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13-09-2014, 10:38
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#46
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Registered User
Join Date: Apr 2011
Location: Sacramento, California
Boat: Solar 40ft Cat :)
Posts: 1,522
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Re: How to Finance a One-off Custom Boat?
Make an offer based on your ability to pay cash. If they don't take it, move on.
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13-09-2014, 10:51
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#47
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Registered User
Join Date: Nov 2012
Location: Punta Gorda Isles, SW Florida
Boat: Caliber 40
Posts: 1,160
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Re: How to Finance a One-off Custom Boat?
Quote:
Originally Posted by EzzyD
Talk to your investment advisor about getting a loan FROM your retirement account...
Then you pay interest TO your retirement account. Should be Tax Free.
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Our deferred comp accounts (not IRAs) will not allow loans for real estate nor for boats. I've tried that idea several times.
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13-09-2014, 10:53
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#48
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Registered User
Join Date: Nov 2012
Location: Punta Gorda Isles, SW Florida
Boat: Caliber 40
Posts: 1,160
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Re: How to Finance a One-off Custom Boat?
Quote:
Originally Posted by nimblemotors
Make an offer based on your ability to pay cash. If they don't take it, move on.
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Another potential purchaser tried that recently and the seller did not budge from the list price.
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13-09-2014, 10:55
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#49
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֍֎֍֎֍֎֍֎֍֎
Join Date: Apr 2006
Posts: 15,136
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Re: How to Finance a One-off Custom Boat?
Yachtworld shows a Brazapi 51, ten years old, professionally maintained and overhauled, selling at just over twentyfive cents on the dollar. From a lender's point of view, if the ASKING price is only 1/4 of the purchase price? What are they going to lend, with a certainty of value? A nickel on the dollar? A dime?
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13-09-2014, 13:10
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#50
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Registered User
Join Date: Dec 2013
Location: Paradise
Boat: Various
Posts: 2,427
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Re: How to Finance a One-off Custom Boat?
Quote:
Originally Posted by hellosailor
Yachtworld shows a Brazapi 51, ten years old, professionally maintained and overhauled, selling at just over twentyfive cents on the dollar. From a lender's point of view, if the ASKING price is only 1/4 of the purchase price? What are they going to lend, with a certainty of value? A nickel on the dollar? A dime?
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"Selling" being a big word. It shows it "Offered" at that price. And still not selling.
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13-09-2014, 13:24
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#51
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Registered User
Join Date: Apr 2010
Location: Shoreline, CT and Portmouth Harbor
Boat: Standfast 33, building a 65 ft Wooden Schooner
Posts: 636
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Re: How to Finance a One-off Custom Boat?
It's the sold price that counts, not the ask not the offer...
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13-09-2014, 13:51
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#52
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Registered User
Join Date: Jul 2014
Posts: 365
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Re: How to Finance a One-off Custom Boat?
you may have an out-your non-profit donation is tax deductible if you have taxable income/tax amount to offset.Maybe.I imagine IRS would look closely at this.But may be your "resale" out.I'd look into this.Your last hope I suppose.
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13-09-2014, 14:58
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#53
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Registered User
Join Date: Dec 2008
Location: SC
Boat: None,build the one shown of glass, had many from 6' to 48'.
Posts: 10,208
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Re: How to Finance a One-off Custom Boat?
I believe you read the original post wrong. It was buying not selling.
Your suggesting on selling or divesting is good. I've used it but you still end up bleeding.
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13-09-2014, 15:12
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#54
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Registered User
Join Date: Mar 2011
Posts: 156
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Re: How to Finance a One-off Custom Boat?
Quote:
Originally Posted by TacomaSailor
Our deferred comp accounts (not IRAs) will not allow loans for real estate nor for boats. I've tried that idea several times.
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Will they let you borrow money to buy stock ( in an LLC that owns the boat)?
Will the owner finance? (I am sure at this time he wants to stop the hemorrhaging?) Insure that he also helps find insurance.... so you do not end up with something uninsurable.... That will be your second problem. How is the insurance company going to know it is truly worth the amount to be insured?
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13-09-2014, 15:36
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#55
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Registered User
Join Date: Jul 2014
Posts: 365
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Re: How to Finance a One-off Custom Boat?
Cadence,You're entirely incorrect!
To buy it he needs an "out" which doesn't really exist.Though donation to charity for writeoff may give to OP.
OP still unable to alleviate the inability to insure vessel being it's a "one off".
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13-09-2014, 19:25
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#56
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Registered User
Join Date: Nov 2012
Location: Punta Gorda Isles, SW Florida
Boat: Caliber 40
Posts: 1,160
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Re: How to Finance a One-off Custom Boat?
Insurance seems to be a non-issue!
I have firm quotes for declared value from three very reputable insurance companies. They do not care about comparable values, sale price, or market price. All they care about is
- my experience
- my claim history
- my crew
- my cruising area
Insurance is quite reasonable - I guess a 40-year sailing history with no claims and a lot of well documented long distance cruising makes them comfortable.
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13-09-2014, 22:24
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#57
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Moderator Emeritus
Join Date: May 2007
Location: Ohio
Boat: Now boatless :-(
Posts: 11,580
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Re: How to Finance a One-off Custom Boat?
What they are saying is they don't want to secure the loan against the boat.
Can you secure the loan with other assets, real estate, or retirement funds etc?
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14-09-2014, 08:20
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#58
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Registered User
Join Date: Dec 2008
Location: SC
Boat: None,build the one shown of glass, had many from 6' to 48'.
Posts: 10,208
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Re: How to Finance a One-off Custom Boat?
Quote:
Originally Posted by Arthur Garfield
Cadence,You're entirely incorrect!
To buy it he needs an "out" which doesn't really exist.Though donation to charity for writeoff may give to OP.
OP still unable to alleviate the inability to insure vessel being it's a "one off".
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Arthur you're right but a donation for tax benefits still requires a marine survey which is going to subject the vessel to the same down side.
It is a way out easily out as you stated there is really no out.
I hope he runs from the boat. A one off is fine if you have cash pin money to play with.
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14-09-2014, 09:49
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#59
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Registered User
Join Date: Nov 2012
Location: Punta Gorda Isles, SW Florida
Boat: Caliber 40
Posts: 1,160
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Re: How to Finance a One-off Custom Boat?
Quote:
Originally Posted by brantleychuck
Ok. Just spent a couple of days on retirement planning. We are within a year or two. I figured a 3% gain on all investments. How are u getting 10 to 15% ?
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I am not a retirement or investment advisor. But, here are four mutual funds that we have invested in during the last couple decades.
The dollar amount shown is the CURRENT value (Sept 15, 2014) of $10,000 invested with that firm on Sept 15 1999, 2004, 2009. In other words I am showing the 15 year, 10 year, and 5 year growth of $10,000.
PIMCO Total Return Institutional (PTTRX)
$26,951
$18,100
$12,998
Fidelity ContraFund (FCNTX)
$30,500
$27,177
$21,310
Vanguard Equity Income (VPEIX)
$27,908
$21,316
$19,389
Vanguard MidCap (VMCIX)
$43,256
$27,823
$22,989
Of course - your mileage may vary!
A $10,000 investment growing at 7% compounded annually, (no tax & no fees) would be worth
$27,590 in 15 years
$19,672 in 10 years
$14,026 in 5 years
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14-09-2014, 10:18
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#60
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Registered User
Join Date: Aug 2012
Posts: 353
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Re: How to Finance a One-off Custom Boat?
Thanks for taking the time. I appreciate it
Sent from my iPad using Cruisers Sailing Forum
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