fractional ownership luxury yacht

Fractional Ownership of Luxurious Yachts

Own a luxurious private yacht, at a fraction of the cost, right-size your ownership.

If you only have time to enjoy your yacht part of the year, then why own it the whole year? Right-sizing your ownership to the portion you want to use dramatically reduces your purchase price, enables you to buy into a much bigger and more luxurious yacht, and eliminates wasted capital.

We have 1/4, 1/6 and 1/8th fractional ownership options available on magnificent yachts of varying sizes. You decide how much you want to own.

Only pay a down-payment

We offer financing of up to 80% of your share. Combine this with right-sized ownership and your purchase price could be as little as 2 ½ percent of the yacht’s value. Imagine the kind of yacht you suddenly can afford…

A ten million dollar yacht can be had for just a quarter million, and a million dollar yacht for just twenty-five thousand, while enjoying weeks on end at enchanting destinations.

Never pay anything else

Owning a yacht is expensive. Crew salaries, maintenance and mooring, insurance and repairs, it all adds up.

But yachts can be profitable too. By renting out your yacht—chartering as it’s called—you can generate a generous income. In fact, we make chartering your yacht so profitable it usually pays for all expenses, often even your loan payments. So other than your down-payment in most instances, you’ll never pay anything else to own your very own luxury yacht.

20% DOWN ON 1/8 OWNERSHIP = 2.5% OF THE YACHT'S VALUE AN $8M YACHT @ 2.5% = $200K A $1M YACHT @ 2.5% = $25K

In most instances your only expense is the down-payment all other expenses, including loan payments, are typically paid for by the charter revenue big yachts suddenly become very affordable, featured yachts.

Browse our selection of wow-worthy yachts in the most desirable destinations

MEDITERRANEAN IN SUMMER & CARIBBEAN IN WINTER

  2 shares left  , 2018 sunreef 60, 60ft | 4 staterooms | 3 crew.

Sunreef manufactures the most luxurious of sailing and motor catamarans, and this Sunreef 60 is no exception.

With four state rooms plus crew quarters for three, expect to set sail with the whole family in ultimate luxury. Your captain, chef and bosun are ready to welcome you onboard. 

$75,000 • 1/6 OWNERSHIP • INCLUDES 3 WKS ONBOARD PER YEAR

2016 leopard 58, 58ft | 4 staterooms | 2 crew.

Welcome aboard the tremendously spacious Leopard 58 sailing catamaran. She offers more living space than any other catamaran her size. Perfect for an extended adventure with friends and family.

$55,000 • 1/4 OWNERSHIP • INCLUDES 4 WKS ONBOARD PER YEAR

Sold - 2017 lagoon 620, 62ft | 4 staterooms | 2 crew.

This extravagant Lagoon 620 sailing catamaran has been fully optioned, plus custom additions such as underwater lighting and a tender lift.

Detailed with soft finishes throughout, she is one of a kind.

$55,000 • 1/6 OWNERSHIP • INCLUDES 3 WKS ONBOARD PER YEAR

Sold 2018 lagoon 560.

This very spacious Lagoon 560 sailing catamaran has been fully optioned, plus custom additions such as underwater lighting and a tender lift.

Finished in a beautiful dark wood, she oozes luxury.

$55,000 • 1/5 OWNERSHIP • INCLUDES 4 WKS ONBOARD PER YEAR

2024 sunreef 80, 80ft | 4 staterooms | 3 crew.

Sunreef manufactures the most luxurious of sailing and motor catamarans, and this Sunreef 80 is the most opulent yet.

With four state rooms including a massive master, plus crew quarters for three, expect to set sail with the whole family in ultimate luxury. Your captain, chef and bosun are ready to welcome you onboard.

$250,000 • 1/6 OWNERSHIP • INCLUDES 3 WKS ONBOARD PER YEAR

  sold  , 2019 sunreef 60, 60ft | 5 staterooms | 3 crew.

With five state rooms plus crew quarters for three, expect to set sail with the whole family in ultimate luxury. Your captain, chef and bosun are ready to welcome you onboard.

$85,000 • 1/6 OWNERSHIP • INCLUDES 3 WKS ONBOARD PER YEAR

You are buying a real asset. Your yacht gets titled to its own single-asset LLC, which you own, along with any other fractional owners. This means your investment is backed by a real asset, you can benefit from tax write-offs, and at the end of the management term when the yacht is sold, the proceeds are distributed to its owners.

We manage it

You own the yacht, not the headache. We take care of everything, from financing and insurance to crew training and trip planning. When you hear from us, it will be your concierge requesting your food and drink preferences to set the menu for your next trip.

Cheers to you, for buying a yacht the smart way.

Positively cash-flow positive

Owning the yacht without owning the expenses is only possible because of the income we generate on your behalf to pay for everything. Now…

Imagine you bought the whole yacht instead of a fraction, and yet you still only spend a few weeks a year on your private yacht. This opens up much more time to charter the yacht, making the revenue not only pay for all expenses, it becomes a cash-flowing asset.

Depending on the yacht, the cash-on-cash return can be as high as 70% annually.

Owners say it best

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Compass Articles

• February 17, 2024

Fractional Yacht Ownership: Everything You Need to Know

Thinking about getting into yachting but worried about the cost and hassle? There’s an option you might not have considered: fractional yacht ownership. This guide will explain what it is, how it works, and why it could be a great choice for you.

What is Fractional Yacht Ownership?

Fractional yacht ownership means you share the cost and access to a yacht with other people. Instead of buying a whole yacht by yourself (which can be pretty expensive and a lot to look after), you own a part of it. It’s like owning a slice of the pie. You get to enjoy the yacht for certain times of the year without dealing with all the headaches of full ownership.

• Saves Money : Sharing the costs means you spend less money but still get the luxury experience.
• Less Work for You : There’s a company that takes care of maintenance and everything else. You just show up and enjoy.
• More Options : You’re not stuck with one yacht or place. You can try different yachts and locations over time.

How Does It Work?

Fractional yacht ownership isn’t complicated. Here’s a quick rundown of how most people do it.

Choosing a Program

There are lots of different options out there, so you’ll want to find one that fits what you’re looking for in terms of yacht type, location, and how often you’d like to use it.

The Agreement

You and the other owners sign a contract that spells out everything important, like who gets the yacht when and who pays for what. This helps keep everyone on the same page.

