How do yacht leases work?
AMIkids uses a ‘Standard Lease with Option to Purchase.’ The lease term is three years, and we hold title to the yacht during the lease term. The lessee has an option to purchase the yacht at the end of the lease term. If the lessee exercises this option, we transfer the yacht to the lessee at the end of the lease term.
Initial downpayment
At the signing of the lease agreement, the lessee pays an initial amount of 35% of the total payments to be made under the lease. There are three components to the initial payment: a Short Term Lease Payment, an Option Fee and a Security Deposit.
Monthly payment
During the lease term, the lessee makes interest-free monthly lease payments of 1% of the total payment to be made under the lease. This will total 36% by the end of the lease term (1% per month for 36 months).
Option to Purchase
If the lessee exercises the option to purchase the yacht, then the purchase price at the end of the term is 29% of the total payments to be made under the lease.
Termination
At any time during the agreement, the lessee can terminate the lease by returning the yacht to us. The terms and conditions of the lease agreement may apply
How to Lease from AMIkids?
Agreement
Contact your yacht broker of choice and ask them to use the AMIkids “Agreement to enter into Lease” document, not the standard brokerage “Purchase & Sale Agreement” they usually use for selling vessels. A 10% deposit is required; your funds will be held in the broker’s escrow account. You will need to conduct your own due diligence survey.
Acceptance
After your due diligence, you will need to formally accept the vessel’s condition in writing. At this point, we will conduct a credit check through a credit bureau. We utilize a “True Operating Lease” to protect the integrity of the contribution and our assets. With approval, navigational limits may be changed.
Closing
Before we close, we will require that your vessel insurance shows AMIkids as loss payee & additional named insured. Upon executing the lease document, 35% of the total amount (less 10% held in escrow) is payable to AMIkids.
I believe in charity organizations where fundraising directly reaches the Mission. I choose AMIkids because they are the gold standard in Yacht Donations. AMIkids takes care of their donors and their boats; but most importantly, they go out of their way to help vulnerable youth become productive members of society.
In every instance, AMIkids has handled my clients’ donations professionally and with the donors’ best interests in mind. I recommend AMIkids and nobody else. With AMIkids, my clients come away with the great feeling that they have helped make a difference in troubled kids’ lives!
AMIkids is the go-to team for yacht donations. Their program is designed to follow strict protocol to protect the donor following current IRS guidelines all the while utilizing the donated proceeds for youth educational schooling throughout the country.
We always knew about AMIkids, but in 2019, I became involved in a transaction and took an interest in learning about the work various schools do. It struck me —supporting AMIkids is a way to pay back. I got involved in helping kids in rough environments make better choices and get on a better route to success. I was happy to be invited to join the board of trustees and help contribute in the ways that I can.
We have been fortunate to have a relationship with AMIkids over several years and to be a part of what they accomplish so well. AMIkids motivates the community to give back and, in doing so, provides children and adults alike opportunities to share, learn, give, and grow. We look forward to a lasting involvement with AMIkids!