1 01:00:03,766 --> 01:00:06,803 When you're pre-qualified and you're 2 01:00:06,803 --> 01:00:08,671 negotiating on an aircraft, 3 01:00:09,272 --> 01:00:10,373 your position is f*** 4 01:00:10,373 --> 01:00:11,574 you on pre-qualified. 5 01:00:11,874 --> 01:00:12,108 That's it. 6 01:00:12,108 --> 01:00:14,310 I want this, I want this, I want this. 7 01:00:14,610 --> 01:00:15,778 And if you don't give it to 8 01:00:15,778 --> 01:00:17,914 me, I'll get it from over there. 9 01:00:19,415 --> 01:00:20,249 Welcome to Own the 10 01:00:20,249 --> 01:00:21,651 Jet by Aspen Aero Group, 11 01:00:21,985 --> 01:00:23,486 where we share perspectives from some of 12 01:00:23,486 --> 01:00:24,587 the leading voices in 13 01:00:24,587 --> 01:00:25,755 private jet ownership and 14 01:00:25,755 --> 01:00:28,191 business aviation. I'm your host, Derek 15 01:00:28,191 --> 01:00:29,425 Savage, along with my 16 01:00:29,425 --> 01:00:30,693 co-host, Jason Spoor, 17 01:00:30,793 --> 01:00:33,429 president of Aspen Aero Group. Our guest 18 01:00:33,429 --> 01:00:34,130 today is Wendy 19 01:00:34,130 --> 01:00:35,832 Stewart-Ormond from Aircraft Finance 20 01:00:35,832 --> 01:00:38,434 Corporation. Wendy is an expert in 21 01:00:38,434 --> 01:00:40,069 aviation finance and has 22 01:00:40,069 --> 01:00:41,371 helped countless buyers make 23 01:00:41,371 --> 01:00:43,172 smart, strategic decisions when it comes 24 01:00:43,172 --> 01:00:44,374 to their aircraft purchases. 25 01:00:45,108 --> 01:00:46,943 Join us as we dive deep into the 26 01:00:46,943 --> 01:00:49,078 mechanics, mindset, and moments that 27 01:00:49,078 --> 01:00:50,513 define jet ownership. 28 01:00:51,147 --> 01:00:52,515 And together, we'll learn 29 01:00:52,515 --> 01:00:54,517 what it takes to own the jet. 30 01:00:55,451 --> 01:00:56,352 Wendy Stewart-Ormond, 31 01:00:56,352 --> 01:00:57,086 thank you for joining us. 32 01:00:57,086 --> 01:00:58,655 Thank you for having me. It's a 33 01:00:58,655 --> 01:01:00,056 privilege. Thank you. 34 01:01:00,223 --> 01:01:01,491 Being our very first show, let me give a 35 01:01:01,491 --> 01:01:01,858 little bit of a 36 01:01:01,858 --> 01:01:03,192 synopsis on what the show is. 37 01:01:03,393 --> 01:01:05,395 So we're trying to bring things from the 38 01:01:05,395 --> 01:01:07,130 perspective of anybody that's interested 39 01:01:07,597 --> 01:01:09,866 in owning a jet either for the first time 40 01:01:09,866 --> 01:01:11,167 or maybe they already own a jet. 41 01:01:11,901 --> 01:01:14,137 And they're trying to learn more about 42 01:01:14,137 --> 01:01:16,105 the ins and outs of private aviation. 43 01:01:16,105 --> 01:01:17,974 So they're more well-informed and they 44 01:01:17,974 --> 01:01:19,342 know the right people, right? 45 01:01:20,576 --> 01:01:23,046 So can we start off by talking a little 46 01:01:23,046 --> 01:01:25,815 bit about your company, what you guys do, 47 01:01:26,549 --> 01:01:28,317 and why it pays to 48 01:01:28,317 --> 01:01:30,353 know someone like Wendy? 49 01:01:31,054 --> 01:01:31,854 Wendy Stewart-Ormond, Aircraft Finance 50 01:01:31,854 --> 01:01:35,658 Corporation is a 30-year-old company. 51 01:01:36,526 --> 01:01:40,063 We're always been family owned. If 52 01:01:40,063 --> 01:01:44,333 somebody wants to purchase an aircraft, 53 01:01:45,735 --> 01:01:47,303 chances are they may need 54 01:01:47,303 --> 01:01:50,339 financing, even if they think they don't 55 01:01:50,339 --> 01:01:52,075 need financing, they 56 01:01:52,075 --> 01:01:53,276 should still talk to us. 57 01:01:54,243 --> 01:01:59,849 We offer a concierge level service where 58 01:01:59,849 --> 01:02:02,485 we hold their hand from 59 01:02:02,485 --> 01:02:06,956 underwriting to clothes and beyond. 60 01:02:07,557 --> 01:02:11,127 Our clients are lifelong clients. We 61 01:02:11,127 --> 01:02:14,163 don't do one-offs. And I 62 01:02:14,163 --> 01:02:15,231 know their kids' names. 63 01:02:15,765 --> 01:02:19,535 I know their dogs. They know my dogs, my 64 01:02:19,535 --> 01:02:23,139 kids. We become family. 65 01:02:24,273 --> 01:02:26,709 But isn't that what private aviation is? 66 01:02:27,176 --> 01:02:32,548 It's very niche and it's a family. 