Yacht Financing Strategy
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A story about how billionaires approach expensive purchases like yachts, using tax benefits and financing to make them cash flow positive.
"I have a friend who's buying a $30 million yacht right now and he found a way for it to give him a $30 million write-off. He's going to charter it out for a bit, but he saves more money on taxes than all he's spending on the yacht. His bank will finance 80% of the yacht - he's only putting 20% down. So it's net-net cash flow positive for him to buy the yacht. The operational costs are offset largely by the charter.
People do this with airplanes too. I did this with my airplane - I had a bigger write-off from buying the airplane than what I put down in cash to buy it."
Jess Mah
Founder of Indinero, a company providing financial services and tools for businesses. Jess Mah built her first 6-figure business while still in middle school and has since co-founded 10+ companies that are collectively valued at over a billion dollars. Today, she oversees Mahway which is her investment company that supports the companies she has either co-founded or acquired. Mahway has 20 full-time professionals and is headquartered in Los Angeles.