Time to Sail

You book your time on the yacht based on the system the managing company sets up. It’s designed to be fair so everyone gets their turn without any fuss.

Why Consider Fractional Yacht Ownership?

Here are some of the big reasons people like fractional yacht ownership:

• It’s Affordable : You get the luxury yacht experience without the full cost.
• It’s Easy : The managing company handles the hard stuff. You enjoy the sail.
• You Have Choices : Try different yachts and visit different places without being tied down.
• Meet New People : You’ll be part of a community of yacht owners. Great for networking and making friends.

Is It Right for You?

If you love the idea of sailing on a yacht but don’t want to deal with all the expenses and hassle, fractional ownership could be perfect. It’s all about whether you want the perks of yacht life without the full commitment of owning one outright.

• Ideal for people who want to sail part-time.
• Great if you love trying new experiences and locations.

In the end, if getting onto the water in a hassle-free, cost-effective way sounds good to you, it might be worth looking into more. And if you’re looking for a trusted partner in your yacht ownership journey, Fly Yachts is here to help. We know the ins and outs of fractional ownership and can guide you through the process, making sure you find the right fit for your sailing dreams.

Fly Yachts offers everything for those interested in yachts, from buying and selling to planning a yacht trip. If you’re looking to buy a yacht, theirs  Yachts for Sale  page lists numerous luxury options. For custom yacht enthusiasts, the  Build a Yacht  page details how you can create your dream yacht. Sellers will find the  Sell Your Yacht  page helpful for navigating the sales process. For those dreaming of a yacht vacation, check out yacht rental choices on the  Yachts Charter  page and discover beautiful travel spots on the  Charter Destinations  page. Learn about Fly Yachts’ experience and services by visiting the  About Us  page. The  Compass Articles  page is great for reading up on yachting topics. Aviation fans might be interested in the luxury  Aircraft for Sale . For the latest yachting updates, swing by the  Gulfstream News  page. To get in touch or for more inquiries, the  Contact  page has all the details, or you can simply dive into their  Homepage  to see all that Fly Yachts has to offer.

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Fractional Yacht Ownership : Everything you Need to Know

Fractional yacht ownership is one of the way to own a yacht that might suit your needs.

For most people, owning a luxury yacht means the freedom to move whenever and wherever they want with maximum comfort. However, it is rare to be able to use it 100% of the time. There are options to counteract the time the boat is not is used, and one of the most profitable and comfortable is fractional ownership.

Shared yacht ownership may be for you. But do you know exactly what it means and entails?

Let’s review the pros and cons of this ownership method to assess whether this can suit you, or whether you should continue chartering yachts or owning one fully .

What is fractional yacht ownership?

Fractional boat ownership is exactly what it sounds like. It allows you to own a part of a yacht for usage time on board. You legally own a piece of it as an asset, and like a company share or a bond, you can sell or transfer it. 

People have been sharing boats through informal partnerships with friends or family members for eons. Fractional boat ownership is simply a formalization of these arrangements which offers you more legal protection in case of conflicts. 

Each owner pays an equity stake in the vessel depending on what percentage of the purchase they want. 

In return, each owner is allotted a set number of days they are allowed to use the boat each year proportionally to their investment. 

On top of the share, the owners have to pay an annual maintenance fee to the management company taking care of managing the calendar, crew, and maintenance of the boat throughout the year.

Fractional boat ownership is different from a time-share which only gives you the rights of property used for a certain amount of time. Once your time is over, your investment also is.

To help you to decide if fractional yacht ownership is right for you, here are the pros and cons you might consider.

The Pros of fractional yacht ownership

By sharing the purchase price, but also the operating and maintenance costs between the owners, fractional boat ownership lightens your investment considerably, allowing you to make serious savings. Financially, but not only.

Fractional boat ownership will also help you to save time on managing different aspects. Indeed, the management company will take care of it – from hiring a crew to coordinating maintenance, to managing the calendar among all owners, to deal with marinas. If you don’t use the yacht, the management company will help you to charter it.

When you use your time aboard, you are free to invite anyone you want. This kind of program is often located in an area, but with the majority of other owner’s agreements, you can cruise the boat in new locations.

If you no longer wish to own a fraction of the yacht, most fractional ownership agreements allow you to easily sell your fractional shares to someone else. Since this kind of program keeps the yachts well-maintained, the value of your share will not devalue so quickly and you’ll be able to more easily change boats than with full ownership.

Furthermore, some fractional ownership organizations maintain fleets that allow you to use a different yacht, enjoy another location, or make up for time lost because of weather or maintenance issues. 

The Cons of fractional yacht ownership

The main drawback of fractional yacht ownership is obviously that you have to share your boat with other owners

Some downsides include that even if you own a part of the yacht, you can’t do whatever you want with it. For example, You can’t personalize a fractionally owned yacht. In fact, you probably won’t have a say on the outfitting or the decoration at all.

You don’t have a lot of flexibility either to use your yacht whenever you want. The yacht isn’t at your disposal all the time and itineraries are planned in a way that you choose your slot in advance. Your last-minute getaways are therefore compromised. 

It also means that the boat might not be available for the particular dates you would like to use it. Read properly the agreement, as some of them allow first come – first served during the unscheduled time if no maintenance is required.

When it comes to moving the yacht, most of the owners have to agree on the destination, so you can be stuck with one area, which can be an issue if you are planning on moving a lot. To relocate your yacht for an extended period of time, you will usually need every owner’s approval. 

On the other hand, most owners may decide to move the boat to an area you don’t particularly like. If you were to charter a boat, you would simply pay a moving fee, but in this case, you are stuck!

Depending on the contract, it is possible that if the majority of the owners want to sell the ship, it can get sold out from under you. So read it carefully!

In fact, the main disadvantage of fractional yacht ownership lies in its name: you only own a portion of the yacht, which means you are not in full control of your property.

Is Fractional yacht ownership for you?

To know  if fractional boat ownership is for you or not, answer these different questions:

• Is it important for you to be in total control of your yacht?
• Do you have time and funds to deal with your yacht’s maintenance costs?
• Are you planning to sail in one area or to explore the world?
• Is having a customized yacht important to you?
• Are you flexible on dates?

