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A Private Yacht and Luxury Vacation Home in One

LEAVE THE WORRIES AT HOME

With NETYACHTS®, you eliminate the financial concerns of traditional yacht ownership.

A World of Elite Yachting

2018 Prestige 520

$426,827

Boat Show Special

Prestige 520 vimeo play

Spend Your Life Living

Invest In Yourself Today

Business Fractional Ownership vs Personal Sole Ownership

Jones purchases a new Prestige 520 for personal use the “old way” with sole ownership. The boat is docked all year at a costly Seattle marina. Jones uses the boat during the summer months on occasional weekends and short trips with friends and family. Jones is responsible for the annual costs and financial risks of an under-utilized depreciating asset.

Smith purchases a NETYACHTS® 33% ownership in a new Prestige 520 for a fraction of the up-front and annual costs. Smith may receive a long list of financial and tax advantages. Smith appreciates worry-free yacht ownership with concierge services. Smith has access to 16 weeks a year for personal yachting or charter income. Smith enjoys year-round exclusive vacations in Roche Harbor, Bainbridge Island, Lake Washington, Vancouver Island, Newport Beach, La Jolla, Santa Barbara, Malibu, Catalina Island and leading West-Coast destinations. Smith also travels the world on yacht exchange vacations in the Bahamas, Abaco Islands, Great Exuma, Palm Beach, Key West, Ft. Lauderdale, Cannes, Monaco, Nice, St. Tropez, Portofino, the French & Italian Riviera and elite international ports.

UP-FRONT INVESTMENT* SOLE OWNERSHIP NETYACHTS® FRACTIONAL
Purchase Price $1,280,482 $426,827
WA Sales Tax (10%) $128,048 $0
Depreciation Tax Savings (37%) $0 ($157,926)
TOTAL $1,408,530 $268,901
ANNUAL COST* SOLE OWNERSHIP NETYACHTS® FRACTIONAL
Moorage, Repairs & Insurance ($59,900) ($19,967)
Annual Depreciation (8%) ($112,682) $0
Interest Expense (5%) ($56,981) $0
Charter & Sales Income $0 $36,950
TOTAL ($229,564) $16,983
DAILY COST (60 DAYS/YEAR) $3,826 $333

Own a new $1,408,530 PRESTIGE 520 yacht for only $268,901

*Individuals should review this information with their personal accountant and attorney. Charter yachts may qualify for business tax advantages. Annual depreciation and estimated expenses are for illustrative purposes only and may vary. Charter & sales income may vary based on results. The 5% interest expense is estimated on the net difference in upfront investments between sole ownership and fractional ownership. Daily yachting cost is calculated by dividing estimated annual costs (excluding income) by 60 days usage per year. The terms and conditions are subject to change at any time prior to the final yacht acquisition agreement.

Frequently Asked Questions

What are the advantages of business fractional ownership?

Here are the three most common ways to own a yacht: 1) Personal asset 2) Passive investment 3) Active business. Leading tax advisors, CPAs and attorneys may assist in building a yacht business plan in which a yacht owner may qualify as a “material participant” in an active business, which may determine the extent to which a yacht owner is allowed to deduct losses on their personal tax returns.

Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualified equipment (such as yachts) from gross income. In addition to potential tax advantages, business fractional ownership may provide cash flow, income and profits from charter income and yacht sales commissions. Individual yacht owners may elect to own and operate their fractional yacht ownership as a personal asset, passive investment or active business.

How is the yacht ownership structured?

A limited liability company (Yacht LLC) composed of three yacht owners may acquire the new yacht as an actively managed yacht business. Each fractional yacht owner owns an equal 33.3% share of the Yacht LLC and may receive a prorated 33.3% share of the net profit and loss from the yacht business activities.

What financing options are available?

Key Bank Private Banking provides three sources of financing: 1) Unsecured line of credit (LOC) for $150k 2) Home equity line of credit (HELOC) up to 90% of the appraised value of your home 3) Investment-based credit line (ICL). In addition, most investment firms provide ICLs, which are a tax–advantaged low–interest–rate source of financing for the purchase of a yacht.

What is the yacht exit-strategy?

The new yacht is acquired with the intention of selling the yacht in five years. Individual yacht owners are welcome to resell their fractional yacht ownership at any time. All owners may agree to sell the entire yacht early or extend the yacht ownership beyond five years. Yacht owners may receive a first right of refusal to purchase the entire yacht after five years. The NETYACHTS® business model helps make it more cost-effective for yacht owners to trade up to a Prestige 680 or Prestige 750.

What unique services does the yacht services company provide?

The yacht services company assists with the day-to-day operations of the yacht, including mechanical inspections, interior and exterior cleaning, general maintenance, bookkeeping and on-demand licensed captains. It also provide concierge services á la carte, such as trip planning, pre-arrival grocery shopping, and the delivery of yacht owner bedding, linens, beach toys, photos, clothing and personal effects. The yacht services company will provide monthly income and expense reports.

What are the yachting costs?

Yacht owners may not be required to pay monthly expenses.

The Yacht LLC pays for all insurance, maintenance, moorage, management, transportation, service and accounting fees from charter income. The Yacht LLC also selects a yacht services company that collects $199/month per yacht owner from charter income and a 19% commission of any third-party charter income. The yacht services company does not collect commissions for the yacht owner “bareboat” charters.

