Experts in Crewed Catamaran Charter Business
Atlantic Cruising Yachts brings together a team of industry experts to assist our clients with creating a successful all-inclusive, crewed yacht charter business. We provide all aspects of service required for successful execution and operations.
- Charter Yacht Solutions, Ltd., based in St. Thomas USVI, one of the most highly respected crewed yacht broker clearing houses, provides instant access to the worldwide network of independent charter brokers.
- Virgin Islands Yacht Charters, our Waypoints™ affiliate in the Virgin Islands, provides yacht & crew management services to ensure smooth, cost effective operations. They offer professional, experienced crew with a compensation structure aligned with the owner’s revenue goals.
- Susan Restauri, our Waypoints™ manager, is a veteran crewed yacht charter broker, who supports the program with marketing and booking expertise.
Income and Tax Advantages through Business Yacht Ownership®
The combination of tax advantages, operating income, and special low-interest collateralized financing programs, provide opportunities to not only offset the costs of ownership, but also to create positive net worth through yacht ownership. Archetype Advisors, LLC, registered Certified Financial Planners and tax strategists, can show you how this approach might apply to your circumstances. Learn more about tax advantages and special financing programs for crewed yacht charters through Archetype Advisors.
Yachts Available for this Program
The Crewed Yacht Business Model
- Crewed yachts have a full-time live-aboard crew (Captain and 1st Mate/Cook), who manage and run the Yacht and are paid on a by-the-charter basis. Generally, the charter prices quoted are all inclusive including the crew, provisioning and all miscellaneous charges.
- The crewed boat, because it has a full-time captain, is generally not based in a single location and so may travel to wherever the charterer wants to cruise. The crewed boat may follow the sun seasonally. For instance, it’s typical for a boat to be based in the Caribbean but seasonally relocate to New England, the Mediterranean, or below the hurricane belt to the Grenadines for the summer season.
- For crewed yachts, the Clearing House is the primary point of contact for bookings through independent charter brokers. Some of their services include:
- Maintaining the booking schedule;
- Arranging international handling of funds. Additionally, might host bank accounts and general communications between the owner and captain/crew as the boat moves around;
- Sets up marketing and promotions, and listings on various crewed charter web sites;
- Hosts the boat in numerous special crewed charter boat shows. These are generally attended by certified crewed charter brokers and account for a significant percentage of charters booked–often more than 50%.
- Financing. ACY has marine financing sources available for crewed yacht businesses. Alternatively, we offer collateralized financing through BNY Mellon, if you have an equity portfolio in excess of 1.5 times the value of the boat.
- Live Webinars. Attend our Business Yacht Ownership Webinar, hosted by William Lahr, CFP® of Archetype Advisors, to learn about a charter business in general and how the tax advantages work.
Ipanema 58 Cash Flow Example
Sample based on certain assumptions of revenue, expenses, tax and financing strategies which can vary widely based on the individual. Contact us for details. Please consult with your tax and legal advisers before making any purchase decisions.
|IPANEMA 58 CASH FLOW ESTIMATES|
|Year 1||Year 2||Year 3||Year 4||Year 5||Total|
|Estimated Charter Weeks||16||16||16||16||16||80|
|Weekly Charter Rate||30,000||30,000||30,000||30,000||30,000||30,000|
|Total Charter Revenue||480,000||480,000||480,000||480,000||480,000||2,400,000|
|Charter Related Costs|
|Broker Commissions (15% of charter fee)||72,000||72,000||72,000||72,000||72,000||360,000|
|Clearing House (1% of charter fee)||4,800||4,800||4,800||4,800||4,800||24,000|
|Crew (Full time but paid per charter) $5,500/week||88,000||88,000||88,000||88,000||88,000||440,000|
|Provisions ($1,500 per week)||24,000||24,000||24,000||24,000||24,000||120,000|
|Cruising Permits ($100/week)||1,600||1,600||1,600||1,600||1,600||8,000|
|Total Charter Related Costs||198,400||198,400||198,400||198,400||198,400||992,000|
|Net Charter Revenue
(before Management Fee)
|Management Fee (15% of Net Revenue)||42,240||42,240||42,240||42,240||42,240||211,200|
|Net Charter Revenue||239,360||239,360||239,360||239,360||239,360||1,196,800|
|Annual Operating Expenses|
| Maintenance, Parts, Repairs
(Estimated at 12% of Revenue)
|Annual Haul Out||10,000||10,000||10,000||10,000||10,000||50,000|
|Total Annual Operating Expenses||169,942||169,942||169,942||169,942||169,942||849,712|
|Annual Pre-Tax Cash Flow||69,418||69,418||69,418||69,418||69,418||347,088|
|Tax Savings (see details below)||679,157||-27,767||-27,767||-27,767||-27,767||568,089|
|Annual After-Tax Cash Flow||748,575||41,651||41,651||41,651||41,651||915,177|
|Average Monthly After-Tax Cash Flow||62,381||3,471||3,471||3,471||3,471||16,948|