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Transfer title to LLC and refinance the boat....?

Discussion in 'General Yachting Discussion' started by Norseman, Jul 20, 2016.

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  1. olderboater, Jul 24, 2016
    #41
    olderboater

    olderboater Senior Member

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    Not quite as quick and easy though as you have to get the mortgage released and that's the area in which the documentation service is well behind. I'd tell you how far behind but their site appears to be down.
  2. Norseman, Jul 24, 2016
    #42
    Norseman

    Norseman Senior Member

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    Aye, bad news, no hug for you..
    You talking 2 days, 2 weeks or 2 months.?

    Question for you Mr. OB: You being a numbers man and all:
    My boat mortgage is 4.11 % and if I pay it off it should equal a 4.11% investment for the next 20 years.
    On the other hand, how much do I loose in tax deductions by not having a Mortgage? (Retired now, not much income except when I sell my body for an hour or so to female movie stars in need:))

    Principal on the boat Mortgage $125k.
  3. olderboater, Jul 24, 2016
    #43
    olderboater

    olderboater Senior Member

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    You lose 30-40% of the interest....but it's really irrelevant as you'd have taxes to pay on the interest that money was earning you....taxes get you either way. Right now you're paying taxes on the income from the money, getting a deduction on the interest. If you pay it off, you'll do neither.

    Last I knew...it was about 9 months. Right now can't access their site.
  4. Norseman, Jul 24, 2016
    #44
    Norseman

    Norseman Senior Member

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    9 months, Ouch....?

    Does not sound right, I had boats documented in the past in less than 6 weeks..

    You of course have more boats on your LLCs than I have ever owned so you probably know what you are talking about.
  5. olderboater, Jul 24, 2016
    #45
    olderboater

    olderboater Senior Member

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    Documentation is relatively quick now, but the last numbers I saw said they were still way behind on mortgages. They may not even have your mortgage recorded yet. Mortgages, for some reason, is where they were the furthest behind. When they get their site back up, I'll post the real number.
  6. Norseman, Jul 24, 2016
    #46
    Norseman

    Norseman Senior Member

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    Thx, beer on me.
  7. RER, Jul 25, 2016
    #47
    RER

    RER Senior Member

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    Paid off is paid off ...whether the USCG has gotten around to recording it or not. The lender's interest in what you're doing with the boat ends when the loan has been satisfied.

    You will then 'sell' the boat to your new entity using a notarized USCG Bill of Sale, and filing the forms, and paying the fees. Or for a few hundred more dollars you can use a marine documentation service which I recommend.

    Yes, it will take the USCG some time to process your new docs. Not nine months, but it will probably be at least a few months. In the meantime, once you have filed, you can move forward using copies of the paperwork from the 'sale' pending receipt of the new docs from the USCG. Additionally, if you use a service they will issue you a Running Letter.
  8. olderboater, Jul 25, 2016
    #48
    olderboater

    olderboater Senior Member

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    No one was saying he can't use the boat. Just it will take time to get the documentation into the LLC since he has to get the mortgage released and the ownership transferred. As to the nine months, not that long ago it was more than a year for mortgage transactions. If their site comes back up tomorrow, we'll see what the current backlog is.

    I also recommend him using a documentation service.
  9. Norseman, Jul 25, 2016
    #49
    Norseman

    Norseman Senior Member

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    Thx for the info Gentlemen.
    As soon as the market is up a bit more I will sell some stuff and pay off the boat.
  10. olderboater, Jul 25, 2016
    #50
    olderboater

    olderboater Senior Member

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    Just accessed the documentation web site. The current date being processed on satisfaction of liens is 11/13/15. So taking 8 1/2 months vs. my 9 month estimate.

