Sharing a sailboat

Picflight · Oct 3, 2014

If a partnership purchase agreement, then it is desirable if the boat use and maintenance outlook is shared by all participants.

I think every situation will be unique.

DougM · Oct 3, 2014

In my opinion, a good way to ruin a friendship....

patrickince · Oct 3, 2014

how many is a small group?

Rick D · Oct 3, 2014

I have been in two shared ownership arrangements. The first was a wooden 22' historical double ended launch. The current one is a 24' pontoon boat. Both worked OK but not without some annoyances. First, it must be jointly owned. We formed an association. Second, be sure you are able to secure insurance for the association; individual isn't good enough. Third, establish a share value, how it will be held, rights of survivorship, saleability, etc. Fourth, establish a reservation system or use calendar. Fifth, establish a maintenance schedule. To all that, add bank account, authorization levels etc. Sounds complicated, but its necessary if you want to worth through the inevitable issues. Obviously, you need bylaws, meetings, and those governance vehicles too.

YVRguy · Oct 3, 2014

Kind of like sharing an apartment. Better you do it with someone you don't consider to be a close friend. I own my boat with another guy who I worked with but wasn't close to. It has worked out quite well.

Sumner · Oct 3, 2014

niclaw said:
Amazing, thanks for the quick replys. The group is 4 or 5, boat price about $10k, number 1 use is club race one week night.

Normally I wouldn't consider it but in this case I'd ask myself could I stand to loose $2,000 to $2,500 and wouldn't think it was a disaster I'd consider it. The fun factor over even a year or so might be worth the risk and the shares in the boat wouldn't be so high that if one person opted out the others could buy up his/her share or agree to take on a new person that bought the shares if all agreed to that person,

Sumner

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topcat0399 · Oct 3, 2014

DougM said:
In my opinion, a good way to ruin a friendship....

+1

Saw it happen recently...

Stu Jackson · Oct 3, 2014

You MUST think about an "exit strategy." Seriously. Search on boat partnerships. Here or any other boating forums or Google.

Indysailor · Oct 3, 2014

I share a sunfish with a friend. IMO it works because neither of us has much invested in it.
And it's not our first boat; I went in on it because my son wanted a boat, he did because he was refurbing his boat and wanted to still be able to sail. We don't know what we'll do when one of us is tired of it, but I assume I'll give him a few hundred and then it will become 100% my son's.

Robspratt · Oct 3, 2014

I've been in 4 partnerships over the years with friends from a 24'Cal to a Pearson Flyer. In every case, some of the owners used it more than others. I being the most experienced did most of the manual maintenance but we shared the costs on haul outs, sails and engine work. I also got the most use out of the boat. A couple of the owners would never go on the boat unless I organized a trip and invited them along. I didn't mind and always remembered that they were subsidizing my hobby. A great way to own a boat for a fraction of the cost. Just don't go into it if it's more money than you could safely walk away from if you had to. We were able to get insurance in all of our names. In one case with 4 owners, one disappeared so the other 3 assumed ownership. We sold it later and kept his share.

wufibugs · Oct 3, 2014

I think it works for either a small boat or a very large one. We tend to get more personal with coastal cruisers. I kind of feel like anything you are going to cook and sleep in needs to be pretty cootie exclusive. Besides, I can't find anyone else [except the admiral] who thinks the jewelry box I installed at the nav station is either cute or functional.

Crazy Dave Condon · Oct 4, 2014

As a former dealer, I sold boats to multiple owners. Most failed. First, all owners did not share in the maintenance costs or work. I suggested paying a company to maintain the boat but often some would say too much. Then of course who would use the boat and when. Some would always hog the holidays and then take the boats for a long two week cruise or longer. That has to be worked out on a equal distribution of the holidays for each owner and in the event of a long cruise, I suggested paying for the use going to an account for that boat. Then there were the friends of the owners who wanted to use the boat. I suggested that only if that owner is with them with no butts about that. There are other issues but suggest that be worked out before going into multiple ownership. Rick did point out some good issues too.

Robspratt · Oct 4, 2014

We did always have a partnership agreement and schedule of use but after the newness wore off, a call to the scheduled user almost always worked out in getting it when I wanted. Also I could always use a crew and the partners often sailed together, especially on the big or long distance races. Even with four partners most days the boat as most boats in the harbor sat in the slip.

Stu Jackson · Oct 4, 2014

Upgrades?

Upgrades, anyone? Who gets to decide? And how? Had a friend with a partnership. He wanted upgrades, like an inverter, autopilot, better sails. His partner didn't see the "need." He ended up paying for all of them, still didn't get a break on the buyout. Be careful out there, fraught with all sorts of unforeseen consequences.

Maintenance: always cheaper to DIY, but because of time, interest and talent, some "members" can't or won't, so everyone pays triple 'cuz one guy is too inept?

Bill Roosa · Oct 4, 2014

I'm thinking that a lawyer is not far from this discussion. Stu is dead on, relationships between people that own the same property should be limited to those who are married IMHO (even then you need a lawyer on occasion)