplane, 212 01:05:36,899 --> 01:05:37,800 or hey, you have this 213 01:05:37,800 --> 01:05:38,968 beautiful stock account, 214 01:05:39,235 --> 01:05:40,703 it's currently uninhibited, 215 01:05:41,203 --> 01:05:43,706 and you can take credit lines off that. 216 01:05:44,206 --> 01:05:44,874 I had no idea. 217 01:05:45,408 --> 01:05:46,475 I don't wanna sell this 218 01:05:46,475 --> 01:05:48,210 stock to avoid capital gains, 219 01:05:48,210 --> 01:05:49,045 and I wanna buy an airplane. 220 01:05:49,779 --> 01:05:51,314 Well, have you thought about taking a 221 01:05:51,314 --> 01:05:53,416 stock portfolio-based 222 01:05:53,883 --> 01:05:55,451 loan instead of putting 223 01:05:55,451 --> 01:05:56,352 leverage on the airplane? 224 01:05:56,986 --> 01:05:58,321 Maybe, maybe not, right? 225 01:05:58,888 --> 01:06:00,156 And so, yeah, we try to 226 01:06:00,156 --> 01:06:01,590 be consultative in that. 227 01:06:02,558 --> 01:06:03,592 And then even if they don't end up 228 01:06:03,592 --> 01:06:04,360 needing your services, 229 01:06:04,694 --> 01:06:06,195 you help them out. Exactly, exactly. 230 01:06:06,696 --> 01:06:08,664 And typically it means that now, 231 01:06:08,931 --> 01:06:09,965 the next time they go to buy something 232 01:06:09,965 --> 01:06:10,900 and they can't do that, 233 01:06:10,900 --> 01:06:11,801 they're calling us and saying, 234 01:06:11,801 --> 01:06:13,269 okay, you were honest with me. 235 01:06:13,469 --> 01:06:14,937 So, yeah, that's the whole goal. 236 01:06:15,404 --> 01:06:17,406 So if I'm getting into that conversation, 237 01:06:17,673 --> 01:06:18,174 what's the first 238 01:06:18,174 --> 01:06:19,241 thing I need to ask myself 239 01:06:19,608 --> 01:06:20,776 about my situation, and 240 01:06:20,776 --> 01:06:21,811 then what's the first thing 241 01:06:21,811 --> 01:06:22,611 you're gonna ask me? 242 01:06:22,912 --> 01:06:24,313 You need to ask yourself, 243 01:06:24,313 --> 01:06:26,248 what does my next five years look like 244 01:06:26,415 --> 01:06:28,250 from a capital investment in my business? 245 01:06:29,251 --> 01:06:31,520 So am I trying to buy another company, 246 01:06:31,520 --> 01:06:32,989 expand more regionally, 247 01:06:32,989 --> 01:06:34,890 am I trying to do a merger 248 01:06:35,191 --> 01:06:37,326 with another franchise and 249 01:06:37,326 --> 01:06:38,627 take over a new territory? 250 01:06:39,395 --> 01:06:41,063 And what type of capital requirements 251 01:06:41,063 --> 01:06:42,198 am I going to have for that? 252 01:06:43,532 --> 01:06:45,167 If the answer is no, and 253 01:06:45,167 --> 01:06:46,669 you're sitting on a fat pile 254 01:06:46,836 --> 01:06:49,605 of cash and you are risk averse, 255 01:06:49,805 --> 01:06:51,574 the answer may be pay cash. 256 01:06:52,074 --> 01:06:54,343 But if you're on the growth trajectory 257 01:06:54,343 --> 01:06:56,212 or you have your cash 258 01:06:56,212 --> 01:06:58,647 returning 12, 15, 18%, 259 01:06:58,948 --> 01:07:00,449 which is not uncommon 260 01:07:00,449 --> 01:07:01,484 for many of my clients, 261 01:07:02,385 --> 01:07:04,186 it makes no sense to not 262 01:07:04,186 --> 01:07:06,756 take a six and a half percent 263 01:07:06,889 --> 01:07:09,025 today loan on your airplane. 264 01:07:09,792 --> 01:07:10,760 Because that cash works 265 01:07:10,760 --> 01:07:11,460 better for you elsewhere. 266 01:07:11,794 --> 01:07:12,495 So that's the number 267 01:07:12,495 --> 01:07:13,529 one thing that you need 268 01:07:13,529 --> 01:07:14,430 to ask yourself as you 269 01:07:14,430 --> 01:07:15,264 go to buy an airplane. 270 01:07:15,631 --> 01:07:17,333 Okay, and then maybe the next question, 271 01:07:17,333 --> 01:07:19,068 because this has been a huge topic, 272 01:07:19,668 --> 01:07:22,872 is the new bonus depreciation situation 273 01:07:23,239 --> 01:07:24,373 and how that plays into 274 01:07:24,373 --> 01:07:25,374 that part of the conversation. 275 01:07:25,374 --> 01:07:26,776 Because now the rules 276 01:07:26,776 --> 01:07:27,743 have changed a little bit 277 01:07:28,277 --> 01:07:29,845 as opposed to what they were last year. 278 01:07:30,613 --> 01:07:31,981 So can we talk about that a little bit? 279 01:07:32,014 --> 01:07:32,748 We look at this 280 01:07:32,748 --> 01:07:34,784 through a holistic picture 281 01:07:34,784 --> 01:07:38,087 when we are looking at giving advice. 282 01:07:38,087 --> 01:07:39,088 Because we have a 283 01:07:39,088 --> 01:07:40,556 responsibility to our clients 284 01:07:40,556 --> 01:07:43,092 to give educated informed advice 285 01:07:43,325 --> 01:07:44,760 and then also synthesize 286 01:07:44,760 --> 01:07:45,928 what the rest of our clients are doing. 287 01:07:46,262 --> 01:07:46,629 And accurate. 288 01:07:47,096 --> 01:07:48,264 Exactly, accuracy, 289 01:07:48,764 --> 01:07:49,832 like how does this play? 290 01:07:50,766 --> 01:07:52,368 In a bonus depreciation environment, 291 01:07:53,135 --> 01:07:55,805 if you're in the 27th tax bracket, 292 01:07:55,805 --> 01:07:57,606 27% tax bracket, which most 293 01:07:57,606 --> 01:07:58,974 of our clients are, right? 294 01:08:00,276 --> 01:08:02,144 When you finance your 295 01:08:02,144 --> 01:08:04,246 airplane and you're putting 20% down, 296 01:08:05,347 --> 01:08:06,715 typically the back of 297 01:08:06,715 --> 01:08:08,117 the napkin math says 298 01:08:08,284 --> 01:08:10,820 that the savings from a tax perspective 299 01:08:11,120 --> 01:08:13,189 is about 20% of the purchase price. 300 01:08:13,856 --> 01:08:15,491 So really you're not having 301 01:08:15,491 --> 01:08:17,860 to come up with a lot of cash. 302 01:08:18,727 --> 01:08:20,029 So you may put the cash 303 01:08:20,029 --> 01:08:21,530 down and then in three months 304 01:08:21,530 --> 01:08:23,199 have the savings from a tax standpoint. 305 01:08:23,799 --> 01:08:25,768 But it kind of rough back in the napkin 306 01:08:25,768 --> 01:08:26,802 math equates to that. 307 01:08:27,136 --> 01:08:28,137 So you're really only 308 01:08:28,137 --> 01:08:29,605 paying your interest expense 309 01:08:30,005 --> 01:08:31,040 over the life of your 310 01:08:31,040 --> 01:08:32,108 ownership of the aircraft. 311 01:08:32,408 --> 01:08:35,144 Now, this is not tax advice to be clear. 312 01:08:35,144 --> 01:08:36,445 I am not a tax professional. 