The yacht is available for independent charters at $1,499/day, which includes a licensed captain, cleaning fees and charter commissions. Yacht owners may “bareboat” charter their yacht at a preferred rate of $499/day, which includes cleaning, inspection and moorage fees. Weekly charters include up to 15 hours of free engine usage, with extra engine hours available at $99/hour. (Since yacht owners may receive 33.3% of the yacht net profits, the adjusted cost of personal charters may be as low as $333/day.)

For example, if a yacht owner uses the yacht 30 days or 60 days a year, the charter cost would be $14,970 or $29,940. Yacht owners have unlimited access to the yacht, subject only to reservation guidelines. Yacht owners do not have a minimum required usage, allowing individual owners to manage their personal cash flow. The Yacht LLC potential net profits may offset all or a significant portion of an owner’s yacht charter costs.

The terms and conditions are subject to change at any time prior to the final yacht acquisition agreement. Individuals should review this information with their personal accountant and attorney.

NETYACHTS® HAS CHANGED THE WAY
YACHT OWNERS VACATION FOREVER

How are yacht vacations reserved by yacht owners?

The yacht reservation calendar is divided into three seasons: winter season (December, January, February, March), summer season (June, July, August, September) and midseason (April, May, October, November). Yacht owners receive three advanced reservation weeks per season (nine total advanced reservation weeks). The three yacht owners are assigned a priority ranking of A, B, and C. First, Yacht owner “A” selects two weeks. Then, owner “B” selects two weeks, followed by owner “C” selecting two weeks. The priority order is reversed so that owner “C” selects fourth, “B” fifth, and “A” sixth. It alternates until all twenty-seven weeks are reserved. The follow year the order is changed to B, C, A. The third year it is C, A, B.

Yacht owners also have access to unlimited short–notice reservations within 60 days of the arrival date. Short–notice reservations are also available using the same A, B, C priority system. Yacht owners are limited to 2 short-notice reservations at any given time to provide flexibility to all yacht owners. All advanced reservations are Sunday to Sunday. Short-notice reservations during the summer season are Sunday to Sunday. During the winter season and midseason, reservations may be four to seven days with checkout by Sunday at noon. Sunday check-ins are at 4 pm to allow for cleaning, maintenance and inspections. Midweek check-ins can be any time between 10 am – 5 pm daily. Yacht owners may reschedule advanced reservations up to 30 days prior to the arrival date and short-notice reservations up to 15 days prior to the arrival date.

Yacht owners and spouses are the designated yacht captains for insurance purposes. The yacht owner may invite friends, family, clients and guests on the yacht while onboard as captain. For a yacht owner’s unaccompanied guests, a licensed captain provided by the yacht service company must be on board at the guest’s (or owner’s) expense.

How are the yacht destinations determined?

The West Coast yachts will “follow the sun,” with yachting in the Pacific Northwest in the summer and Southern California in the winter. The East Coast yachts will enjoy yachting in the Bahamas in the winter, spring and summer and Ft. Lauderdale in the fall. Prestige Yachts are manufactured in France and first delivered to Ft. Lauderdale. This creates an opportunity for new West Coast yachts to be pre-delivered and temporarily moored in the French & Italian Riviera or the Bahamas & Florida for a short yachting season based on yacht owner requests.

How does the yacht exchange program work?

Yacht owners are welcome to exchange advanced and short-notice reservations with yacht owners in any destination. The yacht concierge will coordinate all yacht exchanges and assist with on-demand licensed captains to guide yacht owners in new destinations. The yacht owner simply pays the preferred “bareboat” charter rate of $499/night for the exchanged yacht reservation and any applicable captain fees. For example, if a yacht owner in Seattle exchanges for a week in the Bahamas, each owner will be required to hire a licensed captain for the first two days at the new destination.

How is NETYACHTS® compensated?

NETYACHTS® earns a 3.9% closing and management fee based on the yacht sales price that is paid by the yacht owners. NETYACHTS® also receives an industry–standard yacht brokerage commission paid by the Prestige Yachts dealer. NETYACHTS® values our yacht owners and strives to create a unique yachting experience at competitive prices. Our goal is to create a clear, transparent and fair purchase process for all yacht owners. NETYACHTS® offers a pre-negotiated discounted price from the Prestige Yachts dealer that is available exclusively as a “no-dicker sticker” price to potential yacht owners.

What is the NETYACHTS® Founder’s luxury travel experience?

Steven Marshall, NETYACHTS® founder & CEO, has been a Lake Washington waterfront homeowner (Mercer Island) since 2001. Mr. Marshall is the partner and founding investor of Cobalt Mortgage, which grew to the #1 mortgage lender in Washington with 1,300 employees and $4 billion a year of mortgage closings.

Mr. Marshall was the co-founder of Crescendo Residences, the first private equity real estate fund that owned and operated an international portfolio of multimillion–dollar luxury vacation homes in Cabo, the Caribbean, Lake Tahoe, Sun Valley, Hawaii, Manhattan, Punta Mita, Scottsdale and other locations. Accredited investors paid $350,000 to own and enjoy the $20 million real estate portfolio. Crescendo Residences sold to Abercrombie & Kent, the world’s foremost luxury travel company, offering adventures and luxury vacations in the world’s greatest destinations since 1962. Mr. Marshall has personally owned, developed and actively managed more than $10 million of luxury vacation homes near the Four Seasons Punta Mita, St. Regis Punta Mita and Esperanza Resort in Cabo. The luxury homes provide an unparalleled luxury travel experience, renting for up to $4,000/night to billionaires, celebrities, the president of Mexico and vacationing families.

The terms and conditions are subject to change at any time prior to the final yacht acquisition agreement. Individuals should review this information with their personal accountant and attorney.

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