anybody getting deals on repossessed boats?

alk

alk

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Looking at yacthworld listings, at least half the boats from my searches seem to be bank owned, especially when looking at performance boats. Any idea if the banks are desparate enough to take low offers? When I say low, I'm talking 10% of asking price - assuming I show up with cash? I keep seeing these guys on the news, who are buying up bank owned homes that are worth 100,000 for under 10 grand - curious if the same can be applied to boats.
 
The secret is to get to the bank, who now owns the boat,not a third party like national liquidators. If you can get their attention, you may fall into something.
 
that makes sense, as most of them are listed by a liquidator, but a nice chunk are sitting at a regular brokerage. Not sure how I would find out what bank is holding the title.
 
Im still trying to find a contact at Key Bank. Anyone out there know how to get a hold of the repo list?
 
From past experience you may want to talk to a ballif...A ballif is in charge of selling repos here in Canada...don't tell anyone you are trying to make a deal...I made that mistake and had the deal of a lifetime bought out from under me...
 
Ask to speak to the bank officer in charge of Special Assets. Some banks have so many vessels in their control that they are buying fleet insurance coverage. Loose lips, sink good deals.
 
I got my Repo direct from Regal.
Another dealer handled the paperwork.
Dealer A went bust, GE sold boat back to Regal for less than they were into it, then I bought it from Regal.
Saved about 40% off what it would of sold for in good times!
 
I've been watching like you alk, but it seems banks are not as yet desparate enough to clear their books. Maybe it is the goverment money that is boosting their balance sheets but from what I've seen no one seems anxious to clear their balance sheets of boats. I have to admit equally so, I've ran into a lot of clueless sellers who think they are going to get last year's price for their boat.

My thinking is this whole thing has got to get a little more desparate, then maybe we will see some movement.
 
Your marina manager knows which boats are on the repo list.The marinas are in lock step with the lenders and liquidators so that they get their money. Of course that means boats docked and or stored there.
 
I've also been looking at a lot of repo's lately. Most of the ones from National Liquidators look like they have been trashed pretty good before the banks took them over. With the market being what it is, I would think they would be ecstatic to get a 10% under asking price offer.
 
I tried that a few years ago. The Banker told me those Liquidators have an inroad or a standing contract with whatever part of the Banking corp that actually finds out first, of the boat being back in the banks hands.
I finally went to the Bank Manager and asked to get in on the bidding. He told me to put in a bid and we'll see.
However the Liquidators got the boat.

Now, things are a little different. The banks dont want to pay taxes on so much repossesed stuff. Maybe they will be ready to listen to reason.
But you can be assured, they will be more ready to deal with a regular buyer (liquidator) than a guy off the street looking for a good deal. You'll have to offer more than the Liquidator will. The bank wont tell you what the liquidator has offerd either.
 
A repossessed boat is cheap because you will need to repeat the exorcism... :)
 
I don't know about other National Liquidator outlets, but I pass the one here in Cleveland every day. They treat the boats like sh*t. Canvas not up, doors wide open, not wrapped in winter. It's a shame the banks are entrusting these people to sell their boats. I would think it would benefit both parties for them to at least keep the things covered.
 
That's the big downside to investing in a repo. It may be difficult to ascertain the condition of the engines and usually there's no sea trial to check them out.

You can be sure, anyone who's had their boat reposessed (and that usually means months of not making your loan payments) hasn't spent any money on maintenance.

On the other hand, if you can assure yourself there are no major issues...you can find a good deal.
 
We looked at boats from American Yacht Sales just south of Houston.
They only had repo boats, not damaged or sunk boats.
One of the guys who repo's them said that the repo company lists the boat for
the value of it. They also get a % of the sale price.
If the value owed is 10K and they list it for 50K, then the repo company gets
the $ for repo, moving and storing, plus a % of the total sold for.
He told us that you can offer around 50% and see where it goes from there.
Then you get a survey and see how well the boat shows. If it is a good survey
you can purchase it.
If not, back out and walk away or make another offer on what you think it is worth.
He said most of the time, banks want as much as they can get and get out from under it.
They are not in the boat selling business, they are in the loan business.
They will take a loss if the boat sits too long.
The longer it sits, the lower the condition, the lower the offers.
 
A guy who's confident enough to buy a Pig in a Poke dont need to waste any time and money with a survey.
If you cant take it the way it is, you shouldn't be dabbeling in bottomless pits.

Once I got part of a boat from another bidder. This is a possibility suggestion.
A guy outbid me by a few bucks. We went head to head for a few days, just the two of us. I finally got hold of him and all he wanted was the Trailer. Great! I made a deal for a split of the Cost with him. I brought a Trailer over to Houston, we made the swap in his driveway and yard, and I went back home with too big of a boat on a Bass Boat trailer and he had a 'Right sized' boat on a Trailer.
I never even got that boat tidied up and it was sold.
 
The banks also have a "duty of care" to the original owner insofar as they have to attempt to get fair market value for the boat for the original owner.
They want a paper trail of offering the boat for sale at fair market value for a certain length of time before blowing it off.
If they seize a 100K boat that is 75% paid off and then sell it the next day for the remaining 25% they are going to be sued in short order. It does not happen very often but often enough to keep them wary. this is also true of repo houses.
There were huge litigations up here in the early '90's when some houses and boats got repoed and quickly sold to friends of bankers that conveniently just covered the notes on items that had 50% debt to equity values.
The banks lost every time no matter how the contract was written as the courts held that the underlying "duty of care" had not been maintained.
 
using a liquidation company distances the bank from any claim of cutting a friendly deal and each deal will be packaged by the liquidator in the way the bank wants. Dealing with a zillion individuals is not what banks want to do. Same with houses.
 
rduhon, I looked at this boat about a month ago. She is CLEAN! show s like new! The plastic was still on in places.
I didnt like the salesman there. My buddy was looking at the Monterey 322 and asked to hear it run. The salesman told him to" make an offer first!If the Bank accepts the offer they will crank it up!" He responded with" How the hell can I make an offer if I dont know anything about it?" This boat was rough! Sunburnt,faded,dirty! 2 in of water in aft cabin. I didnt like the way they conducted bis! I will MAKE an offer after having the facts!
Jay
 
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