Becoming an Aircraft Broker....

AUpilot

Well-Known Member
I am a full-time corporate pilot working for a great company (Part 91) and flying a Lear 40XR...life is good. Our flight department flies about 300 hours per year and with 3 full-time pilots I have a little extra time on my hands.
I have always had the itch to help others buy and sell airplanes as a side business. Having helped a few friends research their airplanes I am confident that I can run a successful small brokering business on the side. Whether it's strictly focusing on being a buys agent or an all-encompassing broker doesn't matter to me at this point. I have read a few of the threads on this site and gained a wealth of knowledge from those threads and thought I would use my first post on this site to try and pull any more info I can out of you guys that make a living doing this. My goals are simply to add a little extra income by doing something I really enjoy....
 

TUCKnTRUCK

That guy
From personal experience, putting time in with an established company will help you learn the ropes.

You need somebody you trust to do pre-buys, an escrow banker, title research company, liability ins. Never put money in that you can't afford to lose
 

AUpilot

Well-Known Member
I have two reputable mechanics available and I do have an escrow company that I used when helping another company purchase a late model Baron. I remember using a title research company but for some reason I recall them being tied in with the escrow company...I could be way off on that as it was several years ago.

Thanks for the input!!
 

GX

Well-Known Member
Good for you. The most important thing in starting a new business is this: JUST GO DO IT. JUMP. LEAP. If you feel that you have the talent to do what you're doing, the capital to support the endeavor, even if it'll be tough, and you have people around you who can, and will help you, and that you can bounce ideas off of, GO! Every one of my friends who have been thinking about doing something on their own spends too much time thinking about getting started, instead of just getting started.

I would advocate going to work for a brokerage for a short time to mitigate your risk. You can spend the time working there learning the ropes, as stated above, while going through the bonding, insurance, and other bureaucratic processes involved, which need to be addressed, and will inevitably take time. Even if you're working there for 6 mos, it will provide an invaluable learning experience, and I'm sure the networking will be helpful, as well.

Good Luck!
 

jafra98

Well-Known Member
What would be your market?? GA or larger aircraft?? Go ahead with the idea and never look back.........
 

AUpilot

Well-Known Member
GX: Thanks for the pep-talk! You are very right about people "talking" about doing their own thing and people that just go out and do it! The capital involved is one of the issues that I want to address fully before jumping in and as of right now the expenses I can think of include forming the LLC., travel, paying a mechanic, and building a website....I know there are more but that's just a quick run-down of a few I can think of off the top of my head. As much as I agree with you guys on the idea of working for another brokerage I just don't think that is feasible with my current work schedule....however, it is by any measure worth looking in to.

Jafra98: I don't discriminate...haha. I have experience helping people/business with both. Obviously buying/selling a jet pays better but I enjoy dealing with both. I manage a Cirrus on the side right now as well...

Thanks guys for taking the time to add some much needed input!
 

dustoff17

Well-Known Member
I am a full-time corporate pilot working for a great company (Part 91) and flying a Lear 40XR...life is good. Our flight department flies about 300 hours per year and with 3 full-time pilots I have a little extra time on my hands.
........
Sorry, you lost me after this.....
 

DragonStar45

Stuck on the Left Seat
I used to work with aircraft salesmen and brokers by ferrying light twins for them. From my experience, light twins is a slow market for sales but alot more rewarding. Generally Piper Seminoles and Diamond Twin Stars are the main seller for flight schools and majority of my ferrying have been in these aircrafts. Obviously, majority of the business will be in single engine aircrafts. Owners care alot about their "play toys" so an old Cessna needs to look and fly like the brand new aircraft, if you want to turn a profit.
 

dustoff17

Well-Known Member
No kidding! I fly an LR45 about 275-280 hrs a year with just two of us. And I thought I had it waaaaay to easy. Good to some one else out there slacking more then me. :)
Tell me about it! I flew about 600 last year 700+ the year before... all single pilot.
I'm very jealous of his time off by the way!! :rolleyes:
 

AUpilot

Well-Known Member
For two years I flew over 650 hours in a Baron with an average leg of 0.6 hours.....it was a great experience that I wouldn't trade for the world but at the same time I'm glad those days are behind me. I am really blessed to be where I am now....great airplane, great chief pilot, and great passengers!
 

Patrick

Well-Known Member
I've brokered several aircraft over the years, however lately haven't done a whole lot with it. The key is to only get involved with aircraft that you have in-depth knowledge of until you learn MUCH more about the business. Having key people you can turn to is also of the utmost importance.

It's a fun business, and can be lucrative, but don't think that you don't bear a lot of liability. The people that are paying your commission are using you both for convenience, and because you are supposed to bring value to the table. If you broker a turd airplane to to a buyer, don't think that he can't come after you for screwing him.
 

AUpilot

Well-Known Member
Hey Patrick, thanks for the input.....It sounds like you're involved with the type of operation I am looking for. I'm glad you brought up the topic of liability because that has been a major concern of mine and I haven't been able to find much info on it. I have a contact that sells liability insurance so you can only imagine what his thoughts are. As it stands right now I believe the protection afforded by an LLC. would be enough protection barring any gross negligence...in which case insurance probably wouldn't help either. Thanks again for the input....this has been really helpful.
 
Top