#

Pennsylvania

Steel City Jet Ski Rentals

About Documents
11%
$5,250 Funded
$50,000 Target
Closed Time Left
13 Investors
$50,000 Min. Raise
$100,000 Max. Raise
60 mo. Term Length
8.0% Interest Rate
Closed

Share

Gallery

 

Overview 

Steel City Jet Skis is the one and only jet ski rentals business in Pittsburgh and we offer a unique way to view the city of Pittsburgh from the water. We rent our brand new Yamaha waverunners out on an hourly basis out of Station Square. Our customers are a combination of people visiting Pittsburgh who want to see Pittsburgh from the water, to locals looking for a fun outdoor activity and unique experience in Pittsburgh.

We spent a lot of time building the systems right from the beginning to make our rentals a seamless experience for our customers. Beginning by investing in a quality website with live availability and booking functionality, we make it very easy for our customers to book a reservation to come check us out. We also offer online temporary PA Boaters certificates for those who don't have a PA boaters certificate, and built it on our website to allow our customers to complete everything in advance. Additionally, we worked to integrate a software that offers a dynamic pricing functionality so we can increase our occupancy rates and maximize revenue. This has allowed us to offer the jet ski experience to more people by offering discounts during non-peak hours and taking into consideration weather and demand. All of this has helped result in numerous fully booked days and over 1,000 happy customers in just two months!

We are raising $100,000 at an 8% interest rate, paid over a 60-month term! 

Pittsburgh's one and only jet ski rentals business!

 

The Project

Our business will have the reserves necessary to make this a sustainable business for the long haul. By building up both our fleet and our reserves, we will be able to put more customers on the water and help offer this experience to even more people.

Finding the funding for this business in such a short period of time (just two months) was a challenge for me. Most banks couldn't help out since I had just quit my day job and my airbnb business/ real estate cash flow was less than a year old. However, I was able to work with CNB bank to get all of the funding needed for the 8 jet skis, and was able to obtain a Line of Credit for my airbnb business to then use as the working capital for this business. I also largely relied on personal credit lines as working capital for the season so far. Now that we have proven the concept and have generated very strong revenue in just two months, I am offering this as an opportunity to bring in those in the community who are interested in the business to help build our reserves and refinance the debt appropriately. This will go a long ways in sustainability and bringing this business to it's full potential for many years to come.

  • Two more jet skis - $30,000
  • Working Capital & Debt Refinance - $70,000

Grab your friends and explore Pittsburgh like you never have before! 

 

Investment Perks

 $500   10% off promo code eligible to use 5 times throughout the season
 $10,000  $500 credit per season towards jet ski rentals

*Investment perks are eligible throughout the life of the loan.

 

History

This is our first season in business and we started it up in May. I got the idea last summer when I saw Steelers stud wide receiver, Juju Smith-Schuster, post a snap chat of him riding around on a jet ski downtown. I have always loved jet skis and thought that would be so fun to ride one in Pittsburgh, so I immediately looked up jet ski rentals in Pittsburgh. After being shocked that there wasn't anywhere offering jet ski rentals in Pittsburgh, I realized that would be an awesome business opportunity. I held onto the idea and finally in March of this year, I decided this had to be done and went to work.

Today, we have 8 top-notch Yamaha waverunners that we offer as rentals and are based downtown in the Station Square Marina. We have an awesome staff of 8 employees who help train our customers and give safety briefings prior to hopping on the water and are very knowledgeable on jet skis. Additionally, we work closely with Fred Lippa of Pittsburgh Watercraft, who has over 25 years of experience repairing and maintaining personal watercrafts. He has been a tremendous help this summer and we attribute much of our early success to him working with our team. 

 

Steel City Jet Skis opened in May of 2021 and has already booked 1,000 customers! 

Business

The Future

I see this as becoming a sustainable business for Pittsburgh as a go-to, fun, activity for people here in the city that enjoy being on the water. I also see the potential to expand into pontoon and boat rentals to become a one-stop shop for anyone looking to get on the water here in Pittsburgh next season.

My focus is strictly on perfecting the jet ski rentals at the moment, aiming to build up to 12 jet skis in our fleet for rentals, before expanding to other vessels. We have learned and grown so much in just two months that I am very confident we will continue to refine our systems and procedures to be sustainable for a long period of time.

 

The booming success of Steel City Jet Skis first season has proven the concept and the business model.