Depending on your answers, fractional yacht ownership can be, or not a good option for you.  If you want to save on costs, if you are likely to use it several times throughout the year in one particular region, if you know which boat you want or if you want to invest in a yacht to charter it, then go for shared boat ownership.

For people who don’t want to deal with the hassles of single-ownership, it is also a solution to consider.

On the other hand, people who like changes, whether it’s to try out numerous yachts or to change regions often, are better off sticking with yacht chartering.

For those who don’t want to share and can’t stand the idea of being a co-owner, buying your boat is likely your best option if you can afford it. 

Keep in mind that most fractional yacht ownership programs concern large yachts, like superyachts and mega yachts which require crew. If you enjoy captaining your boat and your friends and family enjoy being the crew, you may lose that aspect of yachting in some way.

The costs of Fractional yacht ownership

You pay your share at the beginning to purchase your portion of the yacht. 

There are no traditional yacht ownership expenses in fractional ownership programs like dockage, moorings, insurance, or boat maintenance costs. But depending on the program you go for, either you will have to pay a certain amount every year to the management company or it will be covered by the charter revenues or a mix of both.

As an example, for a 63-foot yacht with four cabins, some programs offer the cost of the eighth share in the Mediterranean around $180,000 with annual costs for maintenance, crew, insurance, and anchorage around $24,000. Owners will be able to use the boat 4 weeks a year. Another management company offers a California program from $300,000 to $735,000 plus operating costs for quarter shares of vessels ranging from 52 to 82 feet. At this price, the four owners will each be able to use the boat 72 days a year.

The main regions in the world for fractional yacht ownership

Fractional yacht ownership can be done everywhere. 

Popular destinations include Europe, in particular, the Mediterranean and the Caribbean, especially the Bahamas.

Among the main regions in the US for fractional boat ownership, you have Miami and Fort Lauderdale, but also Cape Cod and Nantucket.

Some programs also offer Asian destinations mostly in Hong Kong, Thailand, and the rest of South-East Asia.

Read also : Sustainable Yachting: How is the Boat Industry Becoming more Eco-Friendly?

About to buy a yacht?

Were you thinking about Fractional Yacht Ownership? Our professionals will be happy to help you in your endeavors.

Fractional yacht ownership means that you legally own a portion of a yacht, along with co-owners. Therefore you are entitled to use the yacht based on your ownership agreement and must share revenues and costs with other owners.

It depends on your desires and your personality. If you like changes, try out a different yacht model every year and change frequently of destination, then go for yacht chartering. If, on the contrary, you have a crush on a yacht, want to start owning it at a lower cost, and avoid the management requirements, fractional boat ownership is ideal. Unlike chartering, fractional ownership means you can invite as many guests as deemed safe and as long as you have proper safety equipment on board.

The costs include the purchase price of your ownership share and yearly exploitation and maintenance fees to pay to your management company.

Hard to tell. This depends on your availability if you have time or not to take care of your boat, and your budget. If you don’t want to worry about the management aspects and only have a small budget to invest, go for fractional ownership. If you want to have perfect freedom, use your boat anytime and wherever you want, go for full ownership.

Yes, you can. As long as the share belongs to you, you can sell it whenever you want as long as the agreement doesn’t stipulate anything against it. Be aware that the other owners can also do so.

The most popular regions for fractional ownership are the Mediterranean and the Caribbean. But also, the US and some Asian areas.

You can buy a fraction, or a share, of a yacht. You will be the co-owner, or the fractional owner of the yacht and its cost will be spread among all owners.

Yes, fractional ownership and yacht sharing or even co-ownership are all synonyms. You still become the co-owner of a yacht regardless of how you decide to call it.

A yacht sharing program allows you to co-own a yacht, so that you spread its maintenance cost among all owners. It is also known as fractional ownership or co-ownership programs.

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All of the fun, at a fraction of the price..

Being on the ocean in your very own luxury yacht is an enchanting feeling, one of freedom from daily stresses and an indulgence in your own desires. Much like other recreations, however, boating comes with its share of preparation, continuous upkeep, and unexpected expenses that can sometimes hinder your plans. Chartering a yacht allows you to enjoy the boating lifestyle without the responsibilities, but the vessel has probably been used by many other guests and can be difficult to book. With SeaNet’s yacht sharing program, you can have all of the benefits of yacht ownership without all of the extra hassles.

Fractional yacht ownership is where several people all purchase shares of a yacht that is fully-managed, serviced, and maintained by a professional company, and each owner gets a set number of weeks to enjoy the luxury vessel as they wish. Being a part of a fractional yacht ownership program gives you all of the benefits of owning a yacht, without the hassles and headaches that come with being responsible for the upkeep of a boat. Your shares of the yacht can even be transferred or sold once you have decided to move on to a different program.

The team at SeaNet are pioneers in developing yacht sharing programs that work and have proven time and again to successfully meet our yacht owners’ needs through our unique, tailored system. The brands we have chosen to offer to you are among the finest vessels in the industry and feature the latest trends in style, comfort, and technology. If you’re interested in learning more about a personalized fractional owner program that fits your budget and lifestyle, please use our contact page, fill out the form, and one of our expert sales professionals will be in touch shortly to discuss options.

While there are many advantages to sharing ownership of a luxury yacht, the cost savings is certainly the primary reason that most boaters opt into our program. Many yacht owners only get to use their boat 5-8 weeks out of the year, so why carry the ongoing expenses of maintaining it? Below are a few of the main benefits of sharing a yacht through a SeaNet program instead of owning it outright:

• The entire ownership is turnkey and stress-free. Your yacht is clean and ready to cruise when you show up. When you’re done, there is no additional work required. We handle everything. • Any routine maintenance or repairs are completely covered, relieving you of the hassles of upkeep on your vessel. • Your yacht is professionally maintained by our team who has decades of combined experience. • Yachts that get used more and generally in better shape. If your vessel sits for long periods of time, systems and equipment begin to fail more frequently. • You never have to worry about managing a captain or crew, all of this is done for you. • Our complete yacht management service even includes provisioning, so your boat is fully stocked when it’s time to depart with your guests. • Your share in the yacht can be easily sold or transferred when you’re ready to move on.

Relatively new in the industry, fractional yacht ownership is quickly becoming a popular choice among boaters who want to experience the luxury lifestyle, without the high upfront and ongoing costs associated with being the sole owner of a vessel.

