Current Yacht a Problem?
YES is Your Exit Strategy
What is the answer for current yacht owners who can’t sell their yachts?
Or can’t afford to sell or trade them at the current prices being offered?
Are there any ways to help current yacht owners recover the investment from their existing yacht situations?
The problem of not being able to quickly and profitably dispose of your current yacht is no longer necessarily a valid reason to postpone pursuing your dream of a newer or larger yacht.
Over the last 25 years as part of our unique economic consulting services, we have developed proprietary strategies to help domestic and international commercial as well as investment banks recover and preserve their capital by solving their problem, depreciated, and distressed assets.
We can do the same for yacht owners.
Now many of these same capital / wealth recovery and preservation strategies can be applied for the benefit of yacht owners:
seeking to recoup their investment in their current yachts,
profitably dispose of their current yachts in order to buy a newer or larger yacht, or
structure their next yacht purchase so as to be net worth neutral.
Any asset – including a yacht - can become a problem if it loses value and diminishes your wealth.
Stocks and bonds,
Even private businesses.
We especially empathize with anyone trying to sell or trade a yacht when current market values leave many of them "under water" – so to speak. It was recently estimated there were more than 1,000,000 yachts officially listed for sale and probably many more not officially listed.
Many yacht owners simply can't afford to sell at market values as their loan payoffs are higher than the offers or they simply refuse to take such large losses on the sale. Every day they keep the yacht further eats into their net worth costing more in depreciation, maintenance, and lost opportunity costs. One recent sale of a $2.5 million yacht required 4 years on the market before finally closing.
It seems few traditional advisors are of much help. Many are much better at helping their clients make money than they are at helping them keep it. Too many simply accept financial losses from depreciating problem assets – such as yachts- as inevitable – or blame it on unforeseen events such as the “economy”. Our background as consulting managerial economist does not allow excuses for poor financial performance.
However in fairness to most advisors, clients often ignore their advice or expect solutions beyond the advisor’s area of expertise. Nevertheless, there is no doubt that some advisors are just simply too transaction oriented - concerned about their fees, “assets under management”, and their compensation – rather than look for ways to save their clients money. It’s common to expend substantial effort and resources to make more money – only to needlessly pay more taxes and invest in depreciating assets or assets subject to market whims.
We believe that’s like trying to fill a bucket with holes in it.
What value is there in earning another $500,000 in the stock market if you lose $500,000 on the sale of your boat, horse, real estate, or other asset, or overpay your taxes?
That’s why we created YES Yacht Executive Solutions.
To maximize the wealth of yacht owners, it seems prudent to first plug the holes in your net worth bucket by minimizing any possible negative effect yacht ownership may have to one’s net worth. It’s not just about how much you earn, but how much you keep, and can pass along.
Thus we strive to assure our clients don’t needlessly lose money on their yachts - when we have profitable alternative strategies available.
Obviously it is easier and more desirable to properly structure new purchases to be net worth neutral, but we also have strategies that can help recover the investment of previous yacht purchases. Concern about the value of your current yacht is no longer a valid reason to postpone pursuing your dream of a newer or larger yacht.
That if your current advisors knew, surely they'd have told you already- wouldn't they?