[Rhodes22-list] Florida Syndicate -- Offlist Reply

[William E. Wickman]

Bill E.,
Please put me on your list as a possibly interested party.  It would be
great to have a boat in Florida sitting there waiting to go,  Do you think
it would be ready by the end of May when I plan to go down there?

I do have one concern, however.  How will the ongoing maintenance be
handled?  Even a rock solid boat like the Rhodes needs someone to look
after it.  It seems to me that someone, or some company, would need to look
after the boat on a day to day basis to make sure it is cruise ready and
maintained in good working order.  I, as would other members of the
syndicate, would hate to get down there to find a boat in disrepair or in
need of a couple days of clean-up before it could be taken out.  Also, with
this being a project boat, I am sure that quite a bit of refurbishing (ie.
cost) will be required as well as adding quite a bit of equipment necessary
for coastal cruising.

Bill Wickman






                                                                           
             Bill Effros                                                   
             <bill at effros.com>                                             
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             12/18/2005 04:18                                      Subject 
             PM                        [Rhodes22-list] Florida Syndicate   
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In keeping with recent On-List/Off-list discussions, someone joined the
Florida Boat Rental Syndicate off-list and asked for a little more
clarification on how I thought the cash flow would work.  Following is
my reply with all direct references to the other party removed:

Thanks,

The weekly rental fee only has to cover storage and insurance.  The boat
will be worth more than the salvage cost plus the fix-up cost.
Syndicate members should have no problem selling their shares, either
back to the syndicate, or on the open market any time they want out of
the deal.  If everyone wants out of the deal, we sell the boat and split
the profit.

It's supposed to be a win/win.  Everyone should come out better than whole.

Let's say $250 buys you 1 share in the syndicate.  You can trade in your
share for a week on the boat, or put up the rental fee and stay in the
syndicate.  Right now Brad would have 5 shares in the syndicate, I would
have 2, you would have one, and Bud would have one for doing the initial
legwork.

Anyone else is welcome to come in to provide the initial capital
required to fix up the boat.  I figure it should cost no more than $200
a month in current dollars to store the boat.  If insurance runs $600 a
year, we have a $3000 a year nut.  12 weeks at $250 a week.

Since it appears I will find myself in the area shortly, I can do the
initial set-up for the syndicate, and make sure that the boat is fixable
to rentable condition with the amount of money we will have available.
Some people may want to join the syndicate by putting in labor,
off-season storage, or towing.

If it can be made to work, I am willing to put in my time to make it
happen.  At this distance, it looks to me to be a good deal for
everyone, and I would put in more capital if required, also.  If there
doesn't seem to be enough interest to crack the nut, year-in and
year-out, I wouldn't do it.  If it starts to look like the fix-up cost
is too great, we could part out this boat, and buy another.  But first
we have to know if there would be ongoing interest in having a boat like
this available in a place like this.

Thanks for jumping in.  If enough people jump in, we'll do it.

Bill Effros


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