67 01:02:33,249 --> 01:02:34,050 Jeff Sarris Yeah. So if 68 01:02:34,050 --> 01:02:36,319 I'm just picturing myself, 69 01:02:36,319 --> 01:02:38,387 if I'm some rich person that wants to buy 70 01:02:38,387 --> 01:02:39,555 a jet, like I've got a 71 01:02:39,555 --> 01:02:41,090 whole lot of money and I want to 72 01:02:41,124 --> 01:02:43,993 buy a jet, why would I need financing for 73 01:02:43,993 --> 01:02:46,596 it? Because I'm assuming 74 01:02:46,596 --> 01:02:48,264 I'm going into this with, 75 01:02:49,432 --> 01:02:53,102 "I've got FU money. Let's do this." Why 76 01:02:53,102 --> 01:02:54,003 do I need financing? 77 01:02:54,203 --> 01:02:54,470 Wendy Stewart-Ormond, Aircraft Finance Corporation is a very niche and it's a family-owned company. 78 01:02:54,470 --> 01:02:58,341 Well, even people with FU money should 79 01:02:58,341 --> 01:03:01,043 consider the fact that we 80 01:03:01,043 --> 01:03:03,112 can get very favorable rates 81 01:03:04,113 --> 01:03:07,984 and terms. They can take their cash, 82 01:03:08,651 --> 01:03:09,685 reinvest it in their 83 01:03:09,685 --> 01:03:12,155 business, put it in the stock market, 84 01:03:12,522 --> 01:03:15,491 just hold on to it. We don't just finance 85 01:03:15,491 --> 01:03:18,461 the Uber wealthy. We have 86 01:03:18,461 --> 01:03:20,663 friends that come together, 87 01:03:20,930 --> 01:03:23,666 two, three gentlemen, and they go 88 01:03:23,666 --> 01:03:25,468 together and purchase 89 01:03:25,468 --> 01:03:26,802 and finance an aircraft. 90 01:03:27,837 --> 01:03:31,073 So I'll do anything over a million 91 01:03:31,073 --> 01:03:33,910 dollars and the sky's the limit. 92 01:03:34,410 --> 01:03:35,511 Jeff Sarris Nice. So 93 01:03:35,511 --> 01:03:36,412 it's like a party bus, 94 01:03:36,412 --> 01:03:40,183 if you're going in with friends. For our 95 01:03:40,183 --> 01:03:42,618 viewers here, Jason, you're 96 01:03:42,618 --> 01:03:44,620 the president and owner of 97 01:03:44,620 --> 01:03:47,290 Aspen Air Group brokerage and management 98 01:03:47,290 --> 01:03:50,359 firm for private aviation, jets 99 01:03:50,359 --> 01:03:52,929 specifically. How did you 100 01:03:52,962 --> 01:03:54,864 and Wendy know one another? Jason 101 01:03:54,864 --> 01:03:58,935 So we met several years ago working one 102 01:03:58,935 --> 01:04:01,270 of my past jobs. We had 103 01:04:01,270 --> 01:04:02,371 one of our executives looking 104 01:04:02,371 --> 01:04:05,107 to buy an airplane and we contacted 105 01:04:05,107 --> 01:04:07,410 Wendy's company and made 106 01:04:07,410 --> 01:04:09,612 the connection. So I got him 107 01:04:09,612 --> 01:04:12,215 financed and on his way to an airplane 108 01:04:12,215 --> 01:04:13,649 and been friends ever since. 109 01:04:14,050 --> 01:04:15,985 Jeff Sarris You told us a 110 01:04:15,985 --> 01:04:17,787 story when we were meeting 111 01:04:17,787 --> 01:04:18,588 earlier. Jason I told 112 01:04:18,588 --> 01:04:19,021 you several stories. 113 01:04:19,055 --> 01:04:21,023 Jason You told us several stories, but 114 01:04:21,023 --> 01:04:22,124 you told us an interesting 115 01:04:22,124 --> 01:04:26,662 story about some things that 116 01:04:26,662 --> 01:04:29,432 happened related to some people you had 117 01:04:29,432 --> 01:04:30,533 to bail out. I don't 118 01:04:30,533 --> 01:04:31,367 want to give too much away. 119 01:04:31,634 --> 01:04:35,238 Wendy We do finance some very colorful 120 01:04:35,238 --> 01:04:38,808 people. This was a very high profile 121 01:04:39,508 --> 01:04:45,615 musical entertainment person. We got the 122 01:04:45,615 --> 01:04:47,717 financing done in place. 123 01:04:48,384 --> 01:04:50,286 We closed this beautiful 124 01:04:50,486 --> 01:04:53,656 Gulfstream aircraft. Yay, it's always a 125 01:04:53,656 --> 01:04:55,791 happy day. And their very 126 01:04:55,791 --> 01:04:59,929 first trip, I get a phone call at 127 01:05:00,029 --> 01:05:04,133 5am. I'm on the East Coast and I wake up, 128 01:05:04,133 --> 01:05:05,334 "Hello, it's never good 129 01:05:05,334 --> 01:05:07,103 when your phone rings at 5am." 130 01:05:07,837 --> 01:05:12,241 And it is the client saying, "Our pilots 131 01:05:12,241 --> 01:05:14,577 just quit. We're in Miami." 