Jerry Temple Aviation, Inc. (JTA) offers the buyers of Twin Cessnas and the opportunity to employ JTA as the Buyer’s representative.
It is an accepted business practice that many high ticket items are normally sold through a middleman. This can be real estate or aircraft. The middleman, or Broker, is paid a sales commission. The commission is “directly” paid by the Seller and simply deducted from the sale price. The Broker is thus paid a commission with a net amount to the Seller. However, this commission was really paid in all, or part, by the Buyer. The sales price goal, when established by the Broker and Seller, had all, or a part, of the Broker’s commission structured into it. Therefore, the Buyer “indirectly’ paid the commission. Still however, the Broker represented the Seller, not the Buyer.
Under the terms of an Acquisition Contract, this same skilled and experienced Broker is representing the Buyer. The Buyer pays the Broker a fixed fee. Therefore, as described above, the Buyer is still paying for the Broker’s commission, but now has this skilled and experienced Broker working for the Buyer. Acquisition Contracts are common in the sales of jet aircraft. Both Buyer and Seller want the best experts working for them. This also holds true for piston twins. It’s just smart. The Broker’s fee is fixed, and the responsibility of the Buyer, thus the Broker has every incentive to try to purchase the aircraft at the lowest possible price. The Broker’s fee is not tied to a percentage of closing purchase price.
In determining the Acquisition fee, JTA estimates the likely cost for the type of aircraft, as equipped, described, etc., by the Buyer. JTA then estimates what the likely commission would be if JTA were brokering such an airplane. This amount is then reduced since the high cost of advertising and certain other expenses are not a part of the acquisition process. This amount becomes the agreed to Acquisition Fee. JTA is paid a $5,000 retainer fee. The balance, plus agreed to expenses, are due at closing.
Under the terms of the JTA Acquisition Agreement, a Buyer’s needs and wants are analyzed and the right type of airplane is identified. Equipment and options are discussed. Budgets and timetables are established.
Aircraft are located through JTA’s incoming calls, advertising, direct mail, event participation, dealer/broker networking and traditional aircraft for sale sources, etc.
Candidates for purchases are researched for location history, damage, maintenance, modifications, etc. Finalists are further researched.
Any Offer to Purchase is made in writing with all contingencies established. Upon obtaining an Owner’s acceptance, a deposit is placed in escrow with an aircraft title firm. All future payments are also made through the escrow process. JTA conducts a thorough evaluation flight and then oversees a comprehensive pre-purchase examination. Such examinations are conducted at one of the qualified facilities JTA is familiar with. If the decision is made to complete the purchase, a Purchase Agreement is finalized and a closing is completed through the Escrow Agent. From initial research about an advertised aircraft to pushing an aircraft into its new hangar, JTA manages and directs the entire Acquisition Process.
JTA provides Buyers with Delivery Support from the Pre-Buy event location to the Buyer’s home airport or other location as requested. All flight time flown by the Purchaser with Jerry Temple can be logged as “Dual” towards an insurance requirement. Aviation Insurance Underwriters will accept flight training from JTA as training from an approved firm.
In certain circumstances JTA can directly support the sale of a currently owned aircraft with the sale occurring before, or after, the purchase of the Twin Cessna. Regardless, if JTA becomes involved in the sale of a currently owned aircraft or not, its sale can be documented by JTA as a “trade”. In addition, IRC 1031 and Reverse 1031, like property exchanges, can be coordinated by JTA.
Is an Acquisition Contract for you? The answer is yes if you are the type of person that always uses specialists when they are available. The answer is yes, if you have a professional practice or business to manage and do not have the time, or desire, to travel to see several aircraft. The answer is yes, if you are simply not qualified for this task and accept that you will not become an expert within a few days/weeks or even months of research.
The answer is no, if you desire to become an “expert” in each major project you become involved with. The answer is no, if you like to create spreadsheets and get into creating customized formulas for selecting aircraft. The answer is no, if you desire to invest the time and money into traveling to see several aircraft. The answer is no, if you have the knowledge and experience to test fly Twin Cessna aircraft, oversee Pre-Purchase Examinations and administer such purchases.
If JTA’s Acquisition Support sounds right to you, then call to discuss. In addition, just as most successful professional and business persons have various specialists i.e., physician, dentist, attorney, accountant, architect, landscaper, auto/aircraft mechanic, plumber, etc., that protects/supports their business and family, JTA seeks through demonstrated performance to become your Aviation Sales Specialist. It is JTA’s goal to now professionally support your acquisition of a Twin Cessna, or other appropriate aircraft and to be there to again provide professional support when the time comes to make a change.