Boat Partners

[Palarran]

Have any of you heard of people who don't know each other forming a corporation and purchasing a boat. Something like a time share or fractional ownership but without the huge overhead and profit added in. Also with just two or three member/owners. Just wondering if anyone has done it and if it worked.

[imagine2frolic]

I have read this subject several times, and also seen it live. Not many chances of success. There needs to be a VERY CLEAR contract of do's & do not's. I myself would rather own something smaller, and never involve the complexity of other personalities.

If you buy a 51ft. boat. You still only own 17ft. if you are a 3rd partner, and you never know which third. For the same money you can outright own something in between 51 & 17ft. Best wishes in your search..............

[Pblais]

I have a friend in the club that jointly own a Hylas 47 with a partner. I used to own a duplex with a partner.

No matter what you say or think it's business. You need a contractual agreement. If there is a loan involved then I'm not sure how you can manage it contractually. Mostly it needs to be in writing and be notarized. It should spell out all the conditions including bailing out of the agreement, paying expenses, times for using the boat. Mutual approval of expenses, and anything else the parties might want to consider.

With two people it is a bit easier but with more the problem of deadlock and in fighting can happen. If the boat is US Documented you just need each signature on the paperwork and one owner to act as the agent for getting the renewal notice annually.

You could form a corporation but you will need a lot more paperwork and help filing all the annual tax forms and probably need an attorney. When I jointly owned a duplex we hired an attorney to draw up the agreement. The bottom line is it really requires a formal document but not a corporation.

Legal advice you get on the Internet is probably not worth the price you pay for it.

[Hud3]

To make it work with strangers as partners, I think you'd need to hire an impartial third party to manage the partnership (assigning boat-time, assessments, maintenance, slip, registration, off-season storage, etc.)

There's an organization in Annapolis, MD called Chesapeake Boating Club at JPort Annapolis that offers what they call a "flexible boat ownership program". Chesapeake Boating Club at J/Port | FlexBoating | Sail and Motor Boat Club I don't know where you sail, but maybe there's something like this nearby.

I can't vouch for this concept, having never tried it. Buyer beware, and all that, but it might be something to look into.

Perhaps some of the Forum members in the Annapolis area are more familiar with JPort.

[Palarran]

You know, it's not just the cost of the boat, it's the operating costs that would get to me. Spending huge amounts of money to upkeep the boat when your not using it. It would be nice to have someone else who was as committed to the boat as I would be. The club idea would be like a fractional, someone making big money off it. And I'd like to move the boat around the world.

Anyway, it's an idea that I can work on with time. Thanks.

[Inkwell]

I see no problem with partners. They must be like minded and have enough equity in the boat to keep maintenance up and any new goodies the partnership agrees to. Scheduling time on the boat should so that all members are invited anytime. Reasoning is the key word in a partnership. Sometimes you don't want the kiddies and mom along, when johnnie has a new girl or guy out. It can work.

[Pblais]

The club idea would be like a fractional, someone making big money off it. And I'd like to move the boat around the world.

We started with a club. the club usually involves boats of a similar nature. It means you sail the club boats or you don't. The club we joined had older boats that they maintained. Cheapest sailing we ever had! If the club includes all the hassle of maint. then it's worth a look. Yes, you live with the boats they choose but you sail a lot. If you can sail off peak like during the week it's easily a great deal.

Partners are a crap shoot. Some folks are great and others are out to take advantage. It can work better with people you know. For strangers I would opt for a club.