buying campground

dieharder wrote:
http://www.rvparkstore.com/rv-parks-for-sale

I just for giggles looked at this website. :)

OPer.....be wary of the ones in Quartzsite. A good lesson there is to REALLY investigate WHY they're up for sale. Quartzsite has some internal political brewhaha going on. One woman said her PRIVATE plot of land for her house has a utility bill of over $200. a month to pay for something the mayor signed them up for......and that's ONE sewer hookup!!!! Like a said REALLY research. :)

Unfortunately, most campgrounds that get sold are redeveloped for another purpose, such as residential or commercial property. Very few are sold from one owner to another as is. Many of the successful ones are handed down from generation to generation within a family. As someone said, you best bet may be a franchise-type organization like KOA.

Over the years I've often thought about buying a piece of property and developing it into a CG. However, the costs are prohibitive because of all the infrastructure and permit costs (especially related to water/sewer). It would take decades to recoup those costs, if ever. Plus you are starting from scratch trying to build a customer base.

There will be quite a lot of price variation in the parks you find for sale at places like RVParkStore.com and others. Beyond size and amenities of park, there are a couple of variables that you can use to understand the prices you see. The most important is, of course, location: Tourist areas command prices. Beyond that, look at whether the park caters to long-term workers (as opposed to tourist-only parks), whether it does most of its business with overnighters (as opposed to parks that do at least several days per guest), what its operating season is. Financially, ask plenty of questions, though keep in mind that the gross income is, for parks that include an owner's/manager's residence, often more revealing than the net income.

Once you do such an analysis, then you're also in a position to be able to spot the funky outliers, either those whose asking price is way too low or those whose asking price is way too high.

:)
Lynn

We want to make our own and not just buy someone else's dream. So either closed or run down is what we want.

jkhorner wrote:
We want to make our own and not just buy someone else's dream. So either closed or run down is what we want.

There are plenty of parks that are that are begging for a makeover. It's what I do, and it can be very profitable. Buying an existing and operating park allows you to have cash flow from the beginning. Unless you are really planning something exotic, you are going to want much of that existing customer base. It makes a lot of sense to find something that meets your structural needs (location, size, etc.) and then build from there.
Buying a loser or something already closed is going to be a financial struggle, starting with financing and continuing with low cash flow. Unless you have renovated a park or two, you probably have no idea how much it will really cost. There will always be hidden defects and much of it will have to be paid for out of pocket, you won't be getting loan after loan to cover all the unexpected repairs. Having cash flow from day one sure mitigates those added expenses.

jkhorner wrote:
We want to make our own and not just buy someone else's dream. So either closed or run down is what we want.

If you really want to follow your own dream, why are you looking to buy someone else's failed dream? Why not start from scratch in that case?

Best of luck to you. Hope it works out.

Personally, I wouldn't want someone else's run down junk. It's not only the stuff you see above ground that would need updating, what garbage will you find underground? Bad wiring... broken/outdated sewer system... you just don't know.

Better have cash offer and another 25% to get it running.

jkhorner wrote:
We want to make our own and not just buy someone else's dream. So either closed or run down is what we want.

Run, don't walk from this idea.

They close or get run down because they aren't viable. You having a dream won't change that.

I wish you well if you go thru with it but for your sake hope you don't.

Just keep a couple of thoughts in your mind as you look. Everyone that's ever had a drink in a bar thinks they can run one. And buying any business that was always just fun for you, turns it into a 24-7-365 job.