Too good to be true? A fractional ownership for 2012 Lagoon 500

[riverwave]

Originally Posted by BlueH2Obound

Just a few thoughts.

• It appears that you are purchasing ownership in an LLC, NOT in a boat (aren’t necessarily the same).
• Ad states “guaranteed revenue to cover the mortgage” . . . Hmmmm, but YOU and THREE others already paid $500k for your ¼ memberships ($125k each x 4 = $500k) . . . . so WHY IS THERE A MORTGAGE?!?
• ¼ ownership assumes 4 owners . . . . @ 5 weeks each, that means 20 weeks . . . . Who is using the boat the other 32 weeks out of the year? I assume it is being chartered out by the charter company? Who gets the proceeds? Do some of them go to pay the “mortgage” which shouldn’t even be there since four members ALREADY PAID ENOUGH TO BUY THE BOAT OUTRIGHT?
• What is the loan term on this “mortgage” which is so graciously being paid for out of the proceeds of the charters? 4 years? 20 years? Once again, I have to ask, where did the $500k go that you and three others paid to buy part of the LLC? At the end of stated 4 years you will have a 13 year old boat, with perhaps 16 years remaining on a mortgage loan that still has (for the sake of argument) 450k left on principle . . . and the boat is estimated to be worth $400k at the end of that same 4 years . . . so owners will have to pony up $50k between them to sell that boat . . . IF it is indeed worth the $400k estimated.
• Standing rigging is generally clapped out somewhere around the 10 year mark . . . which is next year if it hasn’t already been replaced . . . who pays for that? Ahhh, the charter company pays for that, it says so in the ad!
• But with Covid 19, and travel restrictions to the BVI, is it getting any revenue this last year? Does it even pay for mortgage? The charter company set up the contract, you can bet that THEY will not be paying expenses for “circumstances beyond their control”. So the owners will get an assessment . . .
• Is your 5 weeks specified well in advance? What if the boat has to go in for unscheduled maintenance? Say the Charterer just prior to your reservation dinged the prop, necessitating new prop, shaft, rudder repair etc. Estimated three weeks to repair (and that’s quick). Do you only have two weeks left of your 5 weeks now?

Lots of questions, but you get the gist. Hire an attorney to go over ALL paperwork, Articles of LLC Incorporation, Charter contract, last XX number of years financials for the LLC, the boat specifically, and the Charter company (if they’ll make them available) at a minimum. Figure $5k minimum for the attorney to look stuff over.

Given what’s available so far, on the ad, and on the thread, it doesn’t appear to be a great deal at all . . . YMMV Good luck in whatever you decide!

Its not accurate to state it as guranteed mortgage, should be guranteed income. If you choose mortgage, you just pay 25k downpayment.
Yes a lot things to check, thanks for your inputs.

[riverwave]

Originally Posted by Whisper 2

I wouldn't go anywhere near a Lagoon, in my opinion they are badly built, weak in construction and not very good into wind.

I am newbie, not bias to any model. what's your favorate one? Privilige?

[Sailingseas]

To answer your question if the company is respectable or not- no it isn't. I worked for them briefly. They are not what they advertise and the boat I captained was not maintained properly at all. The owner of the company gets wasted drunk and doesn't care about the issues of the boat brought to his attention. There are multiple employees he has not paid wages to that they were owed, after they quit due to the utter unprofessionalism the company demonstrates.

[riverwave]

Originally Posted by Sailingseas

To answer your question if the company is respectable or not- no it isn't. I worked for them briefly. They are not what they advertise and the boat I captained was not maintained properly at all. The owner of the company gets wasted drunk and doesn't care about the issues of the boat brought to his attention. There are multiple employees he has not paid wages to that they were owed, after they quit due to the utter unprofessionalism the company demonstrates.

Thanks for the insight. Very valuable feedback from insider.
I might to stay away from this company

[Ballsnall]

Originally Posted by Whisper 2

I wouldn't go anywhere near a Lagoon, in my opinion they are badly built, weak in construction and not very good into wind.

You don't buy a Lagoon to go to windward, you buy a Lagoon because they are roomy, comfortable, stable and have lots of bedrooms.

[Dkouretas]

Did you ever join Nexgen? I have been speaking with Edwin for a couple months now and have identified a beautiful boat that I may buy a share in It is a 2020 Sunreef 60.

Edwin and I have gone over all the risks vs reward. One of the biggest incentives for me to join is that I get 3 weeks a year and I can do what ever I went with them. This means I can even charter those weeks as well. The company plans on chartering this boat out for $40,000-$50,000 a week. I asked him would there be any issues if I decided to charter this boat out myself with any charter company for around $30,000 a week so I can move it. If I do this for the five year term I will have a significant return on my investment. Financial investment will be approximately $160,000 and financing approx $500,000. Purchase price os approx $3.2M. After selling the boat in 5 years we will receive our proportionate share of the sale price whatever that may be.

The boat is absolutely gorgeous and very modern. Five bedrooms each with en suite bathrooms plus crew quarters for the captain and Chef..

Your charter company wanted to have the boat in PDI but I said unfortunately I would only be interested if the boat was located in the Bahamas. I live in Las Vegas still going anywhere else in the Caribbean would be too much of a pain to be worth it.

Dan

[kluvr222]

Originally Posted by Sailingseas

To answer your question if the company is respectable or not- no it isn't. I worked for them briefly. They are not what they advertise and the boat I captained was not maintained properly at all. The owner of the company gets wasted drunk and doesn't care about the issues of the boat brought to his attention. There are multiple employees he has not paid wages to that they were owed, after they quit due to the utter unprofessionalism the company demonstrates.

The founder and CEO of NexGen Yachting is Jeff Hartman; him and his wife Tracey are basically professional scam artists. They're from the Columbus (Ohio) area and have a number of businesses that were basically sued into bankruptcy, all of which doing business with easy marks over the Internet.


Jeff, excuse me, "JP H."'s Linked in page is at https://www.linkedin.com/in/jphartmannexgen/ . None of his past businesses listed actually exist under those names. "MaxVal Computers" is actually Explorer Micro, MCVPC and Regal-Elite, computer businesses which lowballed prices and shipped broken computers to people. They were sued by Microsoft for pirating software and changed their names a couple of times after the Ohio State Attorney General got on their case. Hartman later started up a toy business, called PaulG Toys (I think), not "Tech Force Toys"; they lied about a business deal procuring velociraptor drones and stole a lot of people's money via Kickstarter, and were eventually sued by a children's charity from California for stealing patents; bankruptcy saved them from any liability.


Sorry for the forum necromancy, but the bottom line is that I would stay far, far away from Nexgen Yachting or any of Jeff Hartman's business interests.