Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Search this Thread Display Modes
Old 16-09-2013, 22:58   #1
Registered User

Join Date: Sep 2013
Posts: 2
profit possible from chartering catamaran?

I am selling my business and am considering paying cash for a 44 Lagoon and placing it into charter. It would need to be chartered in US waters initially for tax purposes. I would want to hire a captain during the peak season and keep it chartered as much as possible. I would use it during the slow season for my family an friends. Can anyone offer advice on the best location in Florida or the US Virgin Islands for this type of business? I don't need to be extremely profitable but I would like to cover the operating costs.
__________________

SailorBen is offline   Reply With Quote
Old 17-09-2013, 07:14   #2
Registered User
 
denverd0n's Avatar

Join Date: Jun 2008
Location: Tampa, FL
Posts: 4,082
Images: 6
Re: profit possible from chartering catamaran?

Good thing that you don't need to be "extremely profitable," because I don't think anyone is in the charter business! Indeed, many are happy to only ALMOST cover operating costs, never mind completely covering them.

I think it is going to be nearly a toss-up between Florida and the USVI for chartering revenues. There are very few charter businesses in the USVI, at least as compared to the BVI. In Florida you have chartering centers (if you want to call them that) on the East coast in the Ft. Lauderdale-Miami region, and on the West coast in the Tampa-Ft. Myers region. You might also consider that Chesapeake Bay region.

Good luck.
__________________

denverd0n is offline   Reply With Quote
Old 17-09-2013, 11:08   #3
Registered User

Join Date: Dec 2010
Location: W Carib
Boat: Wildcat 35, Hobie 33
Posts: 9,037
Ive been involved in the charter industry off and on since 1994, in several venues, both as a charter captain and as a boat owner, you can cover all or most of the operational costs, but owners rarely make any significant profit....thats what charter companies exist to do.

If you are looking for that capital investment to make income then this is not likely to do it. I would put it in more traditional, and higher probability, income producing investments and let that income pay for a few charters each year. You dont get stuck w the depreciated asset in the end this way either.
belizesailor is offline   Reply With Quote
Old 17-09-2013, 11:40   #4
Registered User
 
Rubikoop's Avatar

Join Date: Feb 2007
Location: St Thomas USVI
Boat: Freedom Express 39 cat ketch
Posts: 751
If you want to end up with a small fortune in the charter business you need to start with a large fortune.
Rubikoop is offline   Reply With Quote
Old 17-09-2013, 12:02   #5
֍֎֍֎֍֎֍֎֍֎

Cruisers Forum Supporter

Join Date: Apr 2006
Posts: 13,886
Re: profit possible from chartering catamaran?

Ben, as you have no prior experience in the charter business and profit depends completely on successfully starting and running a whole new line of business for you, the odds are it won't work.

Your best bet is to invest in buying a boat that is part of a charter fleet, like Moorings, and they'll be glad to show you the numbers and how much or how little money might stay in your hands.

Managers, booking agents, captain, commercial insurance, maintenance schedules...every one of the is going to cost more and be less reliable than you might think, unless you are very lucky, or very experienced. There's also a lot of competition in every established market.
hellosailor is offline   Reply With Quote
Old 18-09-2013, 04:48   #6
Registered User

Join Date: Oct 2012
Location: In the hills south of Nelson, NZ
Posts: 82
Re: profit possible from chartering catamaran?

Instead of buying a $200,000 nice charterable boat, buy a $200,000 home somewhere and rent it then use the rental income to pay for a bit of sailing.
Kiwi303 is offline   Reply With Quote
Old 18-09-2013, 04:59   #7
Registered User

Join Date: May 2006
Location: Queensland, Australia
Boat: Maxim 38 ft catamaran
Posts: 247
Re: profit possible from chartering catamaran?

Ben, yes it is being done,can guarantee 2 k per week -your welcome to come visit.Cheers Geoff.
Jacana is offline   Reply With Quote
Old 18-09-2013, 05:18   #8
Registered User
 
denverd0n's Avatar

Join Date: Jun 2008
Location: Tampa, FL
Posts: 4,082
Images: 6
Re: profit possible from chartering catamaran?

Quote:
Originally Posted by hellosailor View Post
Moorings [will] be glad to show you the numbers and how much or how little money might stay in your hands.
I think "might" is the operative word here. They will show you how, after five years of chartering, you can sell the boat for enough to make a bit of profit. Of course, they're just taking a wild guess as to what they think the boat will sell for at the end of the charter term. No way are they going to give you any guarantees on that. And the charter boat owners that I've talked to in the last several years, pretty much to a man, found that they couldn't sell their boat for anything close to what they were told it would be worth, back when they first bought it.

Quote:
Originally Posted by Jacana View Post
Ben, yes it is being done,can guarantee 2 k per week -your welcome to come visit.Cheers Geoff.
Yeah. Right. And I is Nigerian Prince. Needing to transfer many millions dollars out to safe bank. Preferring your country. You are helping me and I paying you 10 percentage of moneys. Only to send me your bank account information and me put money in so to show my sincerities.
denverd0n is offline   Reply With Quote
Old 18-09-2013, 11:39   #9
֍֎֍֎֍֎֍֎֍֎

Cruisers Forum Supporter

Join Date: Apr 2006
Posts: 13,886
Re: profit possible from chartering catamaran?

