Monocle Fractional Yachts
 
 

Excerpts from the CNN/Monocle Interview

This interview was conducted on November 4, 2006 between
Loren Simkowitz, President of Monocle Fractional Yachts and CNN.

WHAT IS FRACTIONAL OWNERSHIP?Loren Simkowitz
Fractional ownership is a form of ownership where you buy the portion that you will use, or sell the portion/fraction that you do not use. It is perfect for yacht owners and buyers who want the yachting experience with no hassles and no waste of their financial resources.

HOW DOES IT WORK?
Monocle takes the net cost of the yacht and divides it into fractional shares entitling each owner a percentage of use per year forever. The total annual operating expenses such as crew, insurance, supplies and shipyard are also divided on a percentage of ownership. It operates very much like a condominium. I call it “Yacht-o-Minium”.

WHAT ARE THE ADVANTAGES?
There are multiple benefits of fractional yacht ownership. In addition to the obvious ones of sharing in the cost of the initial purchase and the annual operating expenses, there are:

  1. You receive all the pride and privileges of sole ownership at a fraction of the price.
  2. You do not pay for something 365 days a year and only use it a few weeks a year.
  3. Owners are able to exchange their weeks on other yachts in the program throughout the world.
  4. Our owners are not burdened with any aspects of the daily operations such as crew, vendor negotiations, repairs & maintenance, scheduling and accounting.
  5. Current owners can turn their idle asset into immediate cash, by simply selling the portion they don’t use. They can pull out those tied up equity dollars and simultaneously spread the annual cost of ownership by selling 10%, 20%, 50% or any percentage they choose through the Monocle Fractional Program. Closings are timely so current owners realize immediate benefits.

HOW DOES THE SCHEDULING WORK?
Each 10% share receives four weeks of annual use based on a rotating calendar schedule. Two weeks in a summer location and two weeks in a winter location offering multiple yachting experiences.

HOW DOES A FRACTIONAL OWNER EXIT THE PROGRAM?
Each yacht is individually owned by an LLC, therefore as in any company the shareholder simply sells their share independently or through Monocle Yachts.

HAS FRACTIONAL OWNERSHIP BECOME MORE POPULAR OVER THE YEARS?
As the pioneer of the fractional yacht ownership program seven years ago, I have seen the demand for these benefits increase exponentially. The success is not proven by Monocle’s growth alone, but also by the world wide demand, increased media coverage and yacht manufacturers who are entering into the fractional yacht industry. Fractional yacht ownership is the only viable alternative as the cost of yachts and yacht ownership has become prohibitive. We encourage current yacht owners to enroll the unused portion of their yacht into the Monocle Fraction Program.

Watch video clip at CNN   (may no longer be available)

Please call MONOCLE FRACTIONAL YACHTS AT: 866.563.5808

There's a new world of smart yacht ownership.

954-563-5808  or Email us at Monocle E-Mail

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