What others say...
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" I had a boat in a
charter company plan. When they kicked me out after 3 years
(they were taken over by a different group, that bought the
assets, not the liabilities--my guarantee was a liability
and no longer applied) I tried to sell it, but no one wanted
it. It was worth less than I owed on the mortgage. Then I
discovered Eric's program. We put my boat into his
management program while it was for sale, and I bought a new
boat. My, old boat, a Beneteau 42' was whipped back into
shape, and became profitable. I got my new boat, a Fountaine
Pajot Catamaran and sold the Beneteau.
Just like Eric said, after 5 years I had enough equity so
that I could comfortably pay off my boat and we went
cruising. I've been sending Eric some of the notes from my
cruise--I think that you can read them on his site.
Dave & Gail, PA.
Testimonial: By mid 2003, I got
a new job with a huge increase in salary. Perhaps like you,
I procrastinated in getting my accountant to look at my tax
situation. I was facing a disaster! However, when he found
out that I was interested in getting a boat, he suggested
that I talk to someone who sold boats and understood the tax
law. I remembered Eric's newsletter, and made an
appointment. We discussed the new Tax Relief act of 2003,
and how it might work for me.
I had already talked to a couple of charter companies, and
none of them wanted anything to do with talking about tax
strategies.
When I talked to Eric, he immediately formed a new business
plan on the new tax law and offered me detailed information
about how this would work with a new Jeanneau 35 I was
eyeing. His business plan showed me how I could,
conservatively write off up to 65% of my boats value--that
year! (It actually turned out to be more like 72% in my
case!)
That wasn't the end of my story, however, because of my new
found wealth, the bank wasn't going to offer terms that I
could live with because I couldn't document 2 years of this
new income level on my tax returns. Eric wasn't shaken by
this. Instead, he put me in touch with a private lending
source and we negotiated a "tide-me-over" loan.
Well, that loan is now paid off. The tax savings alone
resulted in about a 952% return on my investment (the little
extra that I paid for this private loan--$99,729 saved,
10,259 paid over the first year, a 952% ROI).
These guys taught me to sail, invited me to their Wednesday
night barbecue, and became friends. Lets Go Cruising (Bay
Yacht Agencies management/charter company) is chartering
"Irish Rover" out of Annapolis, though this year I'm
planning to use her more than last year.
P.D., Annapolis
P.S. That's right, Annapolis.
Like the Victor Kiam with the Remmington razor company--he
liked the razor so much he bought the company--I liked the
program so much, I moved here!
Other testimonials,
click here
More info? Quick way, or if you're already in
our database--Call Eric at 410-263-2311 or, send in the form by
following this link.
Return to Index Request
more information
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1. The Answer?
If your answer to 1 (above) was TWO
CHOICES—Congratulations, you’ve passed! There are a lot of companies,
but only two approaches. You either buy into a Charter Company Program, or
you place your boat into a management program. Our
Boat-As-A-Business Program (BAB) is the latter. Here’s the difference.
(By the way, there may be a
third choice--buying from a charter management company that sells a few
boats a year--this may be just as bad. They want to push you into a broken
up layout with too many cabins and heads that has no resale value and no
value to you at the end of the program--their management approach may be
better but their boats are awful and you pay the price. Also, they avoid
talking about the tax consequences almost entirely and this, or wrong advice
may leave you swinging in the wind later--we don't duck the hard part. See
below for how you can get expert tax advice whether you know a lot, a little
or nothing about setting your boat up as a business!)
If you would like to take a real test that compares
your requirements to those of people who are in the program, I've got it.
It's an excel spread sheet that matches your responses to 28 questions to
those of current participants--then graphs the result. See
it here.
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Charter
Company Program
Gamble
on a guarantee by someone who's running a big company
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Management
Program YPSMP
Follow
the simple steps that any business man follows to success
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1
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You
buy their boat equipped the way they want.
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You
own a normal, brand name boat equipped the way you want.
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2
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The
boat is set up for charter with many cabins, many heads, minimum
storage. It’s designed to sail in a 25 mile circle.
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Your
boat is set up like any private owner boat—the way you want it.
Systems are installed or designed in to be installed later to
accommodate your long term, longer distance cruising requirements.
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3
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You’re
locked in for 4-5 years-typically. They decide where it will go and
how much you will use it. The boat's in their control for the period of
the agreement.
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You
make a season to season decision as to how much you will use your
boat, where you will keep it, etc. It’s your boat.
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4
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Your
personal use is limited.
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Your
personal use is unlimited.
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5
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In
the huge bureaucracy of this large company, you may be able to take
advantage of using boats
in other locations. Generally, even if you go to the location where
your boat is—you will simply be assigned a similar boat.
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You
can block out time to use your specific boat anytime you want.
Owner’s in our various East Coast and Caribbean fleets often swap
charters so you may try other areas and, of course, you may move your
boat to another area season to season. (Follow-The-Sun).
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6
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You
normally make no profit beyond covering day to day expenses and take a
loss upon resale. They’re in control of your boat.
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You
have the potential to make a predictable profit based on all of the
variables of: personal use, type of boat, where you keep it,
popularity—etc. A business decision that we will help you with. We've
helped over 600 others and have the knowledge base to give you
meaningful information--and back it up.
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7
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You
do not qualify for tax advantages-they're paying the expenses on your
behalf--same cost, just no benefit--except, see (8).
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All
of the tax advantages that apply to any business apply here. You can
deduct expenses, depreciation, etc. You also have enormous flexibility
the first year to pack in lots of tax advantages. We offer a
business plan that includes a review of the tax advantages for your
specific case. We have a CPA who is totally familiar with the program
available to advise you and or your present financial advisor.
