i am a software developer and developing an web app for yacht rental and solutions. It may take four months to complete my whole project... i want to know... do you help people to charter their yacht.... if yes how... do you have a website to search for charter yacht.... or you use other websites to promote listing.
@@patilprasanna2003 I'm the co-founder of a yacht charter app and I don't believe it's a great business there's not really much value added to the client except for the search process. You'll just be going to be adding extra money to the grand total for your "services" which have nothing to do with the yacht itself.
@@MrYachts Thank you for quick reply... I saw your app... its nice.... Yes i am building a search portal different than getmyboat or boatsetter... I will update you about my development may be after 2 to 3 months...
@@patilprasanna2003 it looks nice because I designed it, but I don't think it's a scalable model as it is. there is a way to scale it but it requires a lot of cooperation from owners and brokers... let me know if you need some advice. Regards,
Not at all actually. Airbnb and yacht chartering have nothing to do with each other neither in theory or in practice. Bareboat yacht charters are completely different whereas the owner of a yacht charters it to an end user. Airbnb facilitates the rentals of other people's properties and acts as a middle man between the owner and the renter. I hope that clears it up for you.
@@brianshowa45 yes I see what you mean now, I just didn’t want people to think they are the same, you’re absolutely right you’re putting your asset to work to generate income to offset expenses and perhaps make a profit. thanks for making the analogy hopefully it makes sense to others as well :)
Good job on this vid. Thank you 🙏. Was just talking about coming down , buying a boat and renting it out. Day cruises. Nothing big , then came across this vid. Thanks again
Nice video, I just purchased a 1976 53 ft Hatteras and did a complete makeover. I live in the venezuelan Caribbean region and hopefully get a profit otherwise I can sell
I got a pretty nice 56 foot yacht similar to a palm beach. Im in all the charter sites and i even have my own site. I'm lucky to get one charter a week at 2-4 hours. With a cheep price of $300 an hour all included. I don't think a yacht would pay for itself in my area.
Hi keith, my video is referring to the Miami charter market only because there exists a charter market here. I don't know from what port your boat hails from but I wouldn't apply this video to any other place but Miami.
Hello there Mr. Yacht, I am working through the startup options of a similar model you just presented. I came accros your video and would like to know what experience/ knowledge you have of the Tampa Bay area. Thanks again for the good insights. Cheers, Chad
As the saying goes - you make or loose money on the buy. I bought two boats over the past few years, bought right - enjoyed for a few years and sold getting all my money back. Makes sense to me
I mean look, if you want to make money there's better ways to do it. This is about offsetting the cost so you can own a yacht for free. Not an investment strategy. Nobody needs a yacht.
I do the same thing in the Annapolis area, as a yacht broker I offer a charter program to the new buyers as a way to offset the costs of ownership/ maintenance. I make it VERY clear to my clients that this is not a million dollar idea, its basically going to cover dock fees, insurance, etc. Don't expect it to be high earning passive income. Currently we have two COI boats, an 80ft Hatteras, a few sportfish, and few 30ish ft sailboats. On our primary COI boat we do about 40-50 charters in a season and its our biggest heavy hitter by far, keeping in mind our season is a lot shorter than down in Miami lol
@PassportBachelor Reread what I wrote. He said to sell it. To Recoop your investment. You never go by Titles of anything. Those are just Fluff Leaders to hook you in. ReWatch the Video.
I will try to make more content like this in the new year. I have fallen behind the content creation around this topic because I've been focusing on rebuilding my yacht brokerage business so I can help you find yachts for purchase, sale, or charter.
I own a yacht brokerage and this video was very accurate at time of posting. As you can imagine...Miami got flooded with these types of charter boats...the city all but banned the pickup & dropoff of day charter guests in their marinas...and the charter market tanked in 2023. I'm also a former yacht captain and 27 year industry veteran. This guy seems to know his stuff and I would recommend subscribing to his channel...and no...we've never met. I'm just a yacht broker who believes in giving credit where credit is due. 👏🏻
I'm curious as to why you would ask this. Obviously there's a market for charters. so much that it had to be regulated because it was getting out of hand. it "tanked" doesn't mean anything to me - as far as my business is concerned we hav e great repeat clients and new clients monthly. The OP must be referring to the yacht charter race to the bottom phenomenon due to inflated COVID aspirations.
Very Happy I found you. I've been helping my mentor charter her yacht out of PSL,Stuart area. These are great insights... Hope to meet you in person one day.
hey thanks for the comment and sorry for the late reply I'm down here in miami and travel to stuart often. let me know if you want meet for a coffee next time I'm up there!
What if you bought an older but larger boat for less money. Could you still day-charter something like that out or would that be more of a term charter opportunity?
Great vid, Mr. Yachts. What is your opinion on brokers vs. directly marketing/advertising personally owned yachts? I lived in Miami for 10 years, and my friends that own yachts always ask me to leverage my yacht owner database + my digital advertising tech to charter their privately owned yachts/keep them booked up. My real question would be based on cutting out the brokers that jack the yacht owners...especially during holiday weekends, Art Basel events, etc.
Very interesting topic. I should make a video about this. The charter market here is run in a weirdly particular way whereas he brokers have made it “industry standard” (not true) that the owners take a net amount and the brokers put on top what they make. The fact is the true industry standard is a percentage base so as the price fluctuates both parties participate in the gain or loss. That said even if a broker convinces the owner to take a net amount vs a percentage, I don’t agree on the point of view that the broker is “jacking” the owner. Each time there is a charter the owner has to make a business decision to accept or decline the charter. If the owner agreed to their terms and is in no way obligated to accept the charter, then how can he claim he is being taken advantage of just because he agreed to what he considers a bad deal. Either don’t accept the charter, or make a better deal. Simple.
@@MrYachts I guess my question is more of a price surge at a supply and demand level when there events like Art Basel create inventory shortage. Seems like the brokers quote the same rates, but I’m more of a lead generating match maker.
@@nathaniellatimer nathaniel, we just finished art basel. there were a lot of charter requests, mostly from referrals and brokers. My advice is always use a broker like myself or whoever you have a great relationship with an trust to find you the right clients. There is a lot more work involved than simple lead generation. You have to qualify them, make sure it's not fraudulent, collect money, make sure the boat is prepped and the crew have the instructions to expect the gues and overall make sure the charter goes well. Anybody can get leads, but it's the brokers that close the deal. If you think you can do better than a broker then you should become the best yacht broker in the world yourself.
Please DM me. Im trying to determine if a larger boat, like 80 meters, is easily able to be chartered. Im seeking info about a putting a boat in charter.
Very Informative video, thank you! I want to start out doing sunset and day charters over here on the West Coast of FL. I found an older (1972) Hatteras for around 150K. We wanted to start out with an inexpensive vessel for a year or two and see if we like the business and then buy something newer and nicer. What our your thoughts on us trying to charter with an older boat? If we like this business, we might be a client of yours in a couple of years.
