MOJAVE JET GROUP, L.L.C. (www.MojaveJet.com) is constantly involved in researching, structuring, and managing programs centered around aircraft-based investments.
Some of these programs include: structured investments in pre-owned or refurbished commercial aircraft and commercial aircraft engines (both short-term and longer-term investment payout models); investments in aircraft leases and lease portfolios; as well as other special situations offering potentially high returns with either predictable or insurable levels of risk. These types of opportunities can only be be uncovered by aircraft industry insiders who are in continuous contact with the international jet marketplace. While investments in the airline industry in the United States remain questionable, the arbitrage opportunities and profit potential associated with export of aircraft remain excellent, simply due to the pricing differences and the supply/demand dynamics of the international aircraftmarketplace, where pre-owned aircraft and engines are commoditized.
To discuss any of the possibilities, or to propose an investment idea or program for MOJAVE's consideration, opinion, or participation, please feel free to contact us at info@MojaveJet.com with particulars. All inquiries will be treated as confidential.
NOTE: MOJAVE does not offer, or solicit for the sale of securities of any kind to the general public, nor are we engaged in the business of giving financial, legal, tax or investment advice under any circumstances. As every investment involves certain risks, and because every investor's risk tolerance, sophistication, liquidity , portfolio requirements, capital appreciation and cash flow objectives and tax situation is unique and may be subject to change from time to time, any prospective participant in any program should always seek the advice of competent legal and/or investment counsel before embarking upon any investment strategy, and prior to committing any capital or assets to any investment, whether with MOJAVE or with any organization or entity. Any examples of transactions set forth on this post are offered for the purposes of illustration only, and do not purport to be indicative of specifically available investment opportunities or of specifically obtainable investment results. Each transactional situation is unique, and financial results can vary widely based upon a variety of economic factors. MOJAVE is not a securities broker-dealer, investment banker, financial institution, or investment advisory firm, nor are we affiliated with any regulated financial institutions or intermediaries. MOJAVE is independently-owned, and is privately-held.
Investments and co-ventures with MOJAVE are generally put into special-purpose entities and may occur in several forms. Structures and terms vary in terms of availability and specific circumstances of each transaction. Some highly-simplified illustrative examples of the types of projects that become available are briefly profiled below:
*** An aircraft comes off-lease, and is immediately available for repurchase at 500,000 USD. With the injection of an additional 200,000 USD for refurbishment (as well as storage fees and the like), the same aircraft could be re-sold within six months at a price of 1,000,000 USD, representing a significiant yield on a short-term investment in inventory. In a case of this sort, MOJAVE would co-venture with an equity or short-term debt participant, which would share in the profit generated.
*** An aircraft comes off-lease, and MOJAVE finds an end-user (perhaps a foreign airline) which may wish to either 1) pay for the aircraft in installments, or 2) lease the aircraft over a four-year period. MOJAVE may be able to purchase the aircraft into its inventory for 2,000,000 USD, and receive a stream of installment payments from the debtor or lessee of 95,000 USD per month, for a total income stream of 4,500,000 USD per month, with a possible residual value at the end of the payment stream in the event that the lessee chooses to purchase the aircraft at lease-end -- that amount is not even taken into effect here, but it could well represent a major lump-sum "equity bonus" at the end of a profitable payment stream. In a case like this one, MOJAVE may wish to co-venture the purchase of the aircraft (with a debt and/or an equity participant), administer the lease, and share the resultant annuity stream (as well as a portion of the residual "bonus" at lease-end) with the co-participant or participants.
*** A portfolio of leases can be purchased at an "all cash" cost (e.g., at a deep discount, to produce a high yield) from an illiquid seller/lessor by MOJAVE, resulting in a significant income stream (a monthly annuity), plus the benefit of re-acquisition or lump sum residual value at the end of each of the subject leases in the portfolio package. In a case like this one, MOJAVE would co-venture the purchase of the portfolio with an equity and/or debt participant, who would share in the income stream as well as a portion of the lease-end benefits. MANY SUBSTANTIAL FLEETS OF AIRCRAFT HAVE BEEN BUILT IN THIS EXACT MANNER.
Some of these programs include: structured investments in pre-owned or refurbished commercial aircraft and commercial aircraft engines (both short-term and longer-term investment payout models); investments in aircraft leases and lease portfolios; as well as other special situations offering potentially high returns with either predictable or insurable levels of risk. These types of opportunities can only be be uncovered by aircraft industry insiders who are in continuous contact with the international jet marketplace. While investments in the airline industry in the United States remain questionable, the arbitrage opportunities and profit potential associated with export of aircraft remain excellent, simply due to the pricing differences and the supply/demand dynamics of the international aircraftmarketplace, where pre-owned aircraft and engines are commoditized.
To discuss any of the possibilities, or to propose an investment idea or program for MOJAVE's consideration, opinion, or participation, please feel free to contact us at info@MojaveJet.com with particulars. All inquiries will be treated as confidential.
NOTE: MOJAVE does not offer, or solicit for the sale of securities of any kind to the general public, nor are we engaged in the business of giving financial, legal, tax or investment advice under any circumstances. As every investment involves certain risks, and because every investor's risk tolerance, sophistication, liquidity , portfolio requirements, capital appreciation and cash flow objectives and tax situation is unique and may be subject to change from time to time, any prospective participant in any program should always seek the advice of competent legal and/or investment counsel before embarking upon any investment strategy, and prior to committing any capital or assets to any investment, whether with MOJAVE or with any organization or entity. Any examples of transactions set forth on this post are offered for the purposes of illustration only, and do not purport to be indicative of specifically available investment opportunities or of specifically obtainable investment results. Each transactional situation is unique, and financial results can vary widely based upon a variety of economic factors. MOJAVE is not a securities broker-dealer, investment banker, financial institution, or investment advisory firm, nor are we affiliated with any regulated financial institutions or intermediaries. MOJAVE is independently-owned, and is privately-held.
