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2022 Salt Marsh Heron 16
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54 Posts
Little slow on picking up on the sarcasm and humor today, huh? Though, I swear likes and followers does seem to be the first thing that comes to mind for young people trying to figure "how to get paid" today.
It’s an instant gratification society nowadays that’s forsure.
 

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A simple old Gheenoe
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217 Posts
This is the day of Only Fans and Patreon. Maybe get the girlfriend involved and make youtube videos. Just yesterday, I found a new channel with a young couple making $50K+ a year making videos of themselves swimming and fishing in the keys and Bahamas. One video was just hanging out out at the Islamorada sandbar and probably made them $5K. Only thing they needed was a busty girl, boat, pretty water, and a drone.

Different times for sure.
You know, MY girlfriend wasn't terribly enthusiastic when I mentioned youtube stardom. How hard can it be? She's young, attractive, and LIVES ON A BOAT! All jokes aside, I couldn't do it, if for no other reason than the creepers in the comments section of those videos. YMMV.
 

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Brandon, FL
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12,309 Posts
Instead of financing the asset, find ways to secure financing for yourself: 401K loans, HLOC, margin loans on bank accounts, or business loans. If you establish an LLC for the guide company, you can write off the payment as a business expense or depreciate the asset against income from the business. You can get a business loan cheaper than a boat loan.
This is insane. Never borrow against your retirement funds and borrowing money against your investments is not sound advice. You have to pay it back and pay interest which is not deductible and should you not pay it back it becomes an early withdraw and you are penalized every dollar you took out plus another 10%. Also if you don't repay it you could be out a real pile of money when you retire.

IF YOU buy a boat and then sell it to your business and then your business makes payments to you you have to declare these payments as ordinary income and you are taxed on it.

I only picked up that it appears you want to start guiding and start a business. You need to keep your business and personal funds separate or you invalidate the llc.

Save about 10 grand and keep clean accurate records and then go ask for a 20k BUSINESS loan and you will get it.
 

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2017 Maverick 18 HPXV
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66 Posts
I've compiled the recommendations in this thread and added some pros/cons. Disclaimer: This is not financial advice.

OptionProsCons
401K LoanEasy access to money. No taxes / penalty if repaid in full. Interest (is taxed) but is repaid to yourself.Loss of investment appreciation. Usually can borrow up to 50% of 401k which requires a 401K of 60,000 to finance 30k boat.
HLOCEasy, quick access to funds. Favorable interest rates.Typically will loan up to 80% of home value, meaning the home equity required will be more than 30k.
LightstreamLots of mentions in this thread. Easy.Probably 10%+ interest.
Loan (line of credit) against brokerage / bank accountEasy, quick access to funds. Favorable interest rates.Loan of 50 - 60% account value meaning account value must be 50-60k for 30k loan. Accounts funds are no longer accessible during life of loan. Can get margin called if investment account drops below tolerance level.
Personal loan from friend / familyFavorable rates and repayment terms.Difficult to separate business and family.
OnlyFans / PatreonLots of money to be made.You are competing against hot girls. The guy who mentions this said you need a boat in Islamorada, the boat problem is why we are here.
 

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2022 Salt Marsh Heron 16
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54 Posts
This is insane. Never borrow against your retirement funds and borrowing money against your investments is not sound advice. You have to pay it back and pay interest which is not deductible and should you not pay it back it becomes an early withdraw and you are penalized every dollar you took out plus another 10%. Also if you don't repay it you could be out a real pile of money when you retire.

IF YOU buy a boat and then sell it to your business and then your business makes payments to you you have to declare these payments as ordinary income and you are taxed on it.

I only picked up that it appears you want to start guiding and start a business. You need to keep your business and personal funds separate or you invalidate the llc.

Save about 10 grand and keep clean accurate records and then go ask for a 20k BUSINESS loan and you will get it.
this guy knows what he's talking about.
 

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A simple old Gheenoe
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217 Posts
I've compiled the recommendations in this thread and added some pros/cons. Disclaimer: This is not financial advice.

OptionProsCons
401K LoanEasy access to money. No taxes / penalty if repaid in full. Interest (is taxed) but is repaid to yourself.Loss of investment appreciation. Usually can borrow up to 50% of 401k which requires a 401K of 60,000 to finance 30k boat.
HLOCEasy, quick access to funds. Favorable interest rates.Typically will loan up to 80% of home value, meaning the home equity required will be more than 30k.
LightstreamLots of mentions in this thread. Easy.Probably 10%+ interest.
Loan (line of credit) against brokerage / bank accountEasy, quick access to funds. Favorable interest rates.Loan of 50 - 60% account value meaning account value must be 50-60k for 30k loan. Accounts funds are no longer accessible during life of loan. Can get margin called if investment account drops below tolerance level.
Personal loan from friend / familyFavorable rates and repayment terms.Difficult to separate business and family.
OnlyFans / PatreonLots of money to be made.You are competing against hot girls. The guy who mentions this said you need a boat in Islamorada, the boat problem is why we are here.
This might be the single most helpful thing I've ever seen on any forum in all of my internetting. Pay attention, OP!
 

