Unusual Boat Sell Proposal

[Statistical]

I would not do this even if you were charging him credit card interest rates for a all the risk and inconvenience.

It sounds like you are dealing with a dreamer. He has a plan to get a boat for "free". He takes your boat puts it in charter, gets paidw, uses some of that money to pay you. Free boat for nothing. I would like a free boat too. Free boat sounds awesome. I am sure his analysis on this is super optimistic on both the revenue and cost side. It is a free money machine.

Now what happens if the boat doesn't charter enough to make the payments? What happens if the boat ends up needing repairs to get it back into charter and he can't afford it? What happens if/when his broke ass lets the insurance lapse without telling you and then a credit card captain on charter hits a reef and sink her?

You are essentially a business partner except a business partner that takes all the risk and get zero of the profit by design. That is the best case scenario. The best case scenario is you get to sell the boat in a couple years with no additional profit for the risk you are taking. If you want to be in the chartering business why not put the boat into charter yourself.

[Statistical]

Originally Posted by Iron E

The person is making the offer because they can't get a loan/financing. If the deal goes south, take the boat back.

Yeah it is that easy. Of course if it is that easy why doesn't the bank take the same attitude and give him a loan. Silly banks don't they know they can just take the boat back so zero risk and free profits if something bad happens. What would banks know about finance or lending anyways.

[more]

Originally Posted by Iron E

The person is making the offer because they can't get a loan/financing. If the deal goes south, take the boat back.

maybe in usa, in EU is roman law. taking boat back only can court order.
this buyer can be owner of boat before pay all in contract,but he is in possesion of boat what is totaly different from owning. if he is honest buyer and dont pay rest contract is totaly different from owning boat. seller must have court order for take boat back. if he take force boat back this is steeling and buyer can ask money back.this is special valid in real estate. never,never alow buyer in property before last payment sit on your bank account,
in reality only solar payment , money on sun. this is

[Iron E]

Originally Posted by Statistical

Yeah it is that easy. Of course if it is that easy why doesn't the bank take the same attitude and give him a loan. Sill banks don't they know they can just take the boat back so zero risk and free profits. What would banks know about finance or lending anyways.

Your snarky comment completely missed the first sentence of my post.

If you're not willing to do it, don't.

Banks aren't typically in the business of repossessing properties and reselling them, but some people and businesses specialize in this, and it can be quite lucrative.

[PNWSalmon]

So, I can use your boat for three months then return it to you, for free? That’s awesome.

[Statistical]

Originally Posted by 5BTM

Proof positive that it is a buyers market to even consider such an offer.

So much this. I think prices have a ways to come down still from the covid lunacy highs.

[Statistical]

Originally Posted by Iron E

Banks aren't typically in the business of repossessing properties and reselling them, but some people and businesses specialize in this, and it can be quite lucrative.

Banks ARE typically in the business of repossessing and selling property by the sheer number of loans they have. They have entire departments dedicated to it. They have vastly more experience in risk management, repossessions, and selling distressed assets than the OP ever will. Despite that they don't want to loan this particular guy money in an asset backed loan.

[Cheechako]

NOPE NOPE, NO, ALTO!

[FlyingScot]

Absolutely not! Not even to a friend or family member.

[CaptTom]

Originally Posted by wholybee

...If a bank is not willing to finance it, then don't do it...

This is the root of the issue. Basically it's a loan. Essentially an unsecured loan, since there may be no practical way to get the boat back.

You are proposing to invest in this charter business by putting up the boat. Presumably the banks didn't think it's worth the risk. If your risk tolerance is different, or you have more confidence in this business than the banks do, go for it.

But treat the proposed down payment as payment in full. Transfer ownership then. The remainder is a personal loan. You do not want to have any ownership interest in the boat once it's in the buyer's control.

[more]

Originally Posted by Iron E

Banks aren't typically in the business of repossessing properties and reselling them, but some people and businesses specialize in this, and it can be quite lucrative.

Not in mostly EU. Bank can legally repossessing properties and reselling. except operative leasing,wher bank/leasing company is owner of property and buyer is lending user.

my story i rent private warehouse to company. he paying 5 year almost on time
. before covid he change company and we write simply contract for lend 3 year,not special legally binding contract l (cost around 300€ for nottary, the document is called the solemnization of the contract. By solemnization, the contract acquires the force of a notarial act, has the force of a first-instance judgment, that is, has the force of a court decision on the subject matter.
this is in Croatia,almost every country have something similar.
end story this company stay in my warehouse 3 year without cent and i pay electric and water bill(8000€) i be in prison 7+30 days because i come with excavator and cut eletric and water line in my property. have extra expense for lawyer court forbiden water company to restore water line,

greec law is more tricky Greece’s legal model is similar to those in Austria, Germany, Finland, Belgium

[Giro]

What first comes to mind is that tracking down a car would be a whole lot easier than trying to locate a boat that could be relocated anywhere on planet Earth.
Secondly, sometimes it’s better to accept less money from a buyer who is capable of offering cash or a much more traditional purchase profile.
There simply has to be more than one buyer who would love to acquire your vessel.

[more]

and second buyer who don't have now money to buy boat also don't have next 8-9 year money if his income is from only charter

[danstanford]

I once had a banker friend say "there is a price (interest rate) for every deal". Translating and expanding on this, higher risk should have a higher price and I think most people here have pointed out the high level of risk in this deal.

[NorthCoastJoe]

I skipped over most of this thread, here is why.

I sold my Downeaster 38, took a deposit and had an agreement to get paid monthly for one year to be paid in full.

Guess what I got? Nothing, and the boat got trashed in a month. Physical damage to the boat, sails, and engine.

Not worth me taking it back. So I lost everything except the deposit.

My advice get paid in FULL. If they can not get a loan elsewhere to buy the boat there is a reason.

My new credit manager is Ms Helen Wait ...so if you want credit

GO TO HELL AND WAIT