Who's done a boat share with another family? Looking for the good / bad and what to think about to make sure it works well.

[kaelc]

Great shares from the guys who have actually done it, I have friends with business partnerships that have sold for millions. I’m intrigued by a local entrepreneur who has done lots of partnerships and constantly buys Yachts and flips them, through his corporation. Tough to do it at the lower end of the boat market, but with supply chain demand issues it may take years or a “Great Recession” before the market craters.

 

[BCI]

I've only seen it work 1 time the rest has lead to lost friendships and alot of anger , to me its not worth it...

Amen. I've been best friendships ruined, I've seen father son relationships ruined.

Don't do it. It's not worth it.

 

[Brando]

Maybe my situation is unique but I have shared a boat with a buddy going on I think 8 years now. Few hiccups along the way but nothing a beer and bullsht couldn’t sort out.

 

[sir-vivor]

After reading the above another questioned popped up for me, and yes all of you say "itll never happen to me" that's what I thought after 20 yrs of marriage myself and bingo ! anyway if it does you can bet the pissed of spouse will go after that boat and you might just be a victim or else see a hefty legal bill to prove ownership and entitlement. .....
just a thought ! (PS talk to a divorce lawyer about " never thought it ,,," , they make a living off that thought lol )
Or a Banruptcy
Or a legal action against your partner with damages assessed
Hate to be so negative but as a Banker and Auditor for years , I seen it happen over and over in partnerships , they usually end up in court or bankruptcy and to think about it never seen one actually work out.

 

[kaelc]

After reading the above another questioned popped up for me, and yes all of you say "itll never happen to me" that's what I thought after 20 yrs of marriage myself and bingo ! anyway if it does you can bet the pissed of spouse will go after that boat and you might just be a victim or else see a hefty legal bill to prove ownership and entitlement. .....
just a thought ! (PS talk to a divorce lawyer about " never thought it ,,," , they make a living off that thought lol )
Or a Banruptcy
Or a legal action against your partner with damages assessed
Hate to be so negative but as a Banker and Auditor for years , I seen it happen over and over in partnerships , they usually end up in court or bankruptcy and to think about it never seen one actually work out.

Or you could draw up a partnership agreement?

 

[sir-vivor]

Or you could draw up a partnership agreement?

Not sure about that in Bankruptcy but at the very least the legal cost to fight it ,( if it wasn't your bankruptcy) would probably eat the cost of any value you deem important to aquire so ??

 

[Foxsea]

Great shares from the guys who have actually done it, I have friends with business partnerships that have sold for millions. I’m intrigued by a local entrepreneur who has done lots of partnerships and constantly buys Yachts and flips them, through his corporation. Tough to do it at the lower end of the boat market, but with supply chain demand issues it may take years or a “Great Recession” before the market craters.

It's like the Lotto: a very few winners go on T.V. Millions of losers will never tell how much they've ĺost.

 

[Foxsea]

After reading the above another questioned popped up for me, and yes all of you say "itll never happen to me" that's what I thought after 20 yrs of marriage myself and bingo ! anyway if it does you can bet the pissed of spouse will go after that boat and you might just be a victim or else see a hefty legal bill to prove ownership and entitlement. .....
just a thought ! (PS talk to a divorce lawyer about " never thought it ,,," , they make a living off that thought lol )
Or a Banruptcy
Or a legal action against your partner with damages assessed
Hate to be so negative but as a Banker and Auditor for years , I seen it happen over and over in partnerships , they usually end up in court or bankruptcy and to think about it never seen one actually work out.

Never borrow money with that partner to buy the dream boat that you both have drooled over. Ask the Banker about "inter alia." And do not think that your great partner of 10 years will not throw you under the bus when they are desperate. They will.

 

[kaelc]

Never borrow money with that partner to buy the dream boat that you both have drooled over. Ask the Banker about "inter alia." And do not think that your great partner of 10 years will not throw you under the bus when they are desperate. They will.

Since we have an expert what price point is it worth having a boat in a corporation and how does a shareholders agreement protect you from what you are outlining?

 

[SpringVelocity]

I wouldn't do any investment of boat sharing especially with what is happening with salmon fishing right now this year. Seems to uncertain to be doing this right now. Just my opinion.

