Finding a seller willing to carry a note

woodster · Oct 14, 2011

funirishboy said:
I want to buy a boat that is ready to sail. I have crewed on three boats, including a 28 Cal, a 34 West Sail and a 45 C&C. I am retired USMC, single, with a nice check from VA each month. I would like to put 5K down and a pay a thousand a month on a one to three year note. I would like a pocket cruiser in the 30 - 45 foot range on either Coast. Of course the boat would be fully insured. How can I locate an owner interested in taking this kind of deal?

take a look at the roweson boats on the west coast...if you have $5,000.00 at this time you could wate about 6 months or so and save up a 6 more grand and be in better shape to pay cash for a boat ...then you could invest that $1,000.00 a month in upgrads and repairs as you go along ......and have a lot more fun doing it that way ..after all 1/2 then fun of theses boats is getting to do maintance and repairs .....there is always some thing to do on a boat of any size....good luck...

regards

woody

tommays · Oct 14, 2011

From and insurance standpoint alone it would be a problem

Tim R. · Oct 14, 2011

Why use owner financing? You should be able to at least secure a personal loan to buy your boat.

Gunni · Oct 14, 2011

Any lender is going to want the boat insured, and the insurer is going to want a reasonably experienced captain (not crewman) on a 30+ boat.

Regarding owner financing: Too many things can wrong with a boat and a newbie owner / sailor that would take the boat's value to less than zero. Instantly. As in; other boats damaged, people hurt, on the beach and subject to legal violation. I also can't think of any sensible owner financing agreement that would give the seller recourse to taking the boat back that would not also obligate the seller to repossessing a liability.

There are lots more good reasons not to go this way, but I don't want to dampen your dream. Sailors are dreamers. Good luck.

Tim R. · Oct 14, 2011

Gunni said:
Any lender is going to want the boat insured, and the insurer is going to want a reasonably experienced captain (not crewman) on a 30+ boat.

That is why I mentioned a personal loan. No reason to tell the bank it is for a boat. And I have never had an insurance company ask if I was an experienced captain. I have insured with both Amica and Acadia.

Gunni · Oct 14, 2011

Tim R. said:
... And I have never had an insurance company ask if I was an experienced captain. I have insured with both Amica and Acadia.

Just because insurers don't ask you doesn't mean they didn't ask. Insurers want to know their risk. They'll ask your broker, his broker, the yard, a local, etc. and if they get the right answers, you'll never know the due diligence was done.

Ross · Oct 14, 2011

If I sell you a house and hold the paper I know where the house is if you default. But if I sell you a boat and you default you and the boat could be anywhere in the world.

Tim R. · Oct 14, 2011

Gunni said:
Just because insurers don't ask you doesn't mean they didn't ask. Insurers want to know their risk. They'll ask your broker, his broker, the yard, a local, etc. and if they get the right answers, you'll never know the due diligence was done.

Last boat bought was thru private sail insured for six figures. My surveyor tried to call them to explain a note in the survey and they never returned his call.
Am reasonably sure they did not ask anyone about my credentials to own/pilot my boat.

Benny17441 · Oct 14, 2011

I don't know of any sailors that would consider the those terms. I don't think $5K is going to get you into any worthwhile boat but hey , no harm in trying.

Gail R · Oct 14, 2011

Are you serious?

Ross said:
If I sell you a house and hold the paper I know where the house is if you default. But if I sell you a boat and you default you and the boat could be anywhere in the world.

Ding ding ding!!! We have a winner. Sorry, funirishboy, but I cannot imagine anyone in his/her right mind being willing to sell a boat in "ready to sail" condition to a perfect stranger and holding the paper on it. When our Pearson 26 was for sale, there was a prospective buyer looking for exactly that. We are not a bank.

Ross · Oct 14, 2011

Re: Are you serious?

When i was a kid the best terms were a dollar down and a dollar when you catch me.

Ross · Oct 14, 2011

Re: Are you serious?

In God we trust. All others pay cash.

I accept cash . The world is coming to an end and I don't want to chase all over hell for my money.
There are others also.

Joe · Oct 14, 2011

I bought my boat that way.... what's the big deal? The seller got his price with interest on the balance, I had some extra cash to fix up the boat.... paid it off in a year... his name on the title along with insurance until payoff... not a problem It's hard to hide a non trailerable boat in this part of the world, unless it's on the bottom of the ocean.

Good way to get your boat sold for the price you want. Good way to purchase without paying 23 percent on a credit card loan.

Here's my rule... no more than 20 percent financed... 12 mos preferred, no longer than 24 mos. no additonal liens, beneficiary on insurance, named as lienholder on title, no non conforming changes to boat's design.

Mac · Oct 15, 2011

I bet

if you ask any seller who has had his or her boat on the market for the last year or two would probably finance it for you.

kenn · Oct 15, 2011

funirishboy said:
I want to buy a boat that is ready to sail. I have crewed on three boats, including a 28 Cal, a 34 West Sail and a 45 C&C. I am retired USMC, single, with a nice check from VA each month. I would like to put 5K down and a pay a thousand a month on a one to three year note. I would like a pocket cruiser in the 30 - 45 foot range on either Coast. Of course the boat would be fully insured. How can I locate an owner interested in taking this kind of deal?

If you can find a friend, another vet, or a trusting associate with that sort of boat for sale AND the ability to finance, you might get those terms. otherwise it's a pretty tall order.

Most people selling their boat need to get their cash out, to pay for the next boat, or to meet the need that forced the sale. You get the best prices when you can pay 'cash' to the buyer; anyone rich enough to finance the sale of their own boat on such favourable terms would probably only agree because it will get them a higher price.

You haven't told us alot about your experience... the little you have told us suggests to me that you should really gain more experience while saving some cash, and/or buy a smaller boat to start with (20 to 30 ft).

Ed A · Oct 15, 2011

think he has a good shot at making a deal with someone who would like to makesome extra money(interest) on a deal. I was offerd that option when i got may last two boats from private owners. the key is the name on the title and insurance.

Take a safe boater coursein your state ant the insurance companys are pretty happy.

stephen Penny · Oct 15, 2011

It is likely going to be a private (non-broker) sale. Just request your proposed payment terms. I had 2 offers on my Hunter 31 at the same price, one a direct by-out, the other was a 2-year buy-out and I get to use the boat anytime for spinnaker flying and for weekly races, which I captain. I chose the latter. New owner covers the berth and maintenance costs, personal property tax, and insurance. I retain the title until paid off.

mark_swart · Oct 17, 2011

If you are retired military, I can tell you that USAA is very accomodating when it comes to boat financing.