Kevin Why don't you use Flexjet or Net Jets Oh My God. Dude, you want to see me get absolutely reamed and ripped off and we're talking $250,000 for every thing you want to do on these Stan things. It's a ripoff. You want to put on Starlink that'll be 250.

You want to put in a coffee maker that'll be 250. You want to reskin the wood on the inside? that'll be 250. You want to redo the upholstery in the carpet? That'll be 250. So this video that you're about to watch right here is depicting what it's really like to own a private jet.

You see some the the good uh no, you don't see a lot of the full picture. but with us here, we have Mr Kevin Paffrath Mr Meet Kevin who actually owns a private jet and is here to tell us the full story. Ose it all, expose what is he getting right? What is he getting wrong in the full picture of what it's actually like to own a private jet? Interesting. Okay, well let's play it and we'll sort of just pause it as as we go through it now.

Uh, keep in mind uh, did did they actually end up buying the jet? No, they went to a a jet store. Oh okay. okay okay so there's this guy that's been going viral on on um uh Tik Tok uh who sells Jets I Think he's like in London or the United Kingdom or something like that And he's actually brilliant in that he he has this like massive like electronic display and uh and he can just put stuff on this display to show them Oh the distance of how far your plane could go and it's it's fantastic. I Wish I had that experience when I was buying a plane because I was literally flying around the country to go visit different planes to see what the different planes were like.

Yeah, it's in this video too. You'll see this in this video. Let's let's listen in. So here we go.

Upon entering my my favorite phrase is time is money Buy a jet. So I mean it really is. The whole bases own an airplane I'm always saying you know it's not about luxury. it's really about it.

It like for again, for 99% of people, it's all about luxury. They're they're walking in there trying to justify their plane. That's what they're doing. time machine and being a capital asset to accompany to accompany this true Club room where sometimes like right now you know we have a A in in the main Studio there and so if we really want to I have another video W here that I can do another presentation on.

however this one I can't do the full FL plan of all the airplanes and I'll show you I'll take you through the app on that wall cuz it's just much more effective. It's one of these experiential Journeys if you want to call it that. if you're really interested in trying to buy an airplane this it's an unbelievable tool. So this is a little bit more of a private um kind of atmosphere.

I know it's an ashtray there do you guys smok in here? You can do whatever you want in here. Classic sales guy by the way. Classic sales I mean I Love it And you can see I own one of these little uh uh, a little displays after you buy a plane in the industry. Uh, it's very common that the salesperson will get your exact paint job uh, for your plane with your tail number paint and they give it to you as a closing gift.

It takes like three to six months to actually get it, but uh, it's it's pretty cool. And I have one for mine and it is. It's a fantastic closing gift. It's a very, very good closing gift.

cross-section of of the aircraft I didn't really buy build this thing in here? put it in the front window really to sell air, buses or blowings. The real reason was obviously it's a a marketing gimmick to catch the people's eyes and window here on. Park Lane Here at night how you seeet a good marketing little playy is this is really the money shot people. Come driving down this road and there's about.

well pre-o there was about 990,000 Vehicles every day going up and down here. about um, 40 people who own a jet every day pay passing through this window. Talk about preo numbers. So what we do is at night time we take this little advertisement or video and we put it over here.

So at night everything is black around here and then so when they drive down they see this little video in the window and then they see the airplane. Then they see inside the window. and if they have anything to do with corporate aircraft, normally they will find the time to come back here and and come inside. This guy's brilliant, Absolutely brilliant.

I Love this. Like these are just like the little efficiencies. I I Try my best to apply to everything I'm doing as well well. Can I do to make something just slightly more efficient? The fact that it just a click over that brilliant and you're already paying for like a great location might as well fully utilize that to like Market Brilant? Yeah, I mean 990,000 people passing a day? That's like that's like owning a YouTube channel.

Almost like you have 90,000 people watching. Yeah, that's his office right? So this is basically just a little Studio Okay models. What we do now is we have to figure out a a sensible way to filter the airplanes out that don't meet your parameters. Honestly, what would be the maximum maximum budget that you would want to spend 30 mil? Okay, do you want to have? Can we pause for a second? I This may be a Miss like I feel like most people that want to buy a jet have done their own research and say like I want this one.