So what kind of yacht can you expect to buy into through a fractional ownership program? “SeaNet only offers the very best quality brands such as Benetti , Sunseeker, Absolute , and Van Dutch,” says Michael Costa, CEO and Founder of SeaNet. “All of our available yachts emphasize enjoyment on the water and total comfort. Whether sunbathing in a tropical destination or enjoying the 360-degree views from the flybridge, you will truly experience the luxury yachting lifestyle.”

New to our fleet of managed yachts available to you as a fractional owner is this stunning 2022 Absolute 62 FLY located in Newport Beach, California.

The new 62 FLY by the Italian luxury builder, Absolute Yachts, offers an inviting combination of performance, handling, exterior social areas, and interior comfort. Whether you are entertaining important guests for a night out under the stars, or cruising for several nights on an on-water vacation, the 62 FLY delivers in all aspects. There are four cabins on board, including a tremendously spacious and well-lit master suite, that all offer total comfort and plenty of storage. Enjoy the luxury yachting experience with SeaNet’s professional management services at a fraction of the cost with our exclusive yacht sharing program.

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The Monocle Advantage

• Monocle’s program is the only comprehensive Fractional Yacht Ownership program in existence today.
• We have the largest Fractional fleet available in the world.
• Our worldwide resources and fleet purchasing power save our owners time and money.
• The ability to “exchange” your time with other yachts around the world is available.
• Conscientious and complete management expertise since 1964.
• Our passion is to make your yacht ownership experience both affordable and enjoyable.

What does this mean to you?

• You no longer have to spend millions of dollars to enjoy the pride of ownership and the prestigious yachting lifestyle.
• We remove you from the daily frustrations and hassles incumbent with yacht ownership, allowing you total relaxation and enjoyment.
• Because of Monocle’s net pricing policy and fleet purchasing power, it is impossible for you to obtain or operate a yacht for less money than Monocle.
• Your cost per day, per person, is significantly less than a land-based resort vacation and, because you own the asset, you get the benefit of residuals when it sells.
• Monocle has made yacht ownership easy, affordable, and hassle free leaving you only four things to consider:
• What size yacht and how many staterooms do I want?
• How much money is in my budget?
• Where do I want to cruise?
• When can I go and who do I want to invite aboard?

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FRACTIONAL OWNERSHIP

Yachts Available for Fractional Ownership

Own the Lifestyle — At a Fraction of the Cost

The history behind fractional ownership is long, however it was not until the late 1980’s when Nefjets paved the way for fractional ownership in Jets that this concept really started making sense.

With the luxury of today’s technology, we can take advantage of the internet to easily handle all aspects of asset management including flexible scheduling.

The concept of fractional ownership is based on bringing like-minded individuals together to purchase large capital outlay assets, often with very high maintenance expenses, time consuming management responsibilities and sometimes high depreciation rates.

When proper systems are in place and expectations are set from the beginning, fractional ownership arrangements work out very nicely for the member.

Typical yacht owners only use around 20 days per year, and with this single share, you would have 60 days at your disposal.

Now consider taking all the headaches of typical yacht ownership out of the equation, such as: Hiring a captain and crew; paying port fees (except while traveling); handling taxes; keeping the yacht clean; and, making sure that all the subcontractors you hire are doing their jobs and not just taking your money.

Oh yeah, and did we forget about those high insurance premiums or minimal coverage requirements many owners are faced with?

One of the biggest perks to fractional ownership is the ability to get much more asset for the money.

When you consider you can now get a $2M, brand new, state-of-the-art Sunseeker 63′ yacht for the price of something less than quarter that price, (or approximately $450,000) you start to appreciate the ownership model.

Oil changes, tank cleanings, and the list goes on and on.

Forget about it! With fractional ownership, you will never have to deal with any of that, ever again!

Instead, you can live the luxury yachting life with the freedom you’ve been dreaming of. 

FRACTIONAL OWNERSHIP SHARES • AVAILABLE

2019 • 131' Sunseeker

(2) 33% shares available | $5M each

2003 • 100' Hatteras

 (2) 33% shares available | $1.2M

2024 • 98' Ocean Alexander

(1) 50% share available | $7.99M

2019 • 76' Sunseeker

(1) 20% share available | $950k

2022 • 35' Formula

(1) 50% share available | $265k

FRACTIONAL OWNERSHIP SHARES • SOLD

Head Office

850 Central Ave Suite 110 Naples, FL  34102

239.331.6868

[email protected]

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• Bill Charbonneau Founder & Principal
• Jacquie Charbonneau Director of Operations

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Yacht Share Network

Yacht Share Network – as featured in the Sunday Times – is the world’s largest yacht brokerage dedicated to co-owned yachts representing over 200 yachts in the best global boating hotspots.

We are purposefully not tied to any particular yacht brand as we recognise that our range of differing yachts from all the leading brands offers potential co-owners much more choice, which simultaneously translates to more competitive offerings.

HOW IT WORKS

Fractional yachting, jet share network, featured yachts, prestige 750 fly, sunseeker 88, riva 90 argo – monaco, pearl 62 – puerto portals – mallorca, pearl 95 – balearics & western med, azimut 26m grande, the world's largest yacht share brokerage.

We have 3 teenage lads, and they just didn’t want to come on holiday with us anymore. However, once there was a yacht on offer that suddenly changed. Now they love to come along and we have wonderful family times together. The boys are great company and we have created lots and lots of new family memories that will remain with us forever.

The yacht share idea always appealed to us, finding a professional and reliable syndicate was harder. I am happy to vouch for Yacht Share Network, they are truly the masters of the universe and make it work incredibly well.

Boating was never my dream however it was my husband Robert’s ultimate goal in life. Sharing meant we managed to achieve a of this and more with a fraction of the cost. We could still take the children skiing and do all the other things a busy family wants to do. When you see your 7 year old swimming in the sea and in the tender shouting faster whilst laughing and screaming you know that holidays are back to being magical. This has been the making of us as a family thank you so much.

I’ve known William for many years and he knew that our boat sat empty in Cannes for most of the time. He suggested we sell some shares instead of just burning cash on moorings and maintenance. Yacht Share Network took her into their fleet and we got ¾ of our capital back. Now we just have ¼ of the running costs, and don’t feel so guilty that we only use the boat about 6 weeks of the year.

