Forum Discussion

Neracoal's avatar
Neracoal
Explorer
Jul 08, 2013

Possible purchase thoughts

We have talked before about buying some kind of lakefront vacation resort. (motel,cabins on the beach sorta thing)

Well i found campground for sale for a very reasonable price. Its 26 acres, on 700' of river, 1000' road frontage on a popular hi way. It has 2 cabins, to park models, manager home, office,store bath house and 63 sites from primative to full 30amp and water sites.

It was closed 2 years ago after the owners ran it for 18 years. Not sure why it closed and is being sold. Maybe a estate thing.

the area is known for snowmobiles in the winter and vacationers in the summer. It is on a hi way that DOT says gets 1.4 mill cars per year past this location.

Would you be scared to reopen a closed campground? Do you think a campground has a viable income with 63 sites?

I would love opinions.
  • Successful businesses do not close. Audit the books.
  • Useless answer here. Totally depends on you. How much working capitol do you have? You are not going to walk in and turn on the lights and start up.
    River is nice, but do you have docks or a launch? Is there a draw in the area to bring people in? Is the place ADA compliant?
    Above all remember the old adage; Best way to ruin a hobby is to make it into a job!
  • It was built in 1972 and only got 2 "5s" in RVParkReviews....it says it was run down in 2011 and the sites were tight for larger rigs. IMHO, it sounds like a lot of work needs to be done before you will be able to turn a dime on this property.....Dennis
  • great thoughts.....i plan to do some digging this week. the asking price is 179,900

    thru pictures things look ok not great just okay and it was disclosed that the wiring was cut at each site. Thank goodness father in law is a electrician.

    i will be driving thru the park in 2 weeks if my research pans out at all.

    i never jump right in i would need to research it alot.
  • Give it a good think before you jump. The world is full of people that thought they could run a restaurant because they eat in restaurants.
    Go back and read the CG reviews on this forum. 10% "Boy. I loved this place" and 90% "I wouldn't stay in this dump again if it was free." True or not, you don't need that kind of advertising.
    Might be a good idea to ask RV park owners as you travel if they'd do it again, and how many hours they work each week. I bet its more than 80.
  • Monkey is dead on. If there are issues with the infrastucture, you could have a money pit instead of a viable business. Water and electric are important, but sewer is the key. If the septic needs updating, new laws may make it cost prohibitive. What condition are the building in? Renovating an office, the restrooms and other buildings can cost several hundred thousand dollars if you do it right. And don't forget it is going to be very hard to get financing for this park because it has no current financial statements or records. Personally, I wouldn't buy a park that wasn't operating and didn't have a track record. I want to have a good idea of my financial risks before I spend my money.
    Forget about snowmobile traffic if you want an RV park, keeping a park open in the frozen north is very difficult and not very profitable, hence why almost all RV parks in the north close for the winter.
    On the other hand, if the river and location is a good drawing card and you can buy it for the right price, you might find you have a diamond in the rough, but be very careful because if it turns out to not be viable, you won't be able to recoup your investment.
  • Just my 2cts after selling my farm after 20 yrs of cattle raising. Make sure it's not involved in any estate settlement/tax issues/liens first then take it from there. Good luck with your plans. :B
  • Depends on if you want to run this kind of operation. First question I'd ask is why did it close? If it has any kind of permit issues, or waste issues, or water issues ... be careful, as those kinds of repairs are expensive.

    1.3 million cars passing means nothing if none stop.

    I believe anyone that camps, RV's, and knows what Campers and RV'ers want and need, will make it happen. BUT, if you can cover your overhead for about five years after you make the purchase, you'll know then. I'd not expect it to produce much sooner than that, as people need to know about it, plan for it, and believe they will get a good experience at your campground.

    Think about how you would convince people to come ... that's a big one. And, once you convince 'em, make sure you tell/told 'em the truth. IF you offer WIFI, have it, if you offer CTV, have it, if you offer a camping rate, don't raise it after you get 'em there with nit-picking 'extras' ... if you have a dog rate, put it on the website.

    And, above all, SHOW REAL PHOTOS of your campground, all of it, don't just pick the cute parts, the mowed corner, and the only clean restroom/shower. Show the real facts - if you can't show the campground as it really looks, today, the day they rent the site, then it's not fair to the campers.

    Think about ONE thing and one thing only when you walk around your campground: At the rates you offer, would you personally come back, then ask, would I come back!
  • I think it would all depend. You will have to look at the numbers. Cost of buying it, cost of running it, taxes, insurance, marketing and etc. Is it in a place that there are things to do besides the river? Crunch the numbers and see what you would need to charge and then see what other comparable parks are charging. Also, what type of repairs/upgrades are going to be needed?