Hi John! Great news I'm happy you liked the video. I think getting an older boat is perfectly fine if everything works and the surveyor you choose confirms that it's not a lemon and there's no setbacks down the road. In fact, I think buying older boats is where you find the best deals. Of course you have to work on them in the beginning but once they are dialed in they tend to be nice and cozy! As far as chartering goes I think the vintage is not so much an issue as long as there's nothing terribly wrong with the boat like bad smell, visible damage, weird noises... people just want to feel safe and comfortable. If you can offer that along with great service and memorable experience then I see no issue. Regarding the market capacity I'm largely unfamiliar with the west coast of Florida so I cannot advise on that at this time. I look forward to working with you though! all the best, Nick
Is it best to buy used or new? If buying used, I assume you would want something lightly used v. fixer upper. What about the likelihood of catastrophic damage? You know, like in the car market, you can get an Audi off-warranty for cheap but run real risk in something blowing up and having a cascade of repair bills.
I never buy new. Why? because the price the factory sells to you is the maximum value it will ever be worth. There's reasons to buy new but if you'r looking to get into boating start with a preowned boat to mitigate the financial risk.
I'm a first timeer and looking for livable Yacht... so I am still on my hunt, but you have given so much grat info for a beginner like me.. is flipping yacht a good thing to do as well ..??
No, this is an expensive sport. NOT a good business. The title of the video is how to offset your cost not make money. Go put your money in the market and invest it please. Buy a yacht when you're rich. cheers.
So what if I want to just do bare boat charters. No crew and only rent it out to people qualified to run the boat themselves. Is there a market for that? I hate bringing people into the equation. It just complicates things and payrolls are a pain in the ass!
I'm not sure how to answer that since you're not telling me what kind of boat, which is the most important part. Are you asking me if there's a market for uncrewed mega yachts for charter? I would say probably not. Are you asking me if there's a market for uncrewed small center consoles? I would say there probably is. That said I've never had a problem paying people nor have I found payroll to be a pain 🤷♂
@@MrYachts Hey thanks for the answer. I should have specified. I really haven't decided, but I was leaning towards a Catamaran that I could charter out while I myself am not using it. Maybe a Bali 4.4 or possibly a 35-40 ft cabin cruiser.
@@calledout4437 I’m only familiar with companies that manage those boat and bareboat charter them out with a full maintenance program behind it. I’m not sure as an owner I would want anybody taking my boat out without supervision. Moorings does this
@@MrYachts What's your opinion on the Dubai charter business? I'd say that, being an almost 12 months warm season it has the chance to be a more profitable area, and with a good boat you can get the right price. Correct me if I'm wrong please, let's talk about it!
@@sonicrulez Although I have very little knowledge of the Dubai market my opinion is in line with yours from a spectator's perspective. It appears they have a very similar potential to Miami along with very similar metrics with regards to geography, weather, type of charters (day boating)
Great video. I am assuming you are a broker and not a charter manager, correct? I am considering getting into a 65' power yacht. I am a licensed caption, licensed to be a better caption for my friends and family, not for an income source. I have been running a 43' Hatt SF for about 12 years. I would consider selling her if I moved into the 65. What organizations would you recommend for charter management in the Miami/Lauderdale area?
Thank you for watching and yes, that is correct. I am a sales broker but due to my experience, I can offer a lot of insight on Charters. However, I hire Charter, managers to do the chartering these days and I focus on Sales please feel free to book with me so we can discuss Further if you’d like. Thanks again for watching and have a great day!
I’m currently working on my 100 ton captains license north of palm beach at a school it’s my dream do have a yacht and use it as a business and my live aboard also .
I see you have a charter management fee of 20%. So you are independently partnered with the charter company? Do they organize the charters, find/book the guests, crew, etc? How do you go about getting connected with these companies and who do you use?
Hi Kevin I'm a yacht broker. The industry standard charter fee is 20% for the brokers and they do everything you are asking and more. As far as connecting with a broker - we are connected, let me know what you need.
a lot of people have been asking but the math works out the same as any business as it is simply a projection of a P&L. Take the costs of ownership and mark it up and there's your profit.
How and where can I find commercial docks that allows charters and loading/unloading pax in Miami area? Shouldn’t that be the first move before buying a yacht?
All docks are purpose-built specifically to secure vessels for the sole purpose of loading and unloading passengers and goods. Commercial docks are for commercial vessels like fishing boats and container ships. Private docks are for yachts. The difference between a yacht and a commercial vessel is the primary function of a yacht is for personal use. You don't need commercial docks to load/unload passengers unless you are running a ferry or taxi service as far as I know.
Hi! I want to buy one and use it to make profit like said in this video, but I was wondering if it is possible to partner with a company to get your boat chartered and not have to be worrying about it 24/7? I want to do it as passive income and well, for the asset itself
I recommend you look for another business to get into this isn't really a profit center it's moe of a networking tool as far as investment goes. yachting is expensive. you can break even though, hence the name of the video.
I agree for experienced captains. But for charter captains who make tips it can actually be lower. 1,000k is still a workable average but for an experience private captain I would agree with you it's more like 1.250 - 1.500
a lot of people have been asking but the math works out the same as any business as it is simply a projection of a P&L. Take the costs of ownership and mark it up and there's your profit.
I appreciate the time you take and your knowledge of the industry. I am looking at buying a 48-50ft yacht soon to charter in Florida but would also like to live aboard. I would like to be able to market it myself but do you think it would be better to go with a service in the long run. Im looking for a nice used Sea Ray, Cruiser, Viking around $350k any thoughts?
Apologies for the delayed response! I appreciate your enthusiasm about living on a yacht-it's certainly an appealing lifestyle. However, it's important to navigate the complexities involved, especially when it comes to legal and regulatory aspects. First off, the idea of living on a yacht while chartering it out can be complex due to regulations. In the U.S., whether a boat is domestically manufactured or foreign-built can affect the rules. Generally, you can't run a charter with the owner on board under a bareboat charter agreement. The legal framework around dayboat charters in Miami, for example, primarily involves the bareboat demise charter agreement, governed by U.S. Coast Guard and federal laws. This stipulates that the person chartering the yacht assumes responsibility for it during the charter period, provided there's a qualified captain on board. There are various types of charter arrangements, and each has its own implications regarding liability and operation. The process is more intricate than simply buying a yacht, living on it, and chartering it out. If you're considering this route, I strongly recommend getting in touch with me directly. I'd be glad to delve deeper into the specifics with you and help navigate the legalities to make your yachting dream a reality safely and legally.
Hi, I loved your video I have a passion for the boats my self but I live in Northern California and there is not match that can be done here. I’m originally from Croatia / Bosnia and Hercegovina grow up on Adriatic see and have true love for boats. My idea was to do a chartering in Croatia or Montenegro but now that I saw your video I would like to discuss this more dipper in to details and possibly change my option from Croatia to Miami area. Can we setup a time or so to have a conversation please? I have tons of questions and I’m not in this tips of industry at all but I would love to switch on to it. I’m in my 40 is and still thinking strongest.
Thanks for the video it was really informative, can you send me the Excel sheet I am looking into starting a yacht charter business in Miami by next year's summer. I would love to talk to you to get more insight into the business.
I live in the Dominican Republic and recently started looking at used boats, as import tarrifs into the country are insane. I would like to start a charter business here, but how do I properly valuate a used boat. I have an investor that will be partnering with me, but I'm a little hesitant to pull the trigger. What would you recommend for someone totally new to the business?
My recommendation is to work with a broker who knows the business that can guide you. DO NOT rely on any broker who is selling the boat you want to buy. DO NOT reply on anybody other than a person you completely trust who knows the market so you know you are getting the best deal and after-sales support, and someone who can help you do all the marketing for the business after the acquisition.