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8
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They
pay for maintenance and do as little as possible.
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You
pay all of your expenses which are carefully budgeted ahead. The
maintenance budget includes maintaining your boat like an owner’s
boat.
There is no "disincentive" for us to do your maintenance to the
highest standards. We show you ahead of time what it is, and then
maintain your boat professionally.
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9
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They
guarantee that they will cover certain expenses, including
maintenance. In order to do so, they have very loose qualifying and
check out procedures. They run a cattle-car check out and, often the
boats are abused by unqualified users.
Why? They have fixed overhead and every extra dollar of charter income
goes to their bottom line-not yours.
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We
treat you as a partner sharing the profits. We both have incentives to
maintain the boat properly, and only charter to qualified prospects
(or provide a captain.) Our check outs are one on one. We require that
each Charterer do a sea-trial with our personal before they go out (If
this is their first time with us on a particular boat). This is unheard of by
the big charter companies. We have the same goal. We only make profit
when you make profit.
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10
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Minimum
maintenance, a boat optimized for chartering, use by minimally
qualified people—all result in deteriorization of your asset and
low resale value should you decide to sell.
By
it's nature, this approach offers a disincentive to do more than the
absolute minimum.
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Your
boat is maintained to owner standards, chartered to highly qualified
individuals looking to charter a boat set up to owner’s standards
and a popular owner’s configuration results in high resale value, or
exceptional equity.
Why are we so generous? We're not. We show you an appropriate
maintenance budget (included in our business plan) and then we charge
you. We have no disincentive.
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11
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At
the end of your boats charter life, you probably won’t want it—and
neither will anyone else—further reducing it’s resale value, and
also putting you at risk of being upside down on your loan.
It' has a charter layout, and is probably tired looking.
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There
is no limit to how long you can keep your boat in our program because
it is maintained like an owner’s boat right along. Should you decide
to sell, you will have substantial equity. You also have the option of
rolling over your first business boat, for a second at some point and
converting the second to personal use with no adverse tax
consequences.
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12
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After
considering resale, you will generally have a net loss, even after
factoring in personal use. This is where you pay for their
guarantee. Up front, you apparently have guaranteed break even, but,
in the end, they guarantee that they get the profits and you get a
boat at the end that it not desirable for your personal use or the
resale market. You end up paying for this guarantee many times over.
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You
can be profitable on a cash flow basis, and even more profitable after
resale should you decide to sell. You get all of the tax advantages of
deducting your expenses, plus the business tax advantages because we
will show you how to qualify for active participation. Personal use of a boat you can be
proud of is a bonus.
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13.
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They
offer a guarantee to cover certain expenses. There is a history of
these large companies being taken over by larger companies who buy the
assets and not the liabilities (guarantees)—leaving you without a
guarantee. This approach almost insures that you will lose money in
the end, and they will take the profits.
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We
set you up in your own, potentially, profitable business that also
qualifies for tax advantages. Depending on the decisions you make and
patterns of personal use you can make a substantial profit and build
substantial equity. As a profit sharing partner, no matter how you
figure it, you get more from day one. Our profitability depends on
your profitability—a win/win situation.
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14.
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They
offer presentations based on their marketing departments figures.
Everyone gets the same deal.
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We
offer a business plan based on actual results pulled from our data
base. Each plan is customized for you. Your results depend on your
goals. Use the boat less to be more profitable, etc. We have the
expertise and the resources to help you meet your individual goals.
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15.
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Your
participation is minimal. They pretty much do it all. This blocks you
from increasing profits or tax advantages.
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You
can participate as a Sales Associate selling boats and charters.
Setting up your own web-site which we help you with. Doing any
additional marketing you like. This enhances your profitability and
increases your tax advantages.
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16.
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You
deal with a large Corporation whose ownership frequently changes. The
managers are hired guns looking to the bottom line for the head
office. They change frequently—mostly when profits fall because they
do too much maintenance, or disqualify live bodies who want to charter
but are borderline qualified.
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You
deal with successful entrepreneurs with a proven track record who have
been in the business for over 30 years and who have been under the
same, continuous ownership for all of that time. Each of the
management bases are owned privately by the on-site manager who puts
his heart and soul into it and has his butt on the line every single
day.
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You pay your money and make your choice—but, in the end, there are only
two choices. All of the charter companies have the same bottom line no
matter how much they try to disguise it.
To find out lot's more about why you should have your
own, home-based business with your boat (which can only happen in a
management plan) please follow this link:
http://www.bayacht.com/aaa/nl-artic/ArticleWhyaBusiness.htm
If you’ve heard any hard luck stories
about a boat being in charter and suffering at resale, or being in poor
condition at the end of the program, now you know
why. Because they’re so large, the Charter companies do much more
advertising and get much more exposure. In spite of that, our affiliate management
companies in the Islands are consistently rated number one in consumer
poles, and those who find us end up pursuing their life long dream which
generally includes paying their boat off early and going Cruis’n.
If you haven’t thoroughly investigated our approach, no matter how many
companies you’ve investigated, you’ve only looked at 50% of the choices.
We’re the other choice.
If you would like to take a real test that compares
your requirements to those of people who are in the program, I've got it.
It's an excel spread sheet that matches your responses to 28 questions to
those of current participants--then graphs the result. See
it here.
More info? Quick way, or if
you're already in our database--Call Eric at 410-263-2311 or, send in the
form by following this link.
Contact
us
Return to Index Request
more information
Testimonials |
