By Wayne Canning, AMS, www.4ABetterBoat.com
It seems most people I know with project boats never really set out saying “I’m going to find an old wreck of a boat and fix it up” It is often a matter of running into an old boat that you simply fall in love with, or a buddy has, or knows of this “really good deal.” Others have it in mind that they can find a good hurricane damaged boat, fix her up and be off in no time. Whatever your reason there are some important things you need to be aware of when thinking about laying down your hard earned money on a project boat. Trust me the purchase price is only the tip of the iceberg when it comes to a project boat. Not all project boats are alike and some are easier than others to complete. You need to take into consideration your abilities; this would include your abilities to do the work required as well as your financial abilities and your physical location for working on this new found love. If you think children are demanding then just wait till you get a project boat!
In this article I will help you assess your abilities, as well give you some guidelines as what to look for and what to avoid when deciding on a project boat. I will also help you try to plan your project so that you can one day get some of your money back out of your project boat. Way too many get into a project boat only to lose all of their hard work and money. Careful planning in the beginning will avoid this pitfall. So let’s get started.
Planning
Good planning is key to any project but having a good understanding of you resources prior to jumping in can save you money and heartache.
1. Knowing the type of boat you want
The first thing you have to do is understand your goal. This might seem obvious but it is important to take a moment and think about this. Do you want to sail around the world, do you want a boat that will be the envy of your peers at the yacht club, or do you just want to go out on weekends for some fishing with your buddies? It is important to have a clear idea so you can stay focused on the right boat to meet your goals. I recall one gentleman that was deep into a 60 foot powerboat project. After talking to him for awhile he confessed he really wanted a sailboat and had come to find that he enjoyed sailing with his buddies more than running about in a powerboat. Problem was he was just too deep into the powerboat he thought he wanted. So it is important to really know what you want before you start. Also consider costs, it might be nice to want to go with a big boat but understand the bigger the boat the bigger the expenses such as slip fees. Give this some long thought and narrow down your search to something like a 30 foot powerboat with good aft deck for fishing or a 40 foot sailboat that you can cruise and live on. You don’t have to stay right at these narrow specifications but you should try not to drift to far from them when looking.
2. Knowing your skills and abilities and free time.
The next thing to do is to review and understand your skills and abilities and resources. You don’t need to be an expert but knowing your limits will help you narrow things down a bit. If you are a good mechanic and like working on engines you might lean more to a boat with engine problems, on the other hand if you are good with wood and fiberglass but hate working on motors you might want to look more at a boat with some sort of hull or deck damage. You might be a great organizer but have very few trade skills. If you have some extra money you might be able to hire much of the work but spend your time in planning and organizing like housing contractor. You also have to have a realistic understanding of your free time. Completing a project boat takes lots of free time if it is to be completed in a reasonable time period. This is often one of the biggest downfalls for many people. It is easy to say yes I will put in 6 hours a night but you have to be realistic. Consider the things that take your time, family obligations, work, and other hobbies. You also will want some down time so you do not burn out. Most project boats take several years to complete and many hours of work knowing this going in is important to not getting discouraged. You also have to have the free time so make sure you can make this commitment.
3. Understanding your financial abilities.
This would also be a good time to evaluate your financial resources. You may have a good idea how much you can spend upfront but you need to know how much you can continue to put into it. I know you are getting a project boat to save money but it still is going to cost you for parts and supplies. Realistically figure out just how much money you have to spend on this project. Think about your monthly budget, does it have room for slip/storage? Will you be able to buy all the parts you need? Money is often the biggest reason people working on project boats fail. Be realistic and assume it will cost more than you think because it will. Knowing this will help you figure out what you can really handle verses what you think you can handle.
4. Knowing where you will be working on the boat.
You also should evaluate your physical location for where you plan to keep this boat while working on it. Best case is you own a boat yard but few of us do. So think about where plan to work on this boat you plan on getting. If it is a small trailer boat you can keep it at your house, maybe you have a shed on your property? Maybe there is a city ordinance against keeping a boat on your property? Do you have a small workshop for all your tools and such or will all this need to be kept onsite with the boat? Do you live within a short drive of where you can keep the boat? I have seen some who bought a large boat yet live 4 hours away from the marina. This seriously cuts into the time they have to work on the boat and could make or break the project. The best case is to have your project within walking distance of where you live. The closer the better after less travel time means more work time.
5. Support
Lastly it should be mentioned that good support from family and friends is very helpful. If your family and this would mainly be your spouse if you are married are not supportive or worse yet against the project you might want to think twice. I have seen marriage end over a project boat. On the other hand a supportive and even participating spouse can make a big difference. Friends can also be a great resource but one not to be over used. If you are counting on your buddy to work side by side with you, you might want to be sure you can still continue if they drop out.
Types of Boats
Ok you have evaluated your resources you have a pretty clear idea what type of boat you want, where you are going to work on it and how much you have to spend, so now it is time to get down to the fun part and start looking. But where do you start? The best place is to start close to home. If you find something close it will not likely cost much to move if you have to move it at all. But before we get too excited lets think about a couple of things first. Project boats come in a few of different classes and each class has its own pluses and minuses.
