Financing for an older boat

[hdparsons3]

Holy Crap guys,

I posted this thread and had no idea I was going to get this much of a response, really goes to show how good of a community this is.

I've read everything and instead of answering every post individually I'm going to go ahead and answer the general consensus that y'all need more information regarding the boat and my finances and then maybe see if we can put our heads together and come up with some sort of backwards way that I could do this maneuver.

THE BOAT - I'm looking at is a Hallberg-Rassy Rasmus 35' that has been completely refitted and by completely refitted I mean rigging, sails, motor , electrical, electronics the works. The owner is asking right around 50,000$ I am also open to looking at a different vessel but all things considered I'm going to be doing bluewater cruising so this is really the smallest safe vessel that I would consider 27 and 30 footers just aren't going to have the displacement that I need to do what I'm trying to do.

THE FINANCES - My finances are kind of funny as I own 12 rental properties which net after payments, taxes, maintenance, insurance etc. roughly 5000.00 per month. Unfortunately, these loans are private money loans and the lender only lends on rental properties. This also makes my debt to income ratio slightly off as far as conventional loans go. My car is paid for and I am going to sell it as a down payment when I go to make the jump. It is worth 18,000 I have roughly 15,000 in savings that I am going to try to keep as a safety buffer.

Any ideas on how to make this work ?

Thanks again for everyone's help

[vjm]

Cn you sell one property and pay cash? Don't touch your savings. You will also need a refit budget. Every boat, no matter what, needs things done to it immediately after the sale.

[pickpaul]

Originally Posted by hdparsons3

30 footers just aren't going to have the displacement that I need to do what I'm trying to do.

Glad you took the advice in good spirits but would argue with above assertion...

https://youtu.be/mupd3-w9qfQ

An Alberg 30 could do the job just fine and costs around 20% of what you are looking to do.

Just sayin :-)

[hdparsons3]

VJM - Unfortunately all of the properties have liens against them and none of them have enough equity to cover the 50k as they are "lower income" housing

Pickpaul - I have heard about the seaworthiness of Albergs I may look into that as a last resort.... mostly I just plan on having at least 1 other person on board and would prefer 2 cabins but if push comes to shove I may end up having to do that, Thanks for the idea !

[Cheechako]

Originally Posted by hdparsons3

Holy Crap guys,

I posted this thread and had no idea I was going to get this much of a response, really goes to show how good of a community this is.

I've read everything and instead of answering every post individually I'm going to go ahead and answer the general consensus that y'all need more information regarding the boat and my finances and then maybe see if we can put our heads together and come up with some sort of backwards way that I could do this maneuver.

THE BOAT - I'm looking at is a Hallberg-Rassy Rasmus 35' that has been completely refitted and by completely refitted I mean rigging, sails, motor , electrical, electronics the works. The owner is asking right around 50,000$ I am also open to looking at a different vessel but all things considered I'm going to be doing bluewater cruising so this is really the smallest safe vessel that I would consider 27 and 30 footers just aren't going to have the displacement that I need to do what I'm trying to do.

THE FINANCES - My finances are kind of funny as I own 12 rental properties which net after payments, taxes, maintenance, insurance etc. roughly 5000.00 per month. Unfortunately, these loans are private money loans and the lender only lends on rental properties. This also makes my debt to income ratio slightly off as far as conventional loans go. My car is paid for and I am going to sell it as a down payment when I go to make the jump. It is worth 18,000 I have roughly 15,000 in savings that I am going to try to keep as a safety buffer.

Any ideas on how to make this work ?

Thanks again for everyone's help

As usual , your thread got taken over by people who are sure their opinion is the only one.
I think the idea of refinancing real estate has merit. it's the lowest loan you are going to get anyway. It may make sense even if you aren't having trouble getting a loan.

[reed1v]

Good grief. Anyone making boat loans do not care much about the type of boat, nor the manufacturer, nor even how well it looks. Bottom line: age, survey, and location. Mostly age. If its over 30 you got a challenge. If over 40 you really are sol getting any finance on the boat per se. Forget insuring an old boat unless you go to a place like progressive or BoatUS. So unless you got the cash, face reality you are too poor to be into yachting.

[thomm225]

Originally Posted by hdparsons3

THE BOAT - I'm looking at is a Hallberg-Rassy Rasmus 35' that has been completely refitted and by completely refitted I mean rigging, sails, motor , electrical, electronics the works. The owner is asking right around 50,000$ I am also open to looking at a different vessel but all things considered I'm going to be doing bluewater cruising so this is really the smallest safe vessel that I would consider 27 and 30 footers just aren't going to have the displacement that I need to do what I'm trying to do.

Holy Crap,

If a 27-30 foot boat won't have the displacement to do what you are trying to do, I'm not sure what boat will since boats of this size have circumnavigated many times. Of course, a bit of sailing experience or experience with boats does help

All this from a guy that owns all these properties and asks about financing on a sailing forum?..............ok!