132 01:05:16,045 --> 01:05:19,148 And I'm like, "Hang on. Hold on." I turn 133 01:05:19,148 --> 01:05:20,416 on the light. "Can you 134 01:05:20,416 --> 01:05:22,585 reiterate what you're saying?" 135 01:05:22,585 --> 01:05:23,753 Jeff Sarris Their pilots quit. They 136 01:05:23,753 --> 01:05:26,756 didn't just like, "Take a break." 137 01:05:26,756 --> 01:05:28,391 Wendy No, we landed in Miami. 138 01:05:28,858 --> 01:05:29,392 Jeff Sarris They quit. Walked away. 139 01:05:29,392 --> 01:05:31,594 Wendy They took their bags and they left. 140 01:05:31,994 --> 01:05:33,930 I said, "Why did this 141 01:05:33,930 --> 01:05:36,465 happen?" He said, "I don't know." 142 01:05:36,832 --> 01:05:39,969 I said, "Okay, let me call you back. 143 01:05:39,969 --> 01:05:41,570 Let's make some phone calls 144 01:05:41,570 --> 01:05:43,606 here." So we call the pilots. 145 01:05:44,340 --> 01:05:48,210 I'm like, "Hello, what's going on?" I 146 01:05:48,210 --> 01:05:52,848 said, "I am not losing my pilot's license 147 01:05:52,848 --> 01:05:55,618 for drugs and hookers 148 01:05:55,618 --> 01:05:59,155 for the sake of this aircraft." And I 149 01:05:59,155 --> 01:06:01,724 said, "I understand. Thank you so much." 150 01:06:01,724 --> 01:06:01,991 Jeff Sarris That's just 151 01:06:01,991 --> 01:06:04,360 multiple hookers, multiple drugs. 152 01:06:04,427 --> 01:06:05,895 Wendy There was a lot 153 01:06:05,895 --> 01:06:07,196 going on in the back of this 154 01:06:07,196 --> 01:06:08,831 aircraft. It's a rock and 155 01:06:08,831 --> 01:06:10,166 roll lifestyle. Jeff Sarris 156 01:06:10,166 --> 01:06:12,568 When you own the jet, you live how you 157 01:06:12,568 --> 01:06:14,670 want. Wendy Exactly. So I 158 01:06:14,670 --> 01:06:16,972 said, "I understand. Thank 159 01:06:16,972 --> 01:06:20,643 you so much." Click. I call a friend down 160 01:06:20,643 --> 01:06:22,511 the west coast. Wake them 161 01:06:22,511 --> 01:06:24,513 up. And it's very early there. 162 01:06:25,114 --> 01:06:27,516 Thank God you took the call. You know who 163 01:06:27,516 --> 01:06:30,286 you are. I said, "I need 164 01:06:30,286 --> 01:06:32,088 two Gulfstream pilots in Miami 165 01:06:32,355 --> 01:06:35,925 and two hours. Max four, please." Jeff 166 01:06:35,925 --> 01:06:37,526 Sarris Now they had to be like specific 167 01:06:38,494 --> 01:06:39,862 stream pilots. Because you mentioned 168 01:06:39,862 --> 01:06:42,732 that. Wendy You have to be type rated on 169 01:06:42,732 --> 01:06:44,734 a specific aircraft. 170 01:06:44,734 --> 01:06:46,936 Jeff Sarris So you can't just like, "Hey, 171 01:06:47,603 --> 01:06:50,673 Southwest Airlines, you speak to that." 172 01:06:50,940 --> 01:06:52,675 Jeff Sarris Yeah, no. Very 173 01:06:52,675 --> 01:06:54,276 specific for that airplane. 174 01:06:54,276 --> 01:06:55,611 Jeff Sarris You've got to have that 175 01:06:55,611 --> 01:06:56,612 license, that 176 01:06:56,612 --> 01:06:58,848 certification, training, all that. Okay. 177 01:06:59,515 --> 01:07:00,483 So you had not only 178 01:07:00,483 --> 01:07:01,550 was it Find Me pilots. 179 01:07:02,618 --> 01:07:07,256 Wendy To pick this aircraft. And so four 180 01:07:07,256 --> 01:07:10,159 hours later, they took off 181 01:07:10,159 --> 01:07:14,196 in Miami. Because after 30 182 01:07:14,230 --> 01:07:19,268 years, we know who to call. And we don't 183 01:07:19,268 --> 01:07:20,369 leave our people just 184 01:07:20,369 --> 01:07:21,704 hanging out there in the wind. 185 01:07:21,704 --> 01:07:22,471 Jeff Sarris It's who you know, right? 186 01:07:23,005 --> 01:07:24,140 Wendy Yes, because they 187 01:07:24,140 --> 01:07:27,410 will finance another aircraft, 188 01:07:27,843 --> 01:07:30,813 or five, or six. This is a lifelong 189 01:07:30,813 --> 01:07:34,216 relationship. And I don't judge, you 190 01:07:34,216 --> 01:07:34,950 know, I don't care what 191 01:07:34,950 --> 01:07:37,286 he was doing on his aircraft. I just want 192 01:07:37,286 --> 01:07:38,788 him happy. I want him to 193 01:07:38,788 --> 01:07:40,723 come back and finance another 194 01:07:40,723 --> 01:07:43,426 aircraft in the future. Jeff Sarris How 195 01:07:43,426 --> 01:07:44,126 long do people usually 196 01:07:44,126 --> 01:07:46,228 keep their, I mean, do people 197 01:07:46,796 --> 01:07:50,433 get their planes repoed? Like if you find 198 01:07:50,433 --> 01:07:53,202 somebody that like, you 199 01:07:53,202 --> 01:07:54,203 know, it's their first jet, 200 01:07:54,270 --> 01:07:55,237 they're not used to the 201 01:07:55,237 --> 01:07:57,106 expense of it, whatever, right? 