Anybody know about becoming an aircraft broker?

kontiki

kontiki

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Kontiki
Hi All,

Buddy of mine remembers that his dad (airline pilot) at one time had access to quite a few airplanes as an airplane broker (he was a kid).

He told me he thought it might still be a good business possibility, but I can't find any details on what it takes to become one.

I'm guessing it's a state credential.

All info appreciated.

Thanks,
 
I dont think there is a credential for it. You may need an 'aircraft dealer' license, but that is simply a license that allows you to acquire aicraft for inventory without paying sales tax.

It's not so much a credential as it is a combination of skills. You need:
- the patience of Job when dealing with tire-kickers and unreasonable sellers
- the ability to eyeball a plane and to figure out whether its a good deal likely to move
- a good understanding of technical parameters and equipment and how they affect price and likelihood to move
- the ability to spot the crooks from a mile away, aviation is full of them
- the skill to write with a pen on triplicates so that the third copy is legible
- some play-money capital or a willing banker to work with you
- access to financing for prospective buyers
- a network of folks who know you and are still willing to shake your hand :wink2:
- a digital camera and some basic interweb skills (nothing worse than an ad for a 250k asset with blurry cell-phone pictures, some of which laying on their ear)
- the ability to tell a story without it being an outright lie
 
Oh, and if you want to be in the broker business, dont use 'BT' or 'B.T.' or an address in Scottsdale or any combination thereof in your business dealings.
 
When I owned an aircraft, I definately became broker....
 
From the sounds of things, the major competition in the southwest might not be around for much longer. Perhaps it's not a bad time to get in the business.
 
There's a big difference between acting as a broker vs. acting as a dealer. Dealers buy airplanes for inventory and resell them, hopefully at a profit. Most of those who were in business prior to 2008 went broke during the crash. Brokers list airplanes for sale (much like a realtor) but don't take title and only represent the owner with respect to the sale of the property. Most of them went broke too, unless their wives had a good job, just not as broke as the dealers.

weilke said:
I dont think there is a credential for it. You may need an 'aircraft dealer' license, but that is simply a license that allows you to acquire aicraft for inventory without paying sales tax.

It's not so much a credential as it is a combination of skills. You need:
- the patience of Job when dealing with tire-kickers and unreasonable sellers
- the ability to eyeball a plane and to figure out whether its a good deal likely to move
- a good understanding of technical parameters and equipment and how they affect price and likelihood to move
- the ability to spot the crooks from a mile away, aviation is full of them
- the skill to write with a pen on triplicates so that the third copy is legible
- some play-money capital or a willing banker to work with you
- access to financing for prospective buyers
- a network of folks who know you and are still willing to shake your hand :wink2:
- a digital camera and some basic interweb skills (nothing worse than an ad for a 250k asset with blurry cell-phone pictures, some of which laying on their ear)
- the ability to tell a story without it being an outright lie
Click to expand...
 
wabower said:
There's a big difference between acting as a broker vs. acting as a dealer.
Click to expand...

The only difference when it comes to my list is the need for capital and a sales tax license. The rest is the same between a broker and a broker/dealer.

Some advantage to being a dealer, you are not dependent on having a buyer and a seller for a particular plane at the same time, allows you to make a deal happen if a good opportunity comes around, usually a distressed seller.

Most of them went broke too, unless their wives had a good job, just not as broke as the dealers.
Click to expand...

The other option of making money through the crash was to sell private securities with aircraft as collateral. Secure as Ft Knox, only a cataclysmic world event could possible devalue the collateral :D .
 
You might need to expand your list.

  • Brokers are typically powerless to improve the market-readiness or price point of the airplanes they represent. The seller makes those calls, and the broker has no say in the decision.
  • If a dealer has purchased an airplane, there's a pretty darn good chance that he has verified the condition and has deemed it worthwhile to purchase.
  • After dealers have been in business for a while, they develop certain patterns relative to the portion of the market that they represent (from creampuffs to hangar queens). When equipped with that knowledge, it's much easier to evaluate the offerings they will typically present to the market.
weilke said:
The only difference when it comes to my list is the need for capital and a sales tax license. The rest is the same between a broker and a broker/dealer.

Some advantage to being a dealer, you are not dependent on having a buyer and a seller for a particular plane at the same time, allows you to make a deal happen if a good opportunity comes around, usually a distressed seller.



The other option of making money through the crash was to sell private securities with aircraft as collateral. Secure as Ft Knox, only a cataclysmic world event could possible devalue the collateral :D .
Click to expand...
 
weilke said:
Oh, and if you want to be in the broker business, dont use 'BT' or 'B.T.' or an address in Scottsdale or any combination thereof in your business dealings.
Click to expand...

:rofl::rofl::rofl:

Beat me to it...thinking to myself..."well, at least he has the correct initials...not!!!"

Did I mention...:rofl::rofl::rofl:
 
I appreciate the feedback. What's up with not using BT in Scottsdale? I've only been there once, for a business meeting.
 
kontiki said:
I appreciate the feedback. What's up with not using BT in Scottsdale? I've only been there once, for a business meeting.
Click to expand...

There is a broker in Scottsdale who goes by those initials. He is currently looking at a whole laundry list of fraud and securities violation indictments for some of his business practices.
 
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