At AOPA Finance, we often talk to people who have been looking at online listings and have found older jets for half a million dollars or less. Considering the capabilities of these aircraft, and the apparent inexpensive price, they often think they found a deal too good to pass up.
Many lenders are flexible when it comes to the structure you choose for registration, whether it’s a single purpose LLC, an operating company, or an individual.
If you're going to register your new airplane in an entity like an LLC, most lenders prefer that you form a new entity rather than use an existing one.
The best way to determine how to structure aircraft ownership is between you and your financial professional, whether that's a CPA, a tax attorney, or a financial planner.
The Federal Reserve recently lowered its interest rate by 50 basis points or one-half percent. Some of our members have asked us about the efficacy of refinancing existing loans in this new rate environment.
Financing an aircraft is a two-part process. The first part involves lenders underwriting the buyer based on their financial capability and their credit, income, and liquidity. The second part is evaluating the aircraft. Here’s what matters when it comes to the aircraft...
If you’re a first-time buyer of a piston aircraft, or stepping up from a piston to a turboprop, you may be wondering, “How much reserve cash do I really need to qualify for the loan?”
A common question we get is: “How long does it take to close on a loan?” The simple answer is about two weeks. But that’s based on a number of assumptions.
It may come as a surprise that I believe having a good sales/purchase agreement in place is as important or more important than securing appropriate financing. A sales/purchase agreement allows the buyer to move more quickly and confidently toward the actual purchase.
Think of pre-approval as a license to shop. With a pre-approval, you now have 90 days to find and close the deal on an aircraft of the agreed-upon type and in the agreed-upon price range.