They're not going to a broker to be sold on like a wide selection that people spending that amount of money on jet usually have done their own research like I want this one. Help me get it I guess it depends who it is, you know I I mean I did But there are definitely also people like I I wonder how much time tlor someone like Taylor Swift would spend? You know or like somebody who's got like billions of dollars. It's just like you know, Okay somebody else go figure it out for me. You know they don't even have time to make that decision so you probably have a duality there.

uh but uh yeah I mean somebody also by the way going in saying oh yeah, I'm going to spend $30 million this is like such perfect like delicious juice for YouTube because like you could just say oh yeah I'm going to spend $100 million on a jet and you make your video and you just like never actually buy a plane it's it's perfect. It's totally makes the census tingle for YouTube Let's keep going. Section: Two sections or three sections. There's four or five or six people in a section.

What do you think is be eight minimum eight minimum. So now we're down to 58. The next one is the maximum range. So the longest trip from A to B where do you think that would be five or six times a year? I'd say farest realis maybe Dubai to London this is the range that you can go non-stop Okay so anywhere in Europe this would have been very south.

AFA Well I I mean we we They give you this in brochures and stuff. it's just a different presentation like we we we for our mission profile for the plane that we have. we we knew exactly what we wanted which was West Coast America and he kind of sells it as like you know if you want to be able to get from London to Dubai you need at Le at least this plane but he doesn't mention like you could also just stop for gas anywhere. Correct and and so that is.

That is such a great Point Mikey Because H Here's the thing. his question was where do you what is the longest distance you want to go maybe four to six times a year? Okay, that's insane. Let me give you some real math here because we've done this math, we might go from California to Florida say extreme 50 times a year if I wanted to buy a plane. for that mission profile of doing 50 trips to Florida nonstop as opposed to stopping for gas once and then continuing going, it would cost me $20,000 per stop per year.

So every time you stop for 30 minutes to get gas, imagine writing a check for 20 grand and lighting it on fire. So the fact that he's trying to sell the plane on what are you going to rarely use keep in mind we're in like the we just passed the end of September we're in early October here. So 10 months we've done somewhere around what probably 250 flights on on the plane, 250 legs and we've stopped for gas. maybe 10 times if that.

I don't even know that we stopped 10 times. probably around 10? maybe? Okay, yeah, yeah, but I mean certainly not like I mean I mean what is that? That's 5% It's crazy. Like why why are you going to buy a bigger plane for 5% of the use case? That's insane because you're going to pay two or three times as much. But we started figuring out instead of making those fuel stops like a fuel stop, we started adding efficiency.

Like looking at real estate around the fuel because it takes about 20 to 30 minutes and you can see one or two properties in that time and come back. So we started adding little longer too. We add that efficiency into the fuel stop exactly like for example we go to Florida we'll stop in Austin Oh, which happens to be a market we're looking at for Real Estate Anyway, so it's perfect so it's really planning. You're right, can eliminate all of that Anyway, Uh, but anyway.

okay let's uh, let's keep going here and you can make it to Singapore However, this is with no wind right? So now this was the winds last week at 35,000 ft. So what this means is that you're going to be able to fly faster when you're going East and you're not going to be able to go as far on Range or it's going to take you longer when you're go in. West You can see that here you can make Singapore with all these airplanes. but if you were to start now in Singapore you watch this.

this is so you can see if I go to Singapore you are just barely. Matter of fact, if the winds get a little bit worse and get to 75 knots average, you're not going to make it back in that g280. One of the things people don't ever ask which they absolutely should ask is how much baggage can I put in my my airplane. You can see that this number is 6.4 cubic M of luggage and this is half and I can tell you this is a nightmare question.

Every time somebody has an airplane they never ask this question and this is the most important thing of every flight. Did you ask that question? Uh I I Actually did. Uh, but I don't know that it's the most important question I Like it when salespeople tell you this is what other people don't ask. In fact, when I sit sit down in a sales presentation I usually ask what am I not asking what am I missing right? It's a fair point to bring up, but uh, you know I I think What's surprising to me is we have a Phenom 300 plane and and we'll go through some of the numbers uh a Phenom 300E it's like a 2021 model.

