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Old 15-09-2011, 19:14   #1
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Carry Paper . . . or Rent-to-Own Option . . .

Hello Everyone,

I have had my eye on a few boats recently via CL that are just not selling. Because I have just started a new job, and am finishing off my student loans...I cant go to the bank now for financing.

My question is, if YOU were the boat seller, selling your vessel for 12,500.....and I offered you 15,000......but

2000 Downpayment.
1000.00 per month until the 15,000 was paid off. (about a year)

Would you tell me to where to go?

My plan is to ask the seller to essentially become my "Landlord" the boat legally remains his and I am "renting" it. If I ever miss a payment he gets his boat back.

He gets MORE then his asking price (3000.00) and I get my boat.

Thoughts? Ideas? am I crazy!?
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Old 15-09-2011, 19:16   #2
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Re: Carry Paper....or rent to own option....

Not a chance in hell.
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Old 15-09-2011, 19:36   #3
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Re: Carry Paper....or rent to own option....

The difficulty for the seller/landlord is 'what if' you and the boat both disappear after making the initial 2k payment? There have been some previous threads discussing a scenario like this.
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Old 15-09-2011, 19:38   #4
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Re: Carry Paper....or rent to own option....

Quote:
Originally Posted by RigelKent View Post
The difficulty for the seller/landlord is 'what if' you and the boat both disappear after making the initial 2k payment? There have been some previous threads discussing a scenario like this.
For sure, I guess other then showing him my contract at a local school and giving him my passport....there is no real way to prevent that.
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Old 15-09-2011, 20:06   #5
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Re: Carry Paper . . . or Rent-to-Own Option . . .

People hold the notes on homes all the tim, why not a boat.

ASK the seller..
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Old 15-09-2011, 20:09   #6
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Re: Carry Paper . . . or Rent-to-Own Option . . .

It is rarely done in the boating market that you can "rent to own." For the reasons others have mentioned - boats are too easy to "get lost" and the owner never sees the rest of his money. Then there is the insurance problem - how to insure the boat owned by a third party.
- - So long as you are only looking for a boat less than 30 feet and preferably in the 20-25 ft range, they can be had for very little money and even virtually free. As mentioned in other threads, there is no end of abandoned and marina/boatyard abandoned boats that can be purchased for pennies on the dollar.
- - They are even available from the US Government confiscated boats auction sales which are held all over the USA.
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Old 15-09-2011, 20:09   #7
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Re: Carry Paper . . . or Rent-to-Own Option . . .

Quote:
Originally Posted by Unicorn Dreams View Post
People hold the notes on homes all the tim, why not a boat.

ASK the seller..
Thanks...I will for sure...just wanted to see if the community had any thoughts/ideas/experiences
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Old 15-09-2011, 20:15   #8
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The worst thing they can say is no. If you lower your looking price to half that you'll have a better go at it.
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Old 15-09-2011, 21:59   #9
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Re: Carry Paper . . . or Rent-to-Own Option . . .

Quote:
Originally Posted by Nomdaica View Post
Hello Everyone,

I have had my eye on a few boats recently via CL that are just not selling. Because I have just started a new job, and am finishing off my student loans...I cant go to the bank now for financing.

My question is, if YOU were the boat seller, selling your vessel for 12,500.....and I offered you 15,000......but

2000 Downpayment.
1000.00 per month until the 15,000 was paid off. (about a year)

Would you tell me to where to go?

My plan is to ask the seller to essentially become my "Landlord" the boat legally remains his and I am "renting" it. If I ever miss a payment he gets his boat back.

He gets MORE then his asking price (3000.00) and I get my boat.

Thoughts? Ideas? am I crazy!?
Dont say that if you miss one payment that he could get it back,thats not fair to you ..say maybe 3 consecutive payments.But its been said you can get a boat for little or nothing if you look real hard..good luck
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Old 15-09-2011, 22:13   #10
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See that you are in Portland , I know where there is a 30ft sloop , on the hard for next to nothing , and I bet the guy would take payments on it.
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Old 15-09-2011, 22:57   #11
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Re: Carry Paper . . . or Rent-to-Own Option . . .

