Lightstream loan question

Strecker25 said:
couldn't be any clearer there! Thanks for that link, so that's one downside to the unsecured route depending on the actual interest paid YoY and the tax situation of course.
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This is why I went the HELOC route. That said, with my 2nd to last boat, I did a 5 year Lightstream loan and wrote off the interest all 5 years. Uncle Sam never asked so...
 
Strecker25 said:
couldn't be any clearer there! Thanks for that link, so that's one downside to the unsecured route depending on the actual interest paid YoY and the tax situation of course.
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I don't know what he's trying to do with the charter thing but if he's setting up a legit business then interest expense is a legit deductible item. It wouldn't matter if it was mortgage interest or not.
 
Woody said:
I don't know what he's trying to do with the charter thing but if he's setting up a legit business then interest expense is a legit deductible item. It wouldn't matter if it was mortgage interest or not.
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In this case the whole boat is an expense, not just the interest, correct? M
 
spikedaddy99 said:
In this case the whole boat is an expense, not just the interest, correct? M
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Is it a boat private owned, sometimes used for business? Is it owned by the business but sometimes used for private use? How much use is business vs private? There are some 'it depends' when you get into this stuff.

I'm no expert on anything but I know this...there are accountants and tax experts out there that will play ignorant, they'll work with whatever is fed to them. Tax code is open to creativity and interpretation anyway, combine that with a tax guy that won't bother to steer you down a decent path and the results could get bad if audited.
 
Strecker25 said:
I used it for the 410. It’s an unsecured loan so cash into your account in less than 24 hours after approval. Best and easiest process I’ve ever used to borrow funds

from application to funded was less than 48 hours total.

no lien on the boat with these loans so you’ll retain title and/or documentation
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+1, same exact experience
 
mnm99 said:
Anyone use Lightstream? How does it work? Here's my deal. I currently have a small loan on my boat with USBank. I'm making double payments now and will be paid off in 2 years. 4.37%. If I start a Charter business my current loan provider won't allow me. I see Lightstream is at 6.7%. Not too worried about the extra interest. How does this loan work to re-fi the boat? No Lien? What do they use to insure the loan gets paid? No phone number to call either.
Thanks
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I got a small loan with them recently. They are personal loans (not asset backed, no lien). If you have good credit you should get loan. There web site works well I thought. If you default they will come after all your assets. Thats my two cents
 
exsailer said:
I got a small loan with them recently. They are personal loans (not asset backed, no lien). If you have good credit you should get loan. There web site works well I thought. If you default they will come after all your assets. Thats my two cents
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If I do it's small also. Credit is 824. My current loan is at 4.37% and looks like Lightstream is at 6.79% if I do 5 years, but right now I'm making double payments so that will be cut in half. The 3 year is 5.99%, but don't want to be locked in with a high payment if anything happens.
Current 4.375 = $1864 / interest / 4yr, 11mo left / extra payment = 2.7 years
5.99% = $2586 / 3 year / extra payment = 2.7 years
6.79% = $2972 / 5 year / extra payment = 2.7 years
To think about....3 year is a big payment if something ever happens, but other is a little higher interest. Can it be written off. I know it's a personal loan, but I could prove what it was used for. I don't know well see. The only reason I'm even thinking about this is because the current loan won't let me Charter. As for line of credit or HELOC. Long story, wife details...lol
 
It's me it always comes down to risk and what you're comfortable with. I hate debt, period. The debt I do have can be paid off at any time but my rates are so good I keep it. It's the banks money at this point. If it's me I'm staying with your current loan. You're probably paying very little interest on that one per month at this point so you may even want to cut back on the extra payments if you need the money. Another way of looking at it is is this charter that important to you.
 
mnm99 said:
If I do it's small also. Credit is 824. My current loan is at 4.37% and looks like Lightstream is at 6.79% if I do 5 years, but right now I'm making double payments so that will be cut in half. The 3 year is 5.99%, but don't want to be locked in with a high payment if anything happens.
Current 4.375 = $1864 / interest / 4yr, 11mo left / extra payment = 2.7 years
5.99% = $2586 / 3 year / extra payment = 2.7 years
6.79% = $2972 / 5 year / extra payment = 2.7 years
To think about....3 year is a big payment if something ever happens, but other is a little higher interest. Can it be written off. I know it's a personal loan, but I could prove what it was used for. I don't know well see. The only reason I'm even thinking about this is because the current loan won't let me Charter. As for line of credit or HELOC. Long story, wife details...lol
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Based on CS 824 you should be good. If it is a business the interest is 100% deductible. You may want do think about the exact type of business structure (sub s, schedule C etc) but that is above my pay grade. No matter what type, interest is a business expense
 