I have to admit, I probably love boating more than my wife does so buying a boat was unlikely to ever happen. A boat share however… I got the boss to approve, and a happy wife is a happy life lol!

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The Ultimate Guide to Buying Your Dream Yacht

• July 14, 2024

Imagine cruising on crystal-clear waters with the horizon stretching endlessly before you. Owning a yacht isn't just about luxury; it's about freedom, adventure, and a lifestyle that many dream of. But how do you turn this dream into reality? This guide will walk you through every step of buying your dream yacht, from assessing your needs to making the purchase.

Understanding Your Yachting Needs

Assessing your lifestyle.

Before you even start looking at yachts, it's essential to understand what you need. Are you planning to sail solo, with family, or entertain guests? Do you envision short weekend trips or extended voyages? Your lifestyle will significantly influence the type and size of the yacht you should consider.

Defining Your Yacht Type

Yachts come in various types, each suited to different activities and preferences. Motor yachts offer speed and luxury, while sailing yachts provide a more authentic nautical experience. Catamarans offer stability and ample space, making them ideal for families. Think about what's most important to you.

Size Matters

The size of your yacht will impact not only your purchase price but also maintenance and operational costs. A larger yacht might offer more amenities and space, but it will also require a larger crew and incur higher expenses. Strike a balance between your desires and practical considerations.

Budgeting for Your Dream

Initial purchase costs.

Buying a yacht is a significant investment. Prices can range from a few hundred thousand dollars to several million. It's crucial to have a clear understanding of your budget and financing options. Many buyers opt for marine loans, which can make the purchase more manageable.

Ongoing Maintenance and Operational Costs

Owning a yacht involves ongoing costs beyond the initial purchase price. Maintenance, repairs, mooring fees, insurance, and crew salaries can add up. Create a detailed budget to ensure you're financially prepared for these recurring expenses.

Financing Options

Marine loans, leasing options, and even fractional ownership are popular financing choices. Each option has its pros and cons, so it's essential to research and choose the one that best fits your financial situation.

Researching and Choosing the Right Yacht

Starting your research.

Begin by browsing yacht listings online and visiting boat shows. These are excellent opportunities to see different models, compare features, and talk to industry experts. Also, you can look for a yacht manufacturer in Florida , or any state you may be located in. That way, you can see and tour different yachts, narrowing down your options.

New vs. Used Yachts

Deciding between a new or used yacht is a critical choice. New yachts come with the latest features and warranties but at a higher price. Used yachts can be more affordable but may require more maintenance. Inspecting and assessing the condition of a used yacht is crucial.

Working with Brokers

A yacht broker can be invaluable in guiding you through the buying process. They have industry knowledge and can help you find yachts that meet your criteria. Brokers also assist with negotiations, paperwork, and inspections, making the process smoother.

The Legal Side of Yachting

Understanding flagging.

Choosing where to register your yacht, known as flagging, has legal and tax implications. Some countries offer favorable regulations and tax benefits. Research the best options and consult with maritime lawyers to make an informed decision.

Insurance Considerations

Yacht insurance is essential to protect your investment. Policies vary widely, covering everything from theft and damage to liability and crew injuries. Work with an insurance agent who specializes in marine insurance to get the best coverage for your needs.

Navigating Maritime Laws

Yacht ownership comes with a set of legal responsibilities. Laws vary depending on where you sail and register your yacht. Familiarize yourself with international maritime laws, safety regulations, and customs procedures to avoid legal complications.

Making the Purchase

Negotiation tips.

Negotiating the price and terms of your yacht purchase is an art. Research comparable yachts to understand the market value, and don't be afraid to negotiate. Having a broker can help you secure a better deal and avoid common pitfalls.

Closing the Deal

Post-Purchase Considerations

Congratulations, you're now a yacht owner! But the process doesn't end here. Set up your maintenance schedule, finalize your insurance, and plan for any necessary upgrades or customizations. Joining a yachting club or community can also provide valuable support and networking opportunities.

Owning a yacht is a dream that represents freedom, adventure, and a unique lifestyle. By following this guide, you're well on your way to making an informed and confident purchase. Remember to assess your needs, budget wisely, and take your time during the research and buying process. Your dream yacht is more than a boat; it's a gateway to unforgettable experiences and lifelong memories. Happy sailing!

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How does fractional ownership work in real estate investing?

Fractional ownership is a real estate investing strategy involving multiple investors who own pieces of a single property. By pooling their resources, investors can get an ownership stake in properties they may not otherwise be able to afford.

Some people use fractional ownership to pool their money on an expensive piece of real estate, like a vacation home. A growing number of online platforms are also making it easier than ever to buy fractional real estate.

Is this ownership model for you? We’ll cover how fractional ownership works, the pros and cons, and how you can invest.

How fractional ownership works in real estate investing

Fractional property ownership is a way to get into real estate investing by buying a partial stake in a property, even one that may otherwise be out of reach.

The ownership model is nothing new. For example, if you and two friends bought a vacation home using a tenancy-in-common ownership structure where you’re each co-owners with a 33.33% stake, you’d all be fractional owners.

Technically, timeshares are a form of fractional ownership. But properties that are marketed as fractional real estate are often expensive vacation homes or resorts called private residence clubs. A management company usually handles the day-to-day issues that crop up, so you avoid many of the hassles that come with property ownership.

Meanwhile, you can build equity and earn rental income without making a large up-front down payment.

How the fractional ownership model works

Though there are several types of fractional ownership in real estate, here’s how the process of buying property and splitting it into fractional ownership interest typically works:

A sponsor creates a legal entity to buy real property, like a limited liability company (LLC) or a limited partnership.

The entity buys property and divides it into shares.

The entity sells property shares to individual investors.

Some people buy fractional real estate solely as an investment. If you buy a rental property, you can earn monthly rental income based on your share. If the property sells, you get a portion of the profits that corresponds with your investment. You’re also responsible for paying your share for maintenance, repairs, and other ongoing expenses.

With other fractional ownership arrangements, the primary benefit is usage rights to a property. For example, if you bought into a private residence club with nine other investors and you each owned equal shares, you’d probably be able to use the home for about five weeks a year.

A growing number of startups allow you to invest small amounts in individual properties solely for the potential capital gains and rental income. These platforms are similar to crowdfunding sites that allow multiple investors to pool their money to fund real estate projects.

