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Charter Boat Ownership - How I Bought the Boat Over the Internet for printing. 
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One Crazy Idea

It’s difficult to say exactly when the idea of charter boat ownership penetrated my thick skull.  It probably occurred sometime after returning from my first bareboat excursion to St. Maarten in November 1997, when Tiny suggested it might be possible.  At the time, I was working out of my home, authoring telecommunications and networking training materials for a large U.S. Company.  Since I was communicating with my client strictly over the Internet, I surmised I could continue my work from the deck of a boat anchored someplace hot.  They didn’t really know where I was now, so why would they care if I was someplace else?  It sounded very good on paper.

I began looking into the possibilities.

What Am I Looking For?

It took several months for the vision to be developed.  I started by checking out Websites and asking lots of questions.  Although I earn a decent living in the technology business, I did not fit into the “money is no object” category.  I had not socked away major amounts of cash so of my initial thinking was in the direction of creative financing.

I calculated that 450 partners, each contributing $200, would just about cover it.  The “partnership” strategy met with early skepticism, as I was unable to drum up much enthusiasm at the club bar.  Yes, it was a neat idea in principle, but what my audience really wanted was another beer.

Once it became clear that I would have to do this alone, I focused my attention on boats that met my basic requirements, and were within a reasonable price range.  In order to sustain a decent quality of life over time, something in the 40’ – 45’ range was necessary.  I had seen boats with the cutaway transom and the swim platform, and just had to have that.  At least three cabins – definitely!  Then the usual stuff - refrigeration, stove, hot/cold running water, electric windlass, roller furling sails, etc.   If it came with a built-in Jacuzzi, I wouldn't complain.  I visited a number of Websites to learn what I could, and see what was available for what price.  They included some of the following:

I had seen the nice aft cabins that came with the center-cockpit models.  Some were equipped with a desk that would be perfect for work.  Unfortunately, they also came with a price tag I could not afford, so that idea was out.  The sophisticated offshore cruiser built to survive a nuclear attack was overkill – I was only interested in a Caribbean coastal cruiser.  I had been out to sea on an oceanographic vessel, an experience that resulted in early retirement from all bluewater activity.

I finally settled on the Moorings 432, a 43’ Beneteau built for Moorings charter service between 1988 and 1990.  It had all the required toys and was attractively priced.  I found several of them available on the Internet and it looked like one could be had for a good price.

I had been plodding along at a snail's pace until one day, quite accidentally, things changed.  I’ll never forget that Saturday in May 1998.  I was sitting at a table in the bar at Port Credit Yacht Club, discussing my latest research on the Moorings 432 with friends, when someone at the next table leaned over and said, “I know the Moorings 432 well, I’ve chartered one and it’s a great boat.”  And with that stroke of luck, my program moved ahead 3 years.

Advance to "GO", Collect $200

The person at the next table was fellow J24 sailor Paul Montgomery.  He was just in the process of purchasing a Moorings 510 to place in charter following a year of extensive research.  I learned more from him over the next hour than I did in the previous six months.  By “tearing a page out of his book”, I cut substantial time off my research.  He provided valuable information that enabled me to refocus my plan, moving it from the “pipe-dream” phase to the “potentially possible” phase.

I was warming to the idea of placing the boat in charter for a few years until it was paid off.  During this period, I would gain valuable experience using the boat and learning about the Caribbean.  All the while, the boat would be cared for, charter revenue would cover maintenance costs and perhaps pay the ongoing financing costs.  It was a plan that was appealing in concept, but needed the details ironed out.

Paul put me in touch with a fellow named Seth at Barefoot Yacht Charters, a small charter company located in St. Vincent and the Grenadines.  I was informed that  Seth would be very helpful and that he would answer all my questions.  I nervously crafted my first E-mail and sent it off one lazy Saturday morning in early June 1998.  There was no going back now.  Within 10 minutes, I received a very welcoming response from Seth.  Over the next hour, we exchanged no less than six E-mails.  I would write down a few questions and Seth would respond with pages of detailed information a few minutes later.  It was like a telephone conversation.  This Internet thing was great!

A Plan Refocused

The quality of Seth’s responses was overwhelming.  I asked tough questions and received very frank answers.  I asked about the financial considerations, maintenance, hurricanes and other natural perils, owner’s time, as well as other risks.  Each time, I received an honest and open response, even in cases where the response was not always favorable.  This went on for several weeks.  I still have all of these E-mail exchanges online – their quality is substantial enough to form the basis of a book on how to buy a boat in the Caribbean.

First off, Seth had a 1988 Moorings 432 in his fleet that the owner was in the process of unloading.  At first, this appeared too good to be true, however that excitement was short-lived.  Seth felt that they would likely only keep a 1988 boat in the fleet for another 2 years before it would become financially unattractive.  Basically, it would become more difficult to charter and the higher maintenance costs would place the financial projections in the red.  I needed a program for 3 – 5 years, so that was the end of the 432 plan.

Seth sent me the financial projections for a Moorings 405, a boat I was familiar with from our St. Maarten charter with Sunsail (they call it an Oceanis 400 – same boat).  Although I previously thought I could not afford such a boat, it become more and more obvious that this was the way to go.  Because it involved more money, the timelines would have to be extended slightly.

So, by the end of June, 1998, I had a plan that involved the purchase of a pre-owned Moorings 405, to be placed in charter with Barefoot.  It went like this:

  • Continue with the Question & Answers with Seth, examining all aspects of the charter boat ownership business.

  • Continue the research from other sources – the Internet, other owners, Paul.

  • Live on bread and water, diverting all funds not nailed down, to the project.  After consolidating, liquidating, and starving, I calculated that I would have the necessary funds by December of that year at the earliest.

  • Confirm the availability of financing with my bank, or another financial lending institution willing to get tricked into this charade.

  • Charter a boat with Barefoot, try them out, and meet them in person.  I booked Paul’s 51’ for November and went down with a few friends (later known as The Usual Suspects) for 10 days.

  • If I was comfortable with all aspects of the business and had the money in hand, start looking for a boat in December.  I would buy the boat with 60% down, financing the remaining 40%.  Revenue from charter operations should cover principle & interest payments.  Basically, once I paid the 60% down, the entire operation should be self-financing.

  • Use the boat 3 – 4 times per year, non-peak periods.  Then go from there…

Last Updated: November 1, 2000
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