Love your video’s 🙏. I’ve been looking into the charter boat Industry on and off for a few years. Appreciate the break down of the cost. So $200,000 is a large amount to come up with for a down payment as well as having reserved cashed for maintenance and emergencies. Recommendation’s on lifestyle balance with family as well as raising capital to start a charter business? Thank you , again!
The purpose of this video is to explain that the amount of money it cost to buy the boat is offset by the actual business. Therefore the most important factor in deciding which boat to buy for the business would be the boat that has the best potential to charter at the highest price rather than buying the "cheapest boat".
Can you make a video where you explain why some yachts fly under some flags. For example here in Europe in Montenegro and Croatia a lot of yachts fly under Malta, British Virgin Isle etc. Why is that so? I have heard it has to do with lower taxes or something like that but I am not sure and I don't understand. Can anyone register their yacht in different countries etc?
Tax haven but it comes with restrictions with crew, insurance, import, its very complicated. Unfortunately theres very little resources to learn about it too.
why don't you reach out? I don't know your number so unless you contact me you shouldn't expect a phone call as I don't have a number to call. email is in the description but otherwise just send me a message to mryachts@cardozayachts.com
Question: thinking of buying a “dock queen “ live aboard . Instead of a marina though, I can buy a small waterfront lot and build a covered boat slip ( with power and water access) all with in a 10-15 minute ride to Gulf of Mexico. Cost of land and new dock should come in at less than $100k. I’ve been shopping around and a decent live aboard can be purchased for another $100k to $150. Other than running boat to keep systems in working order, ( going for pump out, bottom maintenance, fuel, etc.) I don’t expect to be running more than 10-12 hours a month tops. So does this sound like a workable plan? This would be my only residence.
Yes, I've thought about doing this as well. This is certainly possible and people do this. Don't forget the savings you have not paying property tax or HOA fees will offset the cost of fuel and utilities! :) :) Whereabouts is the plot of land you're thinking of acquiring?
@@MrYachts ….Back Bay Area of Biloxi Mississippi…maybe even on the Biloxi River which connects to bay which connects to gulf. From the farthest point I’m thinking of to the gulf may be a 20-30+ minute ride a putt-putt speed. Truly, Mississippi gulf coast is an overlooked area. Casinos with great restaurants everywhere as well as entertainment. No, water is not “Florida blue” because of all the silt from rivers and bayous, but if you head to offshore islands, (Cat island, Ship island) around 6-8 miles offshore, blue water awaits. Real estate? Pfffft. Water front lots from $20k to $150k on bay, gulf is a little more but can’t build a dock on gulf. But even condos here, fairly new, 1 bed furnished ( you can rent them out too) going for $350k or less…Florida? $800k and up for the same unit. New Orleans 80 miles west , Mobile 50 miles east for more entertainment options. Loving it here!!
@nomax101 hey man would you mind telling me what you mean with this? are you talking about like your own commercial docking system, or am I way off? I appreciate your time!
yeah as I write this to you I look forward to shifting my focus back into the production of the channel. I've been slammed with launching the new brokerage company but I'm starting up again. thanks for watching and please send me more topics you'd like to see so I can add it to my shot list.
I am interested in being in the yacht charter business. I watched the video, and it seems you have a lot of info to share. Let me know if you can answer some questions
Europe only has a 6 month season and the market is spread out. Miami is year round and concentrated in an area the size of Genoa or Athens. Big difference. 10 charters a month is not a lot. I have many boats that go out 15 times a month. watch the video as I explain the sunny days..
I am not a tax advisor so I'm not sure but I think because you would likely create an LLC for this yacht and it would have nothing to do with your ordinary income.
@@elliottcorona Oh I see :) That's called a "Yacht Charter Manager" in our business. This is a great question and I'm actually going to make a video about it now because this is a GREAT question!!! Keep 'em coming!
@@elliottcorona and @travelshopsus But the short answer in text right here right now is on a global scale this is managed/overseen by MYBA, The Worldwide Yachting Association. There is an exception to some local markets but generally speaking, the Yacht Charter Manager manages all aspects of chartering the yacht including but not limited to all marketing efforts such as photography, videography, digital, and in-person efforts like yacht charter shows. They also manage the yacht's calendar and are the defacto Central Agent or "CA" for listing the yacht on the global MLS listing services. Their fee is 5% out of the overall 20% designated as the industry standard commission. Therefore if a yacht's listed seasonal price is $100k then 15% goes to the charter brokers and the remaining 5% goes to the CA. If the CA lists the boat and procures the client directly without any outside brokers or referrals involved, then they would be entitled to the full 20% for themselves. So for every $100k the charter CA can expect to make anywhere between 5% - 20% of the charter base rate (unless otherwise agreed by all parties). If you are not the manager and you simply bring the client then you would be entitled to the other 15% if you're a broker, or up to 7.5% if you're a referral source (also unless otherwise agreed by all parties).
the short answer in text right here right now is on a global scale this is managed/overseen by MYBA, The Worldwide Yachting Association. There is an exception to some local markets but generally speaking, the Yacht Charter Manager manages all aspects of chartering the yacht including but not limited to all marketing efforts such as photography, videography, digital, and in-person efforts like yacht charter shows. They also manage the yacht's calendar and are the defacto Central Agent or "CA" for listing the yacht on the global MLS listing services. Their fee is 5% out of the overall 20% designated as the industry standard commission. Therefore if a yacht's listed seasonal price is $100k then 15% goes to the charter brokers and the remaining 5% goes to the CA. If the CA lists the boat and procures the client directly without any outside brokers or referrals involved, then they would be entitled to the full 20% for themselves. So for every $100k the charter CA can expect to make anywhere between 5% - 20% of the charter base rate (unless otherwise agreed by all parties). If you are not the manager and you simply bring the client then you would be entitled to the other 15% if you're a broker, or up to 7.5% if you're a referral source (also unless otherwise agreed by all parties).
I don't want to sound like a d*ck but yes, and much more. 5k is actually cheap for a nice yacht. for something really exclusive and beautiful you're looking at 10k per day and up.
A 20 year mortgage on a boat!? who does that? Do the interest payable over 20 years, compared with profit then take away depreciation. There is a giant hole in the ground.
what do you mean "yeah but...". Miami has a lot of charter boats that are shit boats. There's always a market here for nice things so even if it's saturated it does not invalidate the demand
I started in the business as a yacht chef on large charter yachts in St. Maarten. Then I got my captain's license and started working as delivery crew sailing all around bringing boats to different places for owners. Then I moved to Florida to work for VanDutch and got into sales that way. After I left VanDutch I went full brokerage and haven't looked back since. This is all I know how to do lol and I've gotten pretty good at it!
@@MrYachts That's awesome man, great story! I've actually looked into being a yacht delivery captain. Try to make some good money, so I can then buy more expensive charter yachts. What's your take on someone starting with a jet-ski rental business? Do that while working on getting my captains license
You forgot the opportunity cost of the cash you put on the mortgage to buy the boat...currency is a useless measurment tool of assets value over time...