313 01:08:37,880 --> 01:08:39,148 But what a lot of my clients 314 01:08:39,148 --> 01:08:40,249 are doing is they're saying, 315 01:08:40,349 --> 01:08:43,953 I'm gonna use that depreciation expense 316 01:08:44,253 --> 01:08:45,087 or that depreciation 317 01:08:45,087 --> 01:08:47,289 savings as my 20% down. 318 01:08:47,289 --> 01:08:48,123 And then I'm basically just 319 01:08:48,123 --> 01:08:49,492 paying my cost of capital, 320 01:08:49,492 --> 01:08:50,793 which is today 321 01:08:50,793 --> 01:08:52,161 somewhere between six and 7%. 322 01:08:53,128 --> 01:08:54,063 And that's really my 323 01:08:54,063 --> 01:08:55,431 cost of my carrying cost, 324 01:08:55,431 --> 01:08:57,166 plus the real depreciation that happens. 325 01:08:57,566 --> 01:08:57,967 The financing 326 01:08:57,967 --> 01:09:00,636 conversation becomes easier to digest 327 01:09:01,170 --> 01:09:02,705 in a bonus depreciation environment, 328 01:09:03,005 --> 01:09:04,073 as opposed to in a 40%, 329 01:09:04,440 --> 01:09:06,408 you're still having all this cash expense 330 01:09:06,642 --> 01:09:08,711 and moving stuff here and there. 331 01:09:08,944 --> 01:09:10,212 And really at the end of the day, 332 01:09:10,279 --> 01:09:10,746 it might just make 333 01:09:10,746 --> 01:09:11,914 more sense to pay cash. 334 01:09:12,648 --> 01:09:14,016 And then you can also deduct your 335 01:09:14,016 --> 01:09:16,418 interest expense over time 336 01:09:17,186 --> 01:09:18,154 at the same proportion 337 01:09:18,154 --> 01:09:19,455 that you have business use. 338 01:09:19,989 --> 01:09:22,224 So let's say, Jason's gonna 339 01:09:22,224 --> 01:09:24,193 come pick me up on Friday, 340 01:09:24,193 --> 01:09:26,428 we're gonna go play golf as well, 341 01:09:26,862 --> 01:09:27,496 we're in the industry, 342 01:09:27,696 --> 01:09:28,631 might be a business expense, 343 01:09:28,631 --> 01:09:28,898 who knows? 344 01:09:29,598 --> 01:09:29,665 (laughing) 345 01:09:29,665 --> 01:09:31,000 But he may take-- 346 01:09:31,000 --> 01:09:32,468 Big talk, business, carrying cost. 347 01:09:32,968 --> 01:09:34,036 Maybe he takes his wife to 348 01:09:34,036 --> 01:09:35,037 a fancy dinner in New York. 349 01:09:35,804 --> 01:09:36,805 That probably doesn't count. 350 01:09:38,240 --> 01:09:40,910 So he does that 10% of the time, 351 01:09:40,910 --> 01:09:41,944 90% of the time is for business, 352 01:09:42,144 --> 01:09:44,446 he can deduct 90% of 353 01:09:44,446 --> 01:09:45,247 his interest expense. 354 01:09:45,981 --> 01:09:47,016 So there's other 355 01:09:47,016 --> 01:09:48,184 calculations that go into that. 356 01:09:48,884 --> 01:09:50,052 And a lot of times our 357 01:09:50,052 --> 01:09:51,987 clients have better uses 358 01:09:52,154 --> 01:09:54,423 for their cash than just 359 01:09:54,423 --> 01:09:55,190 sitting in an airplane, 360 01:09:55,190 --> 01:09:56,025 especially in a rate 361 01:09:56,025 --> 01:09:57,126 environment, surprisingly, 362 01:09:57,760 --> 01:10:00,596 it's easier to make the 363 01:10:00,596 --> 01:10:01,764 justification for financing 364 01:10:02,031 --> 01:10:04,199 in a slightly elevated rate environment 365 01:10:04,400 --> 01:10:06,535 than a 0% rate environment. 366 01:10:07,203 --> 01:10:08,537 Because it's all about risk-free yield 367 01:10:08,537 --> 01:10:10,606 and that would get very, very technical. 368 01:10:11,607 --> 01:10:13,943 But talk to your financial advisor, 369 01:10:13,943 --> 01:10:15,144 figure out what your cash is making, 370 01:10:15,544 --> 01:10:16,879 then call me and I'll say, 371 01:10:17,846 --> 01:10:18,948 yeah, probably makes sense, 372 01:10:18,948 --> 01:10:19,648 or no, it just 373 01:10:19,648 --> 01:10:20,649 definitely doesn't make sense. 374 01:10:21,350 --> 01:10:22,952 Yeah, so in terms of the 375 01:10:22,952 --> 01:10:23,819 way everything's calculated, 376 01:10:24,253 --> 01:10:27,089 you were explaining to me earlier 377 01:10:27,389 --> 01:10:29,058 that there are three kind of like letters 378 01:10:29,058 --> 01:10:30,526 that you can pull in the way 379 01:10:30,526 --> 01:10:31,627 that they interact with each other. 380 01:10:31,627 --> 01:10:32,595 Can you tell me a little bit about that 381 01:10:32,595 --> 01:10:34,129 so I can understand 382 01:10:34,129 --> 01:10:34,863 it a little bit better? 383 01:10:35,064 --> 01:10:36,732 We talk about structuring the loan. 384 01:10:36,966 --> 01:10:37,233 Yeah. 385 01:10:38,067 --> 01:10:39,835 You have three main components 386 01:10:39,835 --> 01:10:40,502 and then there's some 387 01:10:40,502 --> 01:10:42,605 fringe kind of back-end stuff, 388 01:10:42,871 --> 01:10:43,606 but your three main 389 01:10:43,606 --> 01:10:44,773 components are down payment, 390 01:10:45,441 --> 01:10:46,875 amortization and interest rate. 391 01:10:46,875 --> 01:10:47,810 Those are the three things 392 01:10:47,810 --> 01:10:49,244 that we're really gonna focus on. 393 01:10:50,145 --> 01:10:51,714 They're interrelated, so 394 01:10:51,714 --> 01:10:53,382 they're levers that you can pull. 395 01:10:54,016 --> 01:10:55,851 If I wanna drive my interest rate down, 396 01:10:56,418 --> 01:10:57,886 I can put more cash 397 01:10:57,886 --> 01:10:59,788 down, keep the amortization. 398 01:11:00,289 --> 01:11:01,190 For those that don't 399 01:11:01,190 --> 01:11:02,558 know the word amortization, 400 01:11:02,758 --> 01:11:04,960 because it's a financy term. 401 01:11:05,928 --> 01:11:07,696 If you think about your home loan, 402 01:11:08,597 --> 01:11:09,865 you have a 30-year home loan. 403 01:11:10,232 --> 01:11:10,899 Well, home loans are 404 01:11:10,899 --> 01:11:13,535 calculated as 30-year term, 405 01:11:14,036 --> 01:11:15,104 30-year amortization. 406 01:11:15,771 --> 01:11:17,006 So my monthly payment is 407 01:11:17,006 --> 01:11:18,874 as if I have a 30-year, 408 01:11:18,874 --> 01:11:20,075 but I can hold it for 30 years. 409 01:11:20,676 --> 01:11:21,277 Airpoint transactions 410 01:11:21,277 --> 01:11:22,645 are typically structured 411 01:11:23,112 --> 01:11:24,947 in a five-year term and 412 01:11:24,947 --> 01:11:25,914 an amortization period 413 01:11:25,914 --> 01:11:27,283 that is longer than that. 414 01:11:27,283 --> 01:11:28,384 So there's a balloon payment 415 01:11:28,384 --> 01:11:29,351 at the end of the five years. 416 01:11:30,085 --> 01:11:31,920 It's a commercial lending regulation. 417 01:11:32,187 --> 01:11:33,222 There's a whole reason 418 01:11:33,222 --> 01:11:34,123 why that is the case, 419 01:11:34,123 --> 01:11:34,923 but that is typically 420 01:11:34,923 --> 01:11:35,624 how they're structured. 