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Lightstream back in September offered me a 6.5% for $30k. I am still shopping around before my build starts but that was better than what my local credit union offered me. I was impressed with how easy Lightstream was. I’m 30, own a home and have little debt so I was hoping to find a lower rate.

Side note, I didn’t realize with Lightstream the title would be clean. Makes utilizing their services even more appealing if/when I needed to sell the skiff.
 

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497 Posts
Only Fans probably has a large LGBT whatever following also, so drop your drawers and spread your cheeks, because getting a loan you can't afford is like taking one up the ass anyway. Buy a house if you got good credit, FHA you don't need that much down, then worry about a boat. If you have a job stay with it, if not and you really want to guide then get a job, save your money and buy a boat while you are living off of somebody else's money. Good Luck!
Another thought; don't go through a credit union, most all boat dealerships or even manufacturers have banks (credit unions don't always have the lowest rates) that will finance your boat. If you have a credit rating of 800+ you will definitely get financed at the best interest rate. 740 to 799 with an extensive work history, they will consider the lower rate, any less than that, don't do it because your interest rate will be too high.
 

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I Love microskiff.com!
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557 Posts
I'd suggest financing a boat less than $10k that will get you by running charters, but obviously won't be your top choice. That will help build your credit, you won't lose too much on depreciation, you can see if guiding is right for you, and you can feel better about stepping up to a better skiff in a year or so. I had no trouble borrowing from my credit union at your age, but I started with a $2000 boat and worked my way up to a $20k boat.
 

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Beavertail Vengence
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Minimal debt at all times, especially for something you want, not something you need.

my current skiff was mostly paid for by buying a modest skiff at a real good price. I then cleaned it up, caught it up on its mechanicals and sold it for more than I paid for it. I then repeated the process on a second skiff. The sales of those purchase and sales of those two skiffs covered half the cost of my current skiff. The other half came from saving all OT from my day job and selling hand crafts from my shop.

plots of used boats, diamonds in the rough to find and make serviceable. Avoid debt and as suggested above build your credit up in smaller amounts

you can make it happen
 

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I Love microskiff.com!
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5 Posts
I recommend not financing unless you have enough income to do so. Purchase a more modest skiff, do the work on it yourself and upgrade as needed. With the way the boat market is currently, you could flip it and turn a profit while you begin as a guide. Hell, I know a guide who uses a Gheenoe LT25 and he puts guys on fish daily. Look into a Panga. Depends on where you are planning to guide but you could probably pick up a decent tiller skiff pretty inexpensive if you look around. Like a few have said, many clients don’t care as long as the lines are tight.
 

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So my first guide boat, I walked into a local dealer. Told him I was the new kid on the block, I love his skiffs and would do anything to own one, except pay 30k in 1990. We sat down and had a conversation about my business plan, which I had, my clients which I also had and we worked out a deal which we both benefited from. I got a brand new bare bones skiff and I purchased one of his guide motors that had 100 hours on it. The motor came with a warranty, the boat was cheap and I was out the door for 15k. I sold that same skiff 20 years later for 10500. I also worked a deal with the bank no prepayment penalties and bam I owned that boat in a year, or should I say after a typical april of fishing 3 tarpon trips a day.
 

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I Love microskiff.com!
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I will also say how easy LightStream was to work with. I re powered in 2019. Put 5k of my own money up and got 10k through LightStream. 4.29% for 3 years. Paid it off in about a year and a half. I also loved the fact that they didn’t hold the title. I had the money in my account in about 24 hours from the time I applied. I would definitely use their service again if needed.
 

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2022 Salt Marsh Heron 16
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54 Posts
Hello,

I am a 25 year old with good credit, but not much credit. I love saltwater fly fishing and I have been searching for the perfect boat to start running charters in Lowcountry, South Carolina. Recently I tried financing a ~$30,000 boat and was turned down by two different credit unions. It has definitely taken the wind out of my sails or in our world, the push pole out of my skiff. One credit union said that I don't have enough credit and the other said the boat company that I chose does not show up on their pricing lists. I am very adamant about making this happen.

Does anyone have suggestions or work arounds for my situation?
Feel free to drop some life advice and knowledge on here!

Thanks,
Cole
I just wanted to poke back in and share my personal experience with my credit union -

They tried to give me a hard time because the boat builder was not on their list also. After some back and forth, I was able to get them to give me the loan as a purchase from a private seller (like you were buying a used boat from a person). I provided them current price sheets for my boat, and maintained contact with the credit union to ensure there would be no issues.

I do have decent credit, but am not financing the entire purchase. My advice would be to take out a manageable loan and wait until you have enough cash to cover the rest of the cost of the boat above that manageable loan.
 
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