The thing cost uh $12.9 million and uh I pay for it. It's not my. it's not like house hack my real estate startup. it doesn't pay a dime towards this.

but I actually just got my statement uh which will show show you how much uh, this plane has cost uh all year for the 10 months uh that we've had it so far and for the flights that we've done we could look at Fuel and all this sort of stuff. I'll tell you out of all of this stuff. uh, the baggage has really never been an issue like an unsolvable issue. and I've done trips with uh and this is a smaller plane.

done trips with a family ski trips we we have nine seats on the plane plus two pilots. Whole podcast setup goes in that spot. When we travel with the podcast setup, that's those are a lot of boxes like 18 Pelicans or something like that I don't know, it's something crazy. uh but anyway.

uh we have not had an issue. would it be nice to have even more room? of course. But I mean like are are you trying to plan for like this extreme or are you trying to plan for your daily use? But remember that you pay that back in fuel. Oh my Go! the more room you have, the more luggage you bring, the more it costs to get there.

Well not only that, the bigger the plane, the more fuel. So like think about like a G280, let's see what a G280 is. Fuel Burn is. So this, this is what What? he's what they're pulling up here.

Fuel Burn per hour. Everything in these planes is per hour. Uh so uh, you are looking at uh, let's see how many gallons an hour does it use? 237 So we're at about 165. so 237 divided 165.

Uh, this. Burns about 43% more fuel than our plane does. So let's now compare this. I'll pull this up.

uh in just a second here. Christian Give me uh, nothing for a second here. Let's me find this this and let's actually see how much uh Fuel and what our expenses have been. So go ahead and pull this up.

Here's a full breakdown of all of the expenses uh for our plane and you could see here are the September uh expenses and here on the right side are the uh annual so year-to-date expenses and so I looks like aircraft maintenance we're at about 42. I'll just focus on year on yearly figures. right now. 10,000 Well, 10,000 for the month? Oh I guess we just hit some more maintenance anyway.

$42,000 for the year. Jet Management: This is like a manager to manage the pilots and the service and and your rental cars and all that. Kind of like all the coordinating $64,000 charges just to use the little uh uh machine that actually turns your engines on for the plane. $2,000 you need those in the summer cuz it gets hot.

Well that's to run your AC but it's also to start your plane. It's bow and some of them suck. but uh, these right here are flight fees. Uh, for contract Pilots With $168,000 worth of contract pilot fees, three grand of health insurance, you've got uh.

warranty fees. Here these are like uh Embraer ECC fee. These are this is your your sort of a per hour you pay a fee. Uh, for warranty? Basically, Oh good.

We only paid $30 for deicing. we've never deced. So I Want to know why we have a $30 dicing charge here? Dicing is probably about 1,500 bucks per time for a Phenom and if they're low on the product, it could be as high as $8,000 just to di. Yeah, so you got to get in the hanger if you ever go in the snow.

Uh Embraer Uh okay, that's the the warranty. Uh, you've got uh engine warranty here. So I Like the engine programs, the maintenance programs $100,000 for 10 months of of engines fuel $282,000 Burned in fuel. That's like a burned in gas.

And so now if I had a bigger plane like that 280 for that rare time, you need to go a little further and don't want to stop. $282,000 times Uh, 43% in uh uh in this in this example here. So $282,000 Time: 43% would have cost me another $121,000 just to have a slightly larger plane. 280 has about the same number of seats.

Wow. Oh yeah, it's still a small plane. Yeah, same number of seats and you're paying uh, $100,000 more just in in gas. Why? Like you have to really analyze your mission profile when you look at these planes.

Hanger Rental: $34,000 Good Lord Insurance $35,000 Landing fees That's actually surprisingly low. $1,100 for landing fees. That's because if you buy a minimum number of fuel, they don't actually um, uh, charge you a landing fee I Wonder if those are the tips? Uh, tips are paying the guys' luggages and stuff. Maybe it could be that.

that's that could be under total pilot reimbursements which are $62,000 You forgot that line item. You have a smaller plane so you can land on smaller runways and those airports typically charge much Lower Landing fees than if you had a big one had to land in. San Francisco LAX All these bigger airports you want to get ripped off land in San Francisco I mean like that's the story of California though it's like San Francisco total ripoff. It's like $99.50 for a gallon of gas.

The service is bad. they don't care about you. you got to walk in which sounds first worldish but when you're carrying 20 bags, that's a pain in the ass. uh you know as opposed to you go to the smaller airports I went to Canada the cars right there they load up your luggage uh they'll the the the manager of the uh airport where we landed is like oh you can't fit all your luggage and your rental cars.

