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CHARTER MANAGEMENT PROGRAMS OVERVIEW

CHARTER MANAGEMENT PROGRAMS:


Fractional Ownership
Want to enjoy the lifestyle but only pay a fraction of the cost, then the Fractional ownership program is the right program for you. This program allows up to five co-owners to share in the ownership of a vessel.  The Yacht would be put into charter in the British Virgin Islands or Bahamas and managed by a experienced charter management team.  Partners in this program are allowed two weeks of use and anytime the vessel is not booked within 30 days out for total of 10-15 weeks during this entire program, each week is retailed at $12K which owners do not have to pay, partners only pay cleaning and insurance fees, and variable weekly costs during this use. The duration of the program is seven years, at which point the vessel is sold and and owners recover a percentage of their initial cost. 

Ownership can be sold at any point before the seven year program is finished. In this program annual operating expenses such as insurance, annual haul out, dockage and regular maintenance will be offset by the charter income.  If you are interested in more details please reach out to us to schedule a discussion and strategy.


Boat as a Business
This program consists of opening a corporation, usually an LLC and actively participating in the business to earn a profit. The cost of yacht ownership is lowered by the tax advantages that can be taken advantage of during a properly setup business plan.  This program has to be structured properly and it cannot be a passive income generating business to be able to take advantage of tax laws, this can be discussed with our sales staff that has experience in this type of program.  Our specialists can assist you in creating 5 year business projections, understanding tax laws, business plans, retirement plan and exit strategy.  The Boat as a Business program can put in place for a crewed charter or bareboat. 


Business Guaranteed Income Program
The Guaranteed income program is a program used by the larger charter companies such as the Moorings and Dream Yacht Charter.  Typically these programs last around 5 years and guarantee an income of around 9% on the value of that term. There are no additional costs to the owners participating in this program as all insurance, maintenance and dockage is covered by the charter company.  The charter company will manage and maintain the yacht over the duration of this program.  At the end of this program the owner will receive a the vessel that is in good condition except for fair wear and tear and would have paid 45% of the cost of the yacht, recouped around 65% of the original value when you sell and would have had up to 12 weeks per year for a 5 year period of free sailing.  Talk with our management team to get further details.
 
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