202 01:07:57,106 --> 01:08:00,576 Wendy Well, we qualify them, not just on 203 01:08:00,576 --> 01:08:02,678 the payments, but on the 204 01:08:02,678 --> 01:08:04,013 maintenance, the hangers, 205 01:08:04,747 --> 01:08:07,416 the pilots, the fuels, unexpected, 206 01:08:08,384 --> 01:08:10,486 whatever. So hopefully, 207 01:08:10,486 --> 01:08:12,054 they're never in a position 208 01:08:12,888 --> 01:08:15,825 where they have to make a choice over not 209 01:08:15,825 --> 01:08:18,094 making their jet loan 210 01:08:18,094 --> 01:08:20,529 payment. But we've never had that 211 01:08:20,563 --> 01:08:25,935 happen. Look, a jet owner loves as a mad 212 01:08:25,935 --> 01:08:27,803 crazy love for his 213 01:08:27,803 --> 01:08:31,674 aircraft. He will sell his wife, 214 01:08:31,907 --> 01:08:37,780 his kids, his dogs, his house before he 215 01:08:37,780 --> 01:08:39,849 misses a jet loan payment. 216 01:08:40,549 --> 01:08:41,784 Jeff Sarris Right. Because you can always 217 01:08:41,784 --> 01:08:43,018 get another dog. You can 218 01:08:43,018 --> 01:08:44,887 always, if you got the jet, 219 01:08:45,154 --> 01:08:47,256 you can get a wife. Wendy Or three. 220 01:08:48,057 --> 01:08:49,758 Jeff Sarris Right. Okay. But they don't 221 01:08:49,758 --> 01:08:52,061 walk away from their aircraft. We have 222 01:08:52,061 --> 01:08:54,763 never had that happen. 223 01:08:54,997 --> 01:08:55,431 Jeff Sarris I guess it's a 224 01:08:55,431 --> 01:08:56,765 life, right? Like you get this 225 01:08:56,799 --> 01:08:59,168 lifestyle room. Wendy And you can't go 226 01:08:59,168 --> 01:09:01,170 backwards from that. Like 227 01:09:01,170 --> 01:09:02,872 you're flying around in your golf 228 01:09:02,872 --> 01:09:04,640 stream and all of a sudden you're like, 229 01:09:04,640 --> 01:09:07,276 Oh, this isn't for me. I'm 230 01:09:07,276 --> 01:09:09,411 gonna go back and fly united. 231 01:09:09,778 --> 01:09:09,979 Jeff Sarris United. 232 01:09:10,546 --> 01:09:12,148 Wendy United. Said no one ever. 233 01:09:12,648 --> 01:09:12,781 Jeff Sarris Right. 234 01:09:12,815 --> 01:09:16,852 Wendy Or they just started going downhill 235 01:09:16,852 --> 01:09:19,955 commercially when golf had started. 236 01:09:20,155 --> 01:09:21,090 Jeff Sarris I would say 237 01:09:21,090 --> 01:09:22,491 post 9 11 it went downhill 238 01:09:22,491 --> 01:09:23,692 because all the TSA stuff. 239 01:09:24,560 --> 01:09:26,529 Wendy Or that was the first 240 01:09:27,530 --> 01:09:30,466 in commercial aviation, but it didn't get 241 01:09:30,466 --> 01:09:32,701 really awful until golf 242 01:09:32,701 --> 01:09:35,471 head. And we actually in 2021 243 01:09:36,572 --> 01:09:42,211 had our biggest here in 2021 and 30 244 01:09:42,211 --> 01:09:46,248 years. Everybody bought 245 01:09:46,248 --> 01:09:48,584 a private jet in 2021. 246 01:09:49,018 --> 01:09:49,485 Jeff Sarris Now, a lot of 247 01:09:49,485 --> 01:09:51,387 that, there was some depreciation, 248 01:09:52,788 --> 01:09:54,690 like tax benefits, right? Wendy Or we 249 01:09:54,690 --> 01:10:01,130 used to have 100% bonus tax depreciation. 250 01:10:01,630 --> 01:10:02,531 Jeff Sarris So what that 251 01:10:02,531 --> 01:10:03,966 means if I have this right, 252 01:10:04,099 --> 01:10:07,469 and I think I do because we were talking 253 01:10:07,469 --> 01:10:08,337 a little bit about 254 01:10:08,337 --> 01:10:11,874 this yesterday. That means 255 01:10:12,074 --> 01:10:14,543 that if you purchase a $10 million jet, 256 01:10:15,110 --> 01:10:16,812 you can depreciate all of 257 01:10:16,812 --> 01:10:18,213 that year one. Is that the idea? 258 01:10:18,881 --> 01:10:21,650 Wendy Or there is a schedule. Yeah, but 259 01:10:21,650 --> 01:10:24,553 it used to be 100%. So if 260 01:10:24,553 --> 01:10:25,955 you have a tax liability, 261 01:10:26,655 --> 01:10:30,593 you can purchase a private aircraft and 262 01:10:30,593 --> 01:10:32,194 take the depreciation 263 01:10:32,194 --> 01:10:34,196 right off your tax bill. 