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Career Change

Discussion in 'General Yachting Discussion' started by apachejim00, Sep 19, 2020.

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  1. apachejim00, Sep 19, 2020
    #1
    apachejim00

    apachejim00 New Member

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    Good Morning,

    My background has been a military pilot and government contract pilot for about 25 years. I have had enough of the Middle East and Africa to last me for awhile and I want to start a charter business that will be along the coast and in the ICW between Ft Lauderdale and Miami. I want to start slow and learn everything I can so customers can be assured of a safe day on the water. I am a new guy, so I will probably ask some stupid questions, but I have very thick skin so give it to me straight.

    Thanks,

    Jim

    1. I am looking at a 2015 Prestige 500 with Fly Deck. Is this a yacht you would recommend?

    2. Do you have a Marina you would recommend in Miami Beach that allows you to live aboard the yacht?

    3. Which insurance company would you recommend?

    4. What would be a realistic expectation on how many days out of the month I could estimate having the yacht chartered?

    5. What are some operating costs other than loan payment, slip fee, insurance, crew, maintenance, and fuel?

    6. What would you estimate I should put aside for normal maintenance costs per month based on how many days a month you think I could charter the yacht?

    7. I plan on going to Maritime Professional Training in Fort Lauderdale to get my Captain’s License. Can you recommend any additional training that I should get prior to piloting a yacht of this size, or a place I could get some experience in the South Florida area?

    8. How much would a Captain charge per half day charter. Based on a 4-hour rental?
  2. Pascal, Sep 19, 2020
    #2
    Pascal

    Pascal Senior Member

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    First of all thank you for your service to this country.

    What is your experience with boats, do you have enough documentable sea time to even qualify for a license. A good chunk of the day charter market in SoFl is for groups of up to 12 which requires a master, not just an OUPV.

    Also if you are the owner of the vessel, even thru an LLC, you can Only be the captain with up to 6 passengers. Between 6 and 12 passengers, the charter had to be a Bareboat Charter and the owner can not be on board. Do not mess with charter rules as the coast guard has been cracking down. As the owner/captain you will be limited to 6 passengers.

    Unless you have prior boating experience, Insurance is going to be an issue. Typically underwriters don’t like any jump in size over 15/20’ so unless you have experience on boats of at least 30’ you will need additional training and captain supervision.

    the day charter market had changed a lot in SoFl over the last 5 to 6 years. Lower rates, lower clientele quality, more boats available. The prestige 50 is a good boat for that market though.

    Dockage is difficult to find down here. Miami Beach marina and Sunset Harbor are the two main marinas on south beach but you re probably looking at $2000 a month if they even have room. I ve been at Dinner Key in coconut grove for a long time. Great location, cheaper but long wait list.

    not sure what captains charge by the day for charters. I depends on experience... I guess you may find young guys willing to work for cheap. Problem with half day charters (4 hours) is that it is really a full day worth of work... at least an hour to prep the boat and 2 to 3 hours afterward to wash, clean etc.

    With the larger number of boats being chartered these days, it s hard to predict how many days you ll get. Especially in the first year. Certainly not enough to cover expenses... there is an old saying... the easiest way to be a millionaire in the yachting world is to start with two millions.
  3. apachejim00, Sep 19, 2020
    #3
    apachejim00

    apachejim00 New Member

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    Thanks for the insight! I do not have any experience with anything over 26 feet. Had a Sea Ray for about four years and probably have around 200 hrs. on the ICW in Jacksonville FL. I have been checking on dock space and you are right! I found between $2200-2700 a month. I had a feeling about insurance. I wouldn't want to insure a$500,000 boat to a new guy. Thanks for the information on licensing. Very similar to FAA requirements for a commercial pilot license. I have emailed MPT to inquire about training, but no response yet. The millionaire saying goes for the aviation industry as well. That's why I really want to get my ducks in a row before I commit to anything.

    Thank you very much!
  4. NYCAP123, Sep 19, 2020
    #4
    NYCAP123

    NYCAP123 Senior Member

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    Keep in mind that many boats are chartered for a tax write-off or to mitigate some expenses, not to actually make money with. That's hard to compete with. You have a few years of sea time to accumulate before you'll even qualify for a master's license. I have an expression you might also consider, i.e. 'The best way to ruin a hobby is to make it your profession'.
    Pascal has been living aboard and chartering for quite awhile, so he's got no home base to support. Since you're both in Miami may I suggest you send him a PM Maybe you could meet and buy him a beer while you pick his brain a bit.
  5. apachejim00, Sep 19, 2020
    #5
    apachejim00

    apachejim00 New Member

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    Sounds good! I appreciate your advise. I'm not needing to make much money, just need to keep myself busy, but I also don't want to go broke keeping busy. Not in a big hurry, so I will get some training and become a deckhand and see how things go.
  6. NYCAP123, Sep 19, 2020
    #6
    NYCAP123

