Purchase for Charter and Alternative Ownership Opportunities
After having been involved in purchase for charter opportunities for more than 20 years with yachts in service from the Chesapeake to the Lower Caribbean there becomes an understanding of what can be anticipated in reality from the different scenarios of yacht ownership for charter.
Rarely is there an opportunity to make a "quick buck", generally the best it ever gets is cost justification of yacht ownership for those who have limited time for the enjoyment of waterside activity. That's not a bad idea!! You simply can not argue the numbers. Private ownership has a greater cost over the term of ownership in comparison to Charter ownership unless you are balancing the cost out against alternative lifestyles like living aboard or cruising rather than living land side. How can I say that? It's in the difference of depreciation of the asset as depreciation relates to Private vs. Charter as a percentage compared against the overall cost of ownership over the term, i.e. insurance, dockage, maintenance and cost of money. This does not take into consideration owner's personal time or expense in having things in order when we get those cherished moments to enjoy the sea.
Please understand that it is recognized that there is "Pride of Ownership" where the cost is not a factor and there are those who really do not care what it costs; they are only interested in having their own boat for their own pleasure. That is "Yachting" and thank you for your interest. Please consider me when selling or buying your next Yacht! Owning a vessel for charter requires the right profile of an individual who accepts the fact that others will use his or her Yacht as a method to substantiate ownership and is more interested in maximizing the experience when the time is available to go yachting.
In the following you will find the three basic categories where the opportunity exists to create income with a marine vessel. Each has it's own scenario, each with it's own potential. From Bareboat to Commercial the opportunity slides along the scale from a more recreational absentee business opportunity to the true opportunity to operate a vessel for profit. The potential in Bareboat and Crewed is a function of latitude and longitude, Commercial is like real estate, Location, Location , Location. In that The Catamaran Company has the opportunity to offer just about any variation of management programs available, please review these programs as ours but remember that our competitions are the same just with a few different twists, evaluation of the choices breaks down to basic factors depending on the type of program.
As far as Taxes as they apply to owning a business. Please remember that it is a function of you and IRS, any charter company has the same potential to offer the same "points" necessary for an accountant to determine active vs. passive income which is the key to the tax issue, though one company over another may capitalize on tax implications it is available to all who wish to consider the opportunity and available via the choices of the different charter companies. Tax Advisors upon request
There are a number of ways for you to make money via the world of Catamarans. The first question one needs to answer is what is the intended objective. This ranges from cost justification of the size and type vessel that one so chooses to own for personal pleasure to operating a business for the purposes of making a profit. Basically the choices are Bareboat Charter or Luxury Crewed Charter. Operating a day charter business is another opportunity which I will mention separately. Each of these choices has it's own set of parameters and potentials relative to financial objectives and personal interest. There is much to look at in evaluating each option, but first lets try to define a few methods for this review.
I like to begin with the Gross Profitability Factor. This GPF is simply the anticipated averaged value of one weeks worth of gross charter revenue divided by the overall anticipated value of the vessel completed and delivered charter ready. As an example, if a Privilege 51 costs $600,000 and charters for an averaged $13,000 a week it has a 2.1% GPF; where say a Lagoon 570 at $900,000 with a $17,000 averaged week carries a 1.8% GPF; the bottom line with the better return comes from the Privilege 51. The higher the percentage the better the financial opportunity.
There are a number of factors to take into consideration, ie. hard cost of operation, marketing and management fees, but in either case of the above noted choices the expense side is about the same any way you cut it. Using the GPF works then, when looking at new or used choices and can be further applied whether looking at Luxury Crewed Charter choices or Bareboat. Please give me a call if you wish to discuss in detail how this information can be packaged to arrive at a conclusion that makes sense for you. Contact John G. Anderson, email@example.com
Bareboat Charter Ownership Programs:
77%-23% Revenue Sharing Program, The Catamaran Company British Virgin Islands
This program is designed for those individuals who are interested in being tied directly to the income that their yacht generates. This affords the owner the opportunity to use the vessel at their own discretion without being tied to established owners usage scenarios. This program might also provide an owners accountant a stronger basis to create a tax situation more in line with your particular tax objectives.
Please be aware that we can not control what one season to another will bring, therefore there is a degree of risk which this program dictates.
50%-50% Revenue sharing program. United States Ports. This program has been created to meet our need for yachts in stateside locations which currently includes Fort Lauderdale and soon to be released Annapolis Maryland on the Chesapeake. This program follows along the same guidelines as that of it's sister 77%-23% of the Caribbean with the exception of the percentage and the fact that turnaround fees are not charged to completed charter weeks outside of owner usage.
With the ability to provide stateside base locations via a cooperative network of charter companies through- out the U.S. this allows owners who are interested in a more regional (closer to home) concept to be made available.
You choose the Model
You choose the Lay-out
You Choose the Equipment Aboard
You Choose when You Wish to Use your Yacht!
It becomes the Charter Companies responsibility to create a revenue stream against expenses, given the parameters that you have established.
Guaranteed Income Program
This program is designed for those individuals who are interested in having a commitment from the charter company as to the income to be received over the course of the management agreement. This program provides a fixed monthly income whether it is in month 1 or month 48 of the term of the agreement. This smoothing is much more like a mutual fund rather than purchasing today's "hot" stock. You receive the same payment whether there has been a down turn in charter activity or not. No one can predict the impacts of weather, economics, or rate discounts within the industry, projected into the future. In effect, it is then the charter companies burden to produce rather than yours.
Usage is structured to an annualized up to six weeks per year with only turnaround fees and CDW as the costs per charter week.
This Program is available for select models only. Please consult me as to which models are currently available.
Highlights of the Guaranteed Income program:
Receive a monthly payment for up to 48 months which equates to the mortgaged amount, based on 25% Down @ 8.5% for 15 years.
The Catamaran Company pays for all the expenses, from dockage to insurance, maintenance inclusive.
Maintain the Yacht in the fleet from 12 to as much as 48 months. We only ask that you give us 90 days notice.
Use your Yacht for up to 6 weeks per year.
Each usage week shall be billed at 12 USD per foot for turn-around fees and 30 USD per day CDW. This maybe added into the complete price if so desired.
Luxury Crewed Yacht Ownership
This program is designed for those individuals who are interested in the truest sense of charter yacht ownership, owning and operating an active business around a Captain and crew maintained Yacht. The Catamaran Company has developed one of the most complete packages available to sell, commission, staff, maintain and book Crewed Charter Catamarans anywhere in the world. Our marketing department can tailor market plans to meet specific interests where theme styled charter activity might be of interest. From scuba, windsurfing, specialty fishing adventures to underwater photography as an educational, informational styled vacation make up current and past business opportunities created and supported by The Catamaran Company.
Highlights of the Luxury Crewed Yacht Program:
Virtually an unlimited opportunity to choose between Privilege, Fountaine Pajot and Lagoon's larger yachts and to create the justification to own and sail one of the premier yachts in the world and to own and operate one of the most exciting business opportunities in the leisure industry.
Receive charter income based on the industry standards of gross revenue per charter less normal booking fees (15 to 20%) and minimum management fees of 5% after the 1st years start-up. This is your business therefore cost of operation are at the owner's expense.
The Catamaran Company, in it's management fees, will handle as much or as little of the day to day operation of the business as you so choose.. We can provide crew selection to paying the bills all inclusive. From our base in Tortola BVI expect excellent service in working with your Captain and crew in providing the greatest charter in the Caribbean.
Your usage is at your discretion, it's your yacht and your business, you direct how this yacht is to be used.
Budgets based on the Programs available upon request. 954-822-6450 firstname.lastname@example.org