I used to be in the charter business it is the biggest waste of time and money number one when you bored people are not human being there are animals so they clog up your toilet on every charter if you buy a million dollar yacht you'll never get that money back I sold my boat and I bought a 900,000 airplane I chartered my airplane to the Bahamas my airplane generates on high season 150,000 a month Mike cost of operation a year is 600,000 i Fly for free I do have a free airplane
Sounds like you've got a great business model thanks for sharing! As far as yacht charters go this video demonstrates a similar model for yacht chartering, not limited to day chartering. As with any business you have to choose the right asset to rent out. I'm not sure what kind of yacht you put to work but it sounds like whatever you had was competing with a lot of similar yachts. I'd like to mention, and I will make a video about this, that there is a HUGE scam in Miami in the day charter market. It's actually disgusting how the so-called "brokers" who are actually grimy club promoters, hustle the owners which turns into a race to the bottom for price. 🚨🚨🚨 This ultimately stems from owners being too "smart" and "greedy" when they buy the yacht and choose to be independent instead of choosing a "central agent" or a broker to handle the marketing, pricing, and inquiries. Instead I here a lot of owners say "I'm not signing an exclusive with anybody" and then they end up having to deal with all of that on their own AND work on the flat rate model instead of the commission based model. I never understood this mentality and if you were one of those then yeah I understand why you had a bad experience because you had no idea what you were getting yourself into.
The biggest waste of time is buying a boat For charter you don't need a captain license to do a bear boat charter anybody can buy a boat and do charters people don't know how to operate a boat you will put a lot of hours on the engine the boat will depreciate people don't put money back into the boat to keep it well maintained slow season comes you have to give away the prices just to make money to pay the Marina every time you book a charter your toilet is getting clogged people don't care they throw papers they don't take off the shoes in 2 months your boat will look like s*** 99.9 of the boat owners don't have a logbook on board the day you sell the boat it's not worth nothing marinas hate charter boats here in Miami there are hardly marinas available you will have a lot of rap and hip hop guess they will destroy your boat will smell like weed less than 3 years your boat will be listed for sale😢😢
@user-tz9vj7lc9h, I understand where you’re coming from, but I think there are a few misconceptions here. First off, it’s illegal to be the captain of your own yacht under a bareboat agreement. You absolutely need to be licensed to run a yacht for hire, or it won’t be insured. Running a yacht is a lot more work than just driving it. A lot of owners don’t realize this until things start breaking, which is natural given the harsh marine environment. Unless you’re talking about a boat under 50 feet, your comment is pretty misleading. Also, the idea that “99.9 percent of boat owners don’t have a logbook” is simply not true. I’m a licensed captain with a 200-ton offshore license, and I’ve sailed across the Atlantic twice. Every yacht I’ve been on had a logbook. I get that you might have this perspective if you’re not a captain, and yeah, unlicensed and untrained people often have a tough time. Your experience is valid, but it doesn’t apply to everyone. And by the way, everything depreciates-homes, cars, planes, even money. So saying yachts depreciate isn’t a fair criticism. Let’s try to share accurate information and have a productive discussion.
I try to answer all the comments here and on social but sometimes I over look them or it takes me time. You can always go to the contact button here not he channel and email me. I don't like to put the email here because of spam but if you can't find it then reply to this comment and I'll get a message and we can link. (BTW I have a great Sea Ray for you in Miami Beach Marina under $500k 😱)
Hopefully this knowledge is helpful to you guys! Let me know if there's anything I missed or any questions you have 👇🏽 thanks for the support!
How can I contact you.
I'm from India.
i am a software developer and developing an web app for yacht rental and solutions. It may take four months to complete my whole project... i want to know... do you help people to charter their yacht.... if yes how... do you have a website to search for charter yacht.... or you use other websites to promote listing.
@@patilprasanna2003 I'm the co-founder of a yacht charter app and I don't believe it's a great business there's not really much value added to the client except for the search process. You'll just be going to be adding extra money to the grand total for your "services" which have nothing to do with the yacht itself.
@@MrYachts Thank you for quick reply... I saw your app... its nice.... Yes i am building a search portal different than getmyboat or boatsetter... I will update you about my development may be after 2 to 3 months...
@@patilprasanna2003 it looks nice because I designed it, but I don't think it's a scalable model as it is. there is a way to scale it but it requires a lot of cooperation from owners and brokers... let me know if you need some advice. Regards,
This is like the Airbnb model.. but for boats instead of apartments. I dig it.
Not at all actually. Airbnb and yacht chartering have nothing to do with each other neither in theory or in practice. Bareboat yacht charters are completely different whereas the owner of a yacht charters it to an end user. Airbnb facilitates the rentals of other people's properties and acts as a middle man between the owner and the renter. I hope that clears it up for you.
@@brianshowa45 yes I see what you mean now, I just didn’t want people to think they are the same, you’re absolutely right you’re putting your asset to work to generate income to offset expenses and perhaps make a profit. thanks for making the analogy hopefully it makes sense to others as well :)
Good job on this vid. Thank you 🙏. Was just talking about coming down , buying a boat and renting it out. Day cruises. Nothing big , then came across this vid. Thanks again
Glad it was helpful!
let me know if you need help buying a boat, that's my specialty
Nice video, I just purchased a 1976 53 ft Hatteras and did a complete makeover.
I live in the venezuelan Caribbean region and hopefully get a profit otherwise I can sell
I am currently a graduate international student, I would love to work with someone like you, I like your energy man!
thanks for watching.
I got a pretty nice 56 foot yacht similar to a palm beach. Im in all the charter sites and i even have my own site. I'm lucky to get one charter a week at 2-4 hours. With a cheep price of $300 an hour all included. I don't think a yacht would pay for itself in my area.
why don't you move it?
Hi keith, my video is referring to the Miami charter market only because there exists a charter market here. I don't know from what port your boat hails from but I wouldn't apply this video to any other place but Miami.
Would like to get hold of yout spreadsheet! Thanks for the amazing video!
I can walk you through it.
Omg you're amazing I'm buying a 32 ft old yacht for my pleasure and being my own captain because you can't trust somebody riding your own boat
Like it.Excellent job! Thank you!
Hello there Mr. Yacht, I am working through the startup options of a similar model you just presented. I came accros your video and would like to know what experience/ knowledge you have of the Tampa Bay area. Thanks again for the good insights.
Cheers,
Chad
hey thanks for reaching out. i don't have any experience or knowledge of the tampa market, unfortunately.
Great video! How can I get the spreadsheet you mention?
As the saying goes - you make or loose money on the buy. I bought two boats over the past few years, bought right - enjoyed for a few years and sold getting all my money back. Makes sense to me
I mean look, if you want to make money there's better ways to do it. This is about offsetting the cost so you can own a yacht for free. Not an investment strategy. Nobody needs a yacht.
I do the same thing in the Annapolis area, as a yacht broker I offer a charter program to the new buyers as a way to offset the costs of ownership/ maintenance. I make it VERY clear to my clients that this is not a million dollar idea, its basically going to cover dock fees, insurance, etc. Don't expect it to be high earning passive income. Currently we have two COI boats, an 80ft Hatteras, a few sportfish, and few 30ish ft sailboats. On our primary COI boat we do about 40-50 charters in a season and its our biggest heavy hitter by far, keeping in mind our season is a lot shorter than down in Miami lol
Where do you work? Where can i enroll in this program
@@GBEOFWG are you in MD? Do you already own a boat?
@@CaptWMcS no im from atl, and no i dont own a yacht yet im planning on getting one
If it just covers the cost. And you have to give up your boat. As in not use it. Whats the point of having a boat then?