 

[Foxsea]

Since we have an expert what price point is it worth having a boat in a corporation and how does a shareholders agreement protect you from what you are outlining?

Yes, I am an old grad from the school of hard life lessons.

Questions to ask yourself:
1) Do you have the years, fortitude and deep pockets needed to win a protracted court battle? Against a wife, a former friend, ... a bank? (Generally, they have little regard for your agreements with others. Banks do not loan money without the agreements in place to ensure they will win in a default. The most and best lawyers always win.)
2) If you even think you are about to make an emotional, financial decision, stop. Slap yourself silly until you regain some sense. Unless you are a broker, buying boats is emotional.
3) Never, ever borrow to purchase a depreciating asset: eg. a toy. You will be underwater from the get-go. Oh, yeah - only you found the deal of a lifetime. ;-)
4) Buy only boats you can seriously afford. (Ask your wife, if unsure.)
5) The most fish are caught, recreationally, in smaller, older, inexpensive boats. We are out there fishing, instead of working to pay for our hobby.

 

[smokedvw]

Lots of input so lets put a few other items in here. The boat is <25K, neither of us are big fisherman and it is mainly to be used for over night trips, rips around the gulf islands etc. I do want to get more into fishing but currently just jig though with having a boat in all year I can see myself get more into salmon trolling (or at least thats the direction I want to head). To me though my favorite parts are just going out with our sons and letting them have fun at a beach on an island and having lunch for the day.

I can see the OCD vs non OCD and I can also see the parts about fishing and issues with people forgetting to replace items but those seem somewhat minor and with discussions around them I dont see that being a big issue. The part about forgetting to replace a fuse etc is easy enough to keep in a google sheet and remember to put in there, used X of the spare gear and get a replacement.

I assumed we would probably look at a just splitting up the storage areas so we can each keep our stuff in there we want to keep. Most of the time when I go to the boat I am brining my gear anyways but it would be nice to store items in the boat too.

I dont think I would see myself sharing a larger vessel in which you sleeping and cooking and everything else but on a smaller < 20' run about it seems possible. I guess in the end of the day it really breaks down to what kind of person are you as well. I have very little issue with lending things out to friends or borrowing others items as long as you both return them in the condition you took them in.

 

[smokedvw]

Yes, I am an old grad from the school of hard life lessons.

Questions to ask yourself:
1) Do you have the years, fortitude and deep pockets needed to win a protracted court battle? Against a wife, a former friend, ... a bank? (Generally, they have little regard for your agreements with others. Banks do not loan money without the agreements in place to ensure they will win in a default. The most and best lawyers always win.)
2) If you even think you are about to make an emotional, financial decision, stop. Slap yourself silly until you regain some sense. Unless you are a broker, buying boats is emotional.
3) Never, ever borrow to purchase a depreciating asset: eg. a toy. You will be underwater from the get-go. Oh, yeah - only you found the deal of a lifetime. ;-)
4) Buy only boats you can seriously afford. (Ask your wife, if unsure.)
5) The most fish are caught, recreationally, in smaller, older, inexpensive boats. We are out there fishing, instead of working to pay for our hobby.

Haha "We are out there fishing, instead of working to pay for our hobby."

Totally agree, when I see the guys in $200k+ fishing boats rocking up to grab 25 prawns out of 4 of their traps with dual engines on the back you know they are really just out there to drink beer and have a day with the boys.

 

[Brando]

Lots of input so lets put a few other items in here. The boat is <25K, neither of us are big fisherman and it is mainly to be used for over night trips, rips around the gulf islands etc. I do want to get more into fishing but currently just jig though with having a boat in all year I can see myself get more into salmon trolling (or at least thats the direction I want to head). To me though my favorite parts are just going out with our sons and letting them have fun at a beach on an island and having lunch for the day.

I can see the OCD vs non OCD and I can also see the parts about fishing and issues with people forgetting to replace items but those seem somewhat minor and with discussions around them I dont see that being a big issue. The part about forgetting to replace a fuse etc is easy enough to keep in a google sheet and remember to put in there, used X of the spare gear and get a replacement.