264 01:10:34,563 --> 01:10:37,666 It's a very large incentive, but they're 265 01:10:37,666 --> 01:10:40,536 bringing back a bill that 266 01:10:40,536 --> 01:10:42,471 just passed the house that 267 01:10:42,471 --> 01:10:46,976 includes 100% bonus depreciation. And I 268 01:10:46,976 --> 01:10:48,410 actually just had a phone 269 01:10:48,410 --> 01:10:50,813 call last week when it passed 270 01:10:51,113 --> 01:10:55,551 the house that a client of mine who I've 271 01:10:55,551 --> 01:10:57,886 had for five years is 272 01:10:57,886 --> 01:10:59,855 looking at a new aircraft. He was 273 01:10:59,855 --> 01:11:03,425 looking at a $4 million aircraft. He 274 01:11:03,425 --> 01:11:04,393 called me up. He said, 275 01:11:04,393 --> 01:11:07,029 "Wendy, I think I'm going to step 276 01:11:07,529 --> 01:11:10,966 up to an $8 million purchase to offset my 277 01:11:10,966 --> 01:11:13,936 tax liability." And I said, 278 01:11:13,936 --> 01:11:15,270 "Okay, let's get this done. 279 01:11:15,838 --> 01:11:20,075 Let's get you pre-qualified, sir, because 280 01:11:20,075 --> 01:11:25,514 the best position always when purchasing 281 01:11:26,148 --> 01:11:29,451 an aircraft is from a f*** you position." 282 01:11:29,451 --> 01:11:33,922 And by that I mean when you're 283 01:11:33,922 --> 01:11:36,492 pre-qualified and you're 284 01:11:36,492 --> 01:11:39,428 negotiating on an aircraft, your position 285 01:11:39,428 --> 01:11:40,429 is f*** you on 286 01:11:40,429 --> 01:11:43,098 pre-qualified. I want this, I want this, 287 01:11:43,132 --> 01:11:45,467 I want this. And if you don't give it to 288 01:11:45,467 --> 01:11:48,804 me, I'll get it from over there. So 289 01:11:48,804 --> 01:11:51,607 always buy a jet from 290 01:11:51,607 --> 01:11:54,677 a position of I'm pre-qualified. So let's 291 01:11:54,677 --> 01:11:56,111 get you pre-qualified. And 292 01:11:56,111 --> 01:11:57,246 that is why you want to know, 293 01:11:57,513 --> 01:12:03,285 Wendy. Right. So right now, just talking 294 01:12:03,285 --> 01:12:04,586 about the depreciation thing, 295 01:12:04,586 --> 01:12:05,788 if I were to buy a jet today, 296 01:12:06,055 --> 01:12:07,623 right, and this is before this bill 297 01:12:07,623 --> 01:12:08,590 passes and we're taping 298 01:12:08,590 --> 01:12:09,491 this prior to airing it, 299 01:12:09,525 --> 01:12:11,694 so by the time this airs, this is likely 300 01:12:11,694 --> 01:12:12,428 that the bill will 301 01:12:12,428 --> 01:12:15,064 already pass. But today, 302 01:12:15,397 --> 01:12:18,400 prior to that happening, what's that look 303 01:12:18,400 --> 01:12:19,668 like? What's keeping those 304 01:12:19,668 --> 01:12:20,703 floodgates from coming open 305 01:12:20,703 --> 01:12:22,271 as far as people making that purchase? 306 01:12:22,504 --> 01:12:26,041 Right now, it's at 60% depreciation. 307 01:12:27,309 --> 01:12:29,478 But think about that being able to bump 308 01:12:29,478 --> 01:12:32,114 up to 100%. If you have a 309 01:12:32,114 --> 01:12:35,084 $10 million tax liability, 310 01:12:35,851 --> 01:12:40,089 the difference between 60% and 40% is 311 01:12:40,089 --> 01:12:42,057 significant. What is that? $4 million? 312 01:12:42,925 --> 01:12:44,460 I'm doing quick blonde 313 01:12:44,493 --> 01:12:47,863 math. You're better at it than I am. It's 314 01:12:47,863 --> 01:12:51,066 significant. So I 315 01:12:51,066 --> 01:12:52,634 think people are watching 316 01:12:52,634 --> 01:12:54,770 and waiting. We have a new 317 01:12:54,770 --> 01:12:57,906 administration. You know, politics play a 318 01:12:57,906 --> 01:13:01,176 huge part in private 319 01:13:01,310 --> 01:13:04,413 aviation. So I think we're headed in the 320 01:13:04,413 --> 01:13:06,348 right direction. I do 321 01:13:06,348 --> 01:13:08,016 want to find out from you if 322 01:13:08,016 --> 01:13:09,885 there's like a thing that people need to 323 01:13:09,885 --> 01:13:11,386 know prior to getting into this 324 01:13:11,386 --> 01:13:13,322 conversation. If there's one 325 01:13:13,355 --> 01:13:16,592 thing, now you had mentioned cash being 326 01:13:16,592 --> 01:13:19,294 an obstacle sometimes, right? Like cash 327 01:13:19,294 --> 01:13:20,062 is the biggest enemy 328 01:13:20,095 --> 01:13:23,665 sometimes. Cash is my biggest competitor. 