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How To Make Money 馃挵 With A Private Jet - YouTube
Channel: JetLife with Tom
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i can't believe this guy wants to put
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his chat on a charter
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oh shoot
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hey guys what's up it's tom and on
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today's video i'm going to be talking
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about the advantages and disadvantages
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of putting your private jet on charter
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check it out don't forget to stick
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around to the end where i tell you my
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personal opinion on what i would do if i
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owned a private jet so earlier this week
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i got a phone call from a guy that was
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looking to buy a citation and he told me
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that he got a proposal from let's just
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say a large charter company across the
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united states saying hey if you buy this
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jet we can guarantee you cash flow
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and you also have the advantage of
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having a private jet for your own travel
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and of course the tax write-off
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so i was talking so in talking with this
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guy we found out there are a few really
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good pros but also a couple really bad
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cons when it comes to putting your jet
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on a charter number one when it comes to
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the charter company making a proposal to
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you
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usually there's some fine print let's go
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over some of the pros pro number one
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offsetting your maintenance costs or at
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least it seems like it so of course
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running your jet isn't cheap so charter
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companies have access to larger
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maintenance facilities that allow you to
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get a break when it comes to the cost of
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maintaining your aircraft number two
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your aircraft actually gets used these
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aircraft need to fly if it doesn't fly
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then chances are things will break or
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just kind of fall apart these things
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were made to be in the air benefit
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number three depending on the charter
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agreement you might have access to other
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airplanes not just the one that you buy
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so maybe you buy a lighter jet but now
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you get access to the larger jet fleet
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and you can experience different types
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of private travel on the flip side if
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you buy a bigger jet but you have a
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business meeting that only requires a
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lighter jet you can actually save some
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money by taking a smaller jet that's in
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the fleet so for all these reasons and
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more it actually might be a good idea to
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put your plane on a charter certificate
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the most important thing is to read the
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fine print all right let's talk about
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the cons well number one hidden fees
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when it comes to an estimate or a
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proposal that a charter company is going
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to make for you to put your aircraft on
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charter
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there's usually some hidden fees and
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it's not necessarily a nefarious
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practice but rather things come up i
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mean who knows what's going to happen
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and you're going to be on the hook to
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maintain your aircraft so you may see a
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positive roi on the spreadsheet but if
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you have a large maintenance
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bill for one reason or another then that
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ri can quickly diminish
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number two up front acquisition costs
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you see you're fronting the money to
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purchase a 2 3 million dollar asset
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and in that case you're finding the
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money if the market turns you could
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still be paying
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the price for the the higher market as
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the market kind of goes down and your
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roi again is going to be diminishing
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number three trust you're handing over
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two three million dollar asset to people
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that
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hopefully you trust but not only the
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people that are maintaining it but what
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about their customers i mean you've got
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cairns you've got babies you've got pets
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all these people that you don't know all
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these strangers are gonna be flying in
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your aircraft how does that make you
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feel number four is gonna be
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depreciation
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see as the plane is flown if it's flown
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a lot so that you get more money don't
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forget you get more money the more the
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plane flies well that's putting hours on
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the engine it's putting hours on the
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airframe it's putting more butts in the
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seats they're going to produce wear and
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tear and diminish the overall value when
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you go to resell so again read the fine
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print see how depreciation is going to
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play into it versus the roi that you're
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getting by renting it out there's a lot
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more cons when it comes to
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charter but there's so many different
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charter operations and different ways to
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do charter that i love to kind of talk
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to you individually and see what you're
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considering to help you out and let's
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not forget what plane are you going to
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be renting out see a charter company
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might want you to buy a bigger body jet
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but your missions are mostly local and
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you just got to get from point a to
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point b so how do you choose the right
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jet not just what the charter company
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wants you to buy
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all right so what would i do if it was
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my family so i think about it this way
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if this is going to be your first jet i
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would start out smaller see with the
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large body jets not only are you
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depending upon larger missions but
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you're also dependent on customers that
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don't mind higher gas prices like they
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are right now because it's going to cost
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more to run those aircraft so you need a
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customer base that not only wants to get
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from point a to point b but wants to get
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to point a to point b in style in a
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larger cabin in a larger feel so you
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have to check on the customer base to
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see if it's going to be flying and don't
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be the owner that buys the charter
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companies their first big body jet or
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their first light jet because they don't
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have the data to support whether or not
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they're going to be able to
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sustain those missions so i would get
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started with a light chat i would take a
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look at a light jet that gets people
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from point a to point b because i
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believe that's going to be your primary
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the largest the largest niche in the
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market is people who want to get from
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point a to point b
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you know the bar the larger body jets
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are great if point a and point b are
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across the country but if it's mostly
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local flights the lighter jets can be
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more fuel efficient they're going to be
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easier to maintain they're also going to
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be at a lower acquisition cost and you
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can still get a really good one on
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programs that's red chart already at a
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competitor price point so start there if
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you and the charter company decide wow
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this is making a ton of money well great
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then you can either keep it there and
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cash flow it and then upgrade if your
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mission changes or you know best
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scenario is that you buy another one and
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you use it and you cash flow the other
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one and everyone's happy all around
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worst case scenario the light jet
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doesn't have the revenue you're looking
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for and you go to resell it i believe
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the light jets are going to have a
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stronger time in the market especially
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right now in second quarter of 2022 as
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fuel prices continue to rise um the
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demand for lighter jets is gonna
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maintain while the demand for the larger
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jets may uh start to decrease
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all right so there's a lot that goes
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into considering putting your plane on
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charter or not
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let's schedule a call you can text me at
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941 216
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or email me tom int lams.com find me on
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instagram tick tock linkedin i'll be
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there creating more content for you to
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help you buy and sell that jet and live
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that gen life i hope you found this
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video helpful if you did let's go full
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throttle on that like button go ahead
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and subscribe to the channel for more
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videos like this and comment below what
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do you think the best jet is for charter
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company
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hope to hear from you soon
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