Right now deal strategic em Palm Beach 💪

Most yacht buyers I meet don't actually struggle with the price tag. They struggle with the *process*. A $12M motor yacht isn't purchased like a car. It's structured like a small company — with ownership entities, tax considerations, crew contracts, insurance layers, and financing that behaves more like private credit than a consumer loan. And when the buyer is a UHNW client in Palm Beach, the expectations are not just financial. They're operational, reputational, and deeply personal. Over the past decade advising on marine finance, I've noticed the same pattern repeat: clients who come prepared with the right questions leave with better terms. Clients who don't, often pay for that in time, flexibility, or quiet frustration later. Here's what I tell every client before we even look at a vessel — and what I wish more owners understood earlier. 1. Financing a yacht is not a mortgage. It's a credit facility with a lifestyle wrapper. A primary residence mortgage is standardized. A yacht loan is bespoke. Lenders underwrite based on the vessel's blue-book value, but also on your broader liquidity profile, your exit strategy, and how the asset will be used — charter, private, or both. The best structures are rarely the ones with the lowest headline rate. They're the ones that align with your cash-flow cycles, your tax jurisdiction, and your long-term plans for the asset. A slightly higher rate with a balloon structure that matches your liquidity event can be far more intelligent than a lower rate that forces you to liquidate something else prematurely. 2. The lender is not your enemy. The misalignment is. I've seen deals fall apart not because the buyer couldn't afford the yacht, but because the lender's documentation assumed a different kind of borrower. Maybe the client's wealth is tied up in a private company that doesn't show clean W-2 income. Maybe the yacht will be flagged under a foreign registry. Maybe the client plans to spend six months aboard in the Med and needs a facility that allows that without triggering additional compliance. These are not exotic problems. They're common — but they require a counsel who speaks both the language of the lender and the language of the owner. 3. Your profile matters more than the vessel's spec sheet. When a lender evaluates a yacht finance application, they're not just looking at the boat. They're looking at you — your banking history, your asset concentration, your prior marine experience, and your willingness to maintain the vessel properly. A buyer with a clean, well-documented financial life and a credible maintenance plan will always get better terms than a buyer with a shinier boat and a murkier paper trail. That's why I advise clients to keep their financial house in order *before* they fall in love with a particular hull. It's easier to negotiate from a position of preparation. 4. The real cost of a yacht is not the purchase price. Anyone who's owned a yacht for more than a season knows this. Crew salaries, dockage, insurance, maintenance, and the occasional surprise haul-out can add 10-15% of the vessel's value *per year* in running costs. Financing amplifies that because it adds a fixed debt service on top of variable operating expenses. A responsible finance counsel won't just underwrite the acquisition — they'll stress-test your cash flow against a realistic operating budget. If that budget doesn't work, the deal shouldn't close, no matter how beautiful the boat is. 5. The best time to think about exit is before entry. Yachts depreciate, but they don't depreciate evenly. A well-maintained, well-documented vessel with a strong charter history can retain value far better than a neglected one. Knowing your exit options — private sale, brokerage, or even a structured sale-leaseback — can inform how you finance the acquisition in the first place. I've structured facilities that gave the client the option to refinance after a few years, or to sell without penalty if their circumstances changed. That flexibility is worth more than a few basis points on the rate. --- At the end of the day, yacht finance is not about the boat. It's about the life you're buying time for. And the right structure doesn't just fund a purchase — it protects the lifestyle you're working so hard to enjoy. If you're considering a yacht acquisition and want to understand how financing fits into your broader wealth picture, I'm always open to a thoughtful conversation. *This is for general information only and does not constitute financial, legal, or tax advice. Always consult your own advisors before making major asset decisions.*