@PassportBachelor Reread what I wrote. He said to sell it. To Recoop your investment. You never go by Titles of anything. Those are just Fluff Leaders to hook you in. ReWatch the Video.
Thank you, great video! Very informative! I'll definitely call you when I'm ready to purchase my first yacht.
always here to help !
I like the breakdown bro
thank you i'll try to make more versions of this for different scenarios in the near future.
really liked this video. I need more content like this.Hungry to start a yacht charter business in miami/ftl but I need guidance.
I will try to make more content like this in the new year. I have fallen behind the content creation around this topic because I've been focusing on rebuilding my yacht brokerage business so I can help you find yachts for purchase, sale, or charter.
I own a yacht brokerage and this video was very accurate at time of posting. As you can imagine...Miami got flooded with these types of charter boats...the city all but banned the pickup & dropoff of day charter guests in their marinas...and the charter market tanked in 2023. I'm also a former yacht captain and 27 year industry veteran. This guy seems to know his stuff and I would recommend subscribing to his channel...and no...we've never met. I'm just a yacht broker who believes in giving credit where credit is due. 👏🏻
So if Miami all but band the pickup and drop-off and th market tanked in 2023, then how can this still work well?
I'm curious as to why you would ask this. Obviously there's a market for charters. so much that it had to be regulated because it was getting out of hand. it "tanked" doesn't mean anything to me - as far as my business is concerned we hav e great repeat clients and new clients monthly. The OP must be referring to the yacht charter race to the bottom phenomenon due to inflated COVID aspirations.
Very Happy I found you. I've been helping my mentor charter her yacht out of PSL,Stuart area. These are great insights... Hope to meet you in person one day.
hey thanks for the comment and sorry for the late reply I'm down here in miami and travel to stuart often. let me know if you want meet for a coffee next time I'm up there!
this is what you call keeping it real with out Finessing
haha thanks that's an awesome comment hope you're well.
I would love more info on your spread sheet
What if you bought an older but larger boat for less money. Could you still day-charter something like that out or would that be more of a term charter opportunity?
and that cost breakdown is an important video to put up
which one?
Great stuff! You take on Cats?
Great vid, Mr. Yachts. What is your opinion on brokers vs. directly marketing/advertising personally owned yachts? I lived in Miami for 10 years, and my friends that own yachts always ask me to leverage my yacht owner database + my digital advertising tech to charter their privately owned yachts/keep them booked up. My real question would be based on cutting out the brokers that jack the yacht owners...especially during holiday weekends, Art Basel events, etc.
Very interesting topic. I should make a video about this. The charter market here is run in a weirdly particular way whereas he brokers have made it “industry standard” (not true) that the owners take a net amount and the brokers put on top what they make. The fact is the true industry standard is a percentage base so as the price fluctuates both parties participate in the gain or loss. That said even if a broker convinces the owner to take a net amount vs a percentage, I don’t agree on the point of view that the broker is “jacking” the owner. Each time there is a charter the owner has to make a business decision to accept or decline the charter. If the owner agreed to their terms and is in no way obligated to accept the charter, then how can he claim he is being taken advantage of just because he agreed to what he considers a bad deal. Either don’t accept the charter, or make a better deal. Simple.
@@MrYachts I guess my question is more of a price surge at a supply and demand level when there events like Art Basel create inventory shortage. Seems like the brokers quote the same rates, but I’m more of a lead generating match maker.
@@nathaniellatimer nathaniel, we just finished art basel. there were a lot of charter requests, mostly from referrals and brokers. My advice is always use a broker like myself or whoever you have a great relationship with an trust to find you the right clients. There is a lot more work involved than simple lead generation. You have to qualify them, make sure it's not fraudulent, collect money, make sure the boat is prepped and the crew have the instructions to expect the gues and overall make sure the charter goes well. Anybody can get leads, but it's the brokers that close the deal. If you think you can do better than a broker then you should become the best yacht broker in the world yourself.
Please DM me. Im trying to determine if a larger boat, like 80 meters, is easily able to be chartered. Im seeking info about a putting a boat in charter.
Very Informative video, thank you! I want to start out doing sunset and day charters over here on the West Coast of FL. I found an older (1972) Hatteras for around 150K. We wanted to start out with an inexpensive vessel for a year or two and see if we like the business and then buy something newer and nicer. What our your thoughts on us trying to charter with an older boat? If we like this business, we might be a client of yours in a couple of years.
Hi John! Great news I'm happy you liked the video. I think getting an older boat is perfectly fine if everything works and the surveyor you choose confirms that it's not a lemon and there's no setbacks down the road. In fact, I think buying older boats is where you find the best deals. Of course you have to work on them in the beginning but once they are dialed in they tend to be nice and cozy! As far as chartering goes I think the vintage is not so much an issue as long as there's nothing terribly wrong with the boat like bad smell, visible damage, weird noises... people just want to feel safe and comfortable. If you can offer that along with great service and memorable experience then I see no issue. Regarding the market capacity I'm largely unfamiliar with the west coast of Florida so I cannot advise on that at this time. I look forward to working with you though! all the best, Nick
Is it best to buy used or new? If buying used, I assume you would want something lightly used v. fixer upper. What about the likelihood of catastrophic damage? You know, like in the car market, you can get an Audi off-warranty for cheap but run real risk in something blowing up and having a cascade of repair bills.
I never buy new. Why? because the price the factory sells to you is the maximum value it will ever be worth. There's reasons to buy new but if you'r looking to get into boating start with a preowned boat to mitigate the financial risk.
I want to do this in San Diego, CA. Teach me the ways… change my life, Mr Yachts.
danny you can do it! let me know how I can help advise.
I'm a first timeer and looking for livable Yacht... so I am still on my hunt, but you have given so much grat info for a beginner like me..
is flipping yacht a good thing to do as well ..??
No, this is an expensive sport. NOT a good business. The title of the video is how to offset your cost not make money. Go put your money in the market and invest it please. Buy a yacht when you're rich. cheers.
Thats the video i was looking for. Im interested in this business model
great, sorry for the late reply. I can help you find what you are looking for just let me know!
Hi, enjoyed your video and would love more info on your business model and spreadsheet. Thanks.
What would you like to know?
Straight to the Point! Love it! Thinking about doing this or Bareboat in Caly. Not sure it pay off like Florida.
Florida has the strongest charter market year-round that I am aware of but I guess people charter their boats out in California as well. good luck!
So what if I want to just do bare boat charters. No crew and only rent it out to people qualified to run the boat themselves. Is there a market for that? I hate bringing people into the equation. It just complicates things and payrolls are a pain in the ass!
I'm not sure how to answer that since you're not telling me what kind of boat, which is the most important part. Are you asking me if there's a market for uncrewed mega yachts for charter? I would say probably not. Are you asking me if there's a market for uncrewed small center consoles? I would say there probably is. That said I've never had a problem paying people nor have I found payroll to be a pain 🤷♂
@@MrYachts Hey thanks for the answer. I should have specified. I really haven't decided, but I was leaning towards a Catamaran that I could charter out while I myself am not using it. Maybe a Bali 4.4 or possibly a 35-40 ft cabin cruiser.
@@calledout4437 I’m only familiar with companies that manage those boat and bareboat charter them out with a full maintenance program behind it. I’m not sure as an owner I would want anybody taking my boat out without supervision. Moorings does this
Love it. Dubai based but subscribed and take your advice on board
Thank you! I’ll be in Dubai soon !