My apologies, we'll take my pickup truck and I'll follow you for the 45 minutes to get to your Airbnb and make sure you get all your luggage home safe a it was great they were so nice they're so accom I was I was cuz there was one rental car short I'm like freaking out trying to get you those rental car texting right? and then the our, the manage the our Airplane Manager is like hey they got it all taken care of and then I heard that story like wow like that's they're so good Yeah and that wasn't their fault, that was the rental car companies. But anyway, so uh, you could see some other things. Pilot Training $117,000 Pilot salary? that's I mean you add it all together. These pilot salaries for a year or way way higher than this.

but That's because we had contract for a while and stuff. Uh, you've got uh, and this is what? Nine months here. Ramp Parking Fees: $4,400 just to park outside. You don't even get a hanger.

You don't get coverage just for parking overnight. You're paying four grand. Uh, rent expense. Uh I Got to ask them what? what? I'm renting here because I don't know what.

Oh maybe that was the life raft. It was the life raft when we went to Puerto Rico to visit Peter Shift You need a raft. How long were you over the water? Like an hour and a half? Uh oh yeah. Look at this voice and data charges.

This is your internet. 69 ,000 for the internet. This is stupid. Airplanes are like so expensive.

Look at that. This sucker has cost me $1.3 million just to operate for the year That doesn't even include your mortgage on it when you have a loan. It's crazy. Anyway, let's go back to the video.

so let's Tab out of there for a sec. That's what's really like owning a jet. Yeah, that's when you actually own a jet rather than going to the sales office going. Yeah! I Want a $30 million plane? Oo Okay, let's keep playing the video.

So this is 100% scale. Okay, so I'm 6t I'm I'm 180 This is the exact size. That's cool. It's it's nice to be able to see that a lot of people.

they they really want to be able to stand all the way. but you're sitting most of the time. and that's the scam because in 2021 at the end of 2021 I was looking at the Prader 600 which you could roughly stand in. Beautiful plane.

Gorgeous! Uh and the Phenom 300E which I have. You can't stand in all you crouch to get through it, but you're sitting most of the time. Difference in price Mine 12.9 million Prader 6002 $4 million. Is it worth paying? You know 50% more on fuel cost? Uh, you know twice the cost for the plane? Basically probably not for those little things that's when you get into like the luxury like it's a ripoff, you know.

Hey, let's keep going. And so if I wanted to take let's say the seats on the Gulf Stream and compare it to the Challenger that's the difference in the aisle with it doesn't look like too big of a deal, you getting a little bit more aisle width. but really where you see the difference is when we look at the as a floor plan. So this this is 100% scale of the Gul stream 550 you got the kitchen door here, the galley door and most airplanes.

The front section has these four single seats. This is the really the normal setup. So the the G550 this is the what it looks like outside and this is what it looks like inside. You can see it's got those three sections.

This is the door that closes off and you got that bedroom back there and the bathroom behind it. This airplane's got for the class. It's got the biggest window. See how big that window is? Yeah, it's huge window.

This is twice the size of let's say the windows on the airlines up front you have. Ah, the sales guy. You know what he just said. these windows are twice the size of commercial.

Oh the comparison if you get a window seat on commercial. But it's funny. it's it's these. Sales presentations are designed to hit on pain points.

Oh, you want to be able to stand right? You don't want to run out of baggage space, do you? I Mean come on, it's they're They're all the like. It's not. It's not commercial. You know it's all designed.

Singapore You got to get there in one stop. Man, you can't You can't make a fuel stop you. What's? we didn't hear it I Mean maybe he said it, but we didn't hear it in the video Edit: There was no talk about fuel Stomp Like You said Mike Keep a really big kitchen. Flight attendant can prepare Anything you don't need a flight attendant.

You don't need a flight attendant. This is ridiculous. This is absolutely ridiculous. Just make one of your employees your flight attendant.

Yeah! Senor McKay Um, they can bring your food from Whole Foods Or you can get it from Harry's Bar or uh, you know, wherever you want it and it's you can get it from whatever your place you want, but it's nice when it's prepared fresh on the airplane. Let's say, this airplane, you're going to fly at 350 hours a year and you're going to pay $450 a gallon. Okay, that airplane is going to cost about $3.6 million a year to run it. Yep, Okay, which is about 10,000 an hour.

Really The main thing? there's three things you could do to Interior the soft goods. which is um I wish I could see all of it. He goes in a little more detail in just a minute. does he? He breaks down all the fabric.

whether it's the the side panels, the ceiling, the seats, the carpet, that kind of stuff. Then the other part is the color of the wood and then the other one is moving furniture around to move furniture around. Expensive. Very B Expensive? No, No, no like.