421 01:11:36,825 --> 01:11:38,694 So when I talk about amortization, 422 01:11:39,061 --> 01:11:40,129 I'm gonna pay as if 423 01:11:40,129 --> 01:11:41,630 it was a 15-year loan, 424 01:11:41,997 --> 01:11:42,831 but at the end of the 425 01:11:42,831 --> 01:11:44,767 60th month, the fifth year, 426 01:11:45,167 --> 01:11:45,934 I will have the 427 01:11:45,934 --> 01:11:47,903 outstanding balance will come due. 428 01:11:48,804 --> 01:11:49,571 That's the end of the term. 429 01:11:49,805 --> 01:11:50,906 So when I talk about amortization, 430 01:11:50,906 --> 01:11:52,174 that's just so that everybody's kind of 431 01:11:52,174 --> 01:11:52,941 on the same playing field. 432 01:11:53,575 --> 01:11:54,343 So down payment, 433 01:11:54,343 --> 01:11:55,811 amortization and then interest rate. 434 01:11:55,811 --> 01:11:56,912 Those are the three levers. 435 01:11:57,112 --> 01:11:58,314 So if you wanna lower interest rate, 436 01:11:58,647 --> 01:12:00,115 shorten up your amortization, 437 01:12:00,749 --> 01:12:02,484 or raise your down payment. 438 01:12:03,419 --> 01:12:04,053 Interest rate is 439 01:12:04,053 --> 01:12:05,587 calculated based off of risk 440 01:12:05,587 --> 01:12:06,789 of not repaying. 441 01:12:06,789 --> 01:12:07,690 At the end of the day, 442 01:12:07,890 --> 01:12:09,725 the bank needs to yield on their money. 443 01:12:09,725 --> 01:12:11,226 So if you're more risky, your interest 444 01:12:11,226 --> 01:12:11,994 rate will be higher. 445 01:12:11,994 --> 01:12:13,829 They will require a larger down payment. 446 01:12:14,396 --> 01:12:15,297 And the down payment 447 01:12:15,297 --> 01:12:16,899 amortization has to do with, 448 01:12:16,899 --> 01:12:18,634 if the bank has to go pick it up, 449 01:12:18,934 --> 01:12:19,935 the bank does not 450 01:12:19,935 --> 01:12:21,203 want that airplane back. 451 01:12:21,203 --> 01:12:22,104 Right. Right. 452 01:12:22,271 --> 01:12:23,172 Period. Right, right. 453 01:12:23,238 --> 01:12:23,772 I don't know if you've 454 01:12:23,772 --> 01:12:25,174 ever had a client go to fault, 455 01:12:25,174 --> 01:12:26,508 but it's really rare. 456 01:12:27,009 --> 01:12:28,143 Like the bank is gonna 457 01:12:28,143 --> 01:12:29,244 try and work with you. 458 01:12:29,745 --> 01:12:30,979 But amortization, it 459 01:12:30,979 --> 01:12:32,815 depends on what equity position 460 01:12:32,815 --> 01:12:33,716 you're in the aircraft. 461 01:12:33,716 --> 01:12:35,551 And it is what determines a 462 01:12:35,551 --> 01:12:36,652 lot of your monthly payment. 463 01:12:36,852 --> 01:12:39,188 And so if you want a longer amortization, 464 01:12:39,188 --> 01:12:39,955 you may have to come with 465 01:12:39,955 --> 01:12:41,390 another five or 10% down. 466 01:12:41,790 --> 01:12:42,691 Or you may have to pay 467 01:12:42,691 --> 01:12:44,793 another 25 or 50 basis points 468 01:12:44,793 --> 01:12:47,830 a quarter to a half point of interest 469 01:12:47,830 --> 01:12:49,131 in order to get that longer amortization. 470 01:12:49,598 --> 01:12:51,467 So we can play with those three levers 471 01:12:51,567 --> 01:12:53,235 depending on what your priorities are. 472 01:12:53,569 --> 01:12:55,804 So if you're saying my cost of capital, 473 01:12:55,804 --> 01:12:56,905 which is a fancy way 474 01:12:56,905 --> 01:12:58,006 of saying interest rate, 475 01:12:58,474 --> 01:12:59,675 is the most important thing, 476 01:12:59,908 --> 01:13:00,843 well maybe we'll come 477 01:13:00,843 --> 01:13:02,311 in with another 5% down, 478 01:13:02,778 --> 01:13:04,413 shorten the amortization by three years, 479 01:13:04,413 --> 01:13:05,314 and we can maybe drive 480 01:13:05,314 --> 01:13:07,149 that down by 50 basis points, 481 01:13:07,416 --> 01:13:08,083 a half a percentage. 482 01:13:08,784 --> 01:13:09,852 Maybe that's important to you. 483 01:13:09,852 --> 01:13:11,386 Maybe you're a cashflow guy. 484 01:13:11,386 --> 01:13:12,354 You say I want the lowest 485 01:13:12,354 --> 01:13:13,789 possible monthly payment. 486 01:13:14,423 --> 01:13:15,724 So maybe we'll pay a 487 01:13:15,724 --> 01:13:16,658 little bit more in interest, 488 01:13:17,126 --> 01:13:18,794 but we're gonna kick the amortization out 489 01:13:18,794 --> 01:13:19,995 as long as we can and 490 01:13:19,995 --> 01:13:21,196 have as little money down. 491 01:13:21,764 --> 01:13:23,031 So it's those three things really 492 01:13:23,031 --> 01:13:23,799 interplay with each other 493 01:13:23,799 --> 01:13:24,399 when you're talking 494 01:13:24,399 --> 01:13:25,334 about structuring a lot. 495 01:13:25,367 --> 01:13:26,001 That makes total sense. 496 01:13:26,435 --> 01:13:27,136 Yeah. Yeah. 497 01:13:27,536 --> 01:13:31,540 So if somebody's trying to work these 498 01:13:31,540 --> 01:13:32,508 three levers, right, 499 01:13:32,508 --> 01:13:34,176 have you been into situations where, 500 01:13:34,543 --> 01:13:35,477 let's say you're talking to a broker 501 01:13:35,477 --> 01:13:36,912 that's representing somebody and they're 502 01:13:36,912 --> 01:13:37,713 trying to buy a jet, 503 01:13:38,847 --> 01:13:39,214 have you been in 504 01:13:39,214 --> 01:13:40,416 situations where it's like, 505 01:13:40,749 --> 01:13:41,917 look, this may not be 506 01:13:41,917 --> 01:13:42,751 the right fit for you 507 01:13:42,751 --> 01:13:43,585 because I'm pulling 508 01:13:43,585 --> 01:13:44,753 all the levers that I can 509 01:13:44,753 --> 01:13:46,088 and it's just not matching up? 510 01:13:46,188 --> 01:13:47,356 It happens, I would 511 01:13:47,356 --> 01:13:48,323 say it probably happens 512 01:13:48,423 --> 01:13:49,725 15 to 20% of the time. 513 01:13:49,758 --> 01:13:50,492 Okay. Yeah. 514 01:13:50,492 --> 01:13:53,228 Now there is always, you 515 01:13:53,228 --> 01:13:54,963 can get to a yes, almost. 