For example, Jeff Bezos-backed Arrived buys single-family homes and vacation properties, then splits them into fractional shares and lists them on its marketplace. With a minimum investment of $100, you can earn dividends that are paid monthly, as well as capital gains if the property sells for a profit. Investors can also choose portfolios that consist of multiple homes instead of focusing on individual properties.

Another startup, Lofty, bills itself as an online marketplace. The platform lets property owners transfer ownership to an LLC via a quitclaim deed, though they’re required to maintain a 10% stake. Lofty lists the property and allows investors to buy shares. Investors can then collect rent based on their share of ownership. Lofty requires at least a $50 investment, made through digital tokens.

Fractional ownership vs. timeshares

There are key differences between traditional fractional ownership and timeshares .

Namely, who holds the deed. Fractional owners of a vacation property or second home get deeds and ownership for their share of the residence. With many timeshare purchases, you’re buying the right to a certain number of days’ use of the property, but the developer holds the deed. Timeshare owners typically don’t get an actual stake in the real estate.

However, some timeshares provide deeded ownership. For instance, if you’re allowed one week a year at a timeshare, you’d get a deed for 1/52nd ownership of the property under these models.

Often, the term “fractional ownership” is applied to higher-end properties and involves fewer owners than a timeshare. Because you’re sharing operating costs with fewer people, fractional ownership usually costs more than a timeshare.

Fractional ownership vs. condos

With fractional ownership, an entire property is divided into shares. Buying a condominium unit gives you full ownership of the interior of your unit, whereas you and other condo owners each own an interest in common areas.

A condo is a real estate asset that comes with all the rights and responsibilities of home ownership, including taxes and homeowners insurance.

Fractional ownership vs. REITs

REITs, or real estate investment trusts, are another way to invest in property without paying for the full costs of ownership. REITs are companies that invest in an array of income-producing properties. Many REITs are publicly traded on the stock market.

While fractional real estate investors own pieces of individual properties, REITs generally invest in commercial real estate, rather than single-family residences and vacation homes.

Yahoo Finance tip: Fractional ownership isn’t unique to real estate investments. Some people use similar ownership agreements for assets like private jets, yachts, RVs, or fine art.

Fractional real estate investing: Pros and cons

Before you toss your hard-earned money into fractional real estate, it’s important to weigh the pros and cons.

You can invest in real estate for less money than it would cost to buy an entire property. Some platforms allow you to buy fractional interests in properties with as little as $50 to $100 — similar to the way you can now buy fractional shares of stocks with many brokerage accounts. Even if you’re buying fractional ownership in a property that allows you usage, you can limit the amount of your investment.

Hassle-free real estate investing. A property management company typically handles issues like upkeep and repairs with fractional real estate. You can sit back and earn passive income through dividends or rent. You can also earn a share of the capital gains if the property sells for a profit.

Ownership rights plus use of the property. When you have fractional ownership of a vacation home, you may have the right to stay in the property for a few weeks each year or sell your allotted weeks to someone else.

You can diversify your real estate holdings. If you’re using a fractional investing platform, you can put small amounts into multiple properties to build a diversified real estate portfolio.

Less potential for big gains. Because you’re splitting ownership with other investors, you’ll have to split profits and rental income, as well.

Lack of control. Co-ownership means you won’t have full decision-making power on property management issues, including maintenance and budgets.

Management fees. In addition to paying property management fees, you’re on the hook for maintenance and repairs.

Difficult to finance. Many banks and credit unions won’t give you a mortgage for fractional ownership, so you may need to find a lender that specializes in this niche.

Ways to invest

There are several ways to invest directly or indirectly in fractional real estate, including:

Buy a house with friends or family members. You and your loved ones could go in on a home purchase and split the costs. Anecdotal evidence suggests that a growing number of first-time buyers are using this type of ownership to deal with housing affordability issues.

Buy a property that’s already split into shares. Buying a piece of a home or vacation property allows you to get a portion of rental income and sale profits.

Invest in REITs. Real estate investment trusts, or REITs, invest across many different income-generating properties. Most are publicly traded on stock exchanges, so you can buy shares using your brokerage account. Since you’re essentially investing in a stock, you won’t get use of a property by investing in a REIT. But you can often invest in tiny fractions of hundreds of properties by purchasing a single share.

Real estate investment platforms. Fractional ownership platforms allow you to invest in small portions of individual properties. Similarly, crowdfunding platforms allow you to become part investor in real estate projects.

Should you invest in fractional real estate?

Investing in fractional real estate isn’t for everyone. However, you might want to consider investing if:

You want consistent access to a vacation home but don’t want to pay for an entire property.

You’re seeking passive income.

You want to diversify your portfolio, but you have limited funds to invest in real estate .

There’s always a risk of losing money when you invest. A real estate investment can lose value if the housing market tanks or your local market encounters tough times.

Fractional ownership can come with additional risks because selling property can be difficult. Because you’re dealing with co-owners, there may be rules about selling your property. There’s also the risk that a potential buyer could have trouble getting financed to purchase your share.

Your returns in fractional investing will depend on a number of factors, including what size share of the property you own, whether you rent out the residence, the property’s appreciation and any fees you pay to a management company.

Let’s say you and nine other investors buy equal shares in a $1 million property, meaning each person contributed $100,000. If the property was worth $1.5 million a decade later, you could sell your share for $150,000.

But that doesn’t necessarily mean you earned a 50% return. You’d need to factor in the cost of things like property management fees and upkeep that you incurred over the years. On the flip side, your returns would likely be more than 50% if you’d rented out the property.

Is fractional real estate a good investment?

Fractional real estate could be a good investment if the property’s value appreciates over time, particularly if you use it for rental income. But as with any piece of real estate, poor market conditions or unforeseen maintenance issues could cause your investment to sour. Selling shares of fractional real estate can also be more complicated than selling a regular property.

Do banks finance fractional real estate?

It depends on the financial institution. Some banks finance fractional properties, while others don’t. But even if a lender offers fractional property loans, there may be stricter requirements compared to getting a mortgage on a primary home.

What are the disadvantages of fractional ownership?

One potential drawback is that you’ll have to share decision-making about things like decor, landscaping, and upkeep with multiple co-owners. You also may need to pay fees to a management company, which can chip away at your returns. Financing and selling fractional shares can also get complicated.

