- How will owning a boat fractionally effect my monthly payments?
- Can I find financing if I am not buying the whole boat?
- Are maintenance standards part of the agreement?
- If something is broken on a partnerís watch, how is this handled?
- What is an average length of contract?
- Can I escape the contract if I need to?
- How much will my boat be worth at the end of the contract?
- What if one of my fractional partners has a different maintenance standard than I do?
- Is there a person from the LLC in charge of maintenance and payments?
- How much time should I expect to sail if I have 3 other partners?
- What are the features of this program that make it a good fit for me?
- If we buy a new yacht, how do we decide on equipment and extras?
- What are the tax implications of owning a boat fractionally?
- Can I be held responsible for another of my partnerís actions?
- What happens when the boat is damaged by any of the partners or on charter?
- Fractional Ownership makes sense, why should I go with The Multihull Company?
- What are the cons?
- What are the pros?
How will owning a boat fractionally effect my monthly payments?
Fractional owners reduce their costs based on the percentage of their ownership. Normally, all costs are divided between two to four partners. Therefore, your buying cost is 1/2-1/4 of the cost of the yacht. Operational costs are collected as agreed on from each owner at set times of the year that may be monthly, quarterly, or annually. Dockage, insurance, maintenance, crewing requirements, and any other additional costs are split equally among the partners.
Can I find financing if I am not buying the whole boat?
Nearly all marine lending institutions are familiar with, and support fractional owners. You may be able to finance close to 100% of your share in some cases, but usually 20% down is required.
Are maintenance standards part of the agreement?
The Multihull Company Fractional program provides each owner with a set of guidelines to create an equitable LLC. A minimum management standard is outlined and agreed upon. Each owner signs the agreement that covers every foreseeable situation. Through our alliance with Dream Yacht Charters worldwide, we offer 26 bases to keep your boat serviced almost anywhere that the boat might sail to.
If something is broken on a partnerís watch, how is this handled?
The nearest Dream Yacht base will ideally repair the boat and if that is not possible, the nearest authorized service center for the brand of catamaran. The Multihull Company will assist to get the boat back up and running at all times as quickly as possible. The boat is 100% insured and there is a repair fund available at all times as well.
What is an average length of contract?
Most LLCís are a 5-year commitment. At the end of the 5 years, the The Multihull Company will sell the boat, as required. Owners can buy each other out at that point or they can collectively decide to keep the yacht.
Can I escape the contract if I need to?
As part of the Ownership Agreement, an owner may sell their position. Additionally, The Multihull Company will always have interested parties and may be able to insert a new partner into the LLC right away. Any owner wishing to sell can list their fraction with The Multihull Company as well.
How much will my boat be worth at the end of the contract?
Boat depreciation is largely dependent on two variables: Brand strength and long term care and maintenance. Exceptional quality yachts like Catana are frequently worth about 90% of the original price depending on model, layout, maintenance, etc. In this case, with four partners, your depreciation would be 2.5%.
What if one of my fractional partners has a different maintenance standard than I do?
Yacht owners do tend to have very different standards. The Multihull Company Fractional programs addresses these issues up front and crafts agreements where the standards are then signed off on. We encourage a full service contract with our affiliate Dream Yacht Charters and leave the maintenance to someone else. Remember, all costs are divided by two to four owners.
Is there a person from the LLC in charge of maintenance and payments?
If the LLC elects to do their own maintenance, one partner will be elected as the groupís treasurer. This position should cycle to each owner during the duration of ownership for a period of time. If the catamaran is bought with a maintenance agreement, we will take care of everything.
How much time should I expect to sail if I have 3 other partners?
The Multihull Company offers several different fractional programs. In any of the programs where the boat is not part of a charter service, you are guaranteed to be able to reserve your yacht for the percentage portions that you own, minus an agreed upon maintenance schedule for each year. In most cases, this means if you have 4 partners you will have the boat between 22 and 24 weeks a year. There will be organized and prioritized scheduling that will allow each partner their first rites of refusal over the duration of the agreement. Blocks for sailing can be a 1 week period, a 2 week period, or other periods based on mutual interest.
What are the features of this program that make it a good fit for me?
If you know you want to own a catamaran and either cost or your available time is at issue, this may be a good fit. Most people donít use their boat 100% of the time so with this program you pay for what you use.
If we buy a new yacht, how do we decide on equipment and extras?
The Multihull Company sells top of the line cruising catamarans and will help determine with the partners, the best package of options for the boat. Each catamaran should be equipped with the best safety and luxury features and we urge our fractional groups to add items based on the groupís needs that add value to the yacht. This is often a function of the local conditions. We urge our owners to equip the boats to a high standard. Consider that these costs will be between Ĺ and ľ of what they would be bought by a single owner.
What are the tax implications of owning a boat fractionally?
Tax codes vary all the time and country to country. Please investigate these with your CPA so that you can receive maximum benefit. It will be important to know where the boat is registered and what the boatís expressed usage will be in determining tax advantage.
What happens when the boat is damaged by any of the partners or on charter?
The boat will be 100% insured for all members of the LLC. There will also be a security and emergency maintenance fund held by the LLC.
Fractional Ownership makes sense, why should I go with The Multihull Company?
The Multihull Company is a world leader in the sales of new and used catamarans. We are agents for Catana, Dolphin, Dean, and others, We offer new and used boats for the program including all the finest cats in the world. We also can form alliances for nearly any existing or custom brand of cruising cat, in any size and configuration. We have applied many years of experience in catamaran brokerage and yacht management to provide a fractional ownership plan that is designed specifically for catamaran sailors. This is a real and viable alternative to either owning alone or chartering. Our company is built on customer service and we understand our clientís very specific needs. Additionally, our association with Dream Yachts allows us to offer true worldwide coverage for this program.
What are the pros?
You save 50%-75% on the costs. You still get to sail your catamaran a lot, certainly statistically as much as most single owners would. The Multihull Company manages your catamaran if you opt for that in your group, which certainly makes ownership easier.
I am interested. What is the next step?
Email Derek Escher at Derek@multihullcompany.com or call him at 617-803-8976