Situation Breakdown:

A couple of brokers contact you claiming to represent a client/end-user who wants a Cessna Caravan 208B on a Dry Lease. You personally know of a Caravan available from a trusted owner.

Step-by-Step:

1. Initial Broker Vetting
   1. Have the brokers sign ABA’s KYB (Know Your Broker) Form.
   2. Secure Non-Disclosure Agreements (NDAs) and confirm their roles.
   3. Get a Mandate or Intermediary Agreement in writing.
2. Client Vetting
   1. You request KYC (Know Your Client) documentation from the Lessee.
   2. Collect financials, client declaration, and references.
3. Lease Pricing & Structure
   1. Net price from aircraft owner: $17,000/month for 36 months.
   2. You add a $2,000/month commission for yourself.
   3. Brokers add another $2,000/month (split evenly between them).
   4. Final presented price to Lessee: $21,000/month.
4. Communication Breakdown
   1. Brokers attempt to control all communication with the Lessee.
   2. You assert control and clarify: introduction has been made, now direct brokerto-Lessee contact is essential for accurate, efficient communication.
   3. You agree to copy them in emails but retain primary control.
5. Proposal Documents
   1. Draft and submit a Letter of Intent (LOI) with an incorporated Lease Proposal.
   2. Clearly outline lease terms, maintenance reserves, insurance obligations, and payment procedures.
   3. Include optional services: livery painting and ferry flight quotations (with your own markup).
6. Payment & Commission Handling
   1. If operating through your company, the Lessee pays your company.
   2. You deduct your commission and the broker commissions before passing the net amount to the aircraft owner.
   3. You also add a small markup to the ferry flight for time, effort, and coordination.