More From Forbes

Patrick mahomes’ private jet company has a new owner.

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Airshare, which counts Super Bowl champion Patrick Mahomes as its ambassador, has a new controlling ... [+] owner.

Move over, frequent private jet flyer Taylor Swift, and boyfriend Travis Kelce, tight end for the Super Bowl champion Kansas City Chiefs. In a deal announced this morning, Kansas City-based Kompass Kapital has taken a controlling stake in Airshare, which counts Kelce’s teammate and big game MVP Patrick Mahomes as its ambassador.

Last year, Airshare ranked as the ninth-largest fractional/charter operator in the U.S.

However, executives say not to expect changes beyond adding fuel to the Overland Park, Kansas-based flight provider's strategy of going upmarket and expanding its footprint nationwide.

That flight plan has been in place since CEO John Owen moved from CFO to the corner office in April 2018.

Curran Companies, which took a majority interest in what was then called Executive AirShare back in 2016, previous lead investor Dave Murfin and founder Bob Taylor, remain in the ownership mix.

Financial details were not announced. However, the Kompass Kapital website says the firm focuses on equity investments between $5 million and $50 million.

After rebranding in October 2018, Airshare exited its King Air and Embraer Phenom 100 fractional program. It instead focused on the larger and longer-range Phenom 300 light jet and, in 2021, added Bombardier's Challenger 3500, a super-midsize jet with the range to fly nonstop from the U.S. West Coast to Hawaii and from the Northeastern U.S. to the United Kingdom.

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Last summer, Airshare made news by buying the private jet management business from Wheels Up Experience.

Financial filings from Wheels Up later revealed that Airshare paid $19.1 million, including $13.2 million at closing.

Kompass Kapital and Managing Partner Bradley Berger are entering the private jet space, taking a ... [+] controlling stake in Overland Park, Kansas-based Airshare.

Owen says the current Airshare fleet includes 21 fractional aircraft with 14 Phenom 300s and seven Challengers.

It has orders and options for up to 40 of the super-midsize jets.

With the aircraft management contracts obtained from Wheels Up, it now has around 120 managed aircraft, 61 of which are available on the charter market.

The deal with the Delta Air Lines-backed private jet company pushed Airshare's management footprint nationwide.

Last year, it expanded its fractional customer footprint from mainly the Midwest to Florida and this year, it added Georgia and most of the Northeast to its primary service area.

It also added guaranteed availability to its Embark jet card.

For jet card and fractional customers, the expanded primary service area means they won't have to pay repositioning charges for flights that begin or end in those places.

Since John Owen moved into the CEO spot in 2018, Airshare has expanded nationally for aircraft ... [+] management and gone upmarket with its fractional share program, adding Bombardier's Challenger 3500 super-midsize jets.

For example, a shareowner can now fly from Dallas to Miami to New York and back to Dallas on separate itineraries without extra fees. Previously, there would have been a surcharge on the leg between Florida and New York.

Owen said Airshare was planning to seek investment to support its growth plans, but the deal with Kompass came together organically.

Kompass Managing Partner Bradley Berger says his company had already invested with several of Airshare's other owners in different ventures, although today’s deal is its entry into aviation.

"This is something we've been looking at for a long time. We started thinking about doing something like this a couple of years ago. We had been noodling around with it for a while and started getting serious about it. Then, the Wheels Up opportunity fell in our laps. We decided let's postpone this a little bit," Owen says, adding, "We did the Wheels Up acquisition almost a year ago. That's gone really well. It's almost fully integrated now. We started the conversations again with the idea of doing a full process. In those conversations, we got introduced to the folks over at Kompass. They're down the road from us. There's a lot of history between our ownership group and their ownership group, and even some of our executives and their executives."

Regarding the decision to enter the business aviation space, Berger says, "Our deal is we're always betting on the jockey. This was a great example of getting to know John and the great leadership he brings with his executive team and other key members of his management team. That was central to the core of why we made this investment. Then also, more importantly, we are partners with the Curran family and the Murfins in other deals…I think this makes five investments that we're in with them."

Berger says Kompass first became interested in the space after seeing growth driven by the Covid pandemic when UHNWs moved to private jets in record numbers.

The executives declined to discuss possible acquisitions. However, Berger says, "I think anything's possible. I do think that we will focus on what we have right now from a core perspective. Obviously, if there are changes in the marketplace, we can adapt and pivot. That being said, I think growing the fleet, especially the fractional side, is very important to us."

Owen says the emphasis on the change of controlling shareholders is continuity. "We have a new investor, but we also have the continuity of the people that have been here since day one and everybody in between. That makes it really easy for us as an executive team to not deviate from where we're trying to go."

Airshare’s exclusive financial advisor was Jefferies and Lathrop GPM served as legal counsel. Spencer Fane, LLP served as legal counsel to Kompass Kapital.

Airshare and Kompass join forces at a time when expenses from maintenance and parts to pilots and ground services have escalated , while competition for customers has sharpened. Although industry flying is around 30% ahead of 2019's pre-COVID levels, it has been falling from the 2021-22 peak, making it hard to hold rates as competition increases .

El Paso-based Jetvia , which is ranked 20th largest charter/fractional, launched a preowned fractional ownership program last week on its fleet of 19 Lear 60s. It is offering customers $100,000 in flight discounts through the end of July. Meanwhile two jet card sellers —Jets.com and OneFlight International—rolled out limited promotions with discounts of as much as 25% off published rates. Through the end of August, JetSet Group, another jet card broker, is selling a 10-hour card giving a free cabin category upgrade for your flights. Buyers of a large cabin Elite card save $36,000.

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U.S. Department of the Treasury

Remarks by under secretary for terrorism and financial intelligence brian nelson at beneficial ownership event with rep. joyce beatty (d-oh) in columbus, oh.

As Prepared for Delivery

Good afternoon. I would like to extend my thanks to Representative Beatty and her team for bringing us together today and thank you to everyone here for joining us. I would also like to thank you, Representative Beatty, for your comments during Secretary Yellen’s hearing last week.

I am Brian Nelson, Treasury’s Under Secretary for Terrorism and Financial Intelligence. My office is responsible for leading U.S. government efforts to counter illicit finance and using financial tools to respond to national security threats.

