Boat sharing agreements - SailNet Community

   Search Sailnet:

 forums  store  


Quick Menu
Forums           
Articles          
Galleries        
Boat Reviews  
Classifieds     
Search SailNet 
Boat Search (new)

Shop the
SailNet Store
Anchor Locker
Boatbuilding & Repair
Charts
Clothing
Electrical
Electronics
Engine
Hatches and Portlights
Interior And Galley
Maintenance
Marine Electronics
Navigation
Other Items
Plumbing and Pumps
Rigging
Safety
Sailing Hardware
Trailer & Watersports
Clearance Items

Advertise Here






Go Back   SailNet Community > On Board > Boat Review and Purchase Forum
 Not a Member? 


Reply
 
LinkBack Thread Tools
  #1  
Old 02-23-2010
Junior Member
 
Join Date: Jul 2009
Posts: 5
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
nentis is on a distinguished road
Boat sharing agreements

Hi there,

A friend of mine and I are looking to go in together on a boat. He is the expert on maintenance and repair, and I'm eager to learn with a couple years experience sailing and a few months of racing.

The setup we're looking at is a boat that is in need of repair, or 95% complete that we can finish. His goal with the boat is to buy me out in 7-10 years and cruise it. My goal is to learn the trade of repair and maintenance, and have some good sailing time.

I'm trying to figure out how to structure the agreement. I'm pushing to put the asset into an LLC (hobby business), with the proper agreement language that will keep us friends over the lifetime of the experience. An LLC would also allow us to each take our percentage ownership as a write-off for a 2nd home (if it has a head and galley).

I found a post from Jeff_H in 2000 where he offered to send his share-agreement to those who ask. I can't reach him directly until I have 5 posts under my alias. :)

Mainly, I'm curious how the buy-out would work. If I invest an equal amount in a restoration, how does that effect a buy-out if the result of the time/expense goes to the other person. Since a boat is not a money making investment, I have to think about what value I place on the learning and sailing, as depreciation could counter any major investments I make in restoration.
Reply With Quote Share with Facebook
  #2  
Old 02-23-2010
sailingdog's Avatar
Telstar 28
 
Join Date: Mar 2006
Location: New England
Posts: 43,291
Thanks: 0
Thanked 10 Times in 10 Posts
Rep Power: 13
sailingdog is just really nice sailingdog is just really nice sailingdog is just really nice sailingdog is just really nice sailingdog is just really nice
generally, I'm against boat sharing agreements. The simpler the agreement the better IMHO if you have to do one.

Since you're both going to be using the boat and putting sweat equity into the boat, I would highly recommend that you split all costs, including the purchase price, 50/50, and then at the end of the time period have him buy out your half of the boat for half the original cost.

His contribution to you in terms of maintenance and repair knowledge should offset any investment that you've made in the boat, as those investments would have been necessary as part of your learning process, provided the boat wasn't a complete wreck to begin with.

Go to the Song thread in off-topic and post there three more times and then PM Jeff.
__________________
Sailingdog

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

Telstar 28
New England

You know what the first rule of sailing is? ...Love. You can learn all the math in the 'verse, but you take
a boat to the sea you don't love, she'll shake you off just as sure as the turning of the worlds. Love keeps
her going when she oughta fall down, tells you she's hurting 'fore she keens. Makes her a home.

—Cpt. Mal Reynolds, Serenity (edited)

If you're new to the Sailnet Forums... please read this
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
.

Still—DON'T READ THAT POST AGAIN.
Reply With Quote Share with Facebook
  #3  
Old 02-23-2010
RainDog's Avatar
Not Finished Yet
 
Join Date: Jun 2009
Location: Port Aransas, TX
Posts: 569
Thanks: 19
Thanked 27 Times in 24 Posts
Rep Power: 6
RainDog is on a distinguished road
I did this and had a very good experience. I think there are several keys to making this work:

1) Have a good long talk about exactly what you both want and timelines you will stick to.
2) Be open and honest about everything the whole way through. Don't let feelings simmer and turn into aggressive behavior.
3) Make sure you have an agreed upon way to each use the boat alone. DO NOT get into a situation where it is assumed that if one of you wants to sail, the other one is always free to tag along.
4) Agree upon the annual budget for the boat in advance. Discuss exactly what you are going to spend it on. Stick to that budget. Make sure it includes a reserve for an emergency.
5) Unless you reserve is quite large, discuss in advance what would happen if you hit a very large, unexpected expense (such as a re-power).
6) Have an agreement in advance about the buyout cost. Also have a "what if" agreement covering a situation where one of you wants out of the agreement early.

Quote:
Originally Posted by sailingdog View Post
I would highly recommend that you split all costs, including the purchase price, 50/50, and then at the end of the time period have him buy out your half of the boat for half the original cost.
This is pretty much what I did. I think this works well if you are only talking about core boat systems and the boat starts out in reasonable shape. I would probably not be willing to pay 50% of expensive electronics or other expensive luxuries, especially in the last years. As long as you carefully discuss the details of the budget in advance, and your budget is realistic, you should not have too many disagreements about $$.
__________________
Pacific Seacraft 34 #142
Port Aransas, Texas

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

Reply With Quote Share with Facebook
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

 
Posting Rules
You may post new threads
You may post replies
You may post attachments
You may edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On


Similar Threads
Thread Thread Starter Forum Replies Last Post
THE Yacht Builder List T37Chef Boat Review and Purchase Forum 26 07-08-2011 05:51 AM
Making Passage w/o a Rudder wind_magic Seamanship & Navigation 60 07-16-2010 01:23 PM
You've Bought the Wrong Boat John Kretschmer Buying a Boat Articles 0 06-01-2004 08:00 PM
Naming and Renaming Your Boat Sue & Larry Cruising Articles 0 12-15-2003 07:00 PM
Fine-Tuning the Autopilot, Part Two Dan Neri Gear and Maintenance Articles 0 10-13-2003 08:00 PM


All times are GMT -4. The time now is 08:16 AM.

Add to My Yahoo!         
Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
SEO by vBSEO 3.6.1
(c) Marine.com LLC 2000-2012

The SailNet.com store is owned and operated by a company independent of the SailNet.com forum. You are now leaving the SailNet forum. Click OK to continue or Cancel to return to the SailNet forum.