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RV Park under 50k updates! (It's a disaster)

elialane7
Explorer
Explorer
Ok so a year or two ago I posted about opening an RV park with two friends but was deeply concerned bc they had no real funding and no real plan of action. I omitted myself from the project because I was going abroad on a grant and lots of other reasons but I was still emotionally invested.

To summarize it, land is out in Southeast Texas, 9 Acres my friend wanted to build into an RV park with very little funding. With an influx of cash from his step father he was able to build a roadway and plot out some spaces. The money was given to him on the condition he include his half sister in some rights to the land.

Well as soon as he spent that money he made his sister sign some agreement saying he would START paying her back in three years in monthly payments (with some absurdly low interest rate) and that she no longer held any stake in the property. He also did this with my other friend who was helping to pay the mortgage for years. He arrogantly told them both "I am buying you out" and gave them no other choice.

So they left and he got with a new "business" partner, and she signed him up with some guy who was boasting that he was going to be building tiny homes out there and theyd parcel out the land and sell it, and with the money he got he would keep some of the land and build on it finally.

Well shocker, this guy was full of it and backed out of the deal after my "friend" spent like 10k making lots (just throwing a ton of rocks on squares he mapped out).

They THEN tried to coerce people to live on the land and pay them a monthly subscription fee. You had to bring your own RV, no plumbing mind you, they had portopotties they rented, and the rent was 450-700 a month depending lmao. The kicker was that in addition to getting to live in the middle of nowhere with no resources, you got to be "mentored" by these two in "business" of all things lmfao.

Yeah so that idea went nowhere and no one rented from them. Friend got desperate and sold his huge bus, like the kind bands use when they travel, to pay the mortgage.

Now the road he purchased is more just rocks thrown down, and now its being washed away by the rain and he cant afford to replace it.

He also got a few used storage containers, RAW, no flooring or ventilation or windows, and started living in one and trying to rent out the others! To "Artists" who want to use it as a studio. I cant imagine what its like in the texas heat and cold living in a storage container that is raw with no windows. He offered that for initially like 250 a month, then went down to 100, and still got a few takers but it seems they left after just a month or so.

Now he offers the place to campers too who want to pitch a tent during their travels. He is mostly getting a lot of drifters and nearly homeless people who come for a week or two and then move on.


So there ya have it. He is living in a storage container on raw land with a portopotty and a road that is washing away. He is also trying to sell his blog post stories about the land to subscribers who I guess pay him a few bucks for the privilege of hearing about what a mess this is. And you know, putting the money toward building it? I dont even know at this point. I am starting to think he might secretly have a drug problem that is making him lose touch with reality or something.

I honestly couldnt make this up if i tried. And no i still wont say where it is exactly bc I think someone from this forum would try to go reach out to them and reason with them. There is just no reasoning with crazy. Also he is 29 and still says he will be a millionaire by 30. I am so waiting for him to turn 30.
27 REPLIES 27

CFerguson
Explorer
Explorer
I've had lots of friends and family wanting me to finance their great business ideas. My first response is ALWAYS "show me your business plan and I will look it over". Their reaction is ALWAYS a blank stare.
The best part is that they never bother me again about it.

I hate that we have to have lawyers, but a good contract before a penny changes hands is worth a lot of good nights' sleeps.

TxGearhead
Explorer II
Explorer II
There are new small Mom & Pop RV "parks" all over Texas. There are pipelines and new refineries/chemical plants under construction. With the pipelines running across the state, the new RV parks spring up for the construction workers. In the case of the pipeliners, they will move "further down the line" with the pipeline. The refinery construction workers will be gone when their job is complete, unless they find another one.
So, there will likely be a lot of these RV parks for sale whenever the construction workers move on. But in the general Houston or Beaumont area there is so much construction it will be awhile.
Be careful buying into a deal that sounds too good.
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timmac
Explorer
Explorer
If you go to RV Parks for Sale on LoopNet you can find about 100 RV parks in Texas for sale, I even saw one for $95,000 with all the hookups but it was not in a great area, middle of no where, it would have been better to buy one ready to go for cheap than start a new one in the middle of no where..


Never invest with a friend or family, Never...

Roy_Lynne
Explorer
Explorer
I still think that it would be cool to open an RV park. But its location, location, location and while Southeast Texas could be great along the Gulf, middle of no where, not so much.