Illicit finance—and the serious crimes it enables around the world—is detrimental to American cities, towns, communities, families, and individuals. And its impact often hits close to home. 

In 2021, eight individuals were  sentenced to prison for laundering $44 million in drug proceeds to Mexico through local cell phone store front companies based here in Columbus. In addition to other narcotics—including 34 kilograms of heroin—the investigation and prosecution found 76 grams of fentanyl.

For context, the Drug Enforcement Administration estimates that 2 milligrams of fentanyl is a potentially lethal dose—meaning 76 grams of fentanyl could equate to as many as 38,000 potentially lethal doses. Far too many American families—including far too many here in Ohio—have been devastated by the opioid crisis, and we are committed to stopping narcotrafficking funds from flowing through our borders.

Illicit finance is also detrimental to law-abiding American businesses. Shell and front companies can disrupt fair business competition, making it harder for American small business owners to make a living. In March of this year, an individual was  sentenced to federal prison for using shell companies to defraud local Columbus businesses out of more than $10 million. The allegations highlighted that the individual used millions of embezzled dollars meant for legitimate business contracts to instead buy a $1.4 million yacht, a Mercedes-Benz valued at nearly $165,000, an amphibious plane, and luxury watches, among other items.

Stopping illicit finance is a whole-of-U.S. government effort, and the Treasury Department is no exception.  As part of the Biden-Harris Administration’s first-ever U.S. Strategy on Countering Corruption, we are prioritizing regulatory actions necessary to curb illicit finance by increasing transparency; protecting our economy and national security; and detecting and deterring serious crimes like narcotrafficking, fraud, terror financing, and corruption. We have been hard at work to close loopholes and make sure the U.S. financial system is not a welcome mat for kleptocrats, criminals, and U.S. adversaries seeking to exploit it.

I briefly spoke about the misuse of shell and front companies earlier in the context of cases here in Columbus. Opaque corporate structures are a favorite tool of criminals to launder, hide, and store dirty money in the United States. In order to support law enforcement, national security, and intelligence efforts to uncover this illicit activity, we are prioritizing effective implementation of the bipartisan Corporate Transparency Act.

The Corporate Transparency Act requires many companies doing business here in the United States to report some basic information to the Federal government about the real people who own or control them. Centralizing this information and making it available to law enforcement will help untangle complicated corporate structures, leading to fewer dead ends in investigations. I know Director Gacki is going to speak to this in more detail, but I want to emphasize this law’s importance in helping to hold bad actors accountable, from fraudsters and tax cheats to international weapons traffickers. 

America’s thriving business community is vital to our economy. As we prioritize these important national security imperatives, we have also considered business owners every step of the way to avoid introducing redundant regulations or unnecessary red tape into their day-to-day operations. We know that running a business is not easy, and we’ve taken into account feedback and comments about the potential burden of these new regulations. 

Further, our efforts to reduce potential business burden are rooted in extensive research. We continue to study and assess the national security risk environment, which allows us to tailor regulations to the most salient threats. In the spirit of transparency, these risk assessments are public: Most recently this year, we published our  Money Laundering, Terrorist Financing, and Proliferation Financing Risk Assessments , which highlight the significant illicit finance threats, vulnerabilities, and risks facing the United States.

In order to address these threats, we’re prioritizing a regulatory agenda that promotes transparency and closes loopholes. A key piece of this puzzle is protecting the U.S. housing market from abuse by bad actors that attempt to fly under the radar. Illicit actors often exploit American real estate, including here in Ohio, to launder or park the proceeds of corruption, drug trafficking, and other illicit activity. In fact, one  study estimates that at least $2.3 billion in illicit funds flowed through the U.S. real estate market from 2015 to 2020. 

This is especially concerning in the residential real estate market, given that many American neighborhoods are experiencing affordable housing crises. Earlier this year, consistent with our Congressional mandate under the Bank Secrecy Act, Treasury issued a proposal to help level the playing field for legitimate homebuyers and protect our housing market from distortion. This proposed rule would require more transparency for residential real estate transfers involving legal entities and trusts, which would support law enforcement as they investigate illicit activity. We are working expeditiously to publish a final rule.

This effort builds on years of data from our successful Geographic Targeting Order program—which has required similar transparency in certain jurisdictions—as well as extensive dialogue with the real estate industry, financial institutions, transparency groups, law enforcement, Congress, intergovernmental partners, and other key stakeholders in this effort. 

Similarly, we continue to diligently track illicit finance risks in the commercial real estate sector and evaluate options to increase transparency. 

Also earlier this year, Treasury published a regulatory proposal to help protect the investment adviser sector from abuse. Broadly, this proposal aims to standardize obligations across the sector that would require investment advisers to maintain programs to counter money laundering and terror financing, which help to detect and deter illicit finance. Our proposal addresses gaps and  vulnerabilities that, for example, risk allowing Chinese state actors to quietly gain access to sensitive and emerging U.S. technologies by investing in early-stage companies, putting American innovation and legitimate investors at a disadvantage. 

In tandem with this regulatory proposal, we published a  risk assessment specific to the investment adviser sector that makes public our findings from years of closely studying national security, money laundering, and terror financing risks present in the industry. Our goal in making this information public is to support governments and the private sector in managing risk, addressing threats, and detecting and deterring illicit financial activity.  We are also working quickly to publish a final rule.

As we work to implement the Corporate Transparency Act and finalize our regulatory proposals, we continue our dialogue with business owners, industry professionals, transparency groups, members of Congress, interagency experts, law enforcement, and other key stakeholders about how we can streamline processes and provide clarity.  

This is truly a collective effort, and we cannot do it alone. Together with your partnership, we can stop bad actors from disadvantaging law-abiding small businesses, abusing our financial system, and putting our national security at risk.

And we are doing so in a global context. I mentioned earlier that the Biden-Harris Administration’s Strategy on Countering Corruption created a roadmap for many of our current priorities. But our objectives don’t exist in a vacuum. Because money knows no borders, we continue to engage with our counterparts around the world to set standards and best practices for fighting illicit finance and to eliminate havens for dirty money. As the world’s largest economy, we have a unique responsibility to uphold these standards and lead by example.

I know we have a lot to discuss today, so I’ll turn it over to Director Andrea Gacki, who leads the Financial Crimes Enforcement Network, or FinCEN. Thanks again for joining us, and I look forward to the conversation.