329 01:13:23,899 --> 01:13:24,767 Your biggest competitor, 330 01:13:24,767 --> 01:13:26,068 right. Right. Why is that? 331 01:13:26,101 --> 01:13:28,604 Because if I've got $10 million in the 332 01:13:28,604 --> 01:13:30,239 bank and I want to buy a jet, why 333 01:13:30,239 --> 01:13:31,273 wouldn't you want to keep 334 01:13:31,373 --> 01:13:35,277 that? Throw it into Bitcoin. Or whatever 335 01:13:35,277 --> 01:13:38,313 it is. Just hold on to it. 336 01:13:38,847 --> 01:13:42,017 But I also, I've talked to a 337 01:13:42,017 --> 01:13:45,554 lot of clients who I think it's an ego 338 01:13:45,554 --> 01:13:49,124 thing. Yeah. I paid cash for my jet, but 339 01:13:49,124 --> 01:13:49,992 that doesn't make it a 340 01:13:49,992 --> 01:13:53,128 smart purchase. Right. Even if you 341 01:13:53,128 --> 01:13:55,230 already own your jet for 342 01:13:55,230 --> 01:13:58,200 cash, let's refi you out of it. 343 01:13:58,567 --> 01:14:02,070 Let me give you cash back. I can get you 344 01:14:02,070 --> 01:14:04,206 cheap money. Just take your 345 01:14:04,206 --> 01:14:06,108 cash back. Nice. Use it in 346 01:14:06,108 --> 01:14:09,011 your business. Invest it. Hold on to it. 347 01:14:09,545 --> 01:14:12,014 Nice. We do that a lot. So if somebody 348 01:14:12,014 --> 01:14:12,748 wants to get in touch 349 01:14:12,748 --> 01:14:17,085 with you about like, hey, maybe I've got, 350 01:14:17,085 --> 01:14:18,287 what's the minimum I 351 01:14:18,287 --> 01:14:19,655 need to have as far as like, 352 01:14:19,688 --> 01:14:21,190 before I reach out to you, just so I 353 01:14:21,190 --> 01:14:22,691 don't have a bunch of like, well, it 354 01:14:22,691 --> 01:14:24,092 depends on what you're 355 01:14:24,092 --> 01:14:26,695 purchasing. Let's say I'm purchasing a 356 01:14:26,695 --> 01:14:29,465 jet, uh, that is at least, I don't know, 357 01:14:29,731 --> 01:14:30,332 what, $2, $3 million. 358 01:14:30,332 --> 01:14:32,067 $2, $3 million. What do I need to have in 359 01:14:32,067 --> 01:14:32,935 the bank? What am I, what 360 01:14:32,935 --> 01:14:33,969 does my situation need to 361 01:14:33,969 --> 01:14:36,672 be before I reach out to you? So if 362 01:14:36,672 --> 01:14:38,974 you're coming to me for a loan, yeah, 363 01:14:40,242 --> 01:14:41,143 perhaps you don't really 364 01:14:41,310 --> 01:14:44,880 need it. Okay. Right. But you want it. 365 01:14:45,113 --> 01:14:48,083 Yeah. So if you want a $2 million loan, 366 01:14:48,383 --> 01:14:50,185 let's have one to two 367 01:14:50,319 --> 01:14:53,188 in the bank. Okay. You get to hold on to 368 01:14:53,188 --> 01:14:56,325 it. But it creates comfort. 369 01:14:56,325 --> 01:14:58,727 Okay. Knowing that you have this 370 01:14:58,727 --> 01:15:03,532 cash. Okay. Just in case things go south 371 01:15:03,532 --> 01:15:06,768 in your life. Yeah. That's 372 01:15:06,768 --> 01:15:08,203 a, that's a lower barrier to 373 01:15:08,270 --> 01:15:10,005 entry than I would have assumed. I would 374 01:15:10,005 --> 01:15:10,906 have assumed that you needed 375 01:15:10,906 --> 01:15:12,674 to be like 20, 30 at least. 376 01:15:12,674 --> 01:15:17,312 No. No. Well, if you're buying a $30 377 01:15:17,312 --> 01:15:19,948 million aircraft, right? 378 01:15:20,215 --> 01:15:21,316 Right. Yeah. We're just talking 379 01:15:21,316 --> 01:15:24,119 like a starter jet. Yeah. Yeah. Just my 380 01:15:24,119 --> 01:15:25,721 first jet. Right. That's what we're 381 01:15:25,721 --> 01:15:26,755 talking about. Yeah. Yeah. 382 01:15:27,222 --> 01:15:29,424 So, yeah, you can do that with one, $2 383 01:15:29,424 --> 01:15:30,993 million in the bank and finance whatever 384 01:15:30,993 --> 01:15:31,627 you need to finance. 