Buying and Selling Fix-er-Uppers

[phillyg]

As a recent retiree with too much time on my hands, I've been thinking about trying to make a few bucks buying and selling some moderately-sized boats, maybe in the 18-21' range. Of course, my purchase price has to be rock bottom from the get go in order to make a reasonable profit, so I'll be looking for some sad cases or project boats someone has lost interest in. I would not mind putting some money into a boat if I can be fairly confident I will get it back on resale.

I'm thinking there are three absolute requirements before I buy a particular boat:

--plywood floor rot is okay, but any stringer rot (if it can be determined beforehand) would be a non-starter
--a serviceable trailer so I can get it home w/o having to pay shipping
--an i/o or outboard that has at least some sign of life

I'm realistic enough to know that I'll miss occasionally and will end up with a non-repairable hull or motor. If I buy enough similar boats over time I would anticipate having a motor or hull on hand so I can do a swap out and scrap the bad. I can do my own biminis, boat covers, seating, trailer repair, boat carpentry and most glass repair, but I might have to sub out some motor or outdrive repairs.

Anyone here have any experience doing this type of thing and sharing their experiences? If not, anyone here have an opinion about whether or not I'm crazy or just a dreamer? I will appreciate all opinions.

 

[GT1000000]

Re: Buying and Selling Fix-er-Uppers

Welcome to the Iboats drydock phillyg,

My 2?...actually considering my knowledge and the current poor economy...more like my .001?...

Boats, by their very nature are expensive creatures...everybody has different views about what constitutes a budget vs. a cheap boat to fix...

You are not necessarily crazy...you want something to entertain yourself in your retirement and maybe make a buck or two...certainly nothing wrong with that...

I would however highly recommend that you consider putting your talents into making some repairs on boats owned by others and charging accordingly...save up your money and buy a properly certified used boat for yourself and enjoy the heck out of it...

The biggest reason for this is that cheap boats end up costing more to rebuild when you take into account the myriad of details that must be addressed in making a safe, quality product that you can feel good about selling to someone...

That is not to say that you might find a great deal on a really good boat that just needs some minor TLC, and you can turn it around for a profit...however those are usually the exception to rule...

Most of the restorations on this forum are done as a labor of love, not for profit...

Every now and then, some of the guys here will restore a boat and later sell it...If you take into account the amount of labor that has been put into it...I doubt many have realized a real profit...

Please, don't take this the wrong way, as I am only playing 'devil's advocate' and in no way think that your idea is not possible...I am just trying to give you an opinion as requested.

You could get a small aluminum boat...12-15 foot range, with a small outboard that needs a basic overhaul...get it floated and running right, then place some ads in Craigslist and Ebay, and try to get a buyer for it...then, depending on your outcome and feelings after that move on to something bigger or even a fiberglass boat...

Usually inexpensive aluminum boats require deck and transom replacement, they can be done with the minimum investment and can return at least most of your investment...

Fiberglass boats, more than even a few years old, if not properly stored and maintained, can and usually need a complete overhaul, which costs a great deal more in both materials and labor, than an aluminum boat of the same size and class...

Best of luck with your endeavor and please, if you do decide to tackle this very rewarding hobby with your own restoration, make sure you post it here for both asking questions and possibly helping other folks out with your knowledge...

Regards,
GT1M

 

[Mygreenihc]

Re: Buying and Selling Fix-er-Uppers

I am no exopert by any means, but I have been thinking along these same lines. I am thinking of finding a rotted out 14 foot fishing boat for starters and working from there if I feel like it is something that I would like to continue.

I not only think you are not crazy, but I think your idea is good. I have been looking at craigslist and have dound several boats in the 18 to 21 foot range that have either been neglected or interest lost in. I also found a nice 18 footer on a trailer with a blown 4.3 for $500. You are not gonna get rich, but if you can do two a year, you might be able to make a couple grand and stay busy doing something that you enjoy. the more you do it the better your skills will become at choosing a good buy and you will get quicker at the restoration.

Brad

 

[tpenfield]

Re: Buying and Selling Fix-er-Uppers

I think it is better to sell a fixer-upper than it is to buy a fixer upper.

If you look at the restoration threads here on this forum . . . you get the sense that the cost to fix boats is more than they are worth. so, it is more a labor of love than it is a viable business.

 

[yabuoy]

Re: Buying and Selling Fix-er-Uppers

I think you would be better off restoring old cars and flipping them instead of old boats. Boats are a PITA

 

[oops!]

