Partners on a boat?

Anyone do this?

Myself on my brother in law just started kickin this idea around.I miss my ol Sanger,and he misses his Moby.

Going to pitch it to the wife this weekend....over an expensiveish dinner.

What say you?

Bad idea. It always seems like a good idea at the start, but turns out bad in the end. One guy wants it one weekend, the other guy does too. One guy is messy, the other is neat, one gets stuck with all the maintenance, the other free loads, and so on and so on.

If you give your wife a Hot Karl over dinner I think the last thing you will need to worry about is a boat.

Also I would never buy a boat on partnership with someone named Hot Karl.

Besides that I have no real advice that may help you.

there are alot of variables there. would work for some and not others.

Draft up a contract on what is expected of both parties. IE, maintenance of the payment, timely submission of payment, where it will be stored, rules for use, etc.

I don't know what you would do if one of you couldn't make the payment. You may want to ask Judge Judy.

No payments,it would be cash on a used one,stored at my house(in my currently empty boathouse).

My brother and I share a boat. It's been about 5 years since we bought it. No problems at all since the purchase. It helps that we are really close and vacation together also. I do use it alot more than he does, but he doesn't really care because I keep the boat very clean.

I wouldn't go in on a boat with a friend, a brother in law could be a problem since he's not blood. Just make sure you have an understanding about when it's used especially if someone wants to take the boat on vacation.

Good luck

I say keep it simple...if its between having a boat, and not having one -go for it!
The contract is a good idea, and if both want to use it on the same weekend you go together (usually works out that the other bails anyways).
Good luck!

bad idea

^Why?

I went in 1/2 on my first boat with my brother.
It worked out pretty well... I did all the maintenance, cleaned it, repaired it when he broke something, and put gas in it after he would use it.
When I sold it, I told him how much I got for it, and gave him his share

Well, if you guys are paying for it up front, that definitely makes things easier. I'd get everything squared away on maintenance (split costs, etc.) Also, make sure it gets filled up when putting it back that way the gas situation is taken care of.

Then, there's insurance. Who pays for the policy. How would you make a claim if the other person did it (assuming only one of you is on the policy)?

Anyway, just a few things to think about. When you do get your boat, be sure to post pics!

Never, ever, ever, partner with anyone for anything. It rarely ends on a good note. I would bet I know of ten cases between my circle of friends, all of which got ugly.
Perhaps I have Ahole friends though...

DONT DO IT!

if you cant buy it on your own, you dont need it.

If you are buying an older used boat lets say 20 gran dtops. If you have 10 grand just finance the rest what are you gonna pay like 1oo a month? I went into a partnership for a business and got royaly screwed and still am to this very day. It's taken eveything within me to not beat the H^%$#@! out of the guy.

i will get into this later in the day or pm me

We have a lakehouse, which is in a trust. I have always had a boat there. I do everything as far as maintenance and storing. The deal is if somebody else wants to use it they rent it. $20 dollars in hour or a hundred a day. they also have to replace any gas and are responsible for damage. Something major they pay the deductible. When the cousins from NY come they think it is a steal. $700 bucks for a week for a sixty plus thousand dollar boat. If we go together they just pay for the gas. You may want to consider buying it yourself and when he wants it, he rents it from you. Most boat rental place charge 300-500 for a day.

Dan that is an excellent idea.

It works for me, I have been involved in two boat partnerships.

The only type of ship that doesn't float is a "Partner-Ship". One party never lives up to the other party's expectation. RUN!

Hmmmmmmmmmmmmmmmm???? There is only one way to find out. Since you are asking a bunch of guys who know nothing about you and your bro inlaw it seems to suggest you are a little skeptical.

I have done for years on a houseboat and someone always is bickering about someone else but for the most part all is good.

I personally only know of 2 situations where this actually worked out and all parties involved where somewhat happy and they were both family partnerships

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quote:

I personally only know of 2 situations where this actually worked out and all parties involved where somewhat happy and they were both family partnerships

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Meaning they were gay?