And listen, we have a joke on the plane. We have a joke. Anything you want to do on the plane is $250,000 Everything is $250 You want to put on Starlink That'll be$ 250. You want to put in a coffee maker that'll be 250.

You want to reskin the wood on the inside. That'll be 250. You want to redo the holer in the carpet. That'll be $250 And we're talking $250,000 for every fracking thing you want to do on these St things.

It's a ripoff. We don't even have a coffee maker. We have a coffee pot. It's a delicious coffee pot though.

The coffee pot's $155,000 Just the pot. It is the most expensive coffee pot that exists. It's an aviation coffee pot. $155,000 just for the canister and they take it inside and they brew the coffee inside.

and like the little wherever the airport is that you're in. uh and they fill it up and then you have coffee for your whole flight is coffeee is great. It stays warm, it's nice. 15K is crazy for a pot that's just a pot.

Wow, that's not even the whole unit. that's not the warming unit. I'm literally talking about the canister that holds the liquid when you remove that to go fill it up or wash it out in your kitchen sink. 15 grand for a little metal box? Jeez.

Nope. Okay going to redo engineering drawings I mean literally on a G550 Just to give you an idea, if you wanted to change this couch to two chairs, it would cost you about $400,000 What percentage of jet owners would you say? just genuinely have it for personal use or corporate use. 2/3 it's one one3 what did I say? Most people, it's just a luxury. It's not no the the and honestly I think it's even less than that I think it like I said it's like 99% I I think that's way too high I think very few people have it for personal use.

Wow, you have the opposite opinion said. the other one/ third is uh like Charter ples oh Charter she he mentions Charter So somebody asks in the comments: Kevin Why don't you use Flexjet or Netjets? Oh my God. Dude, you want to see me get absolutely reamed and ripped off? It's a very good question because a lot of people do ask me that I'll tell you why. uh and I'll make it quick.

So basically I I I did the math on this. Uh, Netrat is going to cost you about uh $122,000 an hour for a Fedom 300. but they're going to charge you 12 minutes on takeoff and land. So 12 minutes on takeoff and land is 24 minutes.

So 24 minutes if your average flight is 90 minutes, 24 out of 90 is about 26% of the time they're billing you for is take off and land. Okay, so why does that matter? Because that means if you have a flight hour and you're trying to compare flight hour, it's not actually $12,000 for a flight hour. It's actually 26% more for a flight hour. So now you have to go: $122,000 Time: 26% I've done all this math so many times.

it's about $155,000 per hour for Netjets. Okay, and I Love Netjets. They are a great company. They're great product.

If I was going to like if I just wanted to be bougie Uh, the way you would do this is you get uh, a 25-hour flight card with like Net Jets you spend you know, 300K or or whatever it is. uh, it might be closer to like 350 now. but whatever it is you, you get these Net Jets cards the 25 and remember the number they're selling you doesn't yet include the takeaway of those 12 minutes on each end anyway. so you get one of those cards and then you can be like oh yeah the occasional time I want to Charter a plane I could do that and then it's kind of like you just use the points So it's like going to dve Busters you spend $100 on the on the Reload card and then it's just kind of like oh yeah I want a flight and then you swipe it.

Okay, that works for like the bougie. You know, a few times a year you're going to go fly right? This does not work for us because I expect our flight time this year. uh, and next year will probably average 4 to 500 hours. Uh, which which is quite a lot of flying.

Isn't the average like 250? Uh, the average flight time for no I think that's like I think we were calculating like the break evens or whatever. like 250 or something to compare or whatever. But if we're at about 400 on average, our flight hours cost about $6,000 So if you consider that our flight hours cost about $6,000 that's less than half of the Net Jets per hour. And these are like my real actual hours, not their rigged hours.

If I fly 500 hours a year, which might is probably going to be likely next year if I fly sorry Pilots they're watching. Enjoy it now. Enjoy! Enjoy your next two weeks boys. Two weeks from now, they' be like, uh, we're giving two weeks notice.