385 01:15:31,793 --> 01:15:35,163 Well, you're going to put 30% down. Yeah. 386 01:15:35,631 --> 01:15:38,967 So after that, you need cash and 387 01:15:38,967 --> 01:15:40,469 reserves. We're going to 388 01:15:40,469 --> 01:15:43,272 look at your reserves. Okay. Gotcha. You 389 01:15:43,272 --> 01:15:45,107 know, whenever you guys work 390 01:15:45,107 --> 01:15:46,308 in this industry, one thing 391 01:15:46,308 --> 01:15:47,876 that I found, because I'm a newcomer to 392 01:15:47,876 --> 01:15:48,810 the industry, I don't 393 01:15:48,810 --> 01:15:52,114 know an FOB from a DOM to any 394 01:15:52,114 --> 01:15:53,448 of these other acronyms you guys throw 395 01:15:53,448 --> 01:15:55,350 around all the time. What are 396 01:15:55,350 --> 01:15:57,085 some cases where you guys have 397 01:15:57,152 --> 01:15:58,887 run into where you just had to educate 398 01:15:58,887 --> 01:16:01,356 the hell out of people? Is 399 01:16:01,356 --> 01:16:02,691 that something that you run 400 01:16:02,691 --> 01:16:04,660 into very often? Yeah. Quite often. What 401 01:16:04,660 --> 01:16:06,428 don't they know? So it 402 01:16:06,428 --> 01:16:07,763 depends where they're coming in 403 01:16:07,763 --> 01:16:09,498 from, right? If they're coming in from a 404 01:16:09,498 --> 01:16:11,466 previous aircraft owner to 405 01:16:11,466 --> 01:16:14,503 being a brand new owner, wanting 406 01:16:14,503 --> 01:16:17,372 to start operating a jet. Yeah. How much 407 01:16:17,372 --> 01:16:18,407 we have to backfill, how 408 01:16:18,407 --> 01:16:19,775 much we have to educate them on, 409 01:16:20,075 --> 01:16:21,677 hey, you got to buy the airplane, but not 410 01:16:21,677 --> 01:16:23,045 only that, but continuing 411 01:16:23,045 --> 01:16:25,047 the upkeep on the airplane, 412 01:16:25,614 --> 01:16:27,582 the hangar of the airplane. Now, now, you 413 01:16:27,582 --> 01:16:28,483 said something 414 01:16:28,483 --> 01:16:29,952 interesting last night when we were 415 01:16:29,952 --> 01:16:34,056 talking about the maintenance. Why? Okay. 416 01:16:34,189 --> 01:16:35,624 So obviously you have to 417 01:16:35,624 --> 01:16:36,725 maintain an aircraft. I 418 01:16:36,725 --> 01:16:39,094 get that. It's like, you know, I own a 419 01:16:39,094 --> 01:16:40,495 car. I have to get maintenance done on 420 01:16:40,495 --> 01:16:41,763 that. Aircraft's a little 421 01:16:41,763 --> 01:16:46,368 bit more intense, right? But why does 422 01:16:46,368 --> 01:16:48,370 that matter whenever you're looking to 423 01:16:48,370 --> 01:16:50,706 finance a jet? Well, 424 01:16:50,706 --> 01:16:54,776 the engine and APU maintenance programs 425 01:16:54,776 --> 01:16:59,748 protect the asset from catastrophic 426 01:16:59,748 --> 01:17:03,952 possible happenings. 427 01:17:03,952 --> 01:17:07,289 And it does happen and happen. The value 428 01:17:07,289 --> 01:17:09,191 of an aircraft is largely 429 01:17:09,191 --> 01:17:12,127 in the engines. Yeah. And we 430 01:17:12,260 --> 01:17:17,099 prefer to have them on programs that are 431 01:17:17,099 --> 01:17:21,303 purchased hourly by the 432 01:17:21,303 --> 01:17:23,639 owner. If they're not on programs, 433 01:17:24,106 --> 01:17:27,476 like why should that matter? Well, if you 434 01:17:27,476 --> 01:17:29,478 lose an engine, depending on the 435 01:17:29,478 --> 01:17:31,013 aircraft, you're reaching 436 01:17:31,046 --> 01:17:33,982 into that front pocket. Yeah. One 437 01:17:33,982 --> 01:17:36,151 million, two million, three million, 438 01:17:36,451 --> 01:17:38,553 right? And up. Yep. For 439 01:17:38,553 --> 01:17:41,957 that engine, that engine program is 440 01:17:41,957 --> 01:17:45,027 insurance that no matter what 441 01:17:45,027 --> 01:17:47,929 happens, it's taken care of. 442 01:17:48,530 --> 01:17:51,433 Gotcha. What about the, like, I don't 443 01:17:51,433 --> 01:17:54,436 know, like if your lenders see that 444 01:17:54,436 --> 01:17:55,570 something's not on a 445 01:17:55,570 --> 01:17:56,838 maintenance program, how does that affect 446 01:17:56,838 --> 01:17:58,907 the finance? So we 447 01:17:58,907 --> 01:18:02,310 prefer it, but we have done it 448 01:18:02,344 --> 01:18:05,947 without the programs, but that requires a 449 01:18:05,947 --> 01:18:08,517 significant cash 450 01:18:08,517 --> 01:18:12,954 deposit into an account to be 451 01:18:13,055 --> 01:18:16,591 held to ensure that if the engine fails, 452 01:18:17,459 --> 01:18:18,760 that it's going to. So it's 453 01:18:18,760 --> 01:18:19,528 like, if you're not going to 454 01:18:19,528 --> 01:18:21,196 maintain this, you're covering the risk. 455 01:18:21,430 --> 01:18:22,864 Right. We don't want someone 456 01:18:22,864 --> 01:18:25,534 just to walk away when an engine 457 01:18:26,068 --> 01:18:29,137 fails and just leave their airplane 458 01:18:29,137 --> 01:18:30,706 banded on a ramp somewhere. 