Your plan could work as it is a buyers market at the moment,did mine with 50 % down and the balance in a yrs time and insured it under both our names
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Old 15-09-2011, 23:11   #12
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Re: Carry Paper . . . or Rent-to-Own Option . . .

In any business deal everything is negotiable, so why not this?
It's dumb to think that because it's unconventional it won't work.
Just don't sell your end short.
He is expecting offers to be lower than his asking price, so at best offer his asking price with your creative financing arrangement instead of a low ball offer.
Also, to ease his mind about you running off with a $2,000 boat, if you have a father, brother, sister, uncle etc who trusts you and would go guarantor that might sweeten the deal just enough to swing it.
But, as others have said, make sure there isn't a desperation sale you could get a real bargain with.
Someone in a bad way might just go for a couple of grand now and a grand a month, could be just what he needs until he finds a job again etc etc...
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Old 16-09-2011, 03:26   #13
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Re: Carry Paper . . . or Rent-to-Own Option . . .

Banks just aren't lending right now and seller financing seems to be one of the only ways that older higher value boats are going to sell.

You just need to ask the seller if they would consider this.

Also It all depends on the overall picture. I would consider something like that as a seller only if I were totally comfortable with the buyer and they had strong ties to the community, a decent credit rating, well employed and multiple verifiable local references among other things.

Believe me we are looking to move up to a larger boat and we are having a hard time with older boat financing through traditional channels... I can get a new boat financed easily but anything older than 10 years seems impossible right now. And as a family we are not quite there yet to commit to a $500K boat...

Let me give you an example that I have considered:

I would be very likely to consider seller financing our boat if the potential buyer was a family who owned their home for longer than three years, is looking to buy a boat for occasional cruising and weekends and they have a reasonable credit rating.

I would not likely seller finance to someone that is looking for a cheap liveaboard and for extended cruising or to "just get away".

For less than $20K I wouldn't be likely to finance it without 50% down and the payoff in 12 months. For larger amounts I'd want 20% down and I'd be looking at a 10 year amortization with a 5 year balloon.
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Old 17-09-2011, 16:40   #14
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Re: Carry Paper . . . or Rent-to-Own Option . . .

Quote:
Originally Posted by offline View Post
Banks just aren't lending right now and seller financing seems to be one of the only ways that older higher value boats are going to sell.

You just need to ask the seller if they would consider this.

Also It all depends on the overall picture. I would consider something like that as a seller only if I were totally comfortable with the buyer and they had strong ties to the community, a decent credit rating, well employed and multiple verifiable local references among other things.

Believe me we are looking to move up to a larger boat and we are having a hard time with older boat financing through traditional channels... I can get a new boat financed easily but anything older than 10 years seems impossible right now. And as a family we are not quite there yet to commit to a $500K boat...

Let me give you an example that I have considered:

I would be very likely to consider seller financing our boat if the potential buyer was a family who owned their home for longer than three years, is looking to buy a boat for occasional cruising and weekends and they have a reasonable credit rating.

I would not likely seller finance to someone that is looking for a cheap liveaboard and for extended cruising or to "just get away".

For less than $20K I wouldn't be likely to finance it without 50% down and the payoff in 12 months. For larger amounts I'd want 20% down and I'd be looking at a 10 year amortization with a 5 year balloon.
Thanks very much! These are good thoughts.
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Old 17-09-2011, 17:04   #15
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Re: Carry Paper . . . or Rent-to-Own Option . . .

in this market maybe... might work... winter is coming and the seller's expenses continue on. As a seller I would prefer carrying paper... and try just offering full price, everyone else is going to deduct 30%.... heck, worst case he gets a few thousand in his pocket. on the other hand, what's to keep you from just leaving with the boat?
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