"Instead of buying a $200,000 nice charterable boat, buy a $200,000 home somewhere and rent it then use the rental income to pay for a bit of sailing. "

Sounds like someone missed the recent post about some cruisers who basically did just that. And recently found out the tenant started an illegal grow farm in the house, burned it down, and now their boat maybe seized because their home insurance company is not paying for the house, which no longer generates rent, because the fire was the result of criminal activity.

So much for guarantees.
hellosailor is offline   Reply With Quote
Old 18-09-2013, 15:04   #10
Registered User

Join Date: Dec 2010
Location: W Carib
Boat: Wildcat 35, Hobie 33
Posts: 9,037
Quote:
Originally Posted by hellosailor View Post
"Instead of buying a $200,000 nice charterable boat, buy a $200,000 home somewhere and rent it then use the rental income to pay for a bit of sailing. "

Sounds like someone missed the recent post about some cruisers who basically did just that. And recently found out the tenant started an illegal grow farm in the house, burned it down, and now their boat maybe seized because their home insurance company is not paying for the house, which no longer generates rent, because the fire was the result of criminal activity.

So much for guarantees.
Certainly an exception, not the norm. There are no guarantees in life, but by that logic no one should ever set foot on a sail boat because some sink...much less buy one.
belizesailor is offline   Reply With Quote
Old 18-09-2013, 15:09   #11
Registered User

Join Date: Dec 2010
Location: W Carib
Boat: Wildcat 35, Hobie 33
Posts: 9,037
Quote:
Originally Posted by Jacana View Post
Ben, yes it is being done,can guarantee 2 k per week -your welcome to come visit.Cheers Geoff.
Really, guaranteed net 2K profit per charter over the entire charter contract peroid, willing to put that in writting in a contract with a USA law venue?
belizesailor is offline   Reply With Quote
Old 18-09-2013, 17:42   #12
֍֎֍֎֍֎֍֎֍֎

Cruisers Forum Supporter

Join Date: Apr 2006
Posts: 13,886
Re: profit possible from chartering catamaran?

Agreed. But an absentee landlord who is new to the business, can find out fast that tenants, property managers, midnight calls about the heater going out or the roof leaking, missed rent payments...all can explain why the profit rates are higher than they are on CDs. Sometimes. And then if the tenants skip town, or simply move out, most properties will sit empty for a month while they are being cleaned and repainted, often two or three months until they are rented again. Zero income and just expenses during that time, just like an unbooked charter boat.

Going into any capitol-intensive business without experience is a good way to lose money. Which is actually a very good thing, because it means someone else is going to get that money.
hellosailor is offline   Reply With Quote
Old 19-09-2013, 04:41   #13
Registered User

Join Date: May 2006
Location: Queensland, Australia
Boat: Maxim 38 ft catamaran
Posts: 247
Re: profit possible from chartering catamaran?

Quote:
Originally Posted by belizesailor View Post
Really, guaranteed net 2K profit per charter over the entire charter contract peroid, willing to put that in writting in a contract with a USA law venue?
What's "peroid"and what's 'writting".?????? your obviously on top of the game.

Guess you have a very productive life and know all the ins and outs of Chartering Boats and running a successful business so this doesn't apply to you.
If not,pay attention and as a bonus you may learn how to spell properly.
Today's Charters from my log."That's that thingamajig that you have on your boat that you already obviously know about".
9.30 AM 10 pax I hour champagne sailing tour.
10.30 AM 12 pax ditto
11.30 AM 15 pax ditto
3.30PM 8 pax ditto
5.00 PM 17 Pax sunset sailing tour.
Currently into my 7th year of doing sailing tours,a job that I love,sailing everyday and getting paid for it. Every year the bookings keep going up and up and I often have to hire other Catamarans to assist with the increased booking numbers.The biggest group so far was 126 pax for a corporate sailing day.Had 8 Catamarans organized for that day.
Don't particularly want to expand, its just getting to the stage where an extra vessels would be financially viable,hence the post re- having a paying boat in charter.
Someone mentioned on an earlier post "Nigerian Prince".
No mate,just a hard working Aussie guy who loves what he does.
Been a member for a long while ,had my Cat for 9 years,sail almost every day,just about to tick over 5000 hrs on my 3gm 30s ,do all my own service and maintenance.Please check out my website gold coast sailing.
Its quite amazing the number of email bookings I receive from Europe,England and America for people coming over here on holidays who want a sailing tour.
Yes ,if your willing to look after your guests and treat all with respect you can successfully charter your boat.
Cheers
Geoff
Jacana is offline   Reply With Quote
Old 19-09-2013, 04:46   #14
Registered User

Join Date: Dec 2010
Location: W Carib
Boat: Wildcat 35, Hobie 33
Posts: 9,037
I'll take that as a "no".
belizesailor is offline   Reply With Quote
Old 19-09-2013, 04:49   #15
Senior Cruiser
 
GordMay's Avatar

Cruisers Forum Supporter

Join Date: Mar 2003
Location: Thunder Bay, Ontario - 48-29N x 89-20W
Boat: (Cruiser Living On Dirt)
Posts: 32,274
Images: 240
Re: profit possible from chartering catamaran?

Greetings and welcome aboard the CF, Ben.
__________________

__________________
Gord May
"If you didn't have the time or money to do it right in the first place, when will you get the time/$ to fix it?"



GordMay is offline   Reply With Quote
Reply

Tags
catamaran, charter

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is Off
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off




Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 21:32.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.