I know of 2 instances of boat partnership.
One works out well, the other one has been OK.

The one that worked well has the following characteristics:
- both partners have pretty high incomes, are easy going and don't bicker about expenses
- one partner rarely uses the boat
- the partner that uses the boat more is into upgrading the boat and likes working on it
- both partners have families and are settled
- both partners live close by and always ride on the same lake

What also helps is if the partners are really into wakeboarding or skiing and use the boat primarily for wakeboarding or skiing. A lot of skiers share boats and that works great, but they basically only use their boat for skiing. The boat is more of a tool than a lifestyle thing - if that makes sense. IE - the boat stays at the private lake and is only used for waterskiing or wakeboarding.

The more the boat is used for regular boating/partying, the more chances there are for conflicts.

I've been a 1/3 partner on a big houseboat for 2 years. We actually bought this as an investment, but we use it recreationally until it sells. You'll always have some issues, but as long as you don't let little stuff get under your skin it's definitely worth the savings.

I would suggest setting up an LLC or other entity to own the boat, pay insurance, etc. You need a contract that outlines everything, obviously. Like a couple have already said, I think you all need to kinda be on the same page in life too - if you are a family guy and your partners are cove party meatheads, you might run into more issues.

We also have a Google account set up for our LLC that helps a lot. All boat related emails are CC'd to it, we use a calendar to let each other know when we want to use it, a spreadsheet to keep track of expenses, etc.

Overall it has been a good experience and I would do it again. I would outline a few more things upfront to deal with lazy partners, disagreement over sale price, etc, but it's great to have a killer houseboat for 1/3 the cost of everything.

BTW, it's yours for $159k.

http://austinhouseboat.wordpress.com

^^that's a very slick houseboat!!!

I bought my boat with my dad as my partner. We haven't had a problem yet, but he is my dad, lol. Easy deal, we split the payment, and we each always have a driver, lol.

Don't do it! I know three sepperate people who have attempted this in their lives, 1 with his own dad. None of them worked out good.

Save up for another year or two and buy the boat yourself.

I did this with a friend of mine. Bottom line, look at how he keeps his car, house, other toys etc. What is his financial status and how well does keep up on his financial commitments. I tend to be a little neater and more responsible than my buddy, and it ended badly...

I did it with a best friend.

Best thing I've ever done.
He is the only kids I ever ride with, super dependable, we live next-door to each other, and moving away wouldn't have been an issue for at least 6 years from date of purchase so that wasn't an issue.

Took my ~9,000 to buy a boat + his 9,000 and instead of two ho-hum D-drive boats we a got a Super Sport nautique.

Just work out things like people moving, job security, and who keeps/takes/can use on certain times..... these weren't issues for me but honestly if I could back and do it again I would no questions asked.

My wife and I partnered up with my sister's family, and everything was fine on our side. They didn't use it much, so I'm guessing my bro-in-law got some heat from my sister every once in a while for the money that was going out. We had a verbal agreement, that at the end of two years either one of us could bail, but not until the two years was up. They stuck in there for 3 years. The boat is now 100% ours.

i think you both have to have it in your heart that your relationship is much larger than a possession, or excess cash. if you both have that, all will be good. on the other hand, my dad partnered with his best friend on a boat, and it ruined the friendship forever.

My dad, brother-in-law & I share a boat.... we have for over 8 years..... no issues....Just split EVERYTHING evenly

One of the biggest issues is gas. Showing up to find the boat out of gas always sucks. I like to have a rule that I fill it at the end of each day. That way the tank is always full and you know exactly how much you used. It doesn't really help to have to fill it before each use.

Cleanliness is the other issue. I would also form a contract detailing maintenace, repairs etc. ie. maybe a cut to a seat is easier to recognise who did it. But how about if the tranny goes out. That is a major repair that probably results from years of use. Break out annual contributions for maintenace. Consider adding accessories. How are these handled? What if one of you wants perfect pass but the other doesn't want to spring for it.

