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05-12-2023, 09:10
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#16
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Registered User
Join Date: Dec 2023
Location: Los Angeles, CA
Posts: 21
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
Quote:
Originally Posted by SVF
We hammered out in writing how ownership percentages will work, who is responsible for what, and what happens if one of us passes or wants to get out.
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Would you be open to sharing the agreement you worked out? It could be useful as a template to others.
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08-12-2023, 07:46
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#17
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Registered User
Join Date: Dec 2011
Location: Indiana
Boat: O'Day 322
Posts: 152
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
I co-owned a boat with a friend for several years and it seemed to work out great. I was certainly happy with the relationship.
It was a friend, and our kids were dating. We joked about what we would do if the kids split up (which they did eventually).
We had a simple agreement:
1) split the boat purchase price and we are both listed as owners
2) split all operating costs 50/50. This included slip and storage costs, maintenance, upgrades, etc.
3) if either partner wanted out, the remains partner could either buy out the purchase price share (not including expenses) or decide to sell the boat and split net proceeds.
4) share the boat use equally.
We had no problems with the use of the boat. My partner didn’t use it much. He paid 1/2 of the expenses and I did most of the work. He would help with haulout and launch.
Eventually, he wanted out and I purchased his half of the purchase price.
I would ONLY do this with someone I knew well, and who I knew I was compatible with.
Greg
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08-12-2023, 08:04
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#18
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Registered User
Join Date: Feb 2016
Location: Olympia WA
Boat: Catalina 36 MKII
Posts: 57
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
The key to keeping your sanity in a co-ownership is the old adage "Don't sweat the small stuff." Remember that in a co-ownership everything is on sale at 1/2 off. That can offset most annoyances. The amount that you save on moorage and insurance every year (money that adds nothing to the value of the boat and goes right down the drain) can be thought of as padding for things that you may want to purchase that your co-owner has little interest in and is not motivated to contribute to. Another key point that I agree with is "communication". As has been said, realize that you are actually entering into a co-ownership with the spouse, or future spouse and the spouse's name will most likely be on the title.
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08-12-2023, 08:15
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#19
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Registered User
Join Date: Oct 2019
Posts: 772
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
I shared a 25 foot yacht with a friend of mine and we got on fine. It was our. wives who did not. Mine liked sailing and his did not as she was scared of being at sea. Eventually either he took the yacht out with only his wife and I did the same. That lead to problems as to how the yacht was left after he had used it. Fortunately he understood when I suggested selling the yacht. Then I bought my own yacht and he did the same. We are still friends but if we had continued to share a yacht we would have eventually have fallen out over it.
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08-12-2023, 08:16
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#20
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Registered User
Join Date: Sep 2020
Location: Seabrook, TX
Boat: Catalina 30
Posts: 649
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
Why don't your try something like "SailTime". A little expensive, but not so much if you take into account the costs of boat ownership:
-Marina fees
-Maintenance & repairs (plus your TIME to do this..)
-Insurance
I met two guys sailing once that belonged to this and they were able to take out boats much larger than they could ever afford, try different boats etc.
My two cents
Cheers
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08-12-2023, 08:21
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#21
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Registered User
Join Date: Apr 2011
Location: NJ
Boat: Dickerson Ketch
Posts: 385
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
Quote:
Originally Posted by MarinaDelReyGuy
Hey from Marina Del Rey! I wanted to get thoughts from folks who are co-owning a boat with someone else (not counting spouses). What are some of the biggest challenges I should anticipate if I'm going to co-own a boat with someone? Would be great to hear from folks who have done this. Appreciate any advice and thoughts here.
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We had a contract written up by an atty. Fortunate , never had any issue as the partnership went well as we both understood the terms in the contract and required obligations. No longer own that vessel.
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08-12-2023, 08:50
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#22
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Registered User
Join Date: Apr 2016
Location: Schuylerville, NY
Boat: Wellcraft portofino 43’
Posts: 461
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
You want to keep this person as a friend? Don't go halves on a boat. I did it once. It worked well until the glitter tarnished a year later. He claimed financial hardship and walked away from the deal. I kept the boat. Fortunately, it was small and didn't change the quality of life but it did cause a bit of aggravation.