1. The abandoned or forgotten boat.
These are often easy to spot because they will be on the hill with a torn cover or in the water looking like the last time they were washed was 3 years ago. Sometimes these neglected boats will have an old for sale sign on them but often not. If you find a boat like this that you are interested in do not assume you can just board her and start poking around. This could get you in trouble. Note the location, slip number name and description and see if the yard manager will give you the owners name and number. Most yard managers are more than happy to give this information because they would love to get that old boat out of there sight. Makes the neighborhood look bad you know. And if somebody is fixing the boat up they likely will be spending money. If you get the owners number, call them and feel them out if they might be interested in selling. Be polite and do not imply their boat is falling apart, just say you admire her and would like a closer look if they would not mind and if they would be interested in thinking about selling her. I will tell you at this point you are treading on thin ice. Some owners will be happy to talk to you some might even beg you to take this old boat off their hands. You could get lucky, but you could run into the owner that thinks his pride and joy is the best boat in the yard and is worth far more than anyone in their right mind would pay for it. You will likely get a good idea of what type of owner you have in the first couple of minutes talking to them. If you have run into the owner that thinks their boat is the best in the yard just walk away quietly and keep looking. These owners just cannot be reasoned with and will just waste your time. On the other hand if the owner is receptive to your inquiries then get permission to board and have a closer look. I would try to arrange to look at the boat without the owner around if this is possible. We will talk more about what you should be looking for in Part II.
2. The salvaged boat or insurance CTL boat.
These can be storm damaged, fire damaged, theft, and other damage such as grounding, which result in the insurance company selling the boat as salvage. These are not as easy to locate but can offer a good value and fast repair if the right one is found. The trouble is finding them. Locally you can contact insurance agents who specialize in marine insurance. You can also contact surveyors who do a lot of insurance work. Ask to be put on a list to be notified but don’t hold your breath, these people are busy and often do not take the time to notify everyone who asks. Check back with them from time to time to remind them that you are still interested and serious. If you are looking in an area after a big storm you are not alone there will be many others like you, this tends to drive prices up. The insurance companies will often just turn boats deemed a total loss over to companies that specialize in liquidating damaged boats. The biggest of these are Certified sales, US Auctions, and Cooper Capital. There likely will be other local companies as well. Check with salvage companies as well they often gain possession of the boats and retain that till their fees are paid, which sometimes does not happen if the owner did not have insurance. In those cases the salvage company will sell the boat to cover their costs. In any case if you purchase a salvaged boat make sure you can get proper title, this can often be difficult so knowing you are dealing with a reputable company will help. If possible try to get a bill of sale directly from the owner even though you are buying the boat from a third party. In part II I will talk more about what types of damage are good and bad, for now I will say you have to be very careful with buying a damaged boat as there can be hidden issues that could cost you thousands or make the boat simply un-repairable. Sales often happen fast and inspection times can be sort if at all. So you have to be very careful and know what you are getting into. Like most things that can have a nice rewards you have to deal with higher risk.
3. The motivated seller.
This could sort of overlap the first category of neglected boats but I have it in its own category because I am talking more about boats in good condition and basically ready to go but for one reason or another the owners are forced to sell or want to sell fast. These boats can be really hard to find but if you manage to be in the right place at the right time they can be some of the best deals. These are boats being sold because of divorce, death of the owner, the owner having financial troubles and in some cases the owner is just done with the boat and wants to move on. For smaller boats you might be able to find these in the local classified listings. I have talked to folks who have gotten great deals on boats in Panama and other far off places. The owners thought they would love sailing around the world only to get to some far off place a realize they hate it, or maybe their other half hated it , or they get sick. Whatever the reason they find they have a fully fitted boat in a far off place and they need to sell it and go home. Often these boats go for less than half their value and are often very well equipped. Of course the problem is you have to be able to go to these places to find the boats in the first place then you have to be able to get them back to where you are. Of course if you are ready to set off yourself and have few ties this can be a great way to just go!
4. EBay as a source for all of the above type boats.
EBay is a great place to look for boats if you cannot find 1 close to you or through more conventional means. The problem with EBay is things happen fast and like with the salvage boats it can be hard to get a proper inspection. Also you need to be careful that you are not dealing with a scammer. I recommend calling and talking to the seller before bidding. You can get the name of the yard the boat is in but calling them is not likely to get you anywhere because yard managers likely will be getting a bunch of calls and not very interested in helping everyone. Best bet is to contact a local surveyor and have them do a “walk thru” to look the boat over and see if it is worth anything. They can take digital photos as well to send to you. This will give you an edge over other bidders but will cost you some extra. Also consider transportation costs and ask the seller how soon the boat needs to be moved. Do ask the yard it is in if there is a lien on it. Often a quick call to the yard secretary will answer this. Do not get caught up in the bidding frenzy, set your top price and stick to it. Ok maybe you can go over a little but not more than 2-3 %. Make a deposit first then make sure everything is up and up before making the final payment. Better to lose a couple of hundred than thousands. If the seller is legit this should not be a problem.
We have talked about the importance of understanding your abilities and needs before purchasing a project boat. Understanding the type of boat you will be looking for as well as your ability to pay for and work on this project. We have looked at the types of projects boats there are out there. Understanding that there are different types of project boats will help you narrow down your search and focus on those boats that will best find your needs and abilities. In part II of this I will give you more information about what to look for in the boat itself. What to avoid and what boats make the best deals. Not all project boats are worth the effort and understanding what to avoid will save you money and aggravation.
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