@@MrYachts What's your opinion on the Dubai charter business? I'd say that, being an almost 12 months warm season it has the chance to be a more profitable area, and with a good boat you can get the right price. Correct me if I'm wrong please, let's talk about it!
@@sonicrulez Although I have very little knowledge of the Dubai market my opinion is in line with yours from a spectator's perspective. It appears they have a very similar potential to Miami along with very similar metrics with regards to geography, weather, type of charters (day boating)
Awesome video and insights! Do you have any suggestions or tips for doing this in the Midwest (where it’s cold for 5 months or so out of the year)?
no sorry, i do not know that market and therefore cannot advise.
Great video. I am assuming you are a broker and not a charter manager, correct? I am considering getting into a 65' power yacht. I am a licensed caption, licensed to be a better caption for my friends and family, not for an income source. I have been running a 43' Hatt SF for about 12 years. I would consider selling her if I moved into the 65. What organizations would you recommend for charter management in the Miami/Lauderdale area?
Thank you for watching and yes, that is correct. I am a sales broker but due to my experience, I can offer a lot of insight on Charters. However, I hire Charter, managers to do the chartering these days and I focus on Sales please feel free to book with me so we can discuss Further if you’d like. Thanks again for watching and have a great day!
Do you find charter agencies are readily available and what would you expect their fees to be for a fully managed service?
charter fees should be 20% which cover management and broker fees and referral fees.
You can also write off the depreciation of the boat annually! Get a good account ❤️
yes you can. and yes need a good accountant!
Great video, very informative.
thank you for watching i hope to release some new material soon.
I’m currently working on my 100 ton captains license north of palm beach at a school it’s my dream do have a yacht and use it as a business and my live aboard also .
yes that's a great dream me too!
I see you have a charter management fee of 20%. So you are independently partnered with the charter company? Do they organize the charters, find/book the guests, crew, etc? How do you go about getting connected with these companies and who do you use?
Hi Kevin I'm a yacht broker. The industry standard charter fee is 20% for the brokers and they do everything you are asking and more. As far as connecting with a broker - we are connected, let me know what you need.
Very interesting videos. Thank you. Is there any way to get this excel you are referring to?
a lot of people have been asking but the math works out the same as any business as it is simply a projection of a P&L. Take the costs of ownership and mark it up and there's your profit.
How and where can I find commercial docks that allows charters and loading/unloading pax in Miami area? Shouldn’t that be the first move before buying a yacht?
All docks are purpose-built specifically to secure vessels for the sole purpose of loading and unloading passengers and goods.
Commercial docks are for commercial vessels like fishing boats and container ships. Private docks are for yachts. The difference between a yacht and a commercial vessel is the primary function of a yacht is for personal use. You don't need commercial docks to load/unload passengers unless you are running a ferry or taxi service as far as I know.
What.
I’m the captain!!!!
How much is a Riva Mare worth in average condition at 5 years old. Let me test your knowledge Nick? in Ozi dollars please ?
As much as the next guy is willing to pay for it! 😊 that of course will differ geographically!
Let me know how we can charter my 2 yachts
4370 Cruisers
405 motor yacht
I just started bareboat charters with them.
Thanks Frank
hey sorry for the late reply, where do you keep the boats?
Hi! I want to buy one and use it to make profit like said in this video, but I was wondering if it is possible to partner with a company to get your boat chartered and not have to be worrying about it 24/7? I want to do it as passive income and well, for the asset itself
I recommend you look for another business to get into this isn't really a profit center it's moe of a networking tool as far as investment goes. yachting is expensive. you can break even though, hence the name of the video.
$1000 per foot per year is not applicable anymore. It’s more like 1,250/foot/year to start
I agree for experienced captains. But for charter captains who make tips it can actually be lower. 1,000k is still a workable average but for an experience private captain I would agree with you it's more like 1.250 - 1.500
Hi would you mind sharing the excel spreadsheet?
a lot of people have been asking but the math works out the same as any business as it is simply a projection of a P&L. Take the costs of ownership and mark it up and there's your profit.
I appreciate the time you take and your knowledge of the industry. I am looking at buying a 48-50ft yacht soon to charter in Florida but would also like to live aboard. I would like to be able to market it myself but do you think it would be better to go with a service in the long run.
Im looking for a nice used Sea Ray, Cruiser, Viking around $350k any thoughts?
Apologies for the delayed response! I appreciate your enthusiasm about living on a yacht-it's certainly an appealing lifestyle. However, it's important to navigate the complexities involved, especially when it comes to legal and regulatory aspects.
First off, the idea of living on a yacht while chartering it out can be complex due to regulations. In the U.S., whether a boat is domestically manufactured or foreign-built can affect the rules. Generally, you can't run a charter with the owner on board under a bareboat charter agreement. The legal framework around dayboat charters in Miami, for example, primarily involves the bareboat demise charter agreement, governed by U.S. Coast Guard and federal laws. This stipulates that the person chartering the yacht assumes responsibility for it during the charter period, provided there's a qualified captain on board.
There are various types of charter arrangements, and each has its own implications regarding liability and operation. The process is more intricate than simply buying a yacht, living on it, and chartering it out. If you're considering this route, I strongly recommend getting in touch with me directly. I'd be glad to delve deeper into the specifics with you and help navigate the legalities to make your yachting dream a reality safely and legally.
Sea Ray sedan bridge
Hi, I loved your video I have a passion for the boats my self but I live in Northern California and there is not match that can be done here. I’m originally from Croatia / Bosnia and Hercegovina grow up on Adriatic see and have true love for boats.
My idea was to do a chartering in Croatia or Montenegro but now that I saw your video I would like to discuss this more dipper in to details and possibly change my option from Croatia to Miami area.
Can we setup a time or so to have a conversation please? I have tons of questions and I’m not in this tips of industry at all but I would love to switch on to it. I’m in my 40 is and still thinking strongest.
sorry for the late reply would be happy to discuss.
Thanks for the video it was really informative, can you send me the Excel sheet I am looking into starting a yacht charter business in Miami by next year's summer. I would love to talk to you to get more insight into the business.
sure send me an email
Do one for sailors!
I live in the Dominican Republic and recently started looking at used boats, as import tarrifs into the country are insane. I would like to start a charter business here, but how do I properly valuate a used boat. I have an investor that will be partnering with me, but I'm a little hesitant to pull the trigger. What would you recommend for someone totally new to the business?
My recommendation is to work with a broker who knows the business that can guide you. DO NOT rely on any broker who is selling the boat you want to buy. DO NOT reply on anybody other than a person you completely trust who knows the market so you know you are getting the best deal and after-sales support, and someone who can help you do all the marketing for the business after the acquisition.
Love your video’s 🙏. I’ve been looking into the charter boat Industry on and off for a few years. Appreciate the break down of the cost. So $200,000 is a large amount to come up with for a down payment as well as having reserved cashed for maintenance and emergencies. Recommendation’s on lifestyle balance with family as well as raising capital to start a charter business? Thank you , again!
that number is a representation of 20% of the total price of a [1 million] dollar boat.
Which is the best, cheapest boat to buy and give it for charter ?