I assumed we would probably look at a just splitting up the storage areas so we can each keep our stuff in there we want to keep. Most of the time when I go to the boat I am brining my gear anyways but it would be nice to store items in the boat too.

I dont think I would see myself sharing a larger vessel in which you sleeping and cooking and everything else but on a smaller < 20' run about it seems possible. I guess in the end of the day it really breaks down to what kind of person are you as well. I have very little issue with lending things out to friends or borrowing others items as long as you both return them in the condition you took them in.

I think if your purchasing a smaller boat in a price point you could afford to own the entire thing yourself and it’s with a good buddy you have know for years and trust then go for it.. reality is if you can afford to buy the other person out should anything happen and have the right mindset and personality (both of you) you’ll be fine. Shared owernship might allow you both more financial freedom to make investments elsewhere in the meantime. If your doing it to stretch your budget(s) and get into something more expensive maybe needs more consideration and sounds like it could be more headache than it’s worth.

 

[trophywife]

One person does all the work and the other feels entitled lol

try it with a cabin....

 

[kaelc]

Yes, I am an old grad from the school of hard life lessons.

Questions to ask yourself:
1) Do you have the years, fortitude and deep pockets needed to win a protracted court battle? Against a wife, a former friend, ... a bank? (Generally, they have little regard for your agreements with others. Banks do not loan money without the agreements in place to ensure they will win in a default. The most and best lawyers always win.)
2) If you even think you are about to make an emotional, financial decision, stop. Slap yourself silly until you regain some sense. Unless you are a broker, buying boats is emotional.
3) Never, ever borrow to purchase a depreciating asset: eg. a toy. You will be underwater from the get-go. Oh, yeah - only you found the deal of a lifetime. ;-)
4) Buy only boats you can seriously afford. (Ask your wife, if unsure.)
5) The most fish are caught, recreationally, in smaller, older, inexpensive boats. We are out there fishing, instead of working to pay for our hobby.

You, didn’t answer the question.

 

[Foxsea]

You, didn’t answer the question.

Connect the dots.

A shareholders agreement is only as good as the shareholders, within. Outside, creditors could care less.

As for holding the boat within a corporation (that's old), as a business?, to capture deductions?? ha! Canada Revenue Agency will audit you three years and disqualify you. Pay it all back. No one with a brain will buy that corporation so it has no value but costs are ongoing. If you are publicly traded, someone may buy the shell, cheap. Otherwise, only the asset(s), cheap.

A legitimate business must "have the expectation of turning a profit." Your accountant will say it's a dumb idea, unless you are operating a tow boat company, a commercial fisherman or B.C. Ferries.

Questions?

 

[michaelb]

Some elaboration there would be appreciated

I can see upgrades not going 50 / 50 but service and maintenance if you set out to have that split I don't see a issue?

I did a boat share for a few years and it started fine but became a nightmare over time. Would never do it again.

In my experience, partner started out with a lot of enthusiasm and initially was cooperative with paying for maintenance and repairs, but as time went on and he used it less than he expected, he started dragging his feet on paying even small bills. ‘Why should I be paying 50% for oil and filter, I haven’t used it in last six months’. I ended up paying out of pocket for 80% of it, and lots of semi-optional maintenance items got deferred because partner didn’t see the need. I ended up buying him out after a couple years. By all accounts he’s otherwise a reliable guy, but nothing is ever 50/50 and it ended up adding a lot more stress to my experience than I would have had if it had just been my boat and my boat alone. Unfortunately a lot of work got deferred while he dragged his feet on agreeing to pay for it and ended up stripping the power and selling the hull and trailer at a substantial loss, as time and neglect was not kind to them.

Now I just take buddies out on the boat I own 100% and have them pay their share in gas and beer. Keeps the friendships intact and my boat is exactly as well maintained as I want it to be.

 

[wildmanyeah]

but as time went on and he used it less than he expected,

this imo is probably the most likely of all the issues to happen.

Especially if they have young kids now or planning to have kids ect…

 

[Foxsea]

The conclusion I'm drawing from the other comments on this thread is that if you really need a partner, you really can't afford that boat.