459 01:18:31,006 --> 01:18:33,208 We don't want the airplane. 460 01:18:33,442 --> 01:18:35,077 We put the orange sticker on the window 461 01:18:35,077 --> 01:18:35,911 and you just wait for them 462 01:18:35,911 --> 01:18:36,878 to tell what it was and how 463 01:18:36,878 --> 01:18:37,813 that works. Something like that. We want 464 01:18:37,813 --> 01:18:38,880 everybody out there 465 01:18:38,880 --> 01:18:42,918 flying and happy and, you know, 466 01:18:42,918 --> 01:18:45,387 flying private. Yeah. What does it feel, 467 01:18:45,387 --> 01:18:46,188 I mean, like people come to 468 01:18:46,188 --> 01:18:47,622 you guys and they're, they're 469 01:18:47,622 --> 01:18:50,392 like, a lot of times they haven't owned a 470 01:18:50,392 --> 01:18:51,426 jet before, but like maybe 471 01:18:51,426 --> 01:18:52,728 they've ridden in a private 472 01:18:52,894 --> 01:18:54,396 jet from somebody, like they've had a 473 01:18:54,396 --> 01:18:55,864 taste of it. Or they're 474 01:18:55,864 --> 01:18:59,334 just so fed up with commercial 475 01:18:59,935 --> 01:19:02,704 air travel. Yeah. Like I flew in here 476 01:19:02,704 --> 01:19:06,708 yesterday. It was not enjoyable, but you 477 01:19:06,708 --> 01:19:07,509 know, even if you're 478 01:19:07,509 --> 01:19:09,211 sitting up front and we're in 479 01:19:09,211 --> 01:19:10,479 Indianapolis, we have a pretty decent 480 01:19:10,479 --> 01:19:12,647 airport. Yes. It's about, 481 01:19:13,115 --> 01:19:16,151 it's about, you know, getting through TSA 482 01:19:16,151 --> 01:19:20,222 and this trip search and all of your, 483 01:19:21,189 --> 01:19:23,625 everything being shoved into a dirty, 484 01:19:23,625 --> 01:19:26,328 nasty bin. And, you know, 485 01:19:26,728 --> 01:19:28,630 people are sick of it. And then 486 01:19:28,797 --> 01:19:31,032 flight delays, cancellations, 487 01:19:31,600 --> 01:19:34,336 misconnections, your luggage is lost. The 488 01:19:34,336 --> 01:19:35,504 beautiful thing about 489 01:19:35,504 --> 01:19:39,040 private aviation, you show up 15 minutes 490 01:19:39,040 --> 01:19:42,010 before your flight and you 491 01:19:42,010 --> 01:19:44,513 just get in and everyone's 492 01:19:44,579 --> 01:19:49,384 happy. And the pilots just are there and 493 01:19:49,384 --> 01:19:50,952 you just go. Nice. 494 01:19:51,086 --> 01:19:51,820 Where can we learn more? 495 01:19:52,120 --> 01:19:55,524 aircraftbanker.com. Aircraftbanker.com. 496 01:19:55,524 --> 01:19:57,325 It's our website. Okay. Yeah. 497 01:19:57,592 --> 01:19:59,694 One thing before we go. Sure. 498 01:20:00,095 --> 01:20:04,666 I absolutely have to pay homage to our 499 01:20:04,666 --> 01:20:07,536 founder. Absolutely. My 500 01:20:07,536 --> 01:20:10,605 late, beloved husband, who 501 01:20:11,106 --> 01:20:14,209 everybody knows in private aviation, 502 01:20:15,243 --> 01:20:18,847 Martin Stewart Orman was 503 01:20:18,847 --> 01:20:22,017 a Titan in this business. 504 01:20:23,251 --> 01:20:28,190 And we miss you. Everybody loves you. And 505 01:20:28,190 --> 01:20:32,928 thank you for teaching and 506 01:20:32,928 --> 01:20:35,664 mentoring so many people. 507 01:20:36,031 --> 01:20:38,200 Absolutely. Yeah, absolutely. To Marty. 508 01:20:38,633 --> 01:20:40,435 To Marty. Awesome. Great 509 01:20:40,435 --> 01:20:42,103 way to end the first episode. 510 01:20:42,871 --> 01:20:44,606 Thank you for watching Own the Jet. If 511 01:20:44,606 --> 01:20:46,074 you want to see more Own the Jet, make 512 01:20:46,074 --> 01:20:46,908 sure to subscribe to 513 01:20:46,908 --> 01:20:48,343 our channel on YouTube and leave a 514 01:20:48,343 --> 01:20:49,945 comment telling us what aspect of jet 515 01:20:49,945 --> 01:20:51,146 ownership you'd like to know 516 01:20:51,146 --> 01:20:53,181 more about. Own the Jet is brought to you 517 01:20:53,181 --> 01:20:54,716 by Aspen Aero Group, your 518 01:20:54,716 --> 01:20:56,084 trusted partner in private and 519 01:20:56,084 --> 01:20:58,286 corporate jet ownership. Learn more at 520 01:20:58,286 --> 01:21:00,889 AspenAeroGroup.com. This has been a 521 01:21:00,889 --> 01:21:01,723 Savage Media production.