516 01:13:56,365 --> 01:13:57,866 It's almost, you can get to yes. 517 01:13:58,333 --> 01:14:00,269 I mean, I've gotten to yes 518 01:14:00,269 --> 01:14:03,639 as a pretty crazy background, you know, 519 01:14:03,639 --> 01:14:04,840 there's like the whole like, 520 01:14:04,840 --> 01:14:06,208 oh, you have something crazy that 521 01:14:06,208 --> 01:14:06,975 happened in your background 522 01:14:06,975 --> 01:14:08,210 or when I Google you, like 523 01:14:08,210 --> 01:14:09,311 the first thing that pops up 524 01:14:09,311 --> 01:14:10,245 and you're like, ooh. 525 01:14:11,180 --> 01:14:11,713 (laughing) 526 01:14:12,014 --> 01:14:13,148 But you got like a mug shot, 527 01:14:13,415 --> 01:14:14,683 the article about what they did. 528 01:14:14,950 --> 01:14:17,352 It's like a lawsuit. Oh, yeah. 529 01:14:17,786 --> 01:14:18,787 If you wanna know if you 530 01:14:18,787 --> 01:14:20,322 can get approved for a loan, 531 01:14:20,322 --> 01:14:22,124 Google your first last name lawsuit, 532 01:14:22,124 --> 01:14:23,725 and if something pops up in the top, 533 01:14:24,359 --> 01:14:25,227 it's gonna be challenging. 534 01:14:25,794 --> 01:14:26,995 I mean, it just, if there's 535 01:14:26,995 --> 01:14:28,230 anything like that's serious, 536 01:14:28,230 --> 01:14:29,031 like it's not something 537 01:14:29,031 --> 01:14:30,399 petty, like it's gonna be tough. 538 01:14:30,899 --> 01:14:31,667 The answer is always yes. 539 01:14:32,100 --> 01:14:33,502 We can go to the private markets. 540 01:14:33,769 --> 01:14:34,670 We can go-- Yeah, get it there. 541 01:14:34,903 --> 01:14:37,739 Yeah, we can go get an asset-based loan, 542 01:14:38,373 --> 01:14:40,375 but you're gonna come out with 40% down. 543 01:14:41,109 --> 01:14:42,544 It's gonna be like, 544 01:14:42,744 --> 01:14:44,112 High interest. So far plus 8% 545 01:14:45,414 --> 01:14:47,349 as the floor, and it's 546 01:14:47,349 --> 01:14:48,417 gonna go up from there, 547 01:14:49,351 --> 01:14:50,619 and it's gonna be straight 548 01:14:50,619 --> 01:14:52,287 amortizing a five-year term, 549 01:14:52,287 --> 01:14:53,121 five-year amortization, 550 01:14:53,255 --> 01:14:53,889 your monthly payment's 551 01:14:53,889 --> 01:14:55,123 gonna be out the lawsuit. 552 01:14:55,791 --> 01:14:56,658 We can get to yes. 553 01:14:57,059 --> 01:14:58,193 Yeah. That's just-- 554 01:14:58,193 --> 01:14:58,927 That's not what you wanna pay for. 555 01:14:59,094 --> 01:15:00,295 Exactly. What about chartering? 556 01:15:00,529 --> 01:15:01,697 Because you've got a 557 01:15:01,697 --> 01:15:03,298 whole thing about chartering 558 01:15:03,298 --> 01:15:04,266 and debt service and cash 559 01:15:04,266 --> 01:15:05,400 flow positive and all that stuff. 560 01:15:07,069 --> 01:15:08,170 There's two types of, 561 01:15:08,804 --> 01:15:09,671 I'm gonna charter my jet. 562 01:15:10,072 --> 01:15:11,240 And you've probably seen 563 01:15:11,240 --> 01:15:12,007 this with some of your clients. 564 01:15:12,741 --> 01:15:14,476 You have like, I'm a rich 565 01:15:14,476 --> 01:15:15,944 guy, I'm gonna buy the airplane, 566 01:15:16,712 --> 01:15:18,213 and some guys are really risk averse, 567 01:15:18,213 --> 01:15:19,515 and they put it on a charter certificate, 568 01:15:19,515 --> 01:15:20,148 and I tell people you 569 01:15:20,148 --> 01:15:21,683 should at least think about this, 570 01:15:22,451 --> 01:15:23,952 is if you're gonna let your 571 01:15:23,952 --> 01:15:25,053 buddies borrow your plane, 572 01:15:27,055 --> 01:15:28,156 chartering it to your friends 573 01:15:28,724 --> 01:15:30,626 gives you an extra layer of insulation 574 01:15:31,260 --> 01:15:32,494 that dry leases don't 575 01:15:32,494 --> 01:15:33,996 give you as much insulation, 576 01:15:34,529 --> 01:15:35,664 not legal advice, not tax 577 01:15:35,664 --> 01:15:36,632 advice, just to be clear. 578 01:15:37,266 --> 01:15:37,900 A lot of people will 579 01:15:37,900 --> 01:15:38,634 throw it on a certificate 580 01:15:38,634 --> 01:15:39,334 so they can kind of 581 01:15:39,334 --> 01:15:40,235 charter it out lightly. 582 01:15:41,069 --> 01:15:42,938 That is one type of customer, which is, 583 01:15:43,639 --> 01:15:45,207 I have the money, I don't 584 01:15:45,207 --> 01:15:46,475 need the charter revenue. 585 01:15:46,708 --> 01:15:48,043 I'm just, it's nice to have, 586 01:15:48,243 --> 01:15:49,711 I may charter it here and there. 587 01:15:50,112 --> 01:15:51,413 I'm gonna put it on the certificate, 588 01:15:51,780 --> 01:15:53,715 it's gonna stay compliant 589 01:15:53,715 --> 01:15:55,717 for 135, all of those things. 590 01:15:56,184 --> 01:15:58,287 But from time to time, I will charter it. 591 01:15:58,554 --> 01:15:59,488 That's one type of client. 592 01:15:59,688 --> 01:16:01,456 No problem, lenders are 593 01:16:01,456 --> 01:16:02,624 gonna have no issue with that 594 01:16:02,624 --> 01:16:03,392 because you're not 595 01:16:03,392 --> 01:16:04,993 massively depreciating the airplane 596 01:16:05,460 --> 01:16:06,762 by putting more hours on it. 597 01:16:07,195 --> 01:16:08,564 It's just nice to have. 598 01:16:08,830 --> 01:16:09,731 That's totally fine. 599 01:16:09,965 --> 01:16:10,966 It really doesn't 600 01:16:10,966 --> 01:16:12,367 limit your scope of lenders 601 01:16:12,367 --> 01:16:13,969 that will do that transaction. 602 01:16:15,137 --> 01:16:17,739 Then you have, I'm gonna fly 50 hours, 603 01:16:18,707 --> 01:16:19,508 and then I'm gonna 604 01:16:19,508 --> 01:16:21,810 charter that 400 hours. 605 01:16:23,045 --> 01:16:24,613 Basically, you're the next net jet in 606 01:16:24,613 --> 01:16:25,414 your own mind, right? 607 01:16:25,714 --> 01:16:26,949 You're just doing the 608 01:16:26,949 --> 01:16:28,450 whole business model. 609 01:16:28,450 --> 01:16:28,717 Correct. 610 01:16:29,585 --> 01:16:31,086 And you can do it. 611 01:16:31,653 --> 01:16:33,722 There are scenarios in which, 612 01:16:34,323 --> 01:16:35,023 essentially what you're 613 01:16:35,023 --> 01:16:37,025 doing is you're doing it 614 01:16:37,025 --> 01:16:38,026 off of your signature. 615 01:16:38,527 --> 01:16:39,361 So you're borrowing from 616 01:16:39,361 --> 01:16:40,362 the bank on your signature, 617 01:16:40,629 --> 01:16:41,596 on your balance sheet, 618 01:16:42,030 --> 01:16:43,398 and then you're basically 619 01:16:44,666 --> 01:16:46,401 borrowing for 6% and 620 01:16:46,401 --> 01:16:48,003 you're ready to return 621 01:16:48,070 --> 01:16:48,971 to your charter operator, 622 01:16:48,971 --> 01:16:50,472 it might be 8.5%, right? 623 01:16:50,472 --> 01:16:52,874 So you're making a spread there. 624 01:16:53,141 --> 01:16:54,209 You're making some sort of spread there. 625 01:16:55,210 --> 01:16:56,244 The problem is you're 626 01:16:56,244 --> 01:16:57,379 depreciating the airplane. 627 01:16:57,980 --> 01:16:58,180 Right. 