Background:

I started flying in 1957 at age 14. By 1969 I operated the largest flight school and charter facility in the Southeast at HiAir, Inc., a subsidiary of Holiday Inns, Inc. As part of my professional training to prepare me for the aircraft industry, I was an aircraft mechanic for Memphis Flying Service, Inc. and Memphis Aero Corporation and gained valuable training that helps today in buying and selling airplanes. At HiAir, Inc. we were the World's Largest Cessna Dealer. I gained sales experience and was the general manager for the Olive Branch Airport, a full service FBO. In 1979, HiAir sold to Memphis Jet Center, Inc. where I was the sales manager, and we switched from Cessna to Beechcraft and were very successful in marketing new Beechcraft airplanes.

I have 14 pilot ratings through ATP with all flight instructor ratings and 9000 hours as a CFI and 14,000 total hours. I was a FAA Pilot Examiner for 8 years and a Check Airman for 135 for 10 years. All the time I was doing what I loved best and that is selling airplanes.

We average one sale a week. I really do not know how many I have sold in my lifetime, but I know that it is well over a 1,000 airplanes. In 1985 Memphis Jet Center, Inc. sold, and I was unemployed which turned out to be the best thing that ever happened to me. Tammy, my wife and partner, decided that we needed to start John Bell Aircraft, Inc. and that was the start of "Group 10".

Due to close personal relationships with customers and with no credit lines established, I decided to get 10 "investors" to put up a minimum of $100,000 each; therefore, the name "Group 10". The program has been so successful that today we could call it Group 23.

It works like this:

We/you find an airplane to purchase at wholesale, and you use your line of credit (Billy Briggs, First Tennessee Bank in Memphis, 901 523-4305, will gladly loan you the money if qualified) to purchase the airplane.

Prior to purchasing, you form an "S" Corporation or LLC and become an airplane dealer. Get a Certificate of Resale from your state, as sales tax is not paid on purchases, but collected when the airplane is sold and remitted to your state. Very important! You should check with your CPA and tax attorney on all tax matters.

If you are going to buy an airplane anyway, Group 10 has many benefits. You fly the airplane as much as you want. You control the maintenance with my help while John Bell Aircraft, Inc. markets the airplane and pays all advertising expenses. When sold, we split the profit. Out of your half, you pay interest, insurance, and all operating expenses.

If the airplane capital expense (i.e. airplane plus repairs found on the pre-purchase inspection, new paint and interior etc.) is $100,000, and we sell it for $115,000, we split $15,000. Out of our half of the profit, we pay all sales expenses.

Summary: Group 10 gets you a revolving group of nice airplanes to fly, minimized expenses and profit potential. John Bell Aircraft, Inc. gets profit and inventory to sell. A win/win situation.

Frequently asked questions:

Do I have to be located close to Memphis? No, while it would be nice for me to see the airplane, it is not necessary. You will know after your thorough pre-purchase inspection if it is cosmetically or mechanically acceptable. We prefer to have your maintenance facility do the pre-purchase inspection on your behalf with me asking them to perform specific items that I know can be particular trouble spots.

While your maintenance facility is not going to guarantee finding every item wrong on the pre-purchase, it puts them on the spot when undiscovered items appear later. If the pre-buy was done out of town, it can really be "open checkbook" time. Remember, there are going to be items that are not going to be discovered during the pre-purchase, so I always add 5% to the purchase price to cover contingencies. Therefore, the $100,000 airplane should be thought of as $105,000. If you do not have to spend that is great, but don't count on it. A flight check by you is advisable to checkout avionics, radios, engines, etc.

What is the downside? Biggest complaint is that I sold the airplane, and you have a trip planned. My program says you will have the best buy on the market in three weeks. Two weeks to research and one week to pre-buy and close. Another question is "What if an engine goes or the airplane is damaged, and the value diminished?" We would hopefully have enough of a margin to break even and go on to the next airplane. The worst case scenario in the last twenty years and numerous "Group 10" airplanes is that we sold for the capital expense, but the investor had to pay the interest, insurance and operating cost. We have had a few that lost money due to catostropic failures, engines and gear up landings. On the other side, we have bought one day and sold the next for a good profit. John Bell Aircraft, Inc. will not participate in any loses in connection with the airplane.

What about insurance? You get your own insurance and name John Bell Aircraft, Inc. as an additional insured with a waiver of subrogation. We use Chappel Smith & Associates, LLC in Franklin, TN, 800 999-1109. John Bell Aircraft, Inc. is not responsible and must be held harmless all losses or damage not covered by insurance.

How long does it take to sell the airplane? Generally, it takes about 120 days, but a lot depends on the price at which it is put on the market. Some sales have taken a year or more. We start with a high price, and when the new wears off, the asking price is reduced. Hopefully a sale results, and we buy another airplane. From my standpoint the quicker we sell the better because in my opinion airplanes are meant to sell, not fly!

What if I fall in love with the airplane and do not want to sell it? Pay me a 6% acquisition fee and keep the airplane. In almost every case after you get comfortable with the program, you will buy a lot more airplane than you normally would, as it is for sale and a good investment.

This is a great program, please call me with any questions, 662 526-1700.