    Case Processing Dates as of 07/22/16

    • Fish Initial Application: 07/12/16
    • Fish Exchange, Reinstatement, and Replacement of COD: 07/11/16
    • Commercial Initial Application: 07/13/16
    • Commercial Exchange, Reinstatement, and Replacement of COD: 07/11/16
    • Recreational Initial Application: 05/27/16
    • Recreational Exchange, Reinstatement, and Replacement of COD: 05/27/16
    • Mortgage: 11/11/15
    • Notices of Claim of Lien: 12/30/15
    • Satisfactions: 11/13/15
    • Deletion with fees: 07/19/16
    • Certificates of Ownership: 07/22/16
    • Research (Including Complex): 07/20/16
    • Abstract Processing (Including Abstract Pending Review): 07/19/16
  11. Norseman, Jul 25, 2016
    #51
    Norseman

    Norseman Senior Member

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    Wow, you weren't kidding...
  12. olderboater, Jul 25, 2016
    #52
    olderboater

    olderboater Senior Member

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    They've really done a good job in the last year of catching everything else up, but that's their one area that still needs a lot of work.
  13. Norseman, Aug 8, 2016
    #53
    Norseman

    Norseman Senior Member

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    Finally got a quote from my insurance company for commercial insurance add-on: $200-300 more per year.
    Sounds reasonable, now I need to find a tax attorney in Fort Lauderdale to help me put all the pieces together.
    Any recommendations?
  14. SeaEric, Aug 10, 2016
    #54
    SeaEric

    SeaEric YF Historian

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    Here's a work around on the recording time of a satisfaction: Wait a few weeks after submitting the satisfaction and then order an abstract (cost $25.) An abstract order forces immediate recording of all docs waiting in the pipeline.

    If you email the satisfaction you will receive a return email confirmation of receipt by the NVDC so you know they got it.
  15. Norseman, Aug 10, 2016
    #55
    Norseman

    Norseman Senior Member

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    Good idea thx.
  16. RER, Aug 10, 2016
    #56
    RER

    RER Senior Member

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    That's gold if it works. Also, I just had something similar come up and a Running Letter is good to go for pleasure use but commercial/charter use may require a current original issued USCG Document on board.
  17. Norseman, Aug 24, 2016
    #57
    Norseman

    Norseman Senior Member

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    Work is going slow starting my charter company:
    Finally got around to request commercial insurance from my broker, she qouted $2-300 additional per year and requested a copy of my license.
    Had to come up with a name, figured DBA "Viking Charthers"was as good as any.
    Did a quick Google search, no such operation in Fort Lauderdale.
    Filed for a business license with the City and bought a domain to build a webpage, Vikingcharters.us.
    THEN I had a chat with my lawyer.
    Wrong sequence, should have talked to the attorney first:(
    He asked me to check a State of Florida page called sunbiz and sure enough, company in Tampa is already using the name.
    Scramble to call the web people to change name. They were good, no extra charge. ($260 for 5 years)
    Then the zoning office from the City of Fort Lauderdale called to say my application was denied: Can't pick up customers at my own dock.
    Back to the drawing board.
    New name "Odin Charthers" (odincharthers.com)
    Still have to build a webpage, steep learning curve ahead, it should keep me out of the bars..
    Been searching around to see if there is a rule about picking up paying passengers from public docks. Found nothing so far. Need to fill out new business tax application with the new name and a "Place of Business".
    Home office in my house ok, but not for operations.
    Perhaps I should ask some of the waterfront bars/restaurants if they mind me
    Pickin up pax at their docks? Could be added revenue for them, dinner and drinks after the cruise..
    Some operator called the Duck Tours use public boat ramps I believe, not sure if they have special permits.
    Any ideas how to put down an address for place of operation?
    (Don't plan to rent a marina slip for $2000 per month just to board a few people twice a month, max 2 minutes each event.)
  18. AMG, Aug 24, 2016
    #58
    AMG

    AMG YF Moderator

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    Hi,
    If you can have a home office, there should not be necessary with another address of operation, it is the boat and it moves?
  19. Norseman, Aug 24, 2016
    #59
    Norseman

    Norseman Senior Member

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    Yeah, zoning regulations, no parking for customers in a residential area, etc.
    Made some calls and found soultion: City Docks on the New River, $21.00 per day even if a pick up and delivery is only 2 minutes, not bad.
    Hopefully the City of Fort Lauderdale will be happy now:)
  20. Norseman, Aug 24, 2016
    #60
    Norseman

    Norseman Senior Member

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    In a meeting with the City now.
    They are rather dubious, asking for permits..
    No Mam, no permit required to do commercial operations at the Downtown City Dock.
    We shall see what can go wrong today.
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