    NYCAP123 Senior Member

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    If you want to own a 50' yacht you do need to make a bunch of money. A generator could cost you over $10,000. A motor rebuild anywhere from $30K +++. Remember that BOAT stands for Break Out Another Thousand. The expected expenses are high. The unexpected expenses can be huge. Yachting is a rich man's sport. If you love (or are addicted to) boating I'd recommend working in the industry. In the 30 years after leaving my old career I rarely stepped on board a boat without green crossing my palm and I spent a lot more time running boats than any owner.
  7. apachejim00, Sep 19, 2020
    #7
    apachejim00

    apachejim00 New Member

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    Yes I remember my Sea Ray was a sink hole for the green and it was not that big. I can imagine a 50' will be even more. The only reason I am considering this, is that I love the water and my son is a promotor for some very large Night Clubs in Miami Beach and he believes he can keep the boat occupied with people that like to waste money. I talked with some people from Denison yacht sales, and they said the charter business is booming, but any salesperson with blow smoke to get a sale.

    Thank you!
  8. NYCAP123, Sep 19, 2020
    #8
    NYCAP123

    NYCAP123 Senior Member

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    When I moved to Ft. Lauderdale a broker wanted to set me up in a charter operation in the Caymens with a Choey Lee. It would cost me nothing. It took 3 meals with him (At his expense. Hey I'm from NY. lol) to get to all the money coming from my pocket. New people in So. Florida are like young girls heading to NY or LA looking to be stars. Lots of people ready to "help" them. Believe nothing you hear and only half that you see, and less if they have something to sell. Your son brings another problem. Back in the 70's and 80's Miami was wild and a charter boat could be a ton of fun, but today do you really want a club crowd on board? Let one guest get caught with drugs and YOU could lose your boat, your money and your freedom. Let one guest get drunk and get hurt aboard and you'll find out how good your lawyer is. And if you thought a 26 Sea Ray with that single gas motor and simple systems was a sink hole for money just wait till you own a 50' with twin diesels, multiple air conditioning systems, a generator and tens of thousands of dollars worth of electronics, +++.
  9. Pascal, Sep 19, 2020
    #9
    Pascal

    Pascal Senior Member

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    Just to be clear, yes I ve been living aboard since 2003 but I don’t charter my own boat. I m full time on larger boats

    yes the day charter market seems to be very busy but there are a lot more boats chartering especially in the 50-80 range.

    again let me be very clear. Don’t get tempted to take shortcuts with the charter rules. The USCG has a special group checking charters for licenses and strictly enforcing bareboat rules
  10. olderboater, Sep 19, 2020
    #10
    olderboater

    olderboater Senior Member

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    You can get all the information on MPT's web site.

    https://www.mptusa.com/index.cfm

    Key is that even for an OUPV (Six pack) you need 360 documented days of sea time and for a Master's you need 720 days. Have you looked at the requirements for licenses on the CG site or for being a charter captain?

    https://www.dco.uscg.mil/nmc/charter_boat_captain/

    So, at best you're a couple of years from being in business.
  11. NYCAP123, Sep 19, 2020
    #11
    NYCAP123

    NYCAP123 Senior Member

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    Sorry Pascal. I always had the impression you chartered yours. My mistake.
  12. Norseman, Sep 19, 2020
    #12
    Norseman

    Norseman Senior Member

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    Welcome aboard Apache:
    I am also a flyer with too much time in the Middle East and in Africa, mostly Civilian, but also contracts for the D.O.D, flying support and supplies for a few wars.
    Now running a charter boat in Fort Lauderdale.
    No money in chartering, especially now, COVID and all, but got quite a few calls in July, guess people wanted to get out and away.
    Lots on money and expenses to keep a boat clean and ready for charters at all times but I kind of enjoy it.
    Insurance is expensive, so is everything else in South Florida.
    Using my boat 90% for pleasure and 10% for business, if that, some tax benefits the first 5 years I guess.
    Being a former military man you are used to strict rules and regulations and you may enjoy the USCG’s strict requirements for every detail of chartering.
    (The type 4 flotation device needs the have a positive buoyant string attached to it, nylon not approved, only polypropylene. (It will rot in the sun, but that is OK as long as it is approved.:rolleyes:)
    Contact me for any details on setting up a charter operation from scratch, but I can’t recommend it for making money, or anything else.

    www.odincharters.com
  13. Capt J, Sep 19, 2020
    #13
    Capt J

    Capt J Senior Member

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    Get a job as a mate on some of these day charter boats. You'll build sea time and see what happens behind the scenes. Then you'll come to the conclusion that the charter fee just keeps up with the excess wear and tear (especially on soft goods), and there is no way in hell you want some of these people doing the dirty on your boat!