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Why let banks have all the fun?

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Old 01-23-2012, 12:18 AM
  #21
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if i were going to even consider owner financing a boat...or anything substantial.....i would consider the options in financing and insurance. if the boat is leased/rent to own, or some form there of...it can be insured by the finance co. (the seller) and the fee for said insurance could be figured into the payment being mad eby the buyer. a lease also typically involves a healthy down payment (not that a loan doesnt, especially these days with most banks tightening the perverbial purse strings)

imo it could be done. but of course, as in all things involving money and or property changing hands, one would need to consult a reputable lawyer, check state legislature, and do his homework on the rights of those who seek to lease/finance physical property and those who wish to purchase/lease said property.
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Old 01-23-2012, 02:27 AM
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I cannot believe anybody would even consider self financing anybody else for a boat. If it was a smart thing to do, then boat dealerships would do it.
Too much risk with little to no reward. The only people that would be interested are those that cannot get a loan through a bank. Banks spread their risk.
Also, you need to own the boat outright to do this legally.
There are companies that can arrange a lease from one individual to another.
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Old 01-23-2012, 09:11 AM
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I agree, way too much risk. When a bank gets one boat back with no engines, drives, and the interior is trashed it hurts.....it hurts but they have income from other sources. However for this to happen to a private party, it just might bankrupt you, and the buyer walks away with no marks on their credit report.

Now, if you are like me there are only a few people in your life that you would let BORROW your boat....think about that. A friend asks to use your boat for the day. Tow it, launch it, drive it, whatever. Think of the thoughts that go through your head! Now, imagine a stranger asking to borrow your boat!!! Sorry, it is more than insurance. Isurance rarely covers neglect!

Banks are tighter, no question. But if you have good creadit and will jump through their hoops boats loans are still available.

My CU boat loan rules-

15 years old or newer
max 80% of NADA value financing
720 Credit score
35% debt to income ratio with boat loan
Notorized engines and drives serial # on loan
Trailer must be part of loan for performance boats
They pick the shortest term they think you can handle, they do not allow you to finance out 15 years for $200 a month

Banks made these rules based on the loses they took, make no mistake the banks lost big time just a few years ago. My CU told me if they had set these finanacing rules 10 years ago, 99% of the boats they repoed would have never had loans!
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Old 01-23-2012, 10:03 AM
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Quote:
Originally Posted by FIVEPTOHH View Post
So do you use them just for loans or for general banking as well..?
Loans, mortgage, general banking, misc discounts etc... Mine is insured as well. As of last week they were still doing boat loans 100% of nada 15yrs.
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Old 01-23-2012, 11:00 AM
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Quote:
Originally Posted by FIVEPTOHH View Post
I know a great repo company, OK selfish plug!!!!!
I know a great repo company myself...I take it you are in the business also..?[/QUOTE]

Last 25+ years, Sold my company 3 years ago, but they messed it up. So much for retirement!
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Old 01-23-2012, 10:10 PM
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Originally Posted by bajaholic View Post
I know a great repo company myself...I take it you are in the business also..?
Last 25+ years, Sold my company 3 years ago, but they messed it up. So much for retirement![/QUOTE]

Cool I just purchased my company 2 years ago I own a American Lenders Service Co franchise
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Old 01-23-2012, 10:46 PM
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Money is also safe in a CU whereas it is not in a Bank. ie, If an arrest is made on a person with suspicion of money in their account tied to a crime that money can be siezed or frozen in a Bank but not in a CU. Even with a Federal conviction and restitution order, money in a CU can not be touched in connection to the criminal.

I learned the hard way but now I only deal with CU.
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Old 01-24-2012, 08:14 AM
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Let's not confuse the issue. While a seller agreeing to financing the sale of his/her boat is an act of desperation, and the buyer also assumes additional risks, the idea of a marketplace for these kinds of transactions could be a money maker.
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Old 01-24-2012, 11:32 AM
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Quote:
Originally Posted by Secret Formula View Post
and the buyer also assumes additional risks, the idea of a marketplace for these kinds of transactions could be a money maker.
I'd have to disagree with both those statements.
I see no additional risk on the buyers end of the transaction, the seller is taking quite a gamble.
And, I don't really see a market potential unless the seller sold his rights to the note to a 3rd party for less than the value of the principle. Then the 3 party will reap a return on both the interest and the additional monies from buying a promissory note at less than face value. It would be a great capital gain over time but comes with considerable risk.

Just my .02

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Old 01-25-2012, 12:52 AM
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A nice advantage to owner financing is not having to jump through the red tape and hoops that most banks put you through as a buyer. It also helps the buyer if on paper it appears they can not afford the boat but in reality they can. People that are in a cash business can really appreciate that. It helps the seller because it is a quicker easier way to sell and the seller can set the interest rate and the seller can and should be named as additionally insured on the insurance policy and also have it set up so that if the buyer cancels the insurance you have to notify the seller just like the banks do.
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