628 01:17:00,082 --> 01:17:00,949 If I was gonna ask you how 629 01:17:00,949 --> 01:17:01,950 much is this airplane worth, 630 01:17:01,950 --> 01:17:03,051 what's one of the first 631 01:17:03,051 --> 01:17:04,019 questions you're gonna ask me? 632 01:17:04,019 --> 01:17:04,886 This is a spec. 633 01:17:04,886 --> 01:17:06,355 If it's a 135 or a 91. 634 01:17:06,755 --> 01:17:07,289 Yeah, exactly. 635 01:17:07,389 --> 01:17:08,390 How many hours, right? 636 01:17:08,390 --> 01:17:08,590 Yep. 637 01:17:09,024 --> 01:17:10,092 Right, well, right. 638 01:17:10,258 --> 01:17:11,493 Whether it's been operated in 135 639 01:17:11,727 --> 01:17:13,295 or whether it's been operated in 91. 640 01:17:13,295 --> 01:17:13,895 Right, exactly. 641 01:17:14,396 --> 01:17:15,764 I'm gonna say, hey, this airplane-- 642 01:17:15,764 --> 01:17:17,065 Has it been chartered or it's been-- 643 01:17:17,132 --> 01:17:18,934 Right, so yeah, to be clear to me, 644 01:17:19,167 --> 01:17:21,470 the layperson here, 135 means charter? 645 01:17:21,470 --> 01:17:22,170 The chartered airplane. 646 01:17:22,337 --> 01:17:24,072 Okay, and 91, was it? 647 01:17:24,539 --> 01:17:25,641 Is a privately operated-- 648 01:17:26,008 --> 01:17:26,108 Yeah. 649 01:17:26,108 --> 01:17:26,575 All that stuff. 650 01:17:27,142 --> 01:17:27,342 Exactly. 651 01:17:27,509 --> 01:17:27,876 No revenue. 652 01:17:28,443 --> 01:17:29,811 I drew this illustration. 653 01:17:30,212 --> 01:17:31,747 I stole this from the FAA, to be clear. 654 01:17:31,747 --> 01:17:32,481 This is like the one 655 01:17:32,481 --> 01:17:33,649 piece of clever writing 656 01:17:33,649 --> 01:17:35,183 I've ever read in FAA documents. 657 01:17:35,851 --> 01:17:38,387 The FAA defines 91, like if 658 01:17:38,387 --> 01:17:39,354 you're gonna do a dry lease 659 01:17:39,621 --> 01:17:41,056 as a rental car. 660 01:17:41,189 --> 01:17:41,657 Okay. 661 01:17:41,657 --> 01:17:44,259 And a 135 as an Uber or a taxi. 662 01:17:45,193 --> 01:17:46,094 And it makes that, it 663 01:17:46,094 --> 01:17:47,496 draws that analogy here. 664 01:17:47,496 --> 01:17:48,830 It literally draws out that analogy. 665 01:17:48,830 --> 01:17:49,531 It's like, you can go 666 01:17:49,531 --> 01:17:50,599 rent a car from enterprise, 667 01:17:50,599 --> 01:17:51,733 that's a 91 dry lease. 668 01:17:52,134 --> 01:17:52,334 Okay. 669 01:17:52,534 --> 01:17:54,069 135 is you're paying for an Uber. 670 01:17:54,336 --> 01:17:55,637 One transaction, I pay 671 01:17:55,637 --> 01:17:57,472 you, you take me, that's it. 672 01:17:57,773 --> 01:17:59,808 That's just like a easy way to like-- 673 01:17:59,808 --> 01:18:00,375 It makes sense. 674 01:18:00,375 --> 01:18:00,776 Figure out the difference. 675 01:18:00,776 --> 01:18:01,309 Yeah, right. 676 01:18:01,309 --> 01:18:02,044 But it's, I'm gonna 677 01:18:02,044 --> 01:18:02,944 ask, you're gonna ask that. 678 01:18:03,211 --> 01:18:05,380 And then the next question is, how many 679 01:18:05,380 --> 01:18:06,181 hours does it have on it? 680 01:18:06,314 --> 01:18:06,448 Yep. 681 01:18:06,448 --> 01:18:07,783 And when it's on a 135 certificate, 682 01:18:07,783 --> 01:18:08,684 and I'm flying 50 and 683 01:18:08,684 --> 01:18:10,185 I'm flying at 400 hours, 684 01:18:10,819 --> 01:18:14,156 I'm now 100 hours over the fleet average, 685 01:18:14,723 --> 01:18:16,425 which may be 350 hours, right? 686 01:18:16,925 --> 01:18:17,059 Like-- 687 01:18:17,059 --> 01:18:17,693 Yeah, most likely. 688 01:18:17,959 --> 01:18:18,160 Yeah. 689 01:18:18,427 --> 01:18:19,528 Like I know that like 690 01:18:19,528 --> 01:18:20,695 in the large cabin space, 691 01:18:20,962 --> 01:18:22,431 that the fleet average kind of goes up 692 01:18:22,431 --> 01:18:23,098 because you go longer. 693 01:18:23,365 --> 01:18:23,865 Yep, exactly. 694 01:18:24,066 --> 01:18:25,467 But you're looking at the fleet average, 695 01:18:25,867 --> 01:18:26,768 and this guy has 696 01:18:26,768 --> 01:18:28,837 chartered the absolute bejesus 697 01:18:28,837 --> 01:18:29,504 out of this airplane. 698 01:18:29,905 --> 01:18:30,172 Right. 699 01:18:30,172 --> 01:18:31,907 So it's gonna depreciate faster. 700 01:18:32,541 --> 01:18:33,108 Well, the bank doesn't 701 01:18:33,108 --> 01:18:33,909 want to be in a backwards, 702 01:18:34,276 --> 01:18:36,111 they, the bank will not let 703 01:18:36,111 --> 01:18:36,978 you be upset on the airplane. 704 01:18:37,913 --> 01:18:38,814 So your amperstition is shorter. 705 01:18:39,381 --> 01:18:40,816 Like that's, but those 706 01:18:40,816 --> 01:18:42,150 are the two types of clients 707 01:18:42,150 --> 01:18:43,285 that are saying, there is, 708 01:18:43,652 --> 01:18:44,686 I'm going to charter this, 709 01:18:45,554 --> 01:18:46,922 opportunistically, and then there's, 710 01:18:47,689 --> 01:18:49,224 I want to make this make money. 711 01:18:49,791 --> 01:18:51,393 And then there's even guys who go, 712 01:18:51,726 --> 01:18:52,260 they're kind of 713 01:18:52,260 --> 01:18:54,496 fringy, approvable, right? 714 01:18:54,496 --> 01:18:57,199 Like they could be approved, maybe not. 715 01:18:57,466 --> 01:18:58,233 And then they're like, well, I'm gonna 716 01:18:58,233 --> 01:18:59,301 have all this cash flow 717 01:18:59,301 --> 01:19:00,102 from the charter. 718 01:19:00,735 --> 01:19:01,470 And the bank's like, 719 01:19:01,470 --> 01:19:02,838 we're just not gonna count it. 720 01:19:02,838 --> 01:19:03,872 Do they try to get into 721 01:19:03,872 --> 01:19:04,806 situations where it's like, 722 01:19:04,806 --> 01:19:05,507 well, maybe I don't want to 723 01:19:05,507 --> 01:19:06,775 buy it myself and charter it, 724 01:19:06,775 --> 01:19:07,375 but I want to get into a 725 01:19:07,375 --> 01:19:08,610 fractional ownership situation 726 01:19:08,610 --> 01:19:09,511 with other people. 727 01:19:09,511 --> 01:19:10,112 Like what is that? 728 01:19:10,112 --> 01:19:10,912 Yeah, that's different. 729 01:19:11,279 --> 01:19:12,748 They like, well, 730 01:19:12,748 --> 01:19:13,682 there's, so there's like, 731 01:19:13,715 --> 01:19:15,784 NetJets, FlexChat, that's like, I'm 732 01:19:15,784 --> 01:19:16,451 signing up for a program. 733 01:19:16,685 --> 01:19:18,053 And then there's me and 734 01:19:18,053 --> 01:19:18,653 Jason are gonna go buy 735 01:19:18,653 --> 01:19:19,421 an airplane together. 736 01:19:20,055 --> 01:19:22,424 The bank will look at global cash flow. 737 01:19:22,624 --> 01:19:23,558 So like maybe I could 738 01:19:23,558 --> 01:19:25,393 afford to have a half airplane 739 01:19:25,627 --> 01:19:27,028 or like, we're gonna buy a 740 01:19:27,028 --> 01:19:28,096 $10 million plane together. 