BUYER BROKER SERVICES
SPECIALIZING IN PISTON ENGINE AIRCRAFT PURCHASING
Ronald Blevins, CFI, CFII
Are you seeking to purchase a single-engine or multi-engine piston powered aircraft? If so, there are traditionally two ways to go about acquiring an aircraft.
One, you can choose to go through the process yourself. This is the most affordable way to accomplish the task (maybe!) if you know all you need to know about aircraft types, history, and specifics. Becoming this educated is a time-consuming process. Searching the market day in and day out also takes enormous amounts of time.
Two, you can go through a traditional aircraft buyer broker who seeks to find the perfect aircraft for you. This can be a good option if money is of no concern. The price for this service is a fee costing you thousands of dollars. This is especially cost prohibitive when seeking aircraft at the lower end of the pricing spectrum. The philosophy of Blevins Enterprises is a split between both of these ways to purchase an airplane.
Traditional aircraft buyer brokers charge fees ranging from $5,000 flat fees to 5% of the purchase price or more. For that money you gain the expertise of an individual who will work with you every step of the way from initial discussions to pre-buy and final purchase. While this level of service is needed in many situations, it is not always feasible, practical, or even desirable, especially with lower-priced aircraft.
The aim of the business is two-fold:
1. To educate the buyer in the market as to types of aircraft suitable to the desired mission parameters. Many potential owners are simply unaware of the nuances of the market, especially as it relates to changes from year-to-year. In addition, keeping up with avionics,
engine types, market conditions, etc. is a time consuming process and some buyers simply may not want to invest in the research required. Blevins Enterprises takes the time to stay up on all these issues in order to help the buyer make the most informed decisions possible.
2. To assist the buyer in locating an aircraft that meets the agreed upon criteria. The goal of this agency is to know where most aircraft are listed and sold within the USA. With that, it becomes possible to point the potential buyer to a variety of aircraft that meet the particular
aviation needs of the purchaser.
Once the aircraft is located, pre-screened, and priced, the buyer steps in to complete the process (pre-buy, closing, initial checkout to operate, etc.). This is where the fee structure is significantly different. Most buyer brokers actually go to view the aircraft and monitor a pre-buy. This involves extensive travel and time, thus a higher fee.
The most difficult part of purchasing an aircraft is learning types, markets, and differences in year models. Then locating a suitable aircraft can take several hours of research each day for many months. Many potential owners simply do not want to take the time to go through these processes. Once these steps are complete and an aircraft is located the real fun begins as you actually travel to view your potential purchase! Going to look at the aircraft and handle the pre-buy should be relatively easy compared to the previous steps. And the actual closing process is a simple FAA transaction using a brief bill of sale and registration form.
Because of this philosophy, the fees of this agency are some of the lowest in the industry. The following steps constitute the process.
Statistics will be discussed to help the client decide what type of aircraft best meets the buyer's needs.
Markets will be researched to locate an airplane meeting the criteria of type, price, equipment, times, and other desired options.
Once a particular plane is selected, follow up communications will be made to attempt to assess the overall condition and whether or not the aircraft merits further consideration. This process may be extensive and involve several calls over a period of time. With each call you will be notified of the findings and choose whether or not to continue pursuing this particular aircraft. Screening will involve discussions of mechanical condition, history, logs, pricing considerations, etc. All notes taken and all information will be passed on to you, the potential buyer.
At this point, a subjective discussion will be had to discuss a continuation toward purchasing the aircraft in question. This agency will recommend a suggested price but ultimately that decision remains up to you, the buyer. Either way, the price will be firmed up at this point. We only make subjective recommendations. All final purchasing decisions remain up to you, the buyer.
Service will be provided regarding questions and issues that come up during initial aircraft viewing, pre-purchase inspections, and final financial negotiations.
Because this agency does not normally travel to actually see an aircraft, the fees are far below that of any other broker (2% to 4%). Fee structure is as follows:
$1000 or 2% of the final purchase price, whichever is larger, due at closing, in the form of a wire transfer. 4% if we travel with the aircraft for inspection or delivery.
We encourage all potential buyers to give us an initial no-obligation call. We will be happy to discuss your aviation needs and the unique merits of Blevins Enterprises. See contact information below.
Flying to be present for the pre-buy. This service is $350 per day plus all expenses arranged and paid for in advance. Time is limited for such activities and is only available under special circumstances.
A $100 referral fee will be paid to any client recommending us to another "signed" client who then actually purchases an aircraft and pays the commissions as listed.
CONDITIONS and TERMS
While this agency enjoys "talking planes," we are in business to make a profit. We only make money at the time of purchase. Therefore, it is requested that the buyer be "serious" about purchasing an aircraft. Experience has shown that many callers simply want to endlessly talk about aircraft with no intention of very actually purchasing an aircraft.
It is requested that the buyer not enter into an Buyer Agreement until a purchase time frame is within a 30-90 day window. Searching for an aircraft for a potential buyer who cannot purchase the aircraft for six months is not practical for us or the potential buyer. There will be two formal written contracts in this operation. To see samples of these agreements to go the Buyer Agreement and/or the Disclaimer Form. Both are required to engage our services.
Signed agreements commit us to a 60-day window of time and research to locate a suitable aircraft. This agency promises to be as aggressive as practical in locating suitable aircraft. However if, either due to the buyer's reluctance to purchase an aircraft or the inability of this agency to find an aircraft suitable to the potential purchaser, the process goes beyond 60 days, one of two options are available to the client. First, the potential buyer can pursue an aircraft through other means. Second, the potential buyer can continue to engage our services for the additional fee of $100 monthly, paid each month and beginning at the end of the initial 60 days. Of course, this agency also reserves the right to discontinue services after the 60-day period if it is clear the potential buyer is not serious about acquiring an aircraft. This policy is in place to prevent an open-ended two-year search for an aircraft. It is an attempt to put reasonable limits on the research time.
REFERENCES and TESTIMONIALS
References are available upon request.
Testimonial -- This letter of recommendation is for Ron Blevins and his aircraft brokerage service. I have known Ron and his wonderful wife, Cindy, for approximately 10 years. In that time, I have found Ron to be a man of utmost honesty and integrity. I was excited to learn that Ron was an aircraft broker and without hesitation used his services for my last aircraft purchase, a 1991 Beech A-36. Ron was very patient with me and helped me evaluate a myriad of different airplane makes and models, advantages and disadvantages of each type, including in-depth econmic issues such as fuel consumption and routine maintenance. Ron also helped me consider airplane "mission" issues, such as useful load and weight-and-balance. Using encyclopedic knowledge about single engine piston airplanes, and after listening carefully to my concerns, Ron located a potential plane. This is probably where the typical broker service begins, but Ron had already invested many hours in the search for the best airplane for my needs.
Patience and knowledge are strong assets of Ron, but when it comes to purchasing a plane, strong negotiating skills are also called for. I saved thousands of dollars by using Ron Blevins as my broker, and I can recommend him without reservation for those in the market for a piston engine aircraft. Please feel free to contact me personally if you desire additional information about using Ron for your next aviation purchase.
Bill in Beaumont, TX
Abilene, TX 79608