Charter Ownership Sailboats ... What happens to Owner

[Falbala60]

Ownership Charter Sailboats and IRMA ... What happens to the owner?

Sorry for all those who have lost their homes and essential goods and hope that the situation will be restored as soon as possible for the most part.

But we were about to buy a sailboat in an Ownership Program, but the coming of IRMA and the monstrous disaster makes us reflect on what happens to the owners in these situations. Sorry for the me-myself-and-I.

Owners of sailboats in a Ownership program have to pay their mortgage as usual ... say $ 5,000 / month for an approximate GUARANTEED income ... this comes at zero cost except for the down payment!

Since the charter companies will no longer have any income, how will they continue to pay the guaranteed income? For the homeowner with a debt often gets over $ 400,000, who will help them? Do charter companies have an "assurance on income guarantees" that they offer?

Is there a clause we have not seen in the contracts that have been proposed to us?

Who is going to go bankrupt unless they are rich. Many with modest saving enter these programs at age 55 planning to have a half-paid sailboat to retire to live on board ... will they end up with one of a big problem ?

[Kenomac]

If you ever saw the way the charter boats are used and abused by clients.... you'd never ever agree to purchase a charter boat.

You would not believe what goes on when other people rent your stuff, we see it all the time, every day. It's actually very entertaining... much better than TV.

[Falbala60]

Thank you for your advise, I know perfectly the "problem" but this was not my question, whwee I want to know the situation of actual owners with damaged boat no more operating

[Moontide]

Only a guess, but I would bet that there is a paragraph in the contract that says if destroyed then contract is terminated. Owner would have insurance proceeds to (hopefully) pay off the loan, and maybe get some down payment back.

Kind of makes sense since the Owner is no longer providing a boat for the charter company to use.

[Falbala60]

Yes absolutely... but I don't think the bank will wait until insurance reimbursed you. If the delay is long what would
be the issue... insurances co have 1000's reclamations for Irma plus Harvey ones...

[Sailmonkey]

Originally Posted by Falbala60

Yes absolutely... but I don't think the bank will wait until insurance reimbursed you. If the delay is long what would
be the issue... insurances co have 1000's reclamations for Irma plus Harvey ones...

I would assume this is just one of the many chances you take when entering into a program like this. Hurricanes are bad for every one in the marine business except for the salvage guys and the adjusters.

[Cheechako]

Insurance? If not owned outright, the insurance company is tied to the lien holder right? Most often the lien holder/bank has requirements for the amount and type of insurance. Seems to me when they get involved like that they take on some responsibility too. Let them work it out. Some businesses buy insurance for "loss of income" in event of a catatrophe, that's a thought for this situation.

[Cadence]

Originally Posted by Falbala60

Ownership Charter Sailboats and IRMA ... What happens to the owner?

Sorry for all those who have lost their homes and essential goods and hope that the situation will be restored as soon as possible for the most part.

But we were about to buy a sailboat in an Ownership Program, but the coming of IRMA and the monstrous disaster makes us reflect on what happens to the owners in these situations. Sorry for the me-myself-and-I.

Owners of sailboats in a Ownership program have to pay their mortgage as usual ... say $ 5,000 / month for an approximate GUARANTEED income ... this comes at zero cost except for the down payment!

Since the charter companies will no longer have any income, how will they continue to pay the guaranteed income? For the homeowner with a debt often gets over $ 400,000, who will help them? Do charter companies have an "assurance on income guarantees" that they offer?

Is there a clause we have not seen in the contracts that have been proposed to us?

Who is going to go bankrupt unless they are rich. Many with modest saving enter these programs at age 55 planning to have a half-paid sailboat to retire to live on board ... will they end up with one of a big problem ?

Sorry! Questions that should have been asked prior entering into it. Best of luck. I hope there was insurance included in the contract. If not the co. would most likely be like getting blood out of a stone.

[safariKY]

In have the same predicament. I have a 9 month old monohull in a charter fleet. At present, we don't even know the status but assuming all is lost. True, it is a risk to place an expensive boat in a charter but for some of us, having one in 2-3 years is the only viable option (financially speaking). Some charterers like us were always respectful of the boats we chartered. Some are not, and some exaggerate their resumé, which is the real problem. No idea how long the insurance compny is going to take. It will be a long and difficult road.

[jmschmidt]

Kenomac you're full of it, I have been on many charter yachts in the last fifteen years, all in very good to perfect condition and I have bought two of them, all maintained impeccably. Do you change the oil and filters on your genset after every weeks running? My charter manager does. Do you do a bottom survey after every outing. My charter manager does. With a proper survey and sea trial boats bought out of charter or handed-over will have all discrepancies corrected or a cash payment will be made. At hand-over Moorings wrote us a check for $13,000 to correct items that were to difficult to get corrected reliably at their remote base. This items were cosmetic in nature and did not affect safety or seaworthiness.

[Falbala60]

Originally Posted by jmschmidt

Kenomac you're full of it, I have been on many charter yachts in the last fifteen years, all in very good to perfect condition and I have bought two of them, all maintained impeccably. Do you change the oil and filters on your genset after every weeks running? My charter manager does. Do you do a bottom survey after every outing. My charter manager does. With a proper survey and sea trial boats bought out of charter or handed-over will have all discrepancies corrected or a cash payment will be made. At hand-over Moorings wrote us a check for $13,000 to correct items that were to difficult to get corrected reliably at their remote base. This items were cosmetic in nature and did not affect safety or seaworthiness.

Thank you ... Who is this manager ???

[Mithril Bham]

Don't know about the "Guaranteed Income". The agreement with the charter company I worked for paid nothing if the boat wasn't booked. That never happened but the income was definitely based on booking. Guaranteed might mean that they guarantee you a percentage of their bookings. No bookings equals no income.
I'm wondering if there will even be a charter biz in the VI for a few years. Might be lots of rooms in the anchorages.

[comesatime]

It differs from company to company, read the contract fine print and carefully consider your counter-party risk.

For Moorings/Sunsail, keep in mind the parent company was just sold to the private equity giant KKR:

https://www.travelopia.com/kkr-compl...on-travelopia/

These are clever guys who have become billionaires by taking care of their end first :-;

[Kenomac]

Originally Posted by jmschmidt

Kenomac you're full of it, I have been on many charter yachts in the last fifteen years, all in very good to perfect condition and I have bought two of them, all maintained impeccably. Do you change the oil and filters on your genset after every weeks running? My charter manager does. Do you do a bottom survey after every outing. My charter manager does. With a proper survey and sea trial boats bought out of charter or handed-over will have all discrepancies corrected or a cash payment will be made. At hand-over Moorings wrote us a check for $13,000 to correct items that were to difficult to get corrected reliably at their remote base. This items were cosmetic in nature and did not affect safety or seaworthiness.

We know what we see.... when you're not around. It's like watching "Laurel & Hardy" and the "Three stooges" sailing on the same charter boat at the same time.

Funny stuff.

[Nikki S]

Originally Posted by Kenomac

If you ever saw the way the charter boats are used and abused by clients.... you'd never ever agree to purchase a charter boat.

You would not believe what goes on when other people rent your stuff, we see it all the time, every day. It's actually very entertaining... much better than TV.

Heard this one over the vhf - not quite sure if it was a joke: "we have run out of anchors. What do you suggest we do now?".