mnm99 said:
If I do it's small also. Credit is 824. My current loan is at 4.37% and looks like Lightstream is at 6.79% if I do 5 years, but right now I'm making double payments so that will be cut in half. The 3 year is 5.99%, but don't want to be locked in with a high payment if anything happens.
Current 4.375 = $1864 / interest / 4yr, 11mo left / extra payment = 2.7 years
5.99% = $2586 / 3 year / extra payment = 2.7 years
6.79% = $2972 / 5 year / extra payment = 2.7 years
To think about....3 year is a big payment if something ever happens, but other is a little higher interest. Can it be written off. I know it's a personal loan, but I could prove what it was used for. I don't know well see. The only reason I'm even thinking about this is because the current loan won't let me Charter. As for line of credit or HELOC. Long story, wife details...lol
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You're considering possibly taking out the loan for 6.79%. You're increasing the loan rate by 50%. Paying off faster doesn't change the interest rate, your still paying 6.79%. Nothing stops you from making a larger payment, you're even willing to do that at a much higher rate.

How about committing the equivalent to that 6.79% payment and your extra payments to the original 4.39% loan. You'll be making money and don't even have to take anyone fishing.;)
 
Woody said:
You're considering possibly taking out the loan for 6.79%. You're increasing the loan rate by 50%. Paying off faster doesn't change the interest rate, your still paying 6.79%. Nothing stops you from making a larger payment, you're even willing to do that at a much higher rate.

How about committing the equivalent to that 6.79% payment and your extra payments to the original 4.39% loan. You'll be making money and don't even have to take anyone fishing.;)
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I’m confused. Lol. Yes I will be paying more interest. I can’t keep my original loan if I decide to charter. What are you saying?
 
I think if I were setting up a charter business I would:

Setup an LLC for the business and let the LLC own the boat, pay all the expenses etc.
For personal use, charter the boat from the LLC just like any other customer.

I know that sounds complicated, but it really isn't. I don't think there is a way to do a legitimate charter business as a sole proprietor -- eventually something is going to happen, someone will stump a toe and sue or refuse to pay and when that happens you don't want to have any personal ownership in the business.
 
BillK2632 said:
I think if I were setting up a charter business I would:

Setup an LLC for the business and let the LLC own the boat, pay all the expenses etc.
For personal use, charter the boat from the LLC just like any other customer.

I know that sounds complicated, but it really isn't. I don't think there is a way to do a legitimate charter business as a sole proprietor -- eventually something is going to happen, someone will stump a toe and sue or refuse to pay and when that happens you don't want to have any personal ownership in the business.
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Yea plan is a LLC and charter insurance 2mil. have to change my documentation and get rid of the bank loan because they won't let me charter.
 
Good luck with it, I think once you get past the legalities of setting things up correctly it will be a fun little side hustle - or maybe the main hustle!
 
mnm99 said:
Yea plan is a LLC and charter insurance 2mil. have to change my documentation and get rid of the bank loan because they won't let me charter.
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Have you considered asking the bank to amend the loan agreement to change the definition of default? At one time a coworker brought some car loan agreements to me for review. I discovered in each that the definition of default included any damage to the collateral; i.e, if you damage the car you default on the loan. I proposed some alternative language that the bank accepted. Worth a try.
 
I haven't personally used Lightstream for boat loans, but I've heard good things about their service. As for how the loan works, I believe they will use the boat as collateral for the loan, so there will likely be a lien on it until the loan is paid off. As for insurance, I'd assume they'll require you to have some form of boat insurance to protect their investment. If you're unsure about refinancing with Lightstream, it might be worth considering consulting a financial expert or specialists like Mortgage Broker in Gloucester. They could provide you with more information on your options for refinancing your boat loan, and help you weigh the pros and cons of different lenders.
 
No liens. I used them to buy our old Sea Ray. No lien and I received the title shortly after. They do require you to do a direct payment or whatever you call it. they take their money from your account every month automatically. If you want to pay more it is very easy. Log on to their site and pick how much you want to pay. I think my payment was like $110/month but I paid $300/month on it. Just went into their site and changed the amount I wanted to pay.
The 'request' that you use the funds for what you told them but I guess you could blow it at the casino and they would never know.
 
I had a great experience with Lightstream. I originally did a balloon loan with my bank for my boat, after the allotted term the bank wanted me to refinance and the rate would have been like 11% because of the age of the boat.

I ended up getting a loan from LS for like $10K, funds were in my account the next day and I no longer had a lien on the boat. Interest at that time was like 4-5%. I paid it off in like 2 years. I would do it again but interest rates are much higher now.
 
+1 on LS. Super easy. I borrowed 100K for a short term bridge a few years ago. Money was in my account the next day. The rates are higher now but still a very easy process. No lien.
 
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