The purpose of this video is to explain that the amount of money it cost to buy the boat is offset by the actual business. Therefore the most important factor in deciding which boat to buy for the business would be the boat that has the best potential to charter at the highest price rather than buying the "cheapest boat".
brother, so u wanna tell me that ROI of a yacht is about 25% ??
if you run it as a business the numbers I put are fairly accurate.
WICH 50 FT YACHT DO YOU RECOMEND FOR THAT WILL CHARTER THINKING OF BUYING A GALEON 500 OR 550 IN FORT LAUD
Ruben please reach out to my email address so we can discuss. If you are still looking gi have a great deal off market coming.
Can you make a video where you explain why some yachts fly under some flags. For example here in Europe in Montenegro and Croatia a lot of yachts fly under Malta, British Virgin Isle etc. Why is that so? I have heard it has to do with lower taxes or something like that but I am not sure and I don't understand. Can anyone register their yacht in different countries etc?
Tax haven but it comes with restrictions with crew, insurance, import, its very complicated. Unfortunately theres very little resources to learn about it too.
I will make sure I add this to the list of upcoming content.
@@jeenyus720 I know this stuff so I will make this content. thank you for asking for it!
@@MrYachts Thank you sir.
I am looking at a boat that is for sale in Miami for 600k. I would like to speak with you about it.
why don't you reach out? I don't know your number so unless you contact me you shouldn't expect a phone call as I don't have a number to call. email is in the description but otherwise just send me a message to mryachts@cardozayachts.com
@@MrYachts Ok what is your number?
I never thought that I would have to beg someone to spend 600 thousand dollars.
@@josephbeno3053 well i don't have your contact info so how am I supposed to reach you?
@@MrYachts Ok I will call you next week. Thanks
Question: thinking of buying a “dock queen “ live aboard . Instead of a marina though, I can buy a small waterfront lot and build a covered boat slip ( with power and water access) all with in a 10-15 minute ride to Gulf of Mexico. Cost of land and new dock should come in at less than $100k. I’ve been shopping around and a decent live aboard can be purchased for another $100k to $150. Other than running boat to keep systems in working order, ( going for pump out, bottom maintenance, fuel, etc.) I don’t expect to be running more than 10-12
hours a month tops. So does this sound like a workable plan? This would be my only residence.
Yes, I've thought about doing this as well. This is certainly possible and people do this. Don't forget the savings you have not paying property tax or HOA fees will offset the cost of fuel and utilities! :) :) Whereabouts is the plot of land you're thinking of acquiring?
@@MrYachts ….Back Bay Area of Biloxi Mississippi…maybe even on the Biloxi River which connects to bay which connects to gulf. From the farthest point I’m thinking of to the gulf may be a 20-30+ minute ride a putt-putt speed. Truly, Mississippi gulf coast is an overlooked area. Casinos with great restaurants everywhere as well as entertainment. No, water is not “Florida blue” because of all the silt from rivers and bayous, but if you head to offshore islands, (Cat island, Ship island) around 6-8 miles offshore, blue water awaits. Real estate? Pfffft. Water front lots from $20k to $150k on bay, gulf is a little more but can’t build a dock on gulf. But even condos here, fairly new, 1 bed furnished ( you can rent them out too) going for $350k or less…Florida? $800k and up for the same unit. New Orleans 80 miles west , Mobile 50 miles east for more entertainment options. Loving it here!!
@@MrYachts Are their homes in the Miami areas that can handle larger boats? If so, what area? Im moving out to Florida from Colorado.
@@relaxfarms6627 yes there certainly are and I can help you choose the right one as well. Feel free to drop me line and we can discuss.
@nomax101 hey man would you mind telling me what you mean with this? are you talking about like your own commercial docking system, or am I way off? I appreciate your time!
Bro i need help finding a pearl 62 in Florida. i will be motoring from trinidad
can it be done in a day the processing!?
I can help you find a boat but what do you mean processing ?
Amazzzzzzzzzzzzzzzzzzzzzzzing !!!!!!!
yeah as I write this to you I look forward to shifting my focus back into the production of the channel. I've been slammed with launching the new brokerage company but I'm starting up again. thanks for watching and please send me more topics you'd like to see so I can add it to my shot list.
I am interested in being in the yacht charter business. I watched the video, and it seems you have a lot of info to share. Let me know if you can answer some questions
yes I would love to. sorry for the late reply, I took a break from youtube. Let me know if you'd still like to connect.
10 days a month ?? Isnt that a crazy amount of rental days ? I always Heard its about 25 a year in europe is it that different in the US
Europe only has a 6 month season and the market is spread out. Miami is year round and concentrated in an area the size of Genoa or Athens. Big difference. 10 charters a month is not a lot. I have many boats that go out 15 times a month. watch the video as I explain the sunny days..
You ran by that docking fee pretty fast. Can you give us a range??
That's impossible since most marinas are privately owned and can set their own rates as they wish.
@@MrYachts This entire video is full of estimations on expenses and income. You can't give an idea for a range of this expense? C'mon.
Local Miami Beach guy - looking to get into a $500k boat (40 feet) to own/ charter for the day. You around to connect?
hey there sorry i missed this I was in Europe until October. I am back in Miami now and available to connect if you are still looking LMK!
How do I invest? I need more info please
invest in what?
How many charters could a charter yacht owner expect per year in the Miami area?
80-100 days
Why not mention depreciation write off against ordinary income?
I am not a tax advisor so I'm not sure but I think because you would likely create an LLC for this yacht and it would have nothing to do with your ordinary income.
Whats a fare average co-host split for some one to host/rent a boat?
I do not know what you mean by host/co-host
@@MrYachts manage a boat for an owner by renting it.
@@elliottcorona Oh I see :) That's called a "Yacht Charter Manager" in our business. This is a great question and I'm actually going to make a video about it now because this is a GREAT question!!! Keep 'em coming!
@@elliottcorona and @travelshopsus But the short answer in text right here right now is on a global scale this is managed/overseen by MYBA, The Worldwide Yachting Association. There is an exception to some local markets but generally speaking, the Yacht Charter Manager manages all aspects of chartering the yacht including but not limited to all marketing efforts such as photography, videography, digital, and in-person efforts like yacht charter shows. They also manage the yacht's calendar and are the defacto Central Agent or "CA" for listing the yacht on the global MLS listing services. Their fee is 5% out of the overall 20% designated as the industry standard commission. Therefore if a yacht's listed seasonal price is $100k then 15% goes to the charter brokers and the remaining 5% goes to the CA. If the CA lists the boat and procures the client directly without any outside brokers or referrals involved, then they would be entitled to the full 20% for themselves. So for every $100k the charter CA can expect to make anywhere between 5% - 20% of the charter base rate (unless otherwise agreed by all parties). If you are not the manager and you simply bring the client then you would be entitled to the other 15% if you're a broker, or up to 7.5% if you're a referral source (also unless otherwise agreed by all parties).
the short answer in text right here right now is on a global scale this is managed/overseen by MYBA, The Worldwide Yachting Association. There is an exception to some local markets but generally speaking, the Yacht Charter Manager manages all aspects of chartering the yacht including but not limited to all marketing efforts such as photography, videography, digital, and in-person efforts like yacht charter shows. They also manage the yacht's calendar and are the defacto Central Agent or "CA" for listing the yacht on the global MLS listing services. Their fee is 5% out of the overall 20% designated as the industry standard commission. Therefore if a yacht's listed seasonal price is $100k then 15% goes to the charter brokers and the remaining 5% goes to the CA. If the CA lists the boat and procures the client directly without any outside brokers or referrals involved, then they would be entitled to the full 20% for themselves. So for every $100k the charter CA can expect to make anywhere between 5% - 20% of the charter base rate (unless otherwise agreed by all parties). If you are not the manager and you simply bring the client then you would be entitled to the other 15% if you're a broker, or up to 7.5% if you're a referral source (also unless otherwise agreed by all parties).
do people really pay $5000 a day to rent these boats out? I feel like I'd be stressing to get people to do that
I don't want to sound like a d*ck but yes, and much more. 5k is actually cheap for a nice yacht. for something really exclusive and beautiful you're looking at 10k per day and up.
