Buying an asset of this size means assembling a team of professionals. Here’s how to find them.
Buying a private jet can be a complicated process with no shortage of tricky logistical considerations. If you’re new to private jet acquisitions, this guide will help ensure you’ve assembled the best possible team to get the job done.
Having a trusted team helps avoid the common mistakes new buyers are prone to making as they try to find the best deal on a jet. Let’s look at who you want in your corner before moving forward on this transaction of a lifetime.
Finding a Sales Broker
A private jet broker is the essential foundation of your team. They can handle everything from finding your perfect jet to registering it in a maintenance program. They represent you to the seller and will be one of your greatest safeguards against buying the “wrong” aircraft.
Brokers know the market and where the best values can be found, like purchasing a home with the guiding hand of a reputable realtor. Valor Jets is a prime example of a brokerage we would do business with. They’re an up-to-date firm with an established history of successful transactions.
Some critical questions to ask a broker before working with them:
- “How often are new listings typically made available?”
- “How many different markets worldwide have you worked in?”
- “What is your commission structure?”
Finding a Finance Broker
This part might be straightforward to some, but financing the purchase of a private jet involves a bit more paperwork than, say, a vacation home. The portable and highly regulated nature of private jets makes these transactions more complicated than other financing endeavors you may have previously undertaken.
It is not impossible to find a financing solution through an institution with whom you have a prior history. But there can be snags if your lender is unfamiliar with the particulars of private jets. Bank of America, JetLoan Capital and PNC are known financiers of jets from the midsize to large-cabin class with reputable brokers tied to NBAA. For light jets listed up to $10 million, there are specialized firms that deal in financing in this specific category.
If you’re financing a jet under the umbrella of your corporation, we strongly encourage considering an NBAA membership. NBAA is one of the best networking organizations for business owners looking to acquire their first jet. They provided every resource possible to ensure a smooth transaction, from financing to legal matters. Membership with NBAA falls into one of three categories commensurate with the kind of flying you do.
Finding a Specialized Attorney
If it feels like we’re assembling an army just to buy a jet, then an attorney is like the cavalry that saves the day. Attorneys for business jet transactions are your last line of defense against a bad deal or regulatory misunderstandings.
Jetstream Law is one of our favorite firms specializing in private jet acquisitions. Having legal representation present to review contracts and regulatory compliance will pay dividends through the term of your jet ownership. Like establishing a relationship with a jet broker, ensure your legal representation has an established track record before taking them onto your team.