[Don Alexander]

Don Alexander

This might sound like a far out idea. I am a former corporate airplane pilot and I was wondering if anybody here in the forum has ever optioned an airplane to sell it.

I have thought about going to the local airport here and getting a list of airplane owners and contacting them to see if they would be interested in selling their airplane.

Has anybody here in the forum ever done this and do you think it is a viable idea or just some crazy pipe dream?

Thanks very much for your help.

[D Graber]

D Graber

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It’s pretty easy to find details and examples of successful and unsuccessful aircraft sales efforts, such as these:

http://avstop.com/editorials/jim_trusty/ups_and_downs_of_selling_an_airplane.htm

http://www.avbuyer.com/articles/how-to-sell-aircraft.asp

http://www.rapp.org/archives/2012/07/selling-an-airplane/

http://www.get-aviation.com/blog/airplanes-business-use-productivity/how-to-sell-your-airplane-try-this-it-works

http://www.aso.com/Learn/SellerResearchPortal/HowToSellAircraft.aspx

http://www.slideshare.net/planeviz/how-to-sell-your-airplane

It seems clear that there can be a lot of time and effort involved, including considerable due diligence and documentation checklists (see articles above). Just like in any other arena, there will be some seller wannabees who either don’t have the time, the expertise, or the discipline to work the sales process effectively. Apparently there are some aircraft brokers who don’t always produce either.

You might want to look over those articles and see if there’s a niche in the selling game that’s a good fit for you. Can you compete with the existing brokers? Can you use the already-in-place ad venues better than the owner?

In theory, you could run an HBS sale, but …. the aeronautical equivalent of a Saturday and Sunday open house changes character a bit if each potential bidder wants to spending a little flying time in the bird.

Also, if there’s any element of seller financing (secured by excellent insurance), aircraft would come under the category of personal (or chattel) property, so Dodd-Frank rules are just a wee bit different for seller financing of personal property (compared to real property).

Would an option make you a principal so you could avoid having to be licensed as an aircraft broker? Maybe……, but you’d want to confirm that with some legal expertise you can hold accountable. (My years in aircraft maintenance were on the military side (my troops used to maintain a variety of bird types on call for LBJ at the old Bergstrom AFB), where civilian rules didn’t weigh in so much.)

Good luck in what you learn, decide, and try out.

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[DON WEDE]

DON WEDE

As far as Dodd Frank, correct me if I am wrong. The chattel (personal property) is only in regards to a residence.

Don Wede

[Jackie Lange]

Jackie Lange

I have never optioned an airplane but it would be an easy thing to do.

go for it!

Also cruise the classified ads for people who have one for sale and are not already using a broker. I’m sure they would appreciate your help

I did read an article not long ago that some airplanes are hard to find. There is a 2 year waiting list for it and there is some kind of rule that no broker can be involved. I do not remember the kind of plane but I do remember that Oprah has one… so it is high dollar.

Options offer so much opportunity for so many different things!!!!

[Don Alexander]

Don Alexander

Thank you very much for your ideas. I really appreciate your help. Some of the things that you mentioned, I have never even thought about. LIke you, I was in airplane jet engine maintenance in the USAF. Also am a licensed A&P mechanic but never use the license. That and 1.00 would probably buy me a cup of coffee if I gave them the $1.00 before showing my license. Ha!

I appreciate your help though.

[Don Alexander]

Don Alexander

Thank you Don. You always offer help and I really appreciate your help too.

[Don Alexander]

Don Alexander

Thank you Jackie for your help. You always try to help me and I really appreciate your help.

I think I saw the article that you were talking about too. I think Oprah has a Gulfstream. Bill Cosby used to have one of those too and still may have it. They are really fine airplanes.

I will check around to see if somebody is thinking about selling their airplane also.

Good advice as always.

Thanks very much.

[D Graber]

D Graber

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Don Wede wrote:

“As far as Dodd Frank, correct me if I am wrong. The chattel (personal property) is only in regards to a residence.

Don Wede”

The Texas A&M article I posted about Dodd-Frank effects on the manufactured home business (in the Mobile Homes section) doesn’t really answer your question. On page 2 it says there are about 10 chattel loans on mobiles for every realty loan on one. But, it doesn’t address whether Dodd-Frank rules on seller-financed loans on personal property ONLY affect residences. The problem is that in any law dictionary, chattel or personal property is understood as anything you can move, or pick up and carry with you. When laws are written, they may or may not have additional definitions written into them to supersede any general legal understanding. So it would take a look at the actual Dodd-Frank legislation to see if it has a definition of chattel or personal property that excludes anything that’s not a residence. If it doesn’t, then I don’t know of anything that block Dodd-Frank from controlling seller-financed loans on cars, RVs, airplanes, yachts, raw land, fine art, or a silly putty factory.

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[D Graber]

D Graber

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Oops, I see there’s no edit button after a post has been submitted. OK, I’ll embarrass myself with the correction here. A “silly putty factory” would involve a commercial realty loan, not a personal property loan. Incorrect example.

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