We we have a shared calendar with the pilots when we update, uh, when we're flying, when we might be flying, when we're definitely flying, and like, might fly, might not fly, and then possibly possibly flying. And so they see when Kevin changes it, we have a two week span and Kevin has some life events going on that they're not going to be flying for a couple weeks. Enjoy it. So uh.

but anyway, if I fly most of the cost in owning a plane and people forget this is owning it, it's not in flying it. Most of the cost is I you you pay your pilot salaries, your insurances, your warranty programs, your uh, you know what. the maintenance The Hanger whatever right? All the fixed stuff, all the fixed costs. so the fixed costs for mine are around 1.9 If I fly at 400 hours, I'm about 2.3 to 2.4 in cost.

If I fly it 600 hours, 50% more, it only cost me 10% more. Wow, so it actually brings my cost. If I were to fly 600 hours, my cost per hour would go down to about 4,300 bucks. Allin So now when people like, why don't you use netjets I'm like cuz I don't want to get ripped off.

Yeah, it's simple. it's simple math. Okay, let's go back to the video here and uh, let's wrap this up. Thir of all airplanes are out on a charter for third party Charter cuz I Think that's probably one of the things that most people don't understand.

It's okay. Cool. Very nice. You bought your jet this that now you're down $3 million a year just to maintain it and upkeep it.

y Are you seeing that more and more jet owners are buying it? Understanding that? you know For example, my position I'm spending maybe $4 $500,000 a year on jet Charters You know why don't I buy a jet myself? Okay, what's hilarious about that And most people are not going to get this. but when he's like oh yeah, I spent four or $500,000 on jet Charters Bro, that's 30 hours. Unless you got a bigger plane, that might be like 15 hours. Okay, that's not impressive.

We flew over 250 hours just in the last 10 months. I'm not trying to compare, but I'm just saying you do not belong in this store. In fact, if I were the salesperson and somebody walked in going, well I just spent 400 Grand on jet Charters You know I Want to buy a jet I'd be like you shouldn't be in here. You should never buy your own plane unless you're flying at least 200 hours and prove it.

Try it. Go get the jet card and prove that you maxed it out anyway. Keep going and then why don't I Charter it out in the meantime. Well, that is a great question.

That's when you can't afford it. Sorry when you have to Charter out your plane and other people are up your jet, it's cuz you can't afford it. Want to Airbnb My plane. So I can make the payments Question: When you're operating.

when you have an airplane, the budget is broken up in two things. You got fixed cost and you have variable cost. Fixed cost is what you have to pay whether you fly 1 hour or 400 hours. Okay, it's the pilot salaries.

It's insurance. It's the hanger. All those things. whether you move the airplane, not, you pay and then every hour you fly it, you have fuel.

Landing Fees Catering Pilots Hotels Euro Control all that. People Don't realize that you actually are paying if you stay overnight. The pilots need to stay somewhere. they are.

You're paying for a hotel, You're paying for lunch. You're paying for dinner that's not included in the pilot salary. The owner has to pay that. Yeah, and and the pilots are brilliant because they'll They'll like always book Marriotts So they're like Marriott Platinum or whatever like the highest level is and they take all the points.

I'm like, hey, when when do I get my points I'm paying for it. Let's keep going. The variable cost per hour is $5,700 So if you flying $400 a year, it cost you 4,000 an hour fixed cost plus 50. So it's $99,500 an hour.

But if you start flying more hours, then this is less per hour. So it's cheaper to fly per hour the more you fly it. Yes, if you're able to Charter this airplane for 12,000 an hour dollars we're talking about and every hour is costing you half that. That means you're making $6,000 an hour profit not incl.

fix Quest if you can, uh chared the airplane reminder. It's worth noting that the more hours the plane has, the less the value the plane has. So you do have depreciation which is not factoring in here, but maybe some would say that's a smaller D And then you have to do your maintenance once engine engines hit a certain hour. So then you have down time.

Uh, yes, you know. Honestly, that's actually a good point. Downtime is a pain in the butt with the plan. Expensive downtime.

Well yeah, cuz you can't function when it's down. All right, let's keep going. now. for 20 hours, that's 200 * 6 you're making a profit of $1.2 million that comes off of this.

And now. your fixed cost are only 400,000 So if you're flying now, this is how to sell a Plane By the way, if you're going to sell a plane, you tell them how you can Airbnb it. That's why real estate prices went up half to 200 hours and you're and you're renting enough 200 hours. If you get this to 400,000 and you're flying2 200 hours a year, it's $2,000 an hour plus this.

