This video explores the business model of Chris Fitch, who makes significant income by buying and leasing airplanes. The video aims to demonstrate how anyone can apply similar creative finance strategies to generate substantial income within a short time frame, using the aviation industry as a case study, with principles applicable to other asset classes as well.
Finding Distressed Assets: Identifying and acquiring undervalued or neglected airplanes (or other assets) is crucial. Indicators include low tire pressure, faded paint, and neglected maintenance. This strategy mirrors finding distressed properties in real estate.
Creative Financing: Utilizing sub-2 or seller financing allows for acquisition with minimal upfront capital. Refinancing with a bank after refurbishment unlocks invested capital.
Leasing to Flight Schools: Flight schools and flying clubs represent a primary target market for airplane leases, providing consistent rental income.
Identifying Opportunities: The FAA website and other online resources provide comprehensive information about aircraft ownership, allowing for targeted searches and contact with potential sellers.
Bird-Dogging: Individuals can act as "bird dogs," identifying distressed aircraft and connecting sellers with buyers (like Chris Fitch), earning commissions for successful deals. This requires minimal aviation expertise.
