Info on running a charter boat out of Cabo

[danbrandlin]

I was thinking of starting a charter boat service out of cabo and was wondering if anyone knew the rules and regulations, as well as the requirements for a captain's license down there. Any help would be appreciated.

[fishkillerbill]

Three words of advise-dont do it--there are many operations down there now-but if you must check with Pounder and a few others that have operations in Cabo and PV-good luck

[danbrandlin]

I agree with you on that. But i am not using any of my money on it. One of my good friends that made it big in the Insurance bussiness is thinking of buying a top end boat, and wants me to run it down there. I would mostly be using it for his clients. My friend needed a tax right off and I needed a reason to stop wearing slacks to work everyday.

[Saluki]

Originally Posted by danbrandlin

I agree with you on that. But i am not using any of my money on it. One of my good friends that made it big in the Insurance bussiness is thinking of buying a top end boat, and wants me to run it down there. I would mostly be using it for his clients. My friend needed a tax right off and I needed a reason to stop wearing slacks to work everyday.

I just got my insurance bill in the mail.

Thanks now I feel much better

[pascuale]

can i be your deckhand

[Captain CABO]

Lemme put it this way, unless you have some good connections, if your not a Mexican your gonna get jacked around like no other. Unless you can offer an exceptional deal to the customers, then your gonna have a lot of competition. You have the Picante fleet, the Solmar Fleet, the Pisces Fleet, Minervas Fleet, Gaviotas Fleet and many other fleets that have a pretty firm grip on the overall charter business down there. Your going to need to offer a boat that can go to the banks fast and get people fish without taking a huge chunk out of the wallet. The best person for advice on this issue is Phil Gentile, the owner of the Picante fleet. He will tell you what you really need to know.

Barrett

[jacampora]

I highly recommend that you speak with Phil or Steve at Picante... ask a lot of questions... dig deep before making any final decisions.

[danbrandlin]

Thanks for the info I think i will be heading down there next month and see what kind of information I can get.

[Pounder]

Cabo is a whole different ballgame, just by reading the opening it sounds like neither of you know a whole lot about operating in Mexico. Initial advice would be to have the boat down there and operate as a private yacht, forget any grand ideas about a charter biz. If after a year he thinks he may want to dabble in the charter business at least by then you may have made some contacts and are prepared to make a more educated choice. If he must, then do as Barrett suggests and go one step further. Buy a Cabo yacht from Phil's brokerage, avoid the taxes and have Phil set your boat up to charter from down there.

[danbrandlin]

Thanks for all the info. Drew do you know how i can get in contact with Phils Brokerage, I would like ot ask him some additional questions. I am not going to just jump in, I was just excited I got the oppertunity and trying to gather as much information as I can.

[Bullshipper]

You can set up a corporation in Mexico for about $1500, wholly owned, and it can hire mexican workers.
The corporation can buy the licences you need.
But if you work for the corporation, it has to sponsor you and get you an FM3 working permit, which is the equivellent of a green card for a foriegner in the states. This permit is for generally reserved for the husbands of mexican wives, or for professions or technicians with special training or experience, or for administrators that oversee a lot of mexican workers. Getting the permit is not a lock.
If you can't get the FM3 and work illegally as a tourist under a FMT permit, then the locals will probably report you to the Mexican migra, so this is a first step for you to consider as a milestone. Without the FM3, you are strickly an investor with no salary that can take money out after income taxes have been paid, and this may equate to $0 for you, instead of a salary.
You can work under the table, but this puts you and the investment at a higher risk.

Finally, Mexican captains do not make big bucks, and your salary will always be compared to theirs. This usually makes it difficult for americans to make out as well in Mexico as they would do in the states.

[Captain CABO]

Originally Posted by Bullshipper

Finally, Mexican captains do not make big bucks, and your salary will always be compared to theirs. This usually makes it difficult for americans to make out as well in Mexico as they would do in the states.

Picante pays their captains and deckhands $20 a day regardless of how much they bring in or how good they are. Antonio Romero, or "Niño" as we called him, had been in the Picante fleet for over 13 years and still got paid only $20 a day. I know that taking advice from a 17 year old is hard to do, but I do know that if you do decide to attempt to start up a charter operation, especially in Cabo, your in for many headaches. Another thing to consider is the initial costs just to get you started. Your gonna need permits, a slip (which is horribly expensive in Cabo), your going to have to add in fuel costs for every trip, and also be able to provide food and drinks for the customers. Depending on the boat you get, this could get very expensive. Also if you get a slip in Cabo, your committed for at least 6 months, and if for some reason you need to leave early, the Mexicans charge an insane amount of charges for the time left over.

In my opinion the most important thing that you need to do first is find a person who can take care of the boat. This person must know your intentions and must realize that YOU are the boss. If you can't fully trust the person, try to get another one that you can defiantly trust. Trust me on this one because we learned this the hard way in both Cabo and PV. The people that we thought that we trusted ended up using the boat without permission and stealing all the tackle they wanted.

The best thing to do is call either Phil Gentile or Steve Shiner for advice. They would recommend you to get a boat to join their charter payback program. Its a good program where they provide the boat with a captain and a deckhand and charter it as many days as you decide. They take really good care of the boat and you can trust them for the most part.

The number for Picante is:
Puerto Paraiso Local 39-A 16220 Canyon Hills Rd.
Cabo San Lucas, B.C.S. Chino Hills, CA 91709
Tel: (011-52-624) 143-2474 Tel: (714) 572-6693
Fax: (011-52-624) 143-5969 Fax: (714) 572-6695

Also try the website: Picante Bluewater Sportfishing - Home

Barrett