Want To Buy: Owner Financed Catamaran? - And some advice

[TrentePieds]

bergmd:

I AM an accountant :-)

I offer my comments below with all respect:

I believe you are confusing people by using accounting terms WRONGLY :-)

If the "md" part of you handle implies that you are a medical doctor, it is plausible that your INCOME would be a quarter of a million a year. If the "md" are initials, and you are, say, a computer programmer working on contract, it is possible though not probable that your REVENUES are $250K p.a. INCOME and REVENUES are not interchangeable terms!

If you are an MD, a lender might have a reasonable expectation that your INCOME would continue into the future and be available to service a loan. After all, MDs belong to powerful "closed shop" unions. However, being licensed to practice in the US does NOT mean that you can walk into a job elsewhere on the strength of that, so don't bank on it! If you are an IT man working on contract, or e.g. a university lecturer without tenure, then a lender must make his decision in the expectation that your REVENUES would dry up as soon as you leave the shore unless you can supply rock solid evidence that it won't.

You use the term "write offs". Possibly you mean EXPENSES. "Write offs" and "Expenses" are NOT synonymous terms.

Accountancy is an arcane discipline, and we have evolved the jargon over the years not without an eye to bamboozling the hoi polloi, lest they should come to know as much as "we" do :-)

You will find that seafaring is ALSO arcane, and unless you learn the jargon, you are not likely to do better much better at sea than you seem to be doing in regard to accounting and communication. It isn't hard to learn the jargon. You just have to DO it - and, once having learnt it, take care that you use it correctly :-)

All the best

TP

[Cadence]

If we wait another year we can have $200-300k. Not sure if it's worth saving or financing. I'm afraid that waiting will lead to us spending the money on a vacation home or something.

Post #4 ????

[TrentePieds]

Cadence:

If the claim made in #4 is to have any plausibility, the OP either KNOWS about finance and the "four 'C"s of lending", or he must have a financial adviser "on tap" who does. If he himself has adequate financial nous, he's hardly likely to ask US, I would think :-)

TP

[bergmd]

Originally Posted by Cadence

I believe the focus on the write-offs is because you mentioned financing. Your on the books gross income is what matters for a loan. Bank or by a seller, if the seller has any brains. Not to be mean hearted but it sounds as though you may need to take a serious look at your income prior to embarking of a seaward journey.

@Cadence I don't disagree with you but I'm curious: What, in your opinion, is the minimum amount of disposable income to travel, make payments, and all the extras(dockage, maintainance, etc).

Do the majority of catamaran owners(at the age of 40) pay cash in your experience?

[Cadence]

Originally Posted by bergmd

@Cadence I don't disagree with you but I'm curious: What, in your opinion, is the minimum amount of disposable income to travel, make payments, and all the extras(dockage, maintainance, etc).

Do the majority of catamaran owners(at the age of 40) pay cash in your experience?

I don't know if a cat would make a significant difference, I suspect dockage would, for a
cat. with a beam in excess of 14'. A couple currently doing a circumnavigation, with a mono has told me they budget $3600 a month without boat payments. Over shot the budget while in the US.
I suspect individual lifestyle would be a major factor and cruising area.
I have no idea about other peoples buying habits. I never buy anything I
can't pay cash for. If I can't I don't need it. But that is just me.
Afraid I haven't been much help. Best wishes.

[TrentePieds]

Quote: "Over shot the budget while in the US."

I take it you mean that more money was spent than was budgeted. I am not surprised.

To add to your "if I don't have the cash for it, I won't buy it" (a sentiment I share), without meaning to belabour the point, the OP seems to be considering "financing" a $200K boat. At 5% p.a. that adds about a grandamonth to the cash outgo, and worse than that, that grand is an UNAVOIDABLE, COMMITTED expense once the contract is made!

Seriously dodgy if you ask me :-)!

TP

[danielamartindm]

Another thought: A catamaran is not a difficult asset to sell. Why would someone sell it to you, with all of the legal/insurance/estate contingencies that owner financing would involve, when he could just sell it and be done with it? Are you willing to pay the vig or something?

[Santiago]

Originally Posted by bergmd

I have purchased a Sprinter Van and plan to live out of it the entire summer.

Good call ...

[girlfreind]

STIL;L LOOKING,,,I WILL FINANCE 45 CAT,,,100,000 DOWN

[multihuler]

My Maine cat 41 ( one of the best catamarans ever built) is listed in a partnership for $65k for 4 months a year, $15k down, with a buyout, if you took the buyout it comes out to 8 months for $13k . Look under multihull forum..

[Analytics]

Hi Troy!

Sounds like a great plan to travel with the kids. We are "in the same boat" and also looking to buy a cat.

I say try your bank first and if not then there is soft money loans available. Rates are not great but not the end of the World if you can pay it off fast. Most soft money loans would require real estate as collateral.

Good luck with your venture. Feel free to email me any questions and I will see if I can help you.

Matt

[Thumbs Up]

I have my 41' catamaran listed for sale at $87,500. I continue to improve it every day. My wife wants out. This is a very nice, roomy sailing catamaran. I will redo my listing soon with all new photos and hopefully a video. My cat has poor resale value compared to others because it does not have a brand and is epoxy/ply construction. Recent haulout, ready to go! Located in the hurricane safe cruisers community of Rio Dulce. You can buy my boat for the cost of a down payment on a name brand. Here is a link:https://www.sailboatlistings.com/view/56689