Any philanthropists around to join me?

[john]

Friend is restoring a fairly well known classic yacht, he’s invested around £35k in her and is halfway through the job. Through a combination of confirmed external factors, funds have dried up and he can’t afford to pay the outstanding yard fees of £2,500 and the monthly yard costs of £500. The boatyard now want the boat transferred to their ownership to sell and pay off these amounts. A sister ship sold for over £200k when fully restored, so the completed vessel has some potential value.

He’s asked me to help financially, and I am tempted to do so. I know the caveats about wooden boats but this is something quite special and I’m willing to take a risk. Not having limitless pockets, I’m wondering how to find co-owners or donations. Do philanthropists still exist and are any lurking on this forum? Is Crowd funding the way to go? It would need to be something fairly quick and in the next few days.

Any positive thoughts appreciated and PM me if you are interested.

 

[Rum_Pirate]

I would need to see a written contract stating what it will cost to complete the renovation , and to what standard.

Plus another surveyors report and another 'estimate' or quotation(preferred).

What percentage of ownership would you have?

If a 'loan' how would you get reimbursed?

Before even beginning to consider it.

 

[Searush]

6k pa for the yard? He might have been better in a field, barn or builder's yard somewhere.

 

[Aardee]

Friend is restoring a fairly well known classic yacht, he’s invested around £35k in her and is halfway through the job. Through a combination of confirmed external factors, funds have dried up and he can’t afford to pay the outstanding yard fees of £2,500 and the monthly yard costs of £500. The boatyard now want the boat transferred to their ownership to sell and pay off these amounts. A sister ship sold for over £200k when fully restored, so the completed vessel has some potential value.

He’s asked me to help financially, and I am tempted to do so. I know the caveats about wooden boats but this is something quite special and I’m willing to take a risk. Not having limitless pockets, I’m wondering how to find co-owners or donations. Do philanthropists still exist and are any lurking on this forum? Is Crowd funding the way to go? It would need to be something fairly quick and in the next few days.

Any positive thoughts appreciated and PM me if you are interested.

How big is it/ where is it?

 

[burgundyben]

May be the yard taking ownership to sell it off would be the best thing for the boat and the best opportunity to get involved on better terms? I guess it sounds harsh to the current chap, but maybe best.

 

[pmagowan]

May be the yard taking ownership to sell it off would be the best thing for the boat and the best opportunity to get involved on better terms? I guess it sounds harsh to the current chap, but maybe best.

Probably true I am afraid. If it gets to the stage where for such a small relative sum he is unable to keep the boat then he is probably not a good investment. I think Taz might also have hardened people to the idea of parting with their own cash based on an internet forum post. I wish him all the best but a 200K boat is going to cost a lot to restore and I suspect £35K aint going to do it.

 

[john]

Thanks for comments so far. A bit more info. The boat is 45 - 50ft range and the yard fees include a workshop/container. I don't want to reveal the yard and boat name in public.

 

[Searush]

Thanks for comments so far. A bit more info. The boat is 45 - 50ft range and the yard fees include a workshop/container. I don't want to reveal the yard and boat name in public.

Understandable, but taking on something like that without having some idea of how you will pay for regular outgoings, never mind all the unpredictable costs as you find the problems you didn't expect, seems a little pointless & bound to end in heartache. But we don't know the circumstances, perhaps he has just lost a well paid job. Anyway, it sounds a risky proposition to me without some security other than the boat, which the yard could still take anyway when the next 6 months instalment is due.

 

[Lakesailor]

Are there any insurance considerations in shifting the boat? Seems like a common problem.

 

[Buck Turgidson]

Has he thought of crowdfunding? It's all the rage these days. Best if he finds a pretty young girl to front the project.

 

[Tranona]

Are there any insurance considerations in shifting the boat? Seems like a common problem.

Its a rock and a hard spot. The boat can't be moved without the yard's agreement until the outstanding debts are cleared otherwise they will slap a lien on it. The yard is entitled to go to court and get possession, but is offering to take it in lieu of payments with presumably some agreement to share the proceeds if it is sold.

Anyone offering to put money into it is either by loan to the owner (but how can he repay if he can't pay the debts?) or taking an equity interest which exposes him to the same risks as the current owner. There are alternative ways of raising finance to complete, but they will require the current owner to lose all or part of his ownership interest and the new sources of finance assuming the risk. A common way is to create a charitable trust to pool resources, but that usually assumes there is some income producing activity for the finished project to fund the restoration. Another way is to form a syndicate of investors who will fund the restoration in return for the proceeds of the eventual sale - probably very risky in today's market.

There is too little information to make any sensible suggestion for a solution other than considering the principles.

 

[john]

Thanks for the further input. I'm still willing, but would prefer to share the load and the suggestion of a syndicate of investors who fund the restoration in return for proceeds of eventual sale or forming a charitable trust and using the boat for say introducing sailing to children by Tranona sound sensible ways to go. I'm not looking to profit, but would like my investment returned eventually. Any takers?

 

[Searush]

Thanks for the further input. I'm still willing, but would prefer to share the load and the suggestion of a syndicate of investors who fund the restoration in return for proceeds of eventual sale or forming a charitable trust and using the boat for say introducing sailing to children by Tranona sound sensible ways to go. I'm not looking to profit, but would like my investment returned eventually. Any takers?

That will require the boat to be compliant with all safety regs & a charitable trust to be formed (not always a simple task) and you will probably need all involved to be CRB checked!

 

[seajayare]

I am possibly interested in a punt but it is a bit hard to say with this limited amount of information. When you say the work is half way in do you mean in spend or in time? Is it possible to form a company to buy the boat and sell shares? At least the shareholders would know their downside and limit their liabilities. Probably expensive to set up and maintain. Was the current owners plan always to renovate and sell on or was it to renovate and keep?

 

[Niander]

Not in a million years...

 

[skipper681]

How many shares do I get for a fiver? Seriously though there's too little information. Granted you say PM you but you would need a bit more bait on the hook.