Imagine buying a bigger boat. It needs bottom paint so you make a date with your partner to sand and repaint the bottom. You show up at the marina and sand all morning. After lunch you wipe the sanding residue then start painting. You have about a half hour or less of painting left when your "partner" shows up. He really wanted to help with the boat but his boss called that morning to say they needed him to play golf with a customer and to discuss a business deal. He'll be back in about an hour after he picks up the kids and takes them home.
A week after the boat has been painted and launched, you bring your family and a couple guests to head out for a nice day on the water. As you enter the salon you notice a foul order and see a large stack of dirty dishes on the counter and a few more on the table. You smell cigarette smoke and notice at least a case of empty beer bottles scattered throughout the boat. The beds have been used, sheets haven't been changed nor the beds made. In the guest room, a cup has been used as an ash tray and red wine has been spilled on the carpet. The fuel tank, which was full when launched, now is down to a little less than 1/4.
How's the partnership working?
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08-12-2023, 08:57
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#23
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Registered User
Join Date: Apr 2011
Location: NJ
Boat: Dickerson Ketch
Posts: 385
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
Quote:
Originally Posted by David Mathis
You want to keep this person as a friend? Don't go halves on a boat. I did it once. It worked well until the glitter tarnished a year later. He claimed financial hardship and walked away from the deal. I kept the boat. Fortunately, it was small and didn't change the quality of life but it did cause a bit of aggravation.
Imagine buying a bigger boat. It needs bottom paint so you make a date with your partner to sand and repaint the bottom. You show up at the marina and sand all morning. After lunch you wipe the sanding residue then start painting. You have about a half hour or less of painting left when your "partner" shows up. He really wanted to help with the boat but his boss called that morning to say they needed him to play golf with a customer and to discuss a business deal. He'll be back in about an hour after he picks up the kids and takes them home.
A week after the boat has been painted and launched, you bring your family and a couple guests to head out for a nice day on the water. As you enter the salon you notice a foul order and see a large stack of dirty dishes on the counter and a few more on the table. You smell cigarette smoke and notice at least a case of empty beer bottles scattered throughout the boat. The beds have been used, sheets haven't been changed nor the beds made. In the guest room, a cup has been used as an ash tray and red wine has been spilled on the carpet. The fuel tank, which was full when launched, now is down to a little less than 1/4.
How's the partnership working?
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why I had a formal contract spelling a lot of such issues out and what occurs if not followed, or financial issues arise. But never had any issues.
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08-12-2023, 09:49
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#24
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Registered User
Join Date: Feb 2013
Location: Edmonton, Alberta, Canada
Boat: Seahorse 52 trawler
Posts: 6
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
Owned a boat with a friend for 8 years. Worked out very well. Had exit plan going in so no stress.
One key that worked well was the shotgun clause to end relationship (which we used):
Whoever wants out makes offer (to other partner )at whatever price he chooses. Then the second partner gets to choose to accept buyout if price is high, or buyout partner at price already chosen by other partner. If want cash, use low price. If you want boat offer a higher fair cost.
In our case, other partner was moving and I bought him out with an offer I made- slightly higher than 1/2 the boat’s value. Worked great, no hard feelings. We enjoyed co-ownership over life of agreement.
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08-12-2023, 13:47
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#25
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Registered User
Join Date: Dec 2011
Location: Indiana
Boat: O'Day 322
Posts: 152
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
Quote:
Originally Posted by ChrisPuget
The key to keeping your sanity in a co-ownership is the old adage "Don't sweat the small stuff." Remember that in a co-ownership everything is on sale at 1/2 off. That can offset most annoyances. The amount that you save on moorage and insurance every year (money that adds nothing to the value of the boat and goes right down the drain) can be thought of as padding for things that you may want to purchase that your co-owner has little interest in and is not motivated to contribute to. Another key point that I agree with is "communication". As has been said, realize that you are actually entering into a co-ownership with the spouse, or future spouse and the spouse's name will most likely be on the title.
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That is a good point, and I should have mentioned that we always discussed any purchases, upgrades or maintenance in advance so that there were no surprises.
