[Rhodes22-list] Florida Syndicate -- Offlist Reply

[Bill Effros]

In keeping with recent On-List/Off-list discussions, someone joined the 
Florida Boat Rental Syndicate off-list and asked for a little more 
clarification on how I thought the cash flow would work.  Following is 
my reply with all direct references to the other party removed:

Thanks,

The weekly rental fee only has to cover storage and insurance.  The boat
will be worth more than the salvage cost plus the fix-up cost.
Syndicate members should have no problem selling their shares, either
back to the syndicate, or on the open market any time they want out of
the deal.  If everyone wants out of the deal, we sell the boat and split
the profit.

It's supposed to be a win/win.  Everyone should come out better than whole.

Let's say $250 buys you 1 share in the syndicate.  You can trade in your
share for a week on the boat, or put up the rental fee and stay in the
syndicate.  Right now Brad would have 5 shares in the syndicate, I would
have 2, you would have one, and Bud would have one for doing the initial
legwork.

Anyone else is welcome to come in to provide the initial capital
required to fix up the boat.  I figure it should cost no more than $200
a month in current dollars to store the boat.  If insurance runs $600 a
year, we have a $3000 a year nut.  12 weeks at $250 a week.

Since it appears I will find myself in the area shortly, I can do the
initial set-up for the syndicate, and make sure that the boat is fixable
to rentable condition with the amount of money we will have available.
Some people may want to join the syndicate by putting in labor,
off-season storage, or towing.

If it can be made to work, I am willing to put in my time to make it
happen.  At this distance, it looks to me to be a good deal for
everyone, and I would put in more capital if required, also.  If there
doesn't seem to be enough interest to crack the nut, year-in and
year-out, I wouldn't do it.  If it starts to look like the fix-up cost
is too great, we could part out this boat, and buy another.  But first
we have to know if there would be ongoing interest in having a boat like
this available in a place like this.

Thanks for jumping in.  If enough people jump in, we'll do it.

Bill Effros