741 01:19:28,330 --> 01:19:29,297 I could afford a $5 742 01:19:29,297 --> 01:19:30,332 million plane on my own. 743 01:19:30,766 --> 01:19:31,466 He can afford a $5 744 01:19:31,466 --> 01:19:32,567 million plane on his own. 745 01:19:32,934 --> 01:19:35,270 Together we can afford a nine million. 746 01:19:35,270 --> 01:19:36,404 Like it's not one-to-one, 747 01:19:36,738 --> 01:19:38,440 but yeah, you can get together 748 01:19:38,774 --> 01:19:40,575 and do kind of shared ownership. 749 01:19:41,009 --> 01:19:42,110 And you can finance it. 750 01:19:42,544 --> 01:19:44,779 You have to really like 751 01:19:44,779 --> 01:19:46,047 your partner, first of all. 752 01:19:46,548 --> 01:19:47,783 Yeah, a lot of friendships 753 01:19:47,783 --> 01:19:49,751 and with joint ownership of airplanes. 754 01:19:50,218 --> 01:19:51,386 Now you've had to kind 755 01:19:51,386 --> 01:19:52,087 of like come in clutch 756 01:19:52,087 --> 01:19:53,021 for people before, right? 757 01:19:53,221 --> 01:19:54,589 Like whenever like 758 01:19:54,589 --> 01:19:55,524 things were down to the wire 759 01:19:55,690 --> 01:19:56,291 and you told me a 760 01:19:56,291 --> 01:19:57,926 story about Mexico earlier. 761 01:19:57,926 --> 01:19:58,126 Yeah. 762 01:19:58,493 --> 01:20:00,295 Can you share that with us? 763 01:20:00,662 --> 01:20:00,862 Yeah. 764 01:20:00,896 --> 01:20:01,730 Yeah, what happened 765 01:20:01,730 --> 01:20:02,931 where you had to kind of like 766 01:20:03,732 --> 01:20:05,233 really go a little bit above the on? 767 01:20:05,867 --> 01:20:08,837 Yeah, so I had a client this year 768 01:20:09,538 --> 01:20:11,406 and we were running up 769 01:20:11,406 --> 01:20:13,308 against his purchase agreement 770 01:20:13,575 --> 01:20:16,144 that expired on the 31st 771 01:20:16,611 --> 01:20:18,046 and his deposit had already gone hard. 772 01:20:19,247 --> 01:20:20,515 So in this scenario, he 773 01:20:20,515 --> 01:20:22,417 had a $2 million hard deposit 774 01:20:23,051 --> 01:20:25,554 that technically, according to the APA, 775 01:20:25,787 --> 01:20:27,355 the seller could walk 776 01:20:27,355 --> 01:20:30,025 away with on the first. 777 01:20:30,692 --> 01:20:31,426 They could just walk away. 778 01:20:31,426 --> 01:20:32,494 They could wipe their 779 01:20:32,494 --> 01:20:33,828 hands in the deal the month. 780 01:20:33,828 --> 01:20:35,163 So basically it's like, 781 01:20:35,163 --> 01:20:35,997 you've got to give us $2 million 782 01:20:36,331 --> 01:20:36,865 in order to get 783 01:20:36,865 --> 01:20:37,899 started on this transaction. 784 01:20:38,200 --> 01:20:39,734 But if for whatever reason it 785 01:20:39,734 --> 01:20:41,269 doesn't get done by this date, 786 01:20:41,870 --> 01:20:43,071 we have the option of keeping that. 787 01:20:43,672 --> 01:20:44,639 Yeah, I don't know how you 788 01:20:44,639 --> 01:20:46,074 structure your transactions. 789 01:20:46,875 --> 01:20:48,944 This is a little plug for 790 01:20:48,944 --> 01:20:49,878 like using the right broker 791 01:20:50,145 --> 01:20:52,147 because I've had deals where the broker 792 01:20:52,314 --> 01:20:53,815 structured the deal terribly. 793 01:20:53,849 --> 01:20:54,149 Okay. 794 01:20:54,416 --> 01:20:55,217 But your broker is 795 01:20:55,217 --> 01:20:56,384 going to help advise you 796 01:20:56,384 --> 01:20:58,253 on when you want that to be 797 01:20:58,253 --> 01:21:00,021 able to be non-refundable. 798 01:21:00,021 --> 01:21:00,222 Right. 799 01:21:00,488 --> 01:21:01,389 Because refundable at first 800 01:21:01,723 --> 01:21:02,290 and then it becomes 801 01:21:02,290 --> 01:21:03,491 non-refundable at a point. 802 01:21:03,491 --> 01:21:04,259 And the reason you do that 803 01:21:04,259 --> 01:21:05,126 is you don't want to like 804 01:21:05,193 --> 01:21:06,728 leave people hanging, is that what it is? 805 01:21:06,728 --> 01:21:07,229 Or you don't want the 806 01:21:07,229 --> 01:21:08,296 thing to be off the market. 807 01:21:08,864 --> 01:21:10,131 Yeah, this is, well right. 808 01:21:10,565 --> 01:21:11,433 You know, after a 809 01:21:11,433 --> 01:21:12,534 certain amount of time goes by, 810 01:21:12,767 --> 01:21:14,903 you want to guarantee the seller that, 811 01:21:14,903 --> 01:21:15,871 hey, this is going to work. 812 01:21:16,071 --> 01:21:16,371 Yeah. 813 01:21:16,371 --> 01:21:17,038 You know, we've 814 01:21:17,038 --> 01:21:17,973 already taken your airplane 815 01:21:18,139 --> 01:21:18,773 pretty much off the 816 01:21:18,773 --> 01:21:21,309 market for however many weeks. 817 01:21:21,376 --> 01:21:21,743 Yeah. 818 01:21:21,743 --> 01:21:24,546 So there has to be some reciprocating. 819 01:21:25,280 --> 01:21:26,081 And that's usually it 820 01:21:26,081 --> 01:21:26,715 with the money going. 821 01:21:27,182 --> 01:21:27,782 Okay, so you're not 822 01:21:27,782 --> 01:21:28,750 just stringing them along. 823 01:21:29,017 --> 01:21:29,217 Exactly. 824 01:21:29,885 --> 01:21:30,852 Because there's like a soft 825 01:21:30,852 --> 01:21:31,786 deposit and a hard deposit. 826 01:21:32,020 --> 01:21:32,354 That's right. 827 01:21:32,354 --> 01:21:33,622 It starts soft, right, 828 01:21:33,955 --> 01:21:34,890 up to a certain point. 829 01:21:34,890 --> 01:21:37,392 And then once we hit a certain threshold, 830 01:21:37,525 --> 01:21:39,327 then it becomes a hard number. 831 01:21:39,694 --> 01:21:41,062 Yeah, which means it's non-refundable. 832 01:21:41,763 --> 01:21:44,566 So this contract explodes on the 31st. 833 01:21:44,833 --> 01:21:46,167 It's the 27th. 834 01:21:46,368 --> 01:21:47,435 I'm calling this guy 835 01:21:47,435 --> 01:21:49,237 four times a day, every day. 836 01:21:49,804 --> 01:21:51,806 Hey man, I know that this is 837 01:21:51,806 --> 01:21:53,041 going to sound preposterous, 838 01:21:53,608 --> 01:21:55,644 but the bank requires a wet signature 839 01:21:55,977 --> 01:21:57,045 on your loan documents. 840 01:21:57,045 --> 01:21:59,247 It's like 70% of banks probably require 841 01:21:59,848 --> 01:22:01,750 wet physical blue ink signatures. 842 01:22:02,284 --> 01:22:05,086 He's at his hotel in Mexico. 843 01:22:05,854 --> 01:22:06,054 Okay. 844 01:22:06,988 --> 01:22:09,157 The attorney is in Oklahoma. 845 01:22:09,724 --> 01:22:10,926 The bank is in Florida. 