Re: Buying and Selling Fix-er-Uppers

i own a boat repair company.
i have also bought and sold boats for a profit.

you must KNOW the market. know what sells.....and what doesnt.

i have repaired several boats including 30 footers that have been totally sunk due to collision.

if you want to give away your labour......and take a chance on investing in the motor drive parts......you might make money...(a little)

there are many of really expencive boats that you could get for free,,,,and repair,,,,,and still go backwards on the deal.

your best bet is to take your skills and open a small boat repair shop.....that way you can make money off every job.

if your clients know that you do this as a retired hobby, and you are priced accordingly, and they are prepaired to wait for your time line.
you can do ok. (this also depends on the seasonal market) a southern area where the season is long is better than say being in canada where the season is 3-4 months.

in the example cited above by mygreen....the 18 footer with a trailer and a blown 4.3.
to replace that motor with a good rebuilt, say it needs mainifolds, and oh...say a starter......
that is 3k for a short block......300 for the starter and 500 for the mainifolds.....then you need plugs...oil....ect ect.
that is 5 k....before you pick up a wrench.
now, you have to repair the hull.....
then you have to clean and polish the boat so it can be sold.
you are now 7k into a boat.....unless its an '08 or better. you wont get 7k for it.

however, the same above boat, could be bought for 500 and the trailer sold for the same, now you are even.
then the drive could be sold for 500 and other misc parts for 300....
however, you have to dispose of the boat after that....its going to cost you 100 and 2 full days of hard labour to get rid of the boat by cutting it up and hauling it to the land fill.

on the above example....you might make 400 dollars off all your labour. and it would take you over a month to do from the time you pick it up, to the time you advertize and sell all the parts, cut the boat and haul it to the dump.

money can be made.....sometimes good money. but you really have to know what sells for how much....then you have to find the right candidate boat.

 

[Home Cookin']

Re: Buying and Selling Fix-er-Uppers

seems to me you could only do it if you value your time at 0 and your land costs at 0. Otherwise you will end up making less than minimum wage even if it seems like you made a $2000 profit. And if you give every tire-kicker a "sea trial", well, I just hope you like taking strangers for boat rides because you won't get paid for it.

Don't be fooled by prices posted in classifieds, craigslist, etc. no one knows what they really sell for but I can assure you it isn't higher! And you'll want to sell low for a quick sale.

As mentioned above, determine the boat style that moves in your area. Here, no one touches the I/O bowrider, but center consoles sell in a day. Could be different elsewhere. But--and this is a big but--you don't find many diamonds in the rough in the popular style b/c they sell too fast--if they ever get to the market. So you have to grab cheapies on the fly, and look them over when you get home. And be ready to dump them immediately.

If you spend a lot of time doing a real good job on an old generic boat, when you are finished, you will be selling an old generic boat, no matter what you did to it or how well. If it were cars, you'd restore a Buick Riviera but not a Ford Grenada. You want Boston Whalers, not Bayliners.

Speaking of home, how many hulks can you have at home without incurring the wrath of the wifey or neighbors, or the city? Are you going to move up to the business license/tax/zoning/insurance world?

My point is--do it for fun, but don't kid yourself that you are doing it for money.

 

[jigngrub]

Re: Buying and Selling Fix-er-Uppers

Buy in late fall or winter and sell in early spring and summer.

99% of the time, if a fiberglass boat has a rotten deck it will have rotten stringers and transom.

Buying, fixing, and selling aluminum boats would be a better bet.

 

[idonthaveaname]

Re: Buying and Selling Fix-er-Uppers

Good advice here!

I have built houses, restored houses, restored cars...street rods, restored boats. Of all of them I would say houses were the money maker. Flipping houses will earn you some money and not itch you up like boats. I love boats, and I enjoy restoring, but it is a hobby and nothing more. No illusions of grandeur in turning a profit. With house, you need a good handyman that can slay the job, or do it yourself, and some cheap real estate. Don't know where you are, but there's lots around these parts. You can also restore and rent them for income if you don't want to sell. Bottom line, it takes time, money, and lots o time with boats. My hat is off to the folks that do it all the time. Then again, some think I am crazy with what I do with cars, houses, etc.

Good luck with whatever you choose and enjoy retirement!!

 

[Woodonglass]

Re: Buying and Selling Fix-er-Uppers

Got a guy here in Okie land that restored a "Tinny". Really did a nice job. Looks like a brand new boat and trailer. Has about 100 hours in it and $1,500. Been trying for over 2 years to sell her for $3000 and no luck. Even if he did that's only $15 bucks and hour. Like everyone has said... Hobby and labor of love, not much else. Upholstery work, Paint, Gelcoat or Light Motor repairs might turn a Dollar.

 

[lakelover]

Re: Buying and Selling Fix-er-Uppers

it is more a labor of love than it is a viable business.

I think this says it all. I don't see any profit in your situation.

 

[Scott Danforth]

Re: Buying and Selling Fix-er-Uppers

I agree with most of the comments here. As I stated many times, to make a small fortune restoring boats, start with a large fortune.

if you want to make money on boats, you need to find that garage kept jewel that was part of an estate sale where the widow doesnt want it. then you may get a mechanically sound boat that just needs TLC. I also agree that tinnies with an outboard needing just a repaint and transom will net the best ROI. Fiberglass restoration is a labor of love. notibly if there is any rot, it will have spread everywhere.

 

[Davem3]

Re: Buying and Selling Fix-er-Uppers

i agree with everyone here.

to be here, and doing what we do, we have to love it, or be certifiably insane.

Motor work is a relatively easy, a friend from near me is retired and does that in his retirement, the best plan is buy in the fall for short dough, fix them during the winter, and sell high next spring????