TxGearhead
Explorer II
Explorer II
I would be tempted to make a call to the county building permit/code enforcement office. There is no zoning but what is being used as habitations should conform to electrical and plumbing code before someone gets hurt, or worse.
2018 Ram 3500 CC LB DRW 4X4 Cummins Aisin Laramie Pearl White
2018 Landmark Oshkosh
2008 Bigfoot 25C9.4
2014 NauticStar 21 ShallowBay 150HP Yamaha
2016 GoDevil 18X44 35HP Surface Drive

wxtoad
Explorer
Explorer
I believe this guy contacted me back in June 2018, asking me to include his campground, Camp Space, in the database of the major camping website I manage. He provided very little information and after a bit of back-and-forth during which I asked about facilities, he did tell me: "We have one cargo container that is holding restrooms and management desk. We are going to put bedroom cargo containers as the business grows." Needless to say, I did not include it.
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valhalla360
Nomad III
Nomad III
HadEnough wrote:
valhalla360 wrote:
HadEnough wrote:
Other than his shady dealings, he did a great thing.

He gave it a shot in his 20's

This is what being an entrepreneur is all about. Not everything you do succeeds, but you learn an awful lot along the way and can apply it to your next business.

My first business failed because having 2 partners made it like driving a Class A on a small, twisting dirt path.

Once I reopened solo, I was doing great until 9/11 destroyed that business.

He'll do fine if he learns from these experiences.


This is not what being an entrepreneur is about. This is an idiot who abuses the relationships of friends and family.

Nothing in the story suggests he has learned from his mistakes. I've met people like this before...the most common take away they have is they would do fine but everyone is out to get them.


He's 29.


Yep, and this likely isn't the first time he's pulled something stupid like this. Nothing in the story suggests he's learned from his mistakes.
Tammy & Mike
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SDcampowneroper
Explorer
Explorer
Now might be the time for a real investor to pick it up for peanuts. That is if it has Location, Zoning, Access, Utilities, or reasonable ability to install them.
There are a thousand stories like this where land without a plan or finance ended up a success when transferred to the right people.

magnusfide
Explorer II
Explorer II
Aren't you glad you got out!
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bukhrn
Explorer III
Explorer III
"Ok so a year or two ago I posted about opening an RV park with two friends but was deeply concerned bc they had no real funding and no real plan of action. "

The first sentence of your OP told me where this was going, it is extremely rare (but not impossible)that someone goes into business with little to no funding & succeeds. The few that do actually have a plan at least.
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SidecarFlip
Explorer III
Explorer III
Thought about opening a campground on part of my farm acreage I already own, thought about it was all I did. When friends visit, I have sewer dump and electricity available for their RV's out back and we have friends dropping in all the time. I'm close to a lot of attractions and Detroit and Toledo, not in the middle of nowhere.

There is a KOA (Krudground of America) not to far from here that does a banner business and charges over the top rates.

Was food for thought especially with depressed crop prices.
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HadEnough
Explorer
Explorer
valhalla360 wrote:
HadEnough wrote:
Other than his shady dealings, he did a great thing.

He gave it a shot in his 20's

This is what being an entrepreneur is all about. Not everything you do succeeds, but you learn an awful lot along the way and can apply it to your next business.

My first business failed because having 2 partners made it like driving a Class A on a small, twisting dirt path.

Once I reopened solo, I was doing great until 9/11 destroyed that business.

He'll do fine if he learns from these experiences.


This is not what being an entrepreneur is about. This is an idiot who abuses the relationships of friends and family.

Nothing in the story suggests he has learned from his mistakes. I've met people like this before...the most common take away they have is they would do fine but everyone is out to get them.


He's 29.

valhalla360
Nomad III
Nomad III
HadEnough wrote:
Other than his shady dealings, he did a great thing.

He gave it a shot in his 20's

This is what being an entrepreneur is all about. Not everything you do succeeds, but you learn an awful lot along the way and can apply it to your next business.

My first business failed because having 2 partners made it like driving a Class A on a small, twisting dirt path.

Once I reopened solo, I was doing great until 9/11 destroyed that business.

He'll do fine if he learns from these experiences.


This is not what being an entrepreneur is about. This is an idiot who abuses the relationships of friends and family.

Nothing in the story suggests he has learned from his mistakes. I've met people like this before...the most common take away they have is they would do fine but everyone is out to get them.
Tammy & Mike
Ford F250 V10
2021 Gray Wolf
Gemini Catamaran 34'
Full Time spliting time between boat and RV

jamesu
Explorer
Explorer
Sounds like an old college buddy who had hair-brained schemes that never got him anywhere. I lost $200 in my 20โ€™s โ€œhelping him outโ€, but it was money well spent for me as I have been careful and have tried to always use my head since that experience.

I saw that old buddy recently (both in our late 60โ€™s now). He has had good jobs through the years, but he is still broke. Never had any money sense.
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