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Old 03-13-2013, 02:42 PM
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Default Boat Slip Financing???

Has anyone ever financed a boat slip before? I have typically leased slips in the past. However, this year I am kicking around the idea of purchasing one. Has anyone ever financed one and if so, what bank did you use and what are the typical loan terms for such a loan.

Thanks.
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Old 03-13-2013, 02:59 PM
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I started to look once and had trouble finding anyone (but I did not spend that much time looking, before I decided against it).

Most people I spoke to finance it with a home equity loan (better rates and deductible).
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Old 03-13-2013, 03:02 PM
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I started to look once and had trouble finding anyone (but I did not spend that much time looking, before I decided against it).

Most people I spoke to finance it with a home equity loan (better rates and deductible).
That is what I was afraid of. I purchased my home in 08 just before the big bust, and don't want to take a loan against what little equity I have at this time.
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Old 03-13-2013, 03:30 PM
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i own a few slips and always paid cash. it would be difficult to find financing. most lenders will not even understand the concept. try talking with the seller maybe he will hold some paper.
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Old 03-13-2013, 04:41 PM
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Around here most are sold with a condominium deed and can be financed just like a vacation condo.
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Old 03-13-2013, 05:35 PM
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Get ready for financial advising 101 for even considering a loan.
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Old 03-13-2013, 06:14 PM
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Get ready for financial advising 101 for even considering a loan.

LOL, yeah I am waiting for the "never finance" police to come out. However, the biggest argument against financing is most say never finance a depreciating asset. A slip is deeded ~quasi-realestate, and could potentialy increase.

I'm just getting tired of spending thousands a year on a slip with nothing to show for it.
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Old 03-13-2013, 06:25 PM
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LOL, yeah I am waiting for the "never finance" police to come out. However, the biggest argument against financing is most say never finance a depreciating asset. A slip is deeded ~quasi-realestate, and could potentialy increase.

I'm just getting tired of spending thousands a year on a slip with nothing to show for it.
you may find you are not paying that much more in rent. condo slips have taxes and common charges. also assessments when storms hit causing extensive damage. I just went through this. that said as an investment they are not bad if purchased right. some of mine have doubled in value in ten years. But you may find you only save about 10% by owning.
when banks hear condo they think buildings not water and a cement slab. Not easy to finance.
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Old 03-13-2013, 06:48 PM
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First Citizens in Hampstead and Porters Neck used to a year ago. Check with them
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Old 03-14-2013, 04:59 AM
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As said above home equity or personnal finance note, make it a priority. But price is the factor. I bought mine back in '05 and even with the increase in fees and taxes today I'm saving 2/3 what I would pay to rent in my area. Even if your yearly fees are only a 10% savings the bottom line is years down the road if you sell for what you paid, yeah yeah anyway you want to figure inflation yada yada, you get your money back where as renting it's just gone. Or if you decide not to sell you can rent it out to make pocket change.
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Old 03-14-2013, 06:09 AM
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PM me. I have bought and financed a few in and around Wilmington and can share my experience.
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Old 03-14-2013, 07:38 AM
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Thanks Graddy-Fied, I just sent you a PM

I called a bank in CB that does boat slip financing and this is what I found out:

-Wet slips 85% LTV, ~5% APR, 15 years
-Dry slips 85% LTV, ~5% APR, but only 10 years
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Old 03-14-2013, 08:38 AM
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what are some of the things to watch out for one purchasing a boat slip. I was looking at a few wet slips in the keys. Thanks for any help. This is a helpful thread.
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Old 03-14-2013, 08:53 AM
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u might want to try suntrust also...
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Old 03-14-2013, 09:14 AM
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I had an owner finance once, the terms were just one year, he got an extra $500 out of the deal. Maybe worth a try.
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Old 03-14-2013, 09:19 AM
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My friend bought a dry slip in foreclosure...he was at the marina one day when a bank rep showed up to inspect it.
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Old 03-14-2013, 09:28 AM
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My advice is to read the entire contract, terms and conditions. Ascertain what you will own and what rights you have to use, loan, rent, lease etc. Many of these deals involve a scenario where the condo (dock) association (developer) leases the space for you. While that may sound attractive up front, be sure you know the "pecking order" of such leases. For example, they may lease all the developer slots first, then begin in some order with the owner's docks. Also look at periodic fees and special assessment possibilities.
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Old 03-14-2013, 09:34 AM
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Quote:
Originally Posted by Tangled Up View Post
what are some of the things to watch out for one purchasing a boat slip. I was looking at a few wet slips in the keys. Thanks for any help. This is a helpful thread.
A lot would depend on your area. However, be sure that the slips are fully insured (very expensive, if there is a history of damage). If the slip is destroyed in a storm, you have to replace it--as an assessment. Also look to see what the condition of all of the facility is, as well as the slips--and if any assessments are planed. What are the "condo" fees? What about liability. Who is on the BOD, and what are their interests. What is the condition of the docks,and what are maintenance fees? In some areas it may be a better deal to buy a waterfront lot and put in your own dock. With the waterfront lot, at least you have a piece of land which is yours.
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Old 03-14-2013, 07:47 PM
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Thanks for your opinions. Its very helpful when investing in something uncommon.
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Old 03-15-2013, 05:45 AM
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I own 4 slips that I either use or lease. They can be financed like any other piece of reaestate. The most important thing to understand is the financial condition of the condo association.
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