00:28:57 · Israel Slodowitz
[00:28:57] S0: Yeah. 70% of people close in cash. And a lot of it has to do it's just very difficult to go through the process, get a load. A lot of people don't wanna, like, personally guarantee these loans and how they just close in cash. Don't don't wanna deal with the hassle. I'm working on a company right now called Radar, which is focused on providing financing for people who wanna do complete asset backed, like, no PG, nonrecourse type loans for aircraft, cause they are really good assets to finance against. So what are the biggest mistakes people make when they're buying a plane? It's a great question. A lot of times people think that they'll find like a better price on the market for a plane. So sometimes people won't sign an exclusive with a broker, like a reputable broker, though they won't sign an exclusive. And they'll say, you know what? Whoever brings me the best best price, I'll buy their plane. And what ends up happening is you have all these sort of, like, back to back shady transactions that happen sometimes where where somebody will bring you an airplane and they buy it for much cheaper and they flip it to you and you don't really know what's going on. When you have a reputable broker that you have an exclusive you sign with, they will they will tell you if you're overpaying for the plane. Right? Because they're, like, interest is making sure you get the best airplane for the best price. So a lot times people think that they're gonna save some money, and they're gonna, they're gonna find some some good airplane. They find some, like, off market airplane they think is a really good deal. They buy it, and they realize there was, like, forced transactions before. So I think that's, a pretty big mistake people make.
00:30:23 · Molly O'Shea, Israel Slodowitz
[00:30:23] S1: What questions should they be asking in any of these processes from chartering to buying, whether it's the year of the plane, what kind of inspections they should be looking for, insurance, that kind of stuff. [00:30:34] S0: I think corrosion is like really the big thing that gets you when it comes to buying airplanes. There's nothing that would be more expensive than corrosion because sounds terrifying. It is very terrifying, financially terrifying, because like if you discover corrosion in an airplane, sometimes they will have to reengineer an entire component for an actual part of the plane that could take months and cost, like, hundreds of thousands dollars. There's probably nothing that will cost you more money on an airplane than a problem with regard to corrosion, especially with regard to the engines. [00:31:07] S1: What about insurance? Like, what are you or inspections and that kind of stuff. Like, what are you Yeah.
00:31:07 · Molly O'Shea, Israel Slodowitz
[00:31:07] S1: What about insurance? Like, what are you or inspections and that kind of stuff. Like, what are you Yeah. [00:31:11] S0: I mean, aircraft have engine insurance. It's called engine programs, they're what they're called, where the manufacturers insure the engine. I've heard stories of people not enrolling in these programs. I think David Sachs said that he wasn't enrolling his aircraft in engine programs. I guess if you have the balance sheet and you wanna and you're willing to withstand, you can afford a pretty big event if something happens and you're willing to if you could afford a few months of downtime, you could do that. But, really, you know, the these engine manufacturers, they really have a monopoly on the supply chain of the engines. So if you're not on a program and something happens, you get to the bot you go to the bottom of the list for the parts. It is a big issue. And the companies like us and other companies that can get together and they have some negotiating power can go to these these manufacturers and get they have some leverage. But if you're buying you're a single person buying an airplane on your own, a single airplane, you don't have a lot of leverage, and things can get very expensive. We're in a cockpit. [00:32:11] S1: Okay. You were talking [00:32:12] S0: Or as we call it nowadays, flight deck. [00:32:15] S1: You were talking about wait. Really? Yeah. They changed it. They changed it? Well, I guess. Why'd they change it? [00:32:20] S0: I don't know. Maybe it's, like, a little bit more politically correct.
00:32:20 · Israel Slodowitz, Molly O'Shea
[00:32:20] S0: I don't know. Maybe it's, like, a little bit more politically correct. [00:32:24] S1: I don't understand why. We Pockets not politically correct?
00:32:24 · Molly O'Shea, Israel Slodowitz
[00:32:24] S1: I don't understand why. We Pockets not politically correct? [00:32:29] S0: I I don't know. It's they also changed it used to be called airman. That's what they a pilot was considered an airman. Now it's Sexist. Maybe air person. I don't I don't know. Yeah. So, yeah, pilots have to go every every six months into to simulator training. It's about a week long, and you sit in with something that looks just like this. So everything's about the same. It's full motion, so you feel turns and everything, and you you you go over all sorts of emergencies and different sort of, stuff. But I think something interesting that I found going from being a pilot to being a founder that's really helped me as a pilot. You know, when you're when you're flying the plane maybe over Las Vegas and you're, you know, an hour out from LA, You're already starting to think ahead about the landing in LA. You're thinking about what the weather is like there, what runway you're going be using, what the the sort of arrival is going to look like. So even though you're still over Las Vegas, you're kind of really thinking thinking an hour ahead of time. And I think that running a business is very similar. Right? Like, you're you're even though there's stuff you're dealing with today, you're you're you're dealing with things that are happening on the day to day, you're also thinking ahead and making sure that you're planning, for for the arrival. So I think that's that's something that, you know, just the training of
00:32:29 · Israel Slodowitz, Molly O'Shea
[00:32:29] S0: I I don't know. It's they also changed it used to be called airman. That's what they a pilot was considered an airman. Now it's Sexist. Maybe air person. I don't I don't know. Yeah. So, yeah, pilots have to go every every six months into to simulator training. It's about a week long, and you sit in with something that looks just like this. So everything's about the same. It's full motion, so you feel turns and everything, and you you you go over all sorts of emergencies and different sort of, stuff. But I think something interesting that I found going from being a pilot to being a founder that's really helped me as a pilot. You know, when you're when you're flying the plane maybe over Las Vegas and you're, you know, an hour out from LA, You're already starting to think ahead about the landing in LA. You're thinking about what the weather is like there, what runway you're going be using, what the the sort of arrival is going to look like. So even though you're still over Las Vegas, you're kind of really thinking thinking an hour ahead of time. And I think that running a business is very similar. Right? Like, you're you're even though there's stuff you're dealing with today, you're you're you're dealing with things that are happening on the day to day, you're also thinking ahead and making sure that you're planning, for for the arrival. So I think that's that's something that, you know, just the training of [00:33:45] S1: being a pilot help helps in some ways with being a founder. What's been your favorite part of being a pilot?