Lastly put everything in writing possible. Its the best way to keep a friend. I borrowed money from my brother one time and he made me write a contract. I thought it was pretty crappy but he explained that he wasn't doing it because he didn't like me. He did it because he did and wanted to keep me as a friend. No hard feelings or misunderstandings if you have it agreed upon and in writing before you buy it.

Partnerships are like sex, good in concept, but it is all about who you jump in with. Boats, campers and planes are the kind of assets that do not get used that much and make financial sense share or rent for most people.

Keys in partnerships is an up front understanding of the money and maintenance issues and finding the right partner. Things might not work if either partner is high strung and very particular or if both partners are high users. I have gone into partnerships and think they worked out well and yeah some things may not have worked out exactly 50/50, I did more maintenance and threw more money in, but I used it more. Just didn't seem fair to ask for 50/50 on upkeep when use was more like 75/25. In the end if you own the boat yourself, you do ALL the maintenance, all the insurance, all the financing, and figured I was ahead having someone split some of those costs, if not all those costs.

IMO, if you need to put it in writing - DON'T DO IT! That only means you don't trust your partner enough to take their word, and your relationship is only as strong as the document. Plus, god forbid you have to whip out the document, and say "according to our agreement..." After that moment, your relationship will only diminish.

Regarding the maintenance, it's easy. All wear and tear, and servicing, is split evenly (even if one partner uses the boat more often). Non wear and tear maintenance, is paid for by the partner who was responsible for the boat. If you're both there, then you both pay for it. If you're at the lake together, but only your partner is on the boat when something happens, it's their bill.

Regarding if a you want something for the boat, the other doesn't want to pay for, then it's up to you to flip the bill.

I disagree with Mike, it is best to get it in writing.

One very key item to get written down is exactly how the partnership will end. Eventually it will end, so if you agree ahead of time on how to end it you will avoid a lot of headaches later.

A situation that comes up often is that one partner wants to sell the boat while the other partner doesn't. The partner who doesn't want to sell will claim the boat is worth a lot more than the partner who wants to sell.

A common arrangement is to have the agreement state that if one partner values the boat higher than the other then he must buy out the other partner.

In general, though, I don't recommend partnerships on a boat. I have never seen it work out well and I have seen a few disasters.

Rod

I partner with a guy who is a great friend and coworker. It works well because we ride together and we are both the types that never try to get out of our share. We love the boat and it's been a blast thus far. There are times when maybe I do a bit more and other times he does a bit more. It's just worked out well for both parties and we never haggle over a couple bucks.

I think alot of it is our personalities and we are very very good friends who look out for each other and we both have cash.

My brother and I are now in our 4th year of dual ownership of our Supra 21v. I can only speak for my situation but all has gone really well. We are both very responsible and agreed from the get go that it was a 50/50 deal with maintenance and payment. We also have a "you break it, you buy it" policy. I can honestly say that without each other we could not afford this costly venture. Not to mention 99% of the time we are going to the lake together anyway. Very circumstantial, would not recommend a stranger at all.

Let's hear what you have to say Jon.

Hot karl.....?

I almost entered a partnership with my neighbor. I think it would have worked. In anticipation of our "boat marriage" we documented everything that's been stated in this thread, and then some!

If you are interested in using our document, just send me an email and I'll be happy to share. It took us weeks to come up with all the possible scenarios. It would suck to start from scratch. Let me know...

I do it for 8 years or something with my brother. No problems this far. We have a money account where we buy things for the boat (maintenance, gasoline, gear, harbour, insurance, etc).
I work more on the boat, but probably use it a bit more. He pays a bit more, but after all these years we don't exactly know and care about money and time. Just respect all the things around the boat and the boat itself. The times together are priceless!!!

Be carefull with the partner you sellect, but it can work out fine.

"Meaning they were gay?"

