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Re: Joint owners contract examples
[Re: IceSailor]
#205007
09/20/2019 05:27 AM
09/20/2019 05:27 AM
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Joined: Oct 2000
Posts: 770 Kansas
captmoby
Traveler
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Traveler
Joined: Oct 2000
Posts: 770
Kansas
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You should worry more about what happens after the 5 years are up. Been there done that for 19 years now and after Irma we are on the 2nd boat.
Jim Sailmoby II
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Re: Joint owners contract examples
[Re: captmoby]
#205023
09/20/2019 10:05 AM
09/20/2019 10:05 AM
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Joined: Aug 2014
Posts: 229 West Chester, PA
ligot
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Traveler
Joined: Aug 2014
Posts: 229
West Chester, PA
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You should worry more about what happens after the 5 years are up. Been there done that for 19 years now and after Irma we are on the 2nd boat.
I'm with Wes, I'd love for you to elaborate. Thx, Dave
S/V Tortuga Lagoon 46
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Re: Joint owners contract examples
[Re: IceSailor]
#205052
09/20/2019 02:40 PM
09/20/2019 02:40 PM
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Joined: Oct 2004
Posts: 1,956 St. John, USVI
RickG
Traveler
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Traveler
Joined: Oct 2004
Posts: 1,956
St. John, USVI
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We formed an LLC that had two members for our non-charter boat in the VIs. The LLC operating agreement was essentially the contract. If you're familiar with LLCs, boilerplate operating agreements handle most issues. We used an attorney to handle the formation.
Cheers, RickG
S/V Echoes, 2003 Beneteau 423 Grenada
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Re: Joint owners contract examples
[Re: ligot]
#205057
09/20/2019 02:58 PM
09/20/2019 02:58 PM
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Joined: Oct 2000
Posts: 770 Kansas
captmoby
Traveler
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Traveler
Joined: Oct 2000
Posts: 770
Kansas
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After the 5 years are up you will have tough decisions to make. You will now own a very used boat and still have a mortgage on it that will be upside down. What now? Put it in another charter option that will be a net negative situation? Keep it as a private boat that will also have additional expenses including insurance and boat care, new sails, slip fees, bla bla bla etc. Don't get me wrong it has worked for us mainly because the boat is used by one of us probably a total of maybe 180+ days every year. That's what I mean by take a very hard look at what happens after the 5 years.
Jim Sailmoby II
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Re: Joint owners contract examples
[Re: IceSailor]
#205068
09/20/2019 04:27 PM
09/20/2019 04:27 PM
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Joined: Oct 2000
Posts: 770 Kansas
captmoby
Traveler
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Traveler
Joined: Oct 2000
Posts: 770
Kansas
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George is certainly the expert in this game no doubt. I would not challenge his expert knowledge. But still have a real hard look at what happens after 5 years. Will the partnership still be intact if not then what? Our partnership is between two brothers and a sister all avid sailors and able and do use the boat as much as possible. That includes nephews and a very few friends that we trust using the boat on occasion. She is rarely in the slip for more than a week or two. For us I feel we should have taken the first Moby out of charter sooner. The new Moby II a Jeanneau 53 is not and will not be in charter. We are currently enjoying some time in Grenada/Grenadines before the return to BVI's.
Last edited by captmoby; 09/20/2019 04:29 PM.
Jim Sailmoby II
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Re: Joint owners contract examples
[Re: IceSailor]
#205073
09/20/2019 05:29 PM
09/20/2019 05:29 PM
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Joined: Jan 2016
Posts: 943 Georgia & South Carolina
Deepcut
Traveler
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Traveler
Joined: Jan 2016
Posts: 943
Georgia & South Carolina
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A couple of points (some of which are not exclusive to multiple owners).
Amortization 10-12 years. 25% down. Less chance of being upside down.
Partners should have similar philosophies.
Partners should have reasonable expectations about their own use and "rules" set up. Perhaps, number weeks in high time that one could book. Internal "book keeping" of time used (85% of charter rack rate for time booked greater than 90 days, 60% for booking 45-89 days in advance, 40% for time less than 45 days out)... in the end, if similar philosophy of usage, you should likely wind up with similar account balances. Many different ways to set up usage expectation, but do it in advance and thoroughly scrutinize plan.
Define who can use boat owner "time".
Who can authorize discounts to friends/ others (ie, Last minute discounts are smart business. Giving excessive discounts to friends of one owner may "cost" others money)
Each partner should financially be able to afford vessel alone. Helps when revenue down or considering maintenance costs/upgrades that were unexpected.
Having odd number of partners avoids a 50:50 split vote on any issues.But having too any members using boat will negatively affect charter income
Have defined "Out" at end of 5 years, such as boat will be listed with broker X and sold. (Can be amended differently if all parties agree).
Can a partner sell his share? Under what circumstances (ie health issues prevent him/her from using boat).
With many of these points agreed upon, consult a lawyer who may have even more points to add, and get all in writing.
Bottom line, spend more time contemplating the end than the beginning.
Hopefully others can add more/other points to consider.
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Re: Joint owners contract examples
[Re: Deepcut]
#205078
09/20/2019 06:39 PM
09/20/2019 06:39 PM
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Joined: Oct 2000
Posts: 770 Kansas
captmoby
Traveler
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Traveler
Joined: Oct 2000
Posts: 770
Kansas
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Yep, Wes you said it very well. Worry about the end not the beginning. The beginning 5 years will be smooth sailing, my original point. But you made it much clearer. Thanks
Jim Sailmoby II
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