 

About the Owner

Jake Tovey

I am a 26 years old and grew up in Dallas, TX, but moved to Pittsburgh to attend the University of Pittsburgh 8 years ago where I triple majored in Finance, Supply Chain Management and Business Information Systems. I was also a member of the varsity swim team all four years before graduating in 2017.

Shortly after graduation, I got my first job in the corporate world related to my studies in undergrad at Pitt. I also soon began passionately studying real estate/ entrepreneurship as I realized that was the career path I was built for. In 2019, I purchased my first rental property, which lead to me starting an Airbnb/ Short Term Rentals business in March of 2020. I started this business in hopes of using that to replace my day job and take strides towards the kind of life I want to live. Six months later in October of 2020, I hit that goal by quitting my job and haven't looked back since.

Since I built systems around my real estate and airbnb business, neither were taking up too much of my time. I saw this jet ski business as an awesome opportunity to bring something fun to the city, have a ton of fun along the way, and decided to go for it. It certainly has been a ton of fun so far and it has been really cool seeing the community respond so positively in such a short period of time.

 

Steel City Jet Skis owner, Jake, is a two-time entrepreneur and business owner at just 26 years old!

Deal Summary

 Issuer

 Steel City Jet Ski Rentals LLC

 Doing Business As

 Steel City Jet Ski Rentals

 Security Type

 Secured Loan

 Loan Purpose

 Equipment, refinancing 

 Offering Amount

 $50,000 - $100,000

 Interest Rate

 8% annually

 Payments

 Monthly, disbursed to investors quarterly 

 Maturity

 6 months interest only, followed by 54 months fully amortizing 

 Personal Guaranty  

 Jake Tovey

 Security Interest

 Purchase money lien on equipment to be purchased

 Offered Portal 

 Honeycomb Portal LLC

 Offering Type

 Reg CF

 

Your Earnings Potential

If you choose to invest, you will make a one-time investment via ACH that will be transferred to a secure escrow account. If the campaign successfully reaches its target, the funds will be distributed to Steel City Jet Skis LLC.

For more information on the mechanics of Honeycomb’s crowd investing platform, please review our Education Materials.

 Investment Amount   One-Time Fee  Potential Quarterly Return:
Interest-Only Period*
 Potential Quarterly Return:
 Amortization Period* 
 Potential Total Repayment* 
 $100  $2.85  $2.00  $6.63  $123.41
 $500  $14.25  $10.00  $33.17  $617.04
 $1,000  $28.50  $20.00  $66.34  $1,234.07
 $5,000  $37.25  $100.00  $331.69  $6,170.35

Your ongoing responsibilities from investing are limited. Over the life of the loan, you will receive a yearly 1099-INT, which is a simple tax document similar to what you receive for most savings accounts.*Individual payments may vary slightly based on rounding. Potential repayments include principal and interest; they do not include the one-time fee which is assessed when you make your investment. These amounts are calculated as a hybrid interest-only + amortizing loan, which means that there is a specified interest-only period followed by an amortization period. There are no prepayment penalties and Steel City Jet Skis LLC may pay down their loan early, which may impact your earnings potential. Please note: returns are not guaranteed and investors could lose some or all of their investment.

Steel City Jet Skis LLC pays as agreed. You will receive quarterly payments directly into your bank account. In the event of a default, you will be contacted by the administrative agent to manage the collections process on the investors' behalf.

 

How Honeycomb is Compensated 

Honeycomb charges Steel City Jet Skis LLC a $250 posting fee and a 7.0 - 8.0% loan origination fee based on the total amount funded.

Additionally, to cover expenses associated with each investment, Honeycomb charges a 2.85% investment fee capped at $37.25 per investor.

Like what you see?  Check out our other campaigns here

View our
Offering Documents

Comments

Q & A

+ Will I receive anything in return for investing? Any type of discounts on rides or a certain amount of free rides every summer? Thanks for the info.

Hey Rachel!! Great question and thanks for your interest :) All of our investors will receive a 10% off code for jet ski rides that will be valid for up to 5 trips each season, and any investment over $10K will earn a $100 off coupon valid for each month of the season (i.e. $100 off a ride for May, June, July, August and September - So $500 in value each season). Feel free to reach out if you have any other questions at all! All the best! Jake

+ I’m interested in investing. If I’m reading this correctly, if I give $1000 I will be paid back $1200 in total over 60 months?

Hey Jeff! Thank you so much for your interest! That is correct! $1234.07 to be exact! Really appreciate your interest!! If you have any other questions feel free to reach out.