Dan, lol

I partnered last year with a good friend who was my age, has kids and was settled. He and I shared the desire to wakeboard as much as possible. We agreed to a fair split on the financing arrangement and then split everything after that evenly. It worked out great even though I got envious of how much he got to use it while I was stuck at work. Maybe a couple of squabbles but they weren't much.

After one year, he has decided to move which has made the workout of the deal tricky since I don't want to sell the boat and the financing is in my name. I feel if you can get to 2-3 years in the partnership, a lot less hard feelings will exist as the brunt of depreciation value has probably been split as fairly as possible at that point. One year and out leaves the other high and dry, and resembles more of a lease arrangement to me.

Anyway, I have to say a couple of things regarding other's comments. I would never have done this with my brother who is a slob and unreliable.

We shared most of the key things in life in common: age, family, job, wakeboarding interests.

Partnerships are not bad things. Most legal and investment firms are partnerships. there is a wealth of accumulated experience regarding partnerships, and countless books about getting into and dissolving partnerships.


Might be worth glancing at this article as well.
http://www.cramton.umd.edu/papers1984-1989/87econ-dissolving-a-partnership-efficiently.pdf I used the equations to determine that my partner would owe me $1 million if he stops payments . . .

Get a used boat that neither of you are super worried about.

I have an unofficial partnership with about 4 friends. It's my boat and they get to use it. If something breaks, we all pay.

It's a 1988 Ski Nautique 2001. A few months ago they put in all new upholstry and built the best ballast boxes I've ever seen in a 2001.

It's been fantastic for me but I'm not super possessive of "my" things. I could care less if they use it while I'm at work. As long as they're maintaining it and it's ready to go when I want to go.

I'm assuming going in on something together with cash works out much better than financing anything. What say you all?

My father has been part of airplane partnerships. What they would do is the plane had to be filled up after every flight with gas. Then they figured the cost per hour to fly it. You could do something very similar. Partner A uses the boat 30 hours partner B uses it 20 hours. 50 hour service comes up and you split the cost of the service by how many hours you used the boat. Keeping it clean and anal stuff like that is going to be the tuffest part I think.

when it comes to money or people's kids you have no friends. Things can change in a hurry.

I was looking into getting a boat last summer with my roommate. We were full ahead go and his paper work didn't turn out like it was supposed and it was the biggest blessing in disguise. I ended up financing a boat by myself and couldn't be more happy about it. Yeah we didn't get the exact boat that we originally wanted but I got what I wanted out of the deal which is being able to own the boat alone. After the summer was over it was like he didn't even remember I had a boat when it came to taking care of the thing. I'm glad that I didn't go in half with him bc now I don't even bother asking him to help me out with anything and that includes enjoying the boat on the water. Some people get too hyped up about something they aren't ready to accept responsibility for, and you let the "itch" of getting on the water cloud the thoughts of what reality will have laying in front of you. My friend was a stand up guy for the first few years I knew him but I found out a lot more about him once he moved in. Family is different but it's just something to think about b/c if you aren't a patient person, there could be something in waiting that will push your buttons and it's almost certain b/c it is in fact a boat we're talking about here haha.

Good luck with whatever you decide and keep us up to date on how everything goes.

Cash is 1,000,000x safer than a financing arrangement where only one of the parties take out the loan. If both people are on the loan, then you have a partner but it doesn't remove his/her default risk.

Pay cash is the best payment option by far.

Make sure you have some type of a buyout agreement. God forbid something happens to one of you and you have a disagreement with the "significant other" about the real value of the asset. Although not a boat, I am in business with a partner. He is(was) A good friend who was motivated & excited at first, but not so much now & It's heading downhill fast. People change, s%*t happens, CYA.....

One thing no one has mentioned here. Do the women get along?? I'm in a partnership and between me and my Partner things work great But then he got married and the two wives dont like each other! Makes things trickier but we are dealing with it. Just have to go on seperate weekends but still without the partnership I wouldnt have the boat!