Over thirty years ago we needed a million dollars to buy inventory and did not have the credit lines. I found 10 aircraft owners, pilots, or “investors” to put up $100,000 each to purchase an airplane for resale; therefore, “Group 10”.
The program has been so successful that today we could probably call it Group 24. It works like this; we or you find an airplane to purchase at wholesale, and you use your line of credit to purchase the airplane (I also have banks that will finance for you.). You form an “S” corporation or LLC and become an airplane dealer. You inventory the aircraft as an aircraft dealer and obtain a resale certificate from your state. No sales tax is paid by the aircraft dealer, but it is collected when the airplane is sold and remitted to the state.
We then market the airplane and pay all advertising expenses, and when sold, we split the profit. Out of your half, you pay interest and insurance, and out of our half we pay all sales expenses. Aircraft squawks for up to 90 days are included in the aircraft cost basis, and maintenance after that point is paid for by the owner. This is a great way to own more airplane than you would normally buy because of the profit potential and length of ownership.