A 20 year mortgage on a boat!? who does that? Do the interest payable over 20 years, compared with profit then take away depreciation. There is a giant hole in the ground.
Everybody does 20 year mortgage. That’s how it works pal. I would have said it otherwise.
@ I just don’t see how anyone can make a profit?
How can I get data of High ticket clients
i don't know
Are you in someone that can handle the buying process and getting the boat connected with a charter company?
Yes, that’s what my work is.
@@MrYachts great will reach out on instagram 👍
@@isaaccotto3236 I don't believe we were able to connect were we?
150k a yr is not bad
:)
Yeah but miami is over saturated with charter boats
what do you mean "yeah but...". Miami has a lot of charter boats that are shit boats. There's always a market here for nice things so even if it's saturated it does not invalidate the demand
Lets Talk
ok you have my information I don't have yours
Is Miami too saturated?
there's different opinions on this. each boat is different and has it's market...
What was the first size boat you started out with when you first broke into this business?
I appreciate your time!
I started in the business as a yacht chef on large charter yachts in St. Maarten. Then I got my captain's license and started working as delivery crew sailing all around bringing boats to different places for owners. Then I moved to Florida to work for VanDutch and got into sales that way. After I left VanDutch I went full brokerage and haven't looked back since. This is all I know how to do lol and I've gotten pretty good at it!
@@MrYachts That's awesome man, great story! I've actually looked into being a yacht delivery captain. Try to make some good money, so I can then buy more expensive charter yachts. What's your take on someone starting with a jet-ski rental business? Do that while working on getting my captains license
I am a boat captain. I looking a job. Could you help me
yes you can send me your resume
@@MrYachts ok sir
You forgot the opportunity cost of the cash you put on the mortgage to buy the boat...currency is a useless measurment tool of assets value over time...
ok whatever
How can I contact you..??
you can contact me via email
Dade County
Miami-dade county
I used to be in the charter business it is the biggest waste of time and money number one when you bored people are not human being there are animals so they clog up your toilet on every charter if you buy a million dollar yacht you'll never get that money back I sold my boat and I bought a 900,000 airplane I chartered my airplane to the Bahamas my airplane generates on high season 150,000 a month Mike cost of operation a year is 600,000 i Fly for free I do have a free airplane
Sounds like you've got a great business model thanks for sharing! As far as yacht charters go this video demonstrates a similar model for yacht chartering, not limited to day chartering. As with any business you have to choose the right asset to rent out. I'm not sure what kind of yacht you put to work but it sounds like whatever you had was competing with a lot of similar yachts. I'd like to mention, and I will make a video about this, that there is a HUGE scam in Miami in the day charter market. It's actually disgusting how the so-called "brokers" who are actually grimy club promoters, hustle the owners which turns into a race to the bottom for price. 🚨🚨🚨 This ultimately stems from owners being too "smart" and "greedy" when they buy the yacht and choose to be independent instead of choosing a "central agent" or a broker to handle the marketing, pricing, and inquiries. Instead I here a lot of owners say "I'm not signing an exclusive with anybody" and then they end up having to deal with all of that on their own AND work on the flat rate model instead of the commission based model. I never understood this mentality and if you were one of those then yeah I understand why you had a bad experience because you had no idea what you were getting yourself into.
Loved the video, Thank you for providing valuable information
thank you for watching!
How is a 1993 Maiora 78 foot boat do in the market? Do i need to have a newer boat or if this boat is clean and looks new - is that ok?
if the boat is clean and measures up the comps then I don't see why not.
The biggest waste of time is buying a boat For charter you don't need a captain license to do a bear boat charter anybody can buy a boat and do charters people don't know how to operate a boat you will put a lot of hours on the engine the boat will depreciate people don't put money back into the boat to keep it well maintained slow season comes you have to give away the prices just to make money to pay the Marina every time you book a charter your toilet is getting clogged people don't care they throw papers they don't take off the shoes in 2 months your boat will look like s*** 99.9 of the boat owners don't have a logbook on board the day you sell the boat it's not worth nothing marinas hate charter boats here in Miami there are hardly marinas available you will have a lot of rap and hip hop guess they will destroy your boat will smell like weed less than 3 years your boat will be listed for sale😢😢
@user-tz9vj7lc9h, I understand where you’re coming from, but I think there are a few misconceptions here. First off, it’s illegal to be the captain of your own yacht under a bareboat agreement. You absolutely need to be licensed to run a yacht for hire, or it won’t be insured. Running a yacht is a lot more work than just driving it. A lot of owners don’t realize this until things start breaking, which is natural given the harsh marine environment. Unless you’re talking about a boat under 50 feet, your comment is pretty misleading. Also, the idea that “99.9 percent of boat owners don’t have a logbook” is simply not true. I’m a licensed captain with a 200-ton offshore license, and I’ve sailed across the Atlantic twice. Every yacht I’ve been on had a logbook. I get that you might have this perspective if you’re not a captain, and yeah, unlicensed and untrained people often have a tough time. Your experience is valid, but it doesn’t apply to everyone. And by the way, everything depreciates-homes, cars, planes, even money. So saying yachts depreciate isn’t a fair criticism. Let’s try to share accurate information and have a productive discussion.
I am interested in putting a charter boat in service in the Houston/Texas Gulf coast area. Do you know anything about that market?
sorry i do not.
good info! I have a rental property in Hilton Head & keep thinking how a yacht investment would do! thanks for the breakdown
Great always here to answer any questions 👍
How can we get a hold of you.
@@josedelvalle2694 my email address is in my profile (don't want to write it here for spam)
how can i get this spread sheet i would love to try and model my own plan but would like a good starting point
email me.
great video! what’s the wally looking boat at 5:00?
It’s a Maori
loved all the info about the business side of yachts - thanks for sharing!
Thank for watching!
@@MrYachts your website has an expired SSL cert by the way
@@THirschhorn ahhh thanks for the headsup, it’s my bday weekend so will get it fixed on Monday!
@@MrYachts happy birthday!
@@MrYachts Happy birthday!!
What's Basic certificate to start for hire
you mean for captain? I think that depends on what part of the world.
I just found your video and I'm very interested in your program you offer. Is there an email address I can use to contact you?
I'm thinking of purchasing a Sea Ray L650. So I would also like insight to that type of purchase.
I try to answer all the comments here and on social but sometimes I over look them or it takes me time. You can always go to the contact button here not he channel and email me. I don't like to put the email here because of spam but if you can't find it then reply to this comment and I'll get a message and we can link. (BTW I have a great Sea Ray for you in Miami Beach Marina under $500k 😱)
What’s you IG? Hw do I get in contact with you?
@mr.yachts or you can email me the link is in my BIO