Fun stuff. Gives us guys that are bored at anchor, at a marina, or at home/work something to do

Tom

[ctl411]

Originally Posted by hdparsons3

Holy Crap guys,

I posted this thread and had no idea I was going to get this much of a response, really goes to show how good of a community this is.

I've read everything and instead of answering every post individually I'm going to go ahead and answer the general consensus that y'all need more information regarding the boat and my finances and then maybe see if we can put our heads together and come up with some sort of backwards way that I could do this maneuver.

THE BOAT - I'm looking at is a Hallberg-Rassy Rasmus 35' that has been completely refitted and by completely refitted I mean rigging, sails, motor , electrical, electronics the works. The owner is asking right around 50,000$ I am also open to looking at a different vessel but all things considered I'm going to be doing bluewater cruising so this is really the smallest safe vessel that I would consider 27 and 30 footers just aren't going to have the displacement that I need to do what I'm trying to do.

THE FINANCES - My finances are kind of funny as I own 12 rental properties which net after payments, taxes, maintenance, insurance etc. roughly 5000.00 per month. Unfortunately, these loans are private money loans and the lender only lends on rental properties. This also makes my debt to income ratio slightly off as far as conventional loans go. My car is paid for and I am going to sell it as a down payment when I go to make the jump. It is worth 18,000 I have roughly 15,000 in savings that I am going to try to keep as a safety buffer.

Any ideas on how to make this work ?

Thanks again for everyone's help

I got a loan from local credit union for our 76 boat.
Check local banks that carry your rental houses.
Sell the expensive car to help get the loan amount down this should get you a loan. If you have to use some of the savings you have also. But be sure this is what you really want. Selling boats sucks and if you do it will cost you.....

[thomm225]

Or you could build your own boat in your Mom's basement like this guy did which was a bit shorter than your dream 'financed" boat.

You'll just need two tons of aluminum and a welding set

Then sail around the world..............

https://www.youtube.com/watch?v=iZxPrZAZeXY

[pickpaul]

No problem. It's worth paying the couple of bucks to watch the whole movie on youtube. Highly entertaining and illustrative of what smaller boats can handle. Some of those seas are monsters. It will either inspire you or scare the cr*p out of you :-) Good luck in your search! P.S. I was originally looking at a 37 footer. Ask yourself the question what do you need? Also, maybe checkout this for interesting background on your selection process... http://atomvoyages.com/planning/good...oats-list.html

Sent from my SM-G925T using Cruisers Sailing Forum mobile app

[reed1v]

Originally Posted by thomm225

Holy Crap,

If a 27-30 foot boat won't have the displacement to do what you are trying to do, I'm not sure what boat will since boats of this size have circumnavigated many times. Of course, a bit of sailing experience or experience with boats does help

All this from a guy that owns all these properties and asks about financing on a sailing forum?..............ok!

Fun stuff. Gives us guys that are bored at anchor, at a marina, or at home/work something to do

Tom

Plenty of 27 footers have circumnavigated. You could always tow a floatable U-Haul with all the stuff you think you will need.

[tonytheboat]

just to ask , if you buy an old boat, what do you class as a refit .my list from sailing on deliveries for the last ten years is this? hull (water tight) mast and sails ok, renew standing and running,rigging, service engine and water filters and lastly renew the pipe for the gas cooker and wash out the water tanks run them down to empty twice and refill and taste,gps hand held all the way across the atlantic and take back ups water plenty of bottled water.

[reed1v]

Right on with the bottled water.

[hdparsons3]

thomm225 - Thanks for the reply man, a 27' I'm sure would be capable I'm just planning on having crew on board and women and would like a little privacy from time to time. And yes, all of my houses are financed with private money loans and my income is structured in such a way that it's difficult for me to obtain conventional financing. And no problem! hope to be joining the bored at anchor crew very soon myself!


ctl411 - Thanks for the advice i'll look into it and see what I can do


reed1v - hahaha thanks, i'll look into floatable u-hauls and see what the going rate on those are these days


tonytheboat - I have not done a survey on the boat but the owner kept a very detailed refit with pictures and everything. With the limited information that I have I cannot answer if the hull is tight. It is a restepped mast with new standing and new running rigging. It is also a new universal diesel. And if it doesn't have a water maker I'm sure i'll be putting one of those on as well but i'll bring bottled water as backup, thanks!

[deluxe68]

Originally Posted by reed1v

Will not work. The major credit card companies keep track of your total indebtedness and after a certain limit will stop extending more credit. Nice scam but a pipe dream. Plus based on your fica score, you are only authorized to transfer over a maximum amount to a new account. Once you hit that limit, you go broke paying the interest on the outstanding balance. Just live within your budget or get a second job.

I don't need to be lectured on finance. I am not the one advocating using credit cards.