Greg
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08-12-2023, 20:25
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#26
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Registered User
Join Date: Oct 2014
Location: Minneapolis
Boat: Tartan 40
Posts: 26
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
I had 6 partners over 19 years owning a 1982 34’ sailboat 4 hours away on Lake Superior. We were younger, in careers and more concerned about minimizing our costs. I kept title in my name and had a written agreement for 50/50 ownership to set expectations for a one year term renewable by agreement . I made a rough budget of operating expenses, upgrades, and depreciation, then split it in half to each pay 50/50. I found my partners mostly on Craigslist. Some helped with maintenance and others just wrote checks. We sailed together when we couldn’t find other friends/crew to sail with. I parted with each of them on good terms and continue to invite them for week long trips on my new boat, without charge. 3 of them split to buy their own boats. Great experience and our friendships remain. I vetted them by their boating experience and how I thought we might get along. I turned down a couple applicants. We had a few disagreements and figured out how to work them out.
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09-12-2023, 08:58
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#27
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Registered User
Join Date: Apr 2015
Posts: 14
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
I have a sailboat in MDR. I bought a Catalina 30 in 2012 with someone that I had sailed with in many different boats, locally and between Panama and Isla Mujeres.
I bought his half of the boat several years later when he wanted to spend more time with his kids before they were out of the house and he had missed their emerging adulthood.
It was a great experiance. He still sails with me quite often on my newer Catalina 30.
It worked out for me. I wouldn't have bought a boat and sailed every week for the last 12 years without that partnership.
Good luck.
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09-12-2023, 12:09
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#28
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Registered User
Join Date: Jan 2012
Location: Vancouver, Canada
Boat: Beneteau Idylle 1150
Posts: 694
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
We co-owned a boat with two other partners. The boat was a well-aged Van de Stadt 34 that had lived in SE Asia for most if not all of its life. We lived in Jakarta at the time and had a dedicated person to look after cleaning and fueling the boat. We shared all expenses and everybody got a weekend plus we could negotiate longer periods of time. We did this for about 3 years and it generally worked out very well.
The only issue for us was that initially the other two owners, like the person whose share we bought, had much deeper pockets than we did. They didn't really need to think about the difference between essential boat equipment and repairs vs nice to have equipment and repairs. That changed slightly during the last year when one of the partners sold his share to someone with similar financial depth as us.
In the same circumstances, I would not hesitate to enter into a similar arrangement.
__________________
Desolation Island is situated in a third region, somewhere between elsewhere and everywhere.
Jean-Paul Kauffmann
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10-12-2023, 00:58
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#29
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Registered User
Join Date: Apr 2013
Location: Perth West AustraliaHillarys Marina
Boat: seawind1250 syndicate
Posts: 13
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
Quote:
Originally Posted by MarinaDelReyGuy
Hey from Marina Del Rey! I wanted to get thoughts from folks who are co-owning a boat with someone else (not counting spouses). What are some of the biggest challenges I should anticipate if I'm going to co-own a boat with someone? Would be great to hear from folks who have done this. Appreciate any advice and thoughts here.
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I was in a syndicate of 6 on a new Seawind 1250 , we didn’t know each other. The experience was fantastic, it helped that there were a couple of engineers in the mix. It was a new boat . If there was any damage done on your shift, you paid the excess and if it wasn’t ready in time for the next person you owed them time.We had a solicitor draw up a document.if some one wanted to sell it had to be offered to the other owners first.Evetything was fixed immediately and when you divide the price by 6 it didn’t hurt.After 8 years she still looked grand. Would do it again tomorrow.
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10-12-2023, 21:31
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#30
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Registered User
Join Date: Apr 2013
Location: The Keys, FL
Boat: Beneteau 411
Posts: 63
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Re: Hello! Wanted some thoughts/advice on co-owning a boat
I was in a partnership with 2 others. For 8 years, it worked out extremely well. We were all racers, like-minded, financially secure, and motivated. We all liked working on the boat, but some liked doing some jobs more than others. Since we raced the boat, the 2 other partners were like having built-in crew. The boat was rarely used outside of racing, but when it was, we used a shared Google calendar for scheduling. We had a signed partnership agreement that put in writing what was expected. The only issue we had was when I wanted to exit the partnership. Not all scenarios were covered and they could have kept me on the hook for 1/3rd expenses indefinitely. Fortunately, it all worked out fine within the limits of the written agreement.
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