Investments and co-ventures with MOJAVE are generally put into special-purpose entities and may occur in several forms. Structures and terms vary in terms of availability and specific circumstances of each transaction. Some highly-simplified illustrative examples of the types of projects that become available are briefly profiled below:
*** An aircraft comes off-lease, and is immediately available for repurchase at 500,000 USD. With the injection of an additional 200,000 USD for refurbishment (as well as storage fees and the like), the same aircraft could be re-sold within six months at a price of 1,000,000 USD, representing a significiant yield on a short-term investment in inventory. In a case of this sort, MOJAVE would co-venture with an equity or short-term debt participant, which would share in the profit generated.
*** An aircraft comes off-lease, and MOJAVE finds an end-user (perhaps a foreign airline) which may wish to either 1) pay for the aircraft in installments, or 2) lease the aircraft over a four-year period. MOJAVE may be able to purchase the aircraft into its inventory for 2,000,000 USD, and receive a stream of installment payments from the debtor or lessee of 95,000 USD per month, for a total income stream of 4,500,000 USD per month, with a possible residual value at the end of the payment stream in the event that the lessee chooses to purchase the aircraft at lease-end -- that amount is not even taken into effect here, but it could well represent a major lump-sum "equity bonus" at the end of a profitable payment stream. In a case like this one, MOJAVE may wish to co-venture the purchase of the aircraft (with a debt and/or an equity participant), administer the lease, and share the resultant annuity stream (as well as a portion of the residual "bonus" at lease-end) with the co-participant or participants.
*** A portfolio of leases can be purchased at an "all cash" cost (e.g., at a deep discount, to produce a high yield) from an illiquid seller/lessor by MOJAVE, resulting in a significant income stream (a monthly annuity), plus the benefit of re-acquisition or lump sum residual value at the end of each of the subject leases in the portfolio package. In a case like this one, MOJAVE would co-venture the purchase of the portfolio with an equity and/or debt participant, who would share in the income stream as well as a portion of the lease-end benefits. MANY SUBSTANTIAL FLEETS OF AIRCRAFT HAVE BEEN BUILT IN THIS EXACT MANNER.
- THE SAMPLE TRANSACTION WHICH FOLLOWS ILLUSTRATES HOW MARKET "DISTRESSED LEASE" OPPORTUNITIES CAN BE POSITIVELY AND PROFITABLY EXPLOITED...
***** A fleet of commercial aircraft is coming off-lease in eighteen months, and the lessee, a major U.S. airline, is paying a submarket lease rate based upon current (and anticipated) market conditions. The lessor wishes to divest itself of some of its aircraft assets in order to take advantage of another investment opportunity, and the fleet can be purchased for 250,000,000 USD, on an immediate, "all-cash" basis. Enduring eighteen months of post-acquisition cashflow (meager, but able to support debt service at current market rates), leads to a re-capitalized value of the fleet (in other words, at the then Net Present Value of the lease stream from new lessees on fresh leases at market rates) in excess of 375,000,000 USD. Simply put, eighteen months of patience and a tolerance for a minimal cash flow leads to substantial appreciation. In a case like this one, MOJAVE could share a portion of the gain with a capital co-venturer who is, in effect, acting as an "interest-only" lender for the balance of the existing lease term, and as a successful equity investor upon the maturity of the "loan". For the right co-participant, this is a very attractive scenario.
>>>The above situations represent only a few of the possible participation opportunities available to co-venturers in various MOJAVE projects. Transaction opportunities tend to be very short-fused, however, making ready liquidity and decisiveness essential for any participant. Generally speaking, ready liquidity and good intelligence are rewarded with tremendous returns on investments in MOJAVE's commercial aircraft re-sale marketplace. Also, because of the different purchaser/lessee market demographics (especially in dealing with non G-8 nations as lessees or purchasers), an aircraft transportation asset which would not command a particularly high price in the United States or the U.K. would easily command a significantly higher price in a different country. Because of the dynamics of the commercial airline service business, fleets are always subject to adjustment due to changes in demand, scheduling and flight destinations, as well as liquidity and economic factors. MARKET ARBITRAGE and TIMELINESS are the keys to success in investing in this special field.
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>>>To explore opportunities for co-venture with MOJAVE, simply initiate a correspondence with us via email to info@MojaveJet.com. You will find us receptive and flexible in our thinking concerning economic proposals that make solid sense. MOJAVE BENEFITS BY THE PERCEIVED UNCERTAINTY AND CHALLENGES FACING THE MAJOR AIRLINES AND THE AIRLINE INDUSTRY -- IT OPENS THE GATEWAY TO TREMENDOUS OPPORTUNITIES FOR PARTIES WITH TECHNICAL EXPERTISE (MOJAVE JET GROUP, L.L.C.) AND FINANCIAL ACCESS (MOJAVE JET GROUP, L.L.C., AND ITS CO-VENTURE PARTICIPANTS). Contact us at www.Mojavejet.com.
Thank you for your interest in this post, and in learning more about MOJAVE.
All The Best In The New Year!
TEAM MOJAVE
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