For Sale: Sailboat Partnership in the BVIs

[BillPit]

I have just purchased a 1998 Beneteau in Tortola and I am offering an opportunity for a few partners to buy shares. The boat will be docked in a marina near Roadtown. Each share is $6000 for 4 weeks of usage and the yearly fee for maintainence will be $1800 a year. I am looking for no more than 6 partners.This is less than the cost of a 1 week charter. The boat will be insured and equipped with a dinghy and motor as well as all linens and cookware. You must be a qualified sailor. Let me know if you are interested and I can give you more details. Thanks, Bill

[Steve W]

Does this offer include the partner's names on the boat title/documentation or will you retain sole ownership? Also,
is the $6,000 a one-time share fee or an annual fee + the $1,800 maintenance? Wording was not clear, though I guess you meant $7,800 annually for 4 weeks. Boat length, # of cabins?

Steve

[BillPit]

I am planning to set up a LLC with an Opperating Agreement. I hope to get that done in the next few weeks. My plan is to sell 10% shares for a one time fee of $6000. The share would be yours to sell when you wish. I will be going down to the BVI's in February to set up the boat with all new sails and chartplotter. If you are interested and want more info send me a PM. Bill

[BillPit]

I forgot to mention that is a Beneteau 321 w/ 4.5 draft. In mast mainsail. 2 private cabins,and room for 2 more in the salon.

[tundrarules]

So you are selling 10 shares? $60,000 for you? Plus $18,000/ yr in mx fees? Looks like you only paid about $36,000.

Is this the one you purchased correct?
1998 Beneteau 321 Moorings 32 32.1 Oceanis Sail Boat For Sale -

Looks like $4000 is a fair for a 10% share. 10 people in a partnership? That's a lot...

I may be sticking my nose where it doesn't go

No thanks

[ozskipper]

Just curious. 6 x 4 week usages = just under 6 months. What about the other 6?


good luck with it all the same

Cheers Oz

[Charlie]

Originally Posted by tundrarules

So you are selling 10 shares? $60,000 for you? Plus $18,000/ yr in mx fees? Looks like you only paid about $36,000.

Is this the one you purchased correct?
1998 Beneteau 321 Moorings 32 32.1 Oceanis Sail Boat For Sale -

Looks like $4000 is a fair for a 10% share. 10 people in a partnership? That's a lot...

I may be sticking my nose where it doesn't go

No thanks

I saw 6 partners which means $36,000. I personally think that if someone could pull this together they would deserve a free share.

[Rolf the Rotten]

IMO this seems reasonable. $6k for a month is a good rate, and if a person could get four consecutive weeks every year then good for them. I look at the $1800/year as similar to a PSL (sports term, a Personal Seat License). For a variety of reasons owning a boat is not practical for all, this seems like a reasonable alternative.

[PamlicoTraveler]

$6,000 for a 10% share of a boat = $60,000 for the boat. That's OK, and I would assume the LLC will buy the boat from you at a pretty nice profit.

The key for me would be how that LLC agreement reads. Is the $1,800 a payment for guaranteeing the boat will be healthy during my month, or is it just an estimated repair bill for the total year? Lots to be ironed out here. You would have to offer a lot of reassurance to make sure buyers can trust the situation. If it's all spelled out clearly, this might be a way to go sailing.

[nautical62]

Just for a comparison: My brand new 32.2 in charter will probably end up costing me about 15K out of pocket in the end. There are no monthly maintenance, insurance or dockage fees, but about $500/year for gas, dinghy use linen service, etc. I can use it 4-9 weeks per year of my choosing. That over a 4.5 year period.

Having a non-company owned fractional ownership is an interesting idea.

A few questions:

1. You mentioned a maintenance fee - does this include dockage?

2. Is there a time frame at which the contract will end and the boat be sold and the proceeds divided among the share holders?

3. What happens if one share holder does not pay his monthly fees or there are other unexpected financial problems. Will the other share holders be responsible, or is that all your risk?

4. How will share owner's time be allocated? What's the priority system and by what time blocks will this be available?

[Steve W]

We've done 6 BVI bareboat charters and a few in other locations. The smallest boat a Beneteau 332 with a 27HP Yanmar which was fine for a couple and quite a bit larger than the 321. Cramming 4 adults into a 321 for a charter would be tight to say the least. I think the 321 woud be a nice boat where I sail in FL on the St. Johns, but I would want something bigger with more tankage and a bigger engine than 18HP in the BVI's. That engine probably has some serious hours on it by now, who bears the cost of replacement or is it shared among the shareholders? Could be a nice deal for someone else, but I prefer trying different boats when chartering and not being locked into a contract on a boat in one area. I hope it works out for the buyer.

[BillPit]

I'm not sure why some people cannot read my ad correctly or have a clue respecting the costs of maintaining, dockage and insurance in the Virgins so pehaps he should stick his nose elsewhere. What difference does it make what I paid for the boat. Maybe I got it for free. What I am offering is a chance to go sailing in a 32 ft. boat for a one time buy in of $6000 (which can be re-sold ) and a yearly fee of $1800 for 4 weeks. If anyone can offer a boat ( which has a newly rebuilt engine with brand new sails ) for $450 a week, then sign me up! This is not an investment folks. Its just to have some fun at a reasonable cost.

[rourkeh]

Originally Posted by BillPit

I'm not sure why some people cannot read my ad correctly or have a clue respecting the costs of maintaining, dockage and insurance in the Virgins so pehaps he should stick his nose elsewhere. What difference does it make what I paid for the boat. Maybe I got it for free. What I am offering is a chance to go sailing in a 32 ft. boat for a one time buy in of $6000 (which can be re-sold ) and a yearly fee of $1800 for 4 weeks. If anyone can offer a boat ( which has a newly rebuilt engine with brand new sails ) for $450 a week, then sign me up! This is not an investment folks. Its just to have some fun at a reasonable cost.

Right on, I love all the critics who have no interest in your offer but have figured out how to do it better. Good luck Bill.

[boatman61]

I wish you luck & sucess Bill....
I tried it a coupla years back in an effort to save/keep a 2001 Beneteau331.....
Like you I found everyone was more preoccupied with what I may be getting out of it than what they would get...
Boiled down to them wanting a 'Free'r Ride' than what I was offering which was basically trouble/worry free part ownership of a nice boat... with the option of getting their basic investment back after 3yrs if they chose to