So now it's costing you 7500 an hour and the more you fly it, the cheaper it gets. You'll say well, I can go rent it out 300 hours a year you can but you know every other day you're G To get a phone call you have to give owner approval and you're going to say well, who is it you know I just did the interior I I Don't want them to have red wine I Don't want them to smoke I Don't want them to have a dog I Don't want them to have a coffee Yeah cuz they're going to split on the carpet and on a Gulf Stream replace the C carpet. it's $70,000 So or if you have, you know a kid who's chartering the plane he has a Sharpie and he oh Mommy Mommy and right across the wall on the Suede and you know you're not going to get it out so you have to replace the P You know these kind of things are are inconvenient. Yeah, that was great.

That's a good point because like you see these influencers with like their feet on the uphol stre, it's like those are not those influencers Jets like they are chartering them, somebody will be paying for those feet marks on the Upholstery And so when you rent it out, it's just like you're at anybody's Well, it's also worth remembering that there is competition in jet chartering. People Like: why am I going to go fly Imom's jet uh, as a charter when I could go to Netjet where Netjets has a fleet of hundreds of planes and they have a reputation to protect. So if if you're charging the same as Netjets, if they're charging 12K an hour and you're charging 12K an hour, why would I go to an unknown plane owner compared to a corporation? Because here's the thing. plane owners are notorious for skimping on maintenance, whereas corporations are not.

because the corporations have to. You know, I mean they they have to. They're liable to their shareholders. If they're screwing up on maintenance, you can destroy the entire company.

Whereas a home you know an individual owner is just like, ah, it's just one plane, you know? So yeah, all right. I Want to ask you the question Everybody's wondering, why do you have a jet Oh yeah, what is the reason and why can't you just take commercial right? right? So so uh, my media business so Meet Kevin pays for the plane uh and that's the that's a YouTube channel house hack. My real estate startup has paid zero towards the plane. We're keeping it that way as well.

I mean there's there's no expectation to ever change that. uh the uh, the other businesses or ETF or whatever nobody pays for the Kevin pays for the plane. We want to make that very clear. why do I pay for the plane I pay for the plane Because I want to be the best CEO ever and in my opinion, if I'm running multiple companies.

so I have to be here in a podcast set I have to be in my morning Studio set I have to be in Salt Lake in the afternoon and then I have to be back for podcast I can only do that with a plane like this and you guys have seen it I mean what? What has your experience been Mck and over this last tell tell us some of your days you would not be able to operate like like so I go probably on 75% of the trips. the other 25% we still have a team. we still have multiple like multiple companies we running here. I don't go on every flight but I go on 75% of them and like in the morning Kevin's media business is the priority.

then he goes okay. House Sack Real Estate Okay, he has some ETF things he has to answer. Okay, he has some other meetings with some other businesses that are in development. You could not have that.

I Don't even want to say luxury. it is a it is very much a tool we don't get to go. Oh who gets to go on the private jet? It's like okay everybody has their iPads cuz they're working on a project. there's always something being done and if you're factoring, if you take that time that you're saving with a jet and you were to put that going through TSA going through security.

oh your bag got lost Now you have to wait at the baggage checking for for two hours you you the amount of time that we save and that's not the excuse we use, but it increases our productivity to be able to run these businesses to allow you to be the best. CEO To house act shareholders, it allows you to be the best CEO for your employees and it allows you to be the best dad. You can be for your kids to be at home to talk in at night after flying to three different different states. That's also true.

Yeah I mean we're about to double our children at home from 2 to 4 and then maybe some more next year not going wi uh but anyway yeah I mean it's it's wild I would not have uh decided to create the real estate startup House Saac if if I didn't have this because I would have had to have dumped my other business ideas because then like the amount of time it takes to operate house Haack is is it's a lot and I'm willing to dedicate that time. but I I don't have the time to sit at an airport four times a week and then never see my family because then I'm not living then I'm a slave. Yeah and and I will always give every ounce of commitment that my companies need. They're my babies.

but uh, it wouldn't be possible without the plan. And if you're like as a House Act investor if you're a House Act investor. Listening to this obviously if you're interested, go to the website. read the circular.

Very important. There's always risks into investing into startups Housec investors are getting The Best of Both Worlds They're getting you dedicating every hour possible to house hack while still getting the benefits of a jet that they're not paying for such a huge benefit of being an investor. the company is not paying for the jet like Kevin says it. But as the person that makes sure that Kevin is doing everything he's saying he doing he's no House Act does not pay any jet costs.

It is phenomenal. Yeah, this is phenomenal. Yeah, phenomenal. Just like the feedom 300.