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post #1 of 19 Old 03-02-2007 Thread Starter
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Charter versus Share/partnership

Wonder about chartering a boat versus owning share or partnership !
I am currently restoring a 1934 historic schooner in Napa,CA ,and sure enough run out of funds to finish her
I try to find a parner (50%) but no luck !!
I realised that if somebody has this kind of money and time he/her will certainly buy his/her own boat
On the other hand a lot of sailors have busy lives with lots of commitments (mortgage,family,work,kids education....), and can not realistically own a big boat
So what the solution for them :
Own shares in a syndicate : that lower the cost of ownership but generally the boat is stuck in one place or is used for charter !
Charter a boat : good solution, you pay,fly to some exotic location, sail around and back home until next year
But if you think twice and use a calculator ,after a few years it comes to a neat sum of money spend and you get no return on it
So, I come to this idea to sold 1/12th shares of my boat for one month/year usage (it's not timeshare ! you are 1/12th owner of the boat !) .
The idea is to sail the boat intensively for a few years and sold her >
Work out the maths :
A $ 20,000.00/1/12th share should be worth much more than its original value even when we count expenses for maintenance, replacing equipment,.. on resale of the boat .
Now if you add to that the cost of chartering a 50' yacht one month every year at what?? $ 10,000.00 ?? you come way ahead
Funnily enough It does not seem to atract any interest
I wonder why ??
It seems to me (but I am partial ) to be a fair and honest deal
Anyway, your comments are asked !!
Here is my website so you can see what I am talking about :
www.mavourneen-mary.com
Thanks

Lannig

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post #2 of 19 Old 03-02-2007
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I think it's just a question of peoples priorities. While the math may make sense to you, it would seem it doesn't to others. Also, there are a number of timeshare companies now where they can have use of a new boat, rather than an older, being refurbished one.

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post #3 of 19 Old 03-02-2007 Thread Starter
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Quote:
Originally Posted by PBzeer
I think it's just a question of peoples priorities. While the math may make sense to you, it would seem it doesn't to others. Also, there are a number of timeshare companies now where they can have use of a new boat, rather than an older, being refurbished one.
Yes John ,but they are timeshare Cie !! You do not own part of the boat !!
New boat that's another thing ,personally I really do not like the kind of boats they built nowadays like Beneteau for example
Mind you I am biased
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Lannig

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post #4 of 19 Old 03-02-2007
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Lannig,
beautiful boat!
Bad thing about partnerships is scheadualing and for me the fact that there would be 11 more people capable of destroying my 1/12th. Just my control freakish opinion. I don't even like having company on our boat I feel like I always have to be watching them. I can,t picture in my mind letting other people take my boat out. It means to much to me.
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post #5 of 19 Old 03-02-2007 Thread Starter
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Quote:
Originally Posted by soul searcher
Lannig,
beautiful boat!
Bad thing about partnerships is scheadualing and for me the fact that there would be 11 more people capable of destroying my 1/12th. Just my control freakish opinion. I don't even like having company on our boat I feel like I always have to be watching them. I can,t picture in my mind letting other people take my boat out. It means to much to me.
I do not intend to sold all the shares !!
In fact 3 partners will be perfect
I can very well imagine the nightmare to try to accomodate everybody

Lannig

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post #6 of 19 Old 03-02-2007
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I agree that your idea makes sense to you.....however you have to find 3-12 people that have the same idea. Good Luck.

We all want what we want when we want it! Not when we can get a bunch of other people to agree that it is OK for us to use it. In your case, with a very unusual boat for today, it gets even harder. Add to that the risk of others damaging a very expensive to fix boat, especially the week before your month starts, and things get very touchy.

You have not talked about maintenance costs and who does the maintenace. Slip fees, maintenace, etc. will probalby add 10-15% minimum a year, expecially in your beautiful and expensive part of the world.

I bought a boat and put it into a controlled charter business because I wanted to do a lot of day sailing and could not secure a slip for anything close to a reasonalbe price in my part of the world. Charter gave me a place to keep the boat, offset some of my costs, and still allowed me to do a lot of sailing on my own boat. Day sailing on 30-36' boats is not cost effective. However, if I was going to sail for a month a year, I would not buy a boat. Charter a boat anywhere in the world you want to go, select a newer or older boat based on what you want to pay, have no maintenace cost, mooring costs, insurance costs, and new toy costs....and walk away till the next time.

Your passion is this project, and now you need someone else with the disease to help fund your passion. Good Luck.
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post #7 of 19 Old 03-02-2007
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The problem is working out the details for the maintenance and repairs. Who will be responsible for the repairs? Who will be doing the repairs? Whose time does the time required for the repairs come out of?

Most people who are looking at a partial ownership of a boat, are looking to spend their time with the boat sailing it... and that it will be in reasonably good shape for their use, when it is time for them to use it. Your boat does not sound like that it is in such shape, since you are in the middle of restoring it.

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post #8 of 19 Old 03-03-2007 Thread Starter
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I never say it was going to be easy
She is a very special boat and I do need to find partners who are likely mind !
Regarding maintenance I will do all of it myself , the cost will be only on materials , slipway... my time is free
We have spend around 5000hrs working on this boat and the cost so far for the people involved who were paid is around $ 60,000.00 !
My part was one full year 7 days/week !!
I am pretty competent as I learned to built and repair boats in my youth , but I think more important is to know your limitations and when to pay somebody more competent to do specific jobs
If this work has been done by a yard at say $ 80.00/hrs , it will have cost already $ 400,000.00
When you start to restore these classic boats , or you are very rich or you have to do the job yourself ,if you can
So yes special partners for special boat
We are not the owners but the custodians of Mavourneen Mary

Lannig

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post #9 of 19 Old 03-03-2007 Thread Starter
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Precisions regarding the schedule of work :
If we can restart work this spring , we need 4 months to finish her (that's me and my friend Pierre with the help of Girard !)
The idea is to get her ready for a run to Mexico in October
After that it depends the program of navigation decided (ie: the partners !!)
American option :
Mexico,central America in Winter then back to SF for Master Mariners Race in May 2008 then North to Inland Passage !
European Option :
Mexico, then Panama around January, West indies, then Atlantic crossing to be back in Europe for Brest 2008 classic festival after certainly the Med !
Circumnavigation option
Mexico , galapagos then Pacific !
It's a big planet with a lot of ocean

Lannig

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Yes, but if your off on a trip to Central America, exactly how is a "share owner" supposed to get to use the boat...when he/she may have no interest in sailing in that part of the world.

Another possible way to finance the restoration of the boat is to setup a corporation for doing so, and hold fund-raisers and write grants. This is probably a better approach IMHO, as there will be no demands upon the boat from the "share owners". Given the age and construction of the boat, it may also be possible to setup a relationship with a local nautical or sailing museum.

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You know what the first rule of sailing is? ...Love. You can learn all the math in the 'verse, but you take
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her going when she oughta fall down, tells you she's hurting 'fore she keens. Makes her a home.

—Cpt. Mal Reynolds, Serenity (edited)

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