846 01:22:11,693 --> 01:22:11,960 And so-- 847 01:22:12,294 --> 01:22:12,961 And you're where? 848 01:22:12,961 --> 01:22:14,729 And I'm in Chattanooga, Tennessee. 849 01:22:15,030 --> 01:22:16,665 So I'm at home, at my office. 850 01:22:16,965 --> 01:22:17,666 Lots of-- 851 01:22:17,732 --> 01:22:18,500 It's like there's a 852 01:22:18,500 --> 01:22:19,200 lot of people everywhere. 853 01:22:19,567 --> 01:22:21,136 The broker is calling me as 854 01:22:21,136 --> 01:22:22,737 often as I'm calling the client. 855 01:22:22,737 --> 01:22:23,571 We're both trying to get 856 01:22:23,571 --> 01:22:24,539 in contact with this guy. 857 01:22:24,906 --> 01:22:26,107 You have to sign these documents. 858 01:22:26,708 --> 01:22:27,776 And he calls me and he's like, 859 01:22:28,076 --> 01:22:28,877 "Hey man, what's going on?" 860 01:22:29,411 --> 01:22:30,645 I was like, "What's going on? 861 01:22:30,679 --> 01:22:32,147 I've been calling you for two weeks." 862 01:22:33,615 --> 01:22:34,449 I said, "I'm going to 863 01:22:34,449 --> 01:22:35,583 email you these documents. 864 01:22:35,583 --> 01:22:36,518 I need you to print them." 865 01:22:36,885 --> 01:22:37,485 Single-sided. 866 01:22:38,453 --> 01:22:41,957 Print, sign, scan, send. 867 01:22:42,490 --> 01:22:44,025 I had my finger on the 868 01:22:44,025 --> 01:22:46,161 button at Delta to get on a plane, 869 01:22:46,394 --> 01:22:47,128 to find him. 870 01:22:47,329 --> 01:22:48,263 Literally, I was going to go-- 871 01:22:48,263 --> 01:22:48,563 I was going to go for him. 872 01:22:48,563 --> 01:22:49,798 I was going to go sit in the lobby. 873 01:22:50,265 --> 01:22:51,099 The broker is texting 874 01:22:51,099 --> 01:22:52,767 me, meantime, nonstop. 875 01:22:52,967 --> 01:22:53,568 Have you gotten it done? 876 01:22:53,702 --> 01:22:54,569 He's freaking out. 877 01:22:54,836 --> 01:22:55,704 He's freaking out. 878 01:22:55,704 --> 01:22:56,404 His money's on the line. 879 01:22:57,038 --> 01:22:57,972 So I'm like, "Okay." 880 01:22:58,340 --> 01:22:59,708 So I've got everything. 881 01:23:00,075 --> 01:23:01,142 And I said, "All right, I need you to 882 01:23:01,142 --> 01:23:01,910 take this up there." 883 01:23:01,910 --> 01:23:03,979 I get the scan, I send it in, 884 01:23:04,312 --> 01:23:05,647 and we closed, I think, 885 01:23:06,014 --> 01:23:07,349 48 hours before the deposit 886 01:23:07,349 --> 01:23:08,049 went and walked away. 887 01:23:08,450 --> 01:23:11,987 And I don't think the VA understood, 888 01:23:12,253 --> 01:23:13,688 the lady at the hotel understood, 889 01:23:13,688 --> 01:23:15,056 not even sure the client understood 890 01:23:15,457 --> 01:23:17,125 how expensive it was going to be 891 01:23:17,125 --> 01:23:19,327 if he didn't sign those correctly. 892 01:23:19,627 --> 01:23:20,929 This is exactly why you 893 01:23:20,929 --> 01:23:21,930 wouldn't have the right people 894 01:23:22,130 --> 01:23:24,699 in this situation, because, you know, 895 01:23:25,467 --> 01:23:26,568 Preston's going to do what it takes. 896 01:23:27,335 --> 01:23:27,569 Make sure it happens. 897 01:23:27,569 --> 01:23:28,370 Some other dude might not. 898 01:23:28,636 --> 01:23:28,837 Right. 899 01:23:29,771 --> 01:23:31,906 It's not my problem, buddy, it's yours. 900 01:23:32,273 --> 01:23:32,974 And having a broker 901 01:23:32,974 --> 01:23:34,542 that had the foresight 902 01:23:34,676 --> 01:23:37,579 to kick the hard deposit out further, 903 01:23:38,346 --> 01:23:40,115 because he knew no one could get in 904 01:23:40,115 --> 01:23:41,049 contact with his client. 905 01:23:41,416 --> 01:23:42,650 So it may not have anything 906 01:23:42,650 --> 01:23:43,952 to do with anybody's fault, 907 01:23:43,952 --> 01:23:44,819 other than the fact this 908 01:23:44,819 --> 01:23:45,353 guy doesn't understand. 909 01:23:45,887 --> 01:23:46,087 Yeah. 910 01:23:46,654 --> 01:23:47,355 But he knew that, 911 01:23:47,355 --> 01:23:47,689 because this has been 912 01:23:47,689 --> 01:23:48,690 working with the guy for two years. 913 01:23:49,124 --> 01:23:50,291 That's awesome to get to this point. 914 01:23:50,291 --> 01:23:50,558 Exactly. 915 01:23:51,659 --> 01:23:52,727 Did it happen recently enough 916 01:23:52,727 --> 01:23:53,862 that he's able to get the bonus 917 01:23:53,862 --> 01:23:54,662 depreciation for the-- 918 01:23:54,662 --> 01:23:55,930 It actually happened late enough. 919 01:23:56,598 --> 01:23:57,332 He was supposed to 920 01:23:57,332 --> 01:23:58,666 close before the deadline. 921 01:23:58,767 --> 01:23:59,234 Okay. 922 01:23:59,601 --> 01:24:00,468 Because he was unresponsive, 923 01:24:01,069 --> 01:24:02,604 he saved himself a lot of money in tax. 924 01:24:02,871 --> 01:24:03,405 There you go. 925 01:24:03,405 --> 01:24:03,872 Oh, yeah. 926 01:24:03,872 --> 01:24:04,372 Isn't that crazy? 927 01:24:04,706 --> 01:24:05,273 He was supposed to 928 01:24:05,273 --> 01:24:06,574 close on like January 4th, 929 01:24:06,574 --> 01:24:07,509 and then he didn't close like-- 930 01:24:07,509 --> 01:24:09,077 Maybe he had it all planned out, man. 931 01:24:09,077 --> 01:24:09,811 He was planning on each 932 01:24:09,811 --> 01:24:10,545 test with the whole thing. 933 01:24:11,613 --> 01:24:12,347 He's playing chess when 934 01:24:12,347 --> 01:24:13,281 we're playing checkers, so. 935 01:24:13,481 --> 01:24:13,681 Yeah. 936 01:24:15,083 --> 01:24:16,017 Before we go, Preston, 937 01:24:16,017 --> 01:24:16,818 is there anything else 938 01:24:16,885 --> 01:24:18,386 that you can think of that 939 01:24:18,386 --> 01:24:19,487 other people might need to know? 940 01:24:19,487 --> 01:24:21,356 I do want to plug the VIP 941 01:24:21,356 --> 01:24:23,558 seat with you and Jesse Nayer. 942 01:24:24,259 --> 01:24:25,593 And I also want to plug, 943 01:24:25,593 --> 01:24:27,529 you know, your newsletter, 944 01:24:27,929 --> 01:24:29,664 the Private Jet Insider, which is not 945 01:24:29,664 --> 01:24:30,865 only on your website, 946 01:24:31,099 --> 01:24:33,301 but is also published on LinkedIn, right? 947 01:24:33,501 --> 01:24:33,701 Yep. 948 01:24:33,868 --> 01:24:34,903 Anything else before we 949 01:24:34,903 --> 01:24:36,671 take off that we need to be, 950 01:24:37,238 --> 01:24:39,107 that a private jet, 951 01:24:39,407 --> 01:24:41,109 potential private jet owner, 952 01:24:41,409 --> 01:24:42,544 needs to be thinking about 953 01:24:42,544 --> 01:24:43,445 that you want to leave us with? 954 01:24:43,845 --> 01:24:45,713 Yeah, I think, look, you 955 01:24:45,713 --> 01:24:48,416 cannot cash flow positive a jet. 956 01:24:48,850 --> 01:24:49,717 I don't care how many 957 01:24:49,717 --> 01:24:50,685 times you see it on TikTok. 