Speaker 0: 0:00

Hey guys, what's up? My name is Tom Lelio. I'm your ultimate jet guide. Today we're pulling back the curtain on private aviation. Whether you're a buyer or a broker, we're helping you buy and sell private jets without wasting any time. Today we're talking about the overall sales process. So a lot of people will ask me, tom, how does a deal actually work? What are the steps? And we're going to be going through that today. If you're joining us for the first time, my name is Tom Lelio.

Speaker 0: 0:26

I have been a private jet broker for a number of years now, but I came into this with zero aviation background. I actually used to be a youth pastor. Within my first year of selling private jets, I sold over 20 private jets, making six figures, and then I just doubled my income the next year, doubled again the following year and then, finally, I started my own brokerage where I'm helping train people like yourself that maybe have no aviation background or maybe you are looking for a new career and you're thinking about becoming an aircraft broker. My goal is to help you become an aircraft broker, make six figures in your very first year. So if that's of interest to you, don't forget to click the subscribe button below. Hit the like button. It really helps us out and today I'm going to give you just a taste of all of the information that we have for free If you go to circlejetlifearrowcom. Aviation changed my life. I want to help change your life for free. So everything you need to be a private jet broker is on our Circle community. Go ahead and check it out.

Speaker 0: 1:22

So what we created here is the deal flow. All right, so that people were asking me, tom, like how does it actually work? What does it look like when a deal is going down? This is the checklist for the deal flow. So step one we got to get a listing. If we don't have inventory, if we don't have something to sell, then we're not ever going to get a deal. That's just how it works. So once you get a listing, step two is going to be prepare for buyers. You're going to prepare your listing. That means you need to get your specs together so that you can put together a brochure, get a maintenance report so that you have all of that information in a single folder, get a profile of the jet and create your automations. These are, you know, if you want to get super fancy when somebody inquires from controllercom and you want to give them a drip campaign about the jet and about yourself and why they should use you. That's what we're talking about with the automations.

Speaker 0: 2:10

Step three is you're going to start to handle the buyers. We go through specifically questions that you're going to want to ask to qualify the buyers, make sure that they're a good fit. Remember, we've got three types of buyers. We've got the not interested, not ready buyers. Those are people that are kind of like dabbling. They don't really know what they don't know. They haven't narrowed down the make and model that they want and they're not ready. They don't have financing, they don't have a hangar, they don't have pilots, they don't have maintenance people. They have no idea what they don't know. They're at the top of the funnel to take a little bit longer to actually purchase. Then we've got the interested, but they're not ready. Those are people who maybe have a controller They've been kind of scrolling through controller but they're not ready to go. It's not the right time, maybe they don't have the finances or it's not good timing. And then we've got the interested and the ready people. Those are the buyers that are ready to go right here, right now. We want to prepare to handle them and speak with them and answer their questions.

Speaker 0: 3:03

Then, once you finally find a buyer, the next step is going to be issuing a letter of intent. Now, the letter of intent is a non-binding piece of paper that basically starts off the dialogue, the conversations of negotiations. It's going to include who's buying the aircraft, who's selling it, it's going to include the purchase price, the security deposit, and it's going to include the pre-buy details when is the pre-buy taking place? Who is doing the pre-buy? What are they doing? When is the pre-buy happening? How long is the pre-buy going to take? These are all details you want to put in the letter of intent so that you guys have a framework or you have just details that everybody can start talking about and it's written on paper. Once you get the letter of intent signed, you can open up escrow. That means you're going to get the security deposit wired into escrow. We can maybe start doing a preliminary visual inspection. We definitely are working towards putting together an aircraft purchase agreement and we're doing a title search at the same time just to make sure that there's no liens on the aircraft.

Speaker 0: 4:04

Step six is going to be the aircraft purchase agreement. Now, this is the gospel. Anytime a broker asks me a question Tom, something happened in the pre-buy what do I do? I always ask them what does the purchase agreement say? So the purchase agreement is going to have the parties, who's buying, who's selling, the purchase price, the pre-buy details in more detail and the what-if scenarios. What if the seller defaults, what if the buyer defaults? They're going to say the state of law. They're going to say where closing is happening, when closing is happening, and it's usually at least five, six, seven, eight pages, could be as long as 20 or more. But you want to get this as solid and concrete as possible because it basically is going to answer the question what if? What if something happens? What are the expectations and what are the consequences if people don't live up to the arrangement?

Speaker 0: 4:56

So next we're going to go into the pre-buy inspection. So the question is where's the pre-buy happening? Is it going at the aircraft's location or is it going to the purchaser's location? Or is a third party going to be doing it that neither buyer or seller have any affiliation with who's doing the pre-buy? What are they doing? Are they just doing a visual inspection or are they going for a full doc. Eight, doc, 10 inspection or an ABC check, a phase one through five inspection Are they doing? How are they testing the engines? Is it just going to be a bore scope? Are we going to do a five point engine run? Are we doing soap samples? What are we doing with a test flight and the logbook review? So just getting all of that stuff is going to be done in a pre-purchase survey or inspection, and so you have to navigate that, you have to coordinate that with everybody working with the shop, knowing the timeline, staying on top of the shop to report back, so you can report back to the seller and make sure everyone is up to date on what is going on during the pre-buy inspection. Finally, we'll get a pre-buy report from the facility and at that point the buyer will usually have a day or two to accept or reject the aircraft.

Speaker 0: 6:02

Now, depending on the purchase agreement, they could be up to three options. Number one accept it as is where it is, with all faults. Number two, it could be rejected the aircraft unconditionally, get the deposit back. Or number three, accept it conditionally, and what this means is that, hey, I will buy this airplane but I need the seller to fix A, b and C. Sometimes in the contract, the seller is going to be obligated to correct airworthiness items Sometimes that's not the case, but conditionally accept and then sometimes, with the conditional acceptance, the seller will then have an opportunity to walk away if they decide they don't want to sell and have to fix all of these things Again, whatever the APA says.

Speaker 0: 6:43

That's what we're looking at. Then, once they accept the aircraft, we're going to prepare the aircraft for delivery. So if they have to fix any squawks, they're going to do that. If we have to prepare a pilot to relocate the aircraft for closing because maybe they want to go to a different state for tax purposes, we're going to get documents in a row, like bill of sale, the FAA registration application If they're doing the international registry, any paperwork that escrow is going to need. They're going to get that all squared away.

Speaker 0: 7:09

And then finally, step number 10, we're delivering the aircraft when we go to close and this is an interesting thing about closing with aircraft you do not have to be anywhere for the aircraft closing. It can be done basically via email. So escrow will pre-position all the documents signed, ready to go and ready to be put on file, ready to be filed. They'll also have all the funds in their escrow account, ready to be wired wherever they need to go. So when it's time for closing, closing typically is just an email from the escrow agency.

Speaker 0: 7:39

Do I have permission to close? Buyer sends it, seller sends it. They hit a button, boom and we're closing. Funds are being distributed, paperwork's going where it needs to be and we've completed the transaction. So that's a quick overview of how aviation deals work, and I'm so glad that you're checking out this program. This is just a sneak peek of all the information that we have in our Circle community. So if you're finding this information useful, go to circlejetlifearrowcom. There you can download a free PDF of this checklist so that you can make sure you don't miss any steps when you're doing your next deal. Thank you so much for watching this video. Don't forget to click the subscribe button and I'll see you at circlejetlifearrowcom.