splitoakkennels
Maryland
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Joined: 06/30/2007
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I just thought about posting this here for some imput. My wife and I have thought of building or purchasing a campground/ resort. This weekend while looking for property the owner of a campground offered us to purchase his property.
This campground has 100 + sites most have water and electric some primitive. the property does have 2 dump stations but no sewer hook ups, we can install 30 to 50 site with full hook ups for minimal costs. the facility has 2 bath stations and one laundry, several rental cabins, a logde pavilions putt putt and a small pool. horsshoes bb court and shuffle board area. it also has several ponds and fishing with paddle boats and canoes all on 100 acres. the site is 30 minute from 2 different interstates but not too many immediate tourism spots except for national forests. there are two metro areas with in 2 hours in sevral different directions. We were offered what we thought was a too good to be deal for the property. We were thinking of turning the historic house into a fine restaurant on the grounds along with adding a 9 hole golf course. how does anyone feel about what I have described. We would also be adding wi-fi and probably 20 pull thru's as there are currently no pull thru's.
Thanks for the imput Jeff/
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twins89
Walworth, NY
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Joined: 07/10/2005
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good luck we need folks like you to keep the campgrounds from being sold off and having no place to go. sounds like you have some good ideas.
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Big Katuna
Deland, FL
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As an owner of a beachfront motel for ten years, I can tell you it is easy to make a small fortune in the tourist camping/motel business; just start with a large fortune.
If its so valuable and profitable why is he willing to sell it so cheap? 100 acres with waterfront cheap???
And you going to add 50 full hookup sites cheap?
In Florida, most counties charge a full impact fee PER CAMPSITE!!
Just like you were building a house.
Ask a lot of questions and talk to the Chamber of Commerce and the local zoning and building dept.
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smkettner
Southern California
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Joined: 03/21/2005
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What is the CAP rate? Gross multiplier? How are expenses in relation to revenue? If expenses are 50%+ of revenue(as I suspect they are) would it still make sense? Take the numbers to a commercial bank and see what debt they will carry.
If the cash price is pocket money then go have some fun. If you are leveraged and need this as your living then be careful of the cashflow.
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Earl E
Klamath Falls, Oregon
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Never buy potential. Ask to see his profit and loss and all financial records for the past five years. If he isn't making a decent profit and good living ask some hard questions about why. If he is not doing well there is a huge chance you won't either. To me it doesn't sound like a very good location. I've owned small businesses, never an RV park so I'm not expert, but you need a draw and you are saying there is none. National Forest's aren't going to do it.
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captain037
Montgomery, AL
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I agree that you need to look at his profit and loss sheet. That will tell you if you can make it work. The DW and I have been looking for an area to build an RV resort and can't find the right place. Personally I would be apprehensive about the one you described. We have been working with a professional consultant and his first rule is to have something to attract campers. It sounds to me like the only one that this place has is solitude. That might be fine for snowbirds if it's far enough south but what will you do the remainder of the year? His advice it to attract baby boomers if you want to succeed.
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Fordlover
Spring, Texas
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Keep in mind some of your purchase is buying an asset that is not likely to drop in value... the land. You should fully explore the possibility that the business will fail, and have a well thought out plan in the event that should happen, and with fuel costs, perhaps the current owner is concerned that his business will drop off in the future, and that is why he is cashing out.
Would you want the assets of the deal if the RV park itself fails?
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outdoorsman2007
In the Woods - Somewhere!
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30 minutes away from interstates? That means you will not get any transients either. Not much to attract campers - I don't think a restaurant will support the whole place. There is probably a reason it is such a good deal. There is also a reason the place doesn't have full hookups. The current owner probably can't afford it. Definitely ask for the profit and loss information - as well as average number of campers and average nights stayed. That will give you a percentage compared to the number of sites.
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javaseuf
Southern Cal
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I realize that there may be some people that want to get out of the campground ownershiop business but one has to ask if this business is so great to own, why is it for sale?
Expect hard work to make it go. 12-16 hour days aren't rare, they are more the "norm".
Staffing headaches, insurance, etc. will not be "a walk in the park".
I always look at these guys that are on late-night infomercials trying to sell their real estate get-rich-quick programs and wonder if you can get so rich from following the program, why are they on TV selling the program and not making their own millions in the real-estate market. Could it be that the real money is selling ideas and not in real-estate at all?
I love the one where the guy wants to sell you information on how to buy homes free and clear for less than $1000.00. Gee, don't ya' think that if these homes were available, HE would be buying them?
When and if you get the sellers P & L statement, be sure it is legitimate and not the "second" set of books he is keeping.
My father and I looked at purchasing a campground about 35 years ago. I am glad we didn't.
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