958 01:24:51,086 --> 01:24:52,320 I don't care how many people, 959 01:24:52,554 --> 01:24:53,721 how many times you listen to 960 01:24:53,721 --> 01:24:55,890 whoever is going to tell you 961 01:24:55,890 --> 01:24:57,592 that you can cash flow positive a jet. 962 01:24:57,625 --> 01:25:00,795 It's almost a platform that I have, 963 01:25:00,795 --> 01:25:02,063 is like, it's just not going to happen. 964 01:25:05,033 --> 01:25:06,768 When you're thinking about 965 01:25:06,768 --> 01:25:08,937 buying and owning an aircraft, 966 01:25:09,204 --> 01:25:10,939 they're assembling the 967 01:25:10,939 --> 01:25:11,973 right transaction team. 968 01:25:11,973 --> 01:25:12,507 We talked about this 969 01:25:12,507 --> 01:25:14,075 earlier, but I want to just, 970 01:25:14,075 --> 01:25:15,109 I want to double-quick. 971 01:25:15,577 --> 01:25:16,578 I have watched so many 972 01:25:16,578 --> 01:25:18,446 people lose millions of dollars 973 01:25:18,780 --> 01:25:19,948 because they had the wrong 974 01:25:19,948 --> 01:25:21,616 transaction team around them. 975 01:25:21,616 --> 01:25:22,484 And that's not even financing. 976 01:25:22,484 --> 01:25:25,253 If you're paying cash, real estate guys 977 01:25:25,253 --> 01:25:26,054 are really bad at this. 978 01:25:26,688 --> 01:25:27,388 Anybody who does like 979 01:25:27,388 --> 01:25:28,523 deal junkie type guys 980 01:25:28,523 --> 01:25:29,390 are really bad at this. 981 01:25:29,390 --> 01:25:29,924 They're like, oh yeah, I'm 982 01:25:29,924 --> 01:25:30,892 going to run my own transaction. 983 01:25:32,127 --> 01:25:32,694 Or I'm going to go 984 01:25:32,694 --> 01:25:33,528 get something off market 985 01:25:33,528 --> 01:25:34,996 because this guy told me I 986 01:25:34,996 --> 01:25:35,930 have something off market. 987 01:25:35,930 --> 01:25:36,865 Oh, and I'll have to pay a fee. 988 01:25:37,699 --> 01:25:39,367 Like those are all of the ways 989 01:25:39,367 --> 01:25:42,337 that you are really getting screwed over. 990 01:25:43,204 --> 01:25:44,639 So assemble the transaction 991 01:25:44,639 --> 01:25:46,107 team and assemble it early 992 01:25:46,508 --> 01:25:48,476 and check your references and know who 993 01:25:48,476 --> 01:25:49,377 you're working with. 994 01:25:49,844 --> 01:25:51,713 Because if not, you can get taken. 995 01:25:51,713 --> 01:25:52,981 And the thing is about this business, 996 01:25:52,981 --> 01:25:53,848 when you're talking about 997 01:25:53,848 --> 01:25:55,150 transaction sizes this large, 998 01:25:55,283 --> 01:25:56,584 it tends to bring out 999 01:25:56,584 --> 01:25:59,787 some very curious characters. 1000 01:25:59,854 --> 01:26:01,122 Yes, yeah, yeah, yeah. 1001 01:26:01,556 --> 01:26:03,725 Avoid those as much as you can. 1002 01:26:03,725 --> 01:26:04,759 The only way to do that is 1003 01:26:04,759 --> 01:26:06,227 to have a transaction team 1004 01:26:06,394 --> 01:26:07,729 that is all working for you 1005 01:26:07,729 --> 01:26:09,931 and not all the same people. 1006 01:26:09,931 --> 01:26:10,565 Because everybody's 1007 01:26:10,565 --> 01:26:11,566 holding each other accountable 1008 01:26:11,566 --> 01:26:13,034 and keeping each other in check. 1009 01:26:13,968 --> 01:26:14,836 Be sure to assemble a 1010 01:26:14,836 --> 01:26:15,670 good transaction team 1011 01:26:15,670 --> 01:26:17,372 that you can trust and it 1012 01:26:17,372 --> 01:26:18,773 will take you a long way 1013 01:26:19,474 --> 01:26:20,275 in all of your transactions. 1014 01:26:20,508 --> 01:26:21,576 That's like my big plug. 1015 01:26:21,609 --> 01:26:24,646 And I'm a huge fan of high 1016 01:26:24,646 --> 01:26:26,347 quality transaction brokers 1017 01:26:26,848 --> 01:26:27,849 that know what they're talking about 1018 01:26:27,849 --> 01:26:29,317 who have years and years 1019 01:26:29,317 --> 01:26:29,918 and years of experience. 1020 01:26:30,351 --> 01:26:32,053 There is a movement towards, 1021 01:26:32,420 --> 01:26:33,388 you can sell jets with 1022 01:26:33,388 --> 01:26:34,455 no experience necessary. 1023 01:26:34,489 --> 01:26:35,456 There is, yeah, yeah. 1024 01:26:35,890 --> 01:26:37,091 There is a lot of experience 1025 01:26:37,091 --> 01:26:38,626 necessary to sell airplanes. 1026 01:26:39,194 --> 01:26:39,727 So that's my-- 1027 01:26:39,727 --> 01:26:40,762 Especially when a lot 1028 01:26:40,762 --> 01:26:41,829 of commas are involved. 1029 01:26:41,829 --> 01:26:43,331 Yeah, exactly, exactly. 1030 01:26:43,898 --> 01:26:44,532 When the commissions are 1031 01:26:44,532 --> 01:26:46,167 big and someone can sell 1032 01:26:46,167 --> 01:26:47,602 one airplane and go sit in their basement 1033 01:26:47,835 --> 01:26:48,436 for the rest of the year, 1034 01:26:49,304 --> 01:26:51,239 it just go with known 1035 01:26:51,239 --> 01:26:53,007 entities, go with known commodities. 1036 01:26:53,541 --> 01:26:55,276 That's my rant, I guess. 1037 01:26:55,276 --> 01:26:56,344 I'll get off my soapbox now. 1038 01:26:56,945 --> 01:26:57,912 That's good, that's great. 1039 01:26:57,912 --> 01:26:58,112 Awesome. 1040 01:26:58,546 --> 01:26:58,913 It's a pleasure. 1041 01:26:59,514 --> 01:27:00,815 Dude, thank you so much for being here. 1042 01:27:00,848 --> 01:27:01,449 This is fun. 1043 01:27:01,449 --> 01:27:02,050 Thanks for having me. 1044 01:27:02,650 --> 01:27:03,818 Thank you for watching Own the Jet. 1045 01:27:04,219 --> 01:27:05,386 If you wanna see more Own the Jet, 1046 01:27:05,653 --> 01:27:06,454 make sure to subscribe 1047 01:27:06,454 --> 01:27:07,455 to our channel on YouTube 1048 01:27:07,689 --> 01:27:08,923 and leave a comment telling us what 1049 01:27:08,923 --> 01:27:10,091 aspect of jet ownership 1050 01:27:10,258 --> 01:27:11,326 you'd like to know more about. 1051 01:27:11,960 --> 01:27:12,827 Own the Jet is brought to 1052 01:27:12,827 --> 01:27:13,895 you by Aspen Aero Group, 1053 01:27:14,229 --> 01:27:15,830 your trusted partner in private and 1054 01:27:15,830 --> 01:27:16,831 corporate jet ownership. 1055 01:27:17,398 --> 01:27:19,467 Learn more at aspenaerogroup.com. 1056 01:27:19,834 --> 01:27:21,469 This has been a Savage Media production.