Thread: Partnerships?
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Old 02-15-2015, 04:21 PM   #20
City: Blaine
Join Date: Feb 2015
Posts: 2
My wife and are investigating this concept too. We have found a program in Anacortes, WA that is based upon the NetJets model. There are a maximum of 8 share owners in a boat (we are currently looking into either a 39' or 40' Nordic Tug). The owners are formed into a LLC along with the brokerage with the asset being the boat. All of the owners are named on the title and the owners pay a monthly fee proportional to their share of the boat. There is a super share owner who funds the construction and commissioning of the boat. This owner gets priority scheduling and all of the monthly fees paid by the brokerage. The brokerage is responsible for scheduling, maintenance, cleaning, moorage, etc. Hard scheduling and open time are proportional to the share of ownership. If a owner wishes, they can direct the brokerage to put their hard schedule time into charter, if the brokerage sells a charter, the owner and brokerage split the charter compensation 60/40. Charter renters must be qualified by the brokerage prior to rental.

The term of the LLC contract is five years. At the end of the term the boat can be sold to one of the share owners, with the super share owner taking priority, or the boat can be sold out right if all the owners agree and then each owner would get a proportional division of the sale minus a brokerage fee. The share owner can at that time also choose to roll their share into a new boat and receive a discounted fee on the sale of the original boat.

Exit clauses are written into the LLC and if the brokerage were to go bankrupt or otherwise dissolve the share owners would simply sell the boat and divide the proceeds so as to not saddle the LLC with a large boat that none wish to or cannot maintain.

The basic math behind this is: New Commissioned Boat = $800,000 Divided as follows 1/2 share, 1/4, share, & 1/8 share. If one were to purchase 1/8 of a share, their buy in would be $100,000 and they would pay a monthly fee for the term on the LLC contract. At the end of the contract if the boat is sold for $600,000, the 1/8 owner would get $75,000 back minus the brokerage fee.

This is very interesting and appealing to us.
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