Living Above The Clouds Closing Deals

As a real estate lawyer working with some of the most successful individuals in the industry, I’ve gained a unique perspective on how the ultra-wealthy manage their assets. A common theme among many of my clients is the use of private jets—not just as a symbol of luxury, but as a practical tool for their real estate operations. While I don’t own a jet myself, I’m intimately familiar with the many advantages they offer to real estate investors who seem to spend just as much time in the air as they do on the ground.

The Cost of Flying Private

Owning a private jet comes with significant upfront and ongoing costs. Jets range from $5 million to over $60 million depending on size and capacity, with smaller jets seating 6 to 8 passengers and larger, ultra-long-range models accommodating up to 19 passengers.

Beyond the purchase price, expenses include pilot and crew salaries (ranging from $80,000 to $200,000 annually), fuel costs (which can reach $50,000 for long flights), maintenance (from $500,000 to $1 million per year), and hangar fees (up to $100,000 annually). Additionally, insurance costs range from $50,000 to $500,000 a year, depending on usage and the jet's value.

These expenses add up quickly, but for those who rely on private jets for business, they view it as a valuable investment in time and flexibility.

The Luxury of the Interior

The interiors of these jets reflect the owner's personal taste and needs. While some clients prefer to keep things minimalist and business-focused, others go all out, transforming their jets into flying luxury suites. Private bedrooms, full bathrooms with showers, gourmet kitchens, and plush leather seating areas are common features. Many jets are also equipped with high-speed Wi-Fi, allowing investors to manage deals and communications from 35,000 feet.

For real estate investors, the jet often doubles as a mobile office. With quiet, private spaces to make calls, hold meetings, or review contracts, it’s an extension of their work environment. The ability to relax or sleep on longer flights ensures they arrive at their next destination fresh and ready to tackle their next project.

The Tax Benefits: Writing Off the Jet

One of the lesser-known advantages of owning a private jet is the potential tax benefits. For real estate investors, this is a particularly attractive aspect. The tax code allows for the depreciation of business assets—including private jets—under certain conditions. This means that a jet, when used for business purposes, can be written off over time, providing a substantial tax deduction.

• Bonus Depreciation: One major tax benefit is the ability to claim, "bonus depreciation." Under current U.S. tax law, business owners can write off up to 100% of the cost of the jet in the first year of ownership if the aircraft is used primarily for business purposes. This accelerated depreciation allows real estate investors to significantly reduce their tax liability, potentially saving millions in taxes. However, there are strict rules around this, and the jet must be used predominantly for business to qualify.
• Operating Expenses: In addition to depreciation, many of the costs associated with operating a private jet—such as fuel, maintenance, crew salaries, and insurance—can also be deducted as business expenses, provided the jet is being used for legitimate business purposes. For clients flying between properties, attending real estate conferences, or meeting with investors, these deductions can further reduce their overall tax burden.
• Mixed-Use Considerations: Many of my clients use their jets for both business and personal reasons. In these cases, the IRS requires detailed documentation to differentiate between business and personal usage. While the business portion of the jet’s use can be written off, any personal use must be excluded. This is where careful accounting and record-keeping come into play—something my clients are well-versed in.

The tax benefits associated with private jet ownership make them even more appealing for high-income real estate investors. While the upfront cost of purchasing a jet is substantial, the ability to write off the jet’s cost through depreciation, as well as deducting operating expenses, can offset some of those financial burdens.

Why Private Jets Matter in Real Estate

For my clients in real estate, the time saved by flying private is invaluable. Commercial flights, with their delays, security lines, and lack of flexibility, simply aren’t feasible when you need to be in multiple places within a short period. Private jets allow my clients to tour properties across the country or even the world, attend meetings with investors, and negotiate deals in person—all in the span of a single day.

One prominent example is Grant Cardone , a well-known real estate investor and CEO of Cardone Capital , who often uses his Gulfstream Aerospace G650ER to finalize deals. In one instance, he secured a $189 million real estate deal by flying directly to Houston when traditional communication efforts stalled. Cardone emphasizes how the flexibility of owning a jet allows him to act quickly and build relationships with clients face-to-face, a competitive edge in the fast-moving real estate world.

Real estate deals often require discretion. Flying on commercial airlines exposes high-profile transactions to unwanted attention. With a private jet, real estate investors can discuss sensitive financial details, review confidential contracts, and make business decisions without prying eyes.

Alternatives to Full Ownership

Not every real estate investor I work with owns their jet outright. Many prefer fractional ownership, where they purchase a share of a jet and split the usage with other owners, or jet memberships, where they pay for access to a fleet without the overhead of full ownership. These options provide much of the flexibility of full ownership without the massive upfront costs or maintenance responsibilities.

For example, programs like NetJets allow clients to purchase a share of a jet, granting them access to a private aircraft whenever they need it. This model allows real estate investors to fly private without the long-term financial commitment of outright ownership, while still enjoying the tax deductions related to business use.

Conclusion: Flying Above and Beyond

For the high-powered real estate investors I work with, private jets are more than just a luxury—they are vital business tools. While the costs of ownership can be steep, the tax advantages and the ability to maximize efficiency in a fast-paced industry make private jet travel a strategic investment.

Whether it’s the time saved, the privacy afforded, or the ability to capitalize on tax benefits, private jets provide an edge in an industry where every second counts. While I may not spend my days living in the clouds, I see why my clients embrace this lifestyle—flying private gives them the freedom and flexibility to take their businesses to new heights, quite literally.

Similar Posts:

?? Living Above Everyone In Manhattan

?? Living Above Whole Foods Market!

?? Living On Top Of Costco?