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> Help With Down Payment
donnio
post Jul 7 2013, 03:09 PM
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I'm new here and I hope I'm posting this in the right place. I am looking at a campground to purchase but don't have money for the down payment. The camp has 640 privately owned site and 64 rental sites .annual maintance fee are around 1000. Can you offer a deal like. 10000 dollars for a life time of 300 dollar maintace fee ? Or 5000 and your fee will never go over 500? The most I would have to sell is 60. I know I would have to have a lawyer draw it up but my question is has anyone done this?
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Lindsay Richards
post Jul 8 2013, 07:17 AM
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My recommendation is if you don't have the down payment, don't buy it. Banks require it for a reason. When we sold our business, we had tons of people who wanted to buy without a down payment. We refused as it didn't demonstrate a personal commitment necessary to succeed. Not to be mean, but just truthful. That is a huge place. Start with something smaller and figure on a 20% down. If your plan failed, then all those people would be on the hook.


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pianotuna
post Jul 8 2013, 08:23 AM
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Hi,

Not only do you need a down payment, you need enough cash on had to run for two years.


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kcmoedoe
post Jul 8 2013, 09:12 AM
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Forgive me for being blunt, but forget about this. You have absolutely NO chance of getting this project financed without 25% cash down payment (and much more likely 1/3 to 1/2 down), additional contingency funds, experience running a business and a stellar credit history.
Your plan is filled with almost insurmountable hurdles. First, since the sites are owned by others, you cannot finance that ground. Is there sufficent collateral value in the remaining land to collateralize the loan? Maybe some people would agree to your pay up front plan, but how many would put up the money in advance of you owning the park and being able to offer those reduced yearly fees? How are you going to operate going forward now that your $1000 per year maintance fees are severely reduced? While $600K sounds like a whole lot of money, you are going to have to pay a whole lot of expenses out of that money including labor, repairs, common utilities, capital re-investment and pay the loan. Plus our experience $1000 a year per RV site wouldn't pencil out on any RV park we have ever financed.
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dalsgal
post Jul 8 2013, 06:20 PM
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I agree with the others. If you don't have money for a down payment and lots more to keep the place going for several months you don't need to be even considering this purchase.

If you are having to finance the park and finance the down payment also you are trying to get in over your head. I can't imagine any bank being willing to loan you money in those circumstances. Even if the park brings in good money with the current owner that doesn't mean that with your management, the economy and other circumstances that it will continue to be a moneymaker.

I also doubt anyone with an RV would be willing to bite on your deal since you are an unproven park owner.
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Galli
post Aug 10 2013, 10:07 PM
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QUOTE(donnio @ Jul 7 2013, 02:09 PM) *

I'm new here and I hope I'm posting this in the right place. I am looking at a campground to purchase but don't have money for the down payment. The camp has 640 privately owned site and 64 rental sites .annual maintance fee are around 1000. Can you offer a deal like. 10000 dollars for a life time of 300 dollar maintace fee ? Or 5000 and your fee will never go over 500? The most I would have to sell is 60. I know I would have to have a lawyer draw it up but my question is has anyone done this?

I am sorry Donino, I might ruffle some feathers in this forum but I don’t believe in those deals. sad.gif
You are investing money with no return, yes, you have a space at the camp site and if you don’t like it ? ohmy.gif try to sale and you will find out how hard it is.; ph34r.gif second, if the campground owner goes belly up or sales the facility and you are not happy with a new owner what happens to your deal ? sad.gif
I spoke with several people and very few are still happy after a whole.
One other point to consider, if you plan to use an RV or MH is to go around and visit but with a contract, you are scheduled to go there EVERY SINGLE TIME whether you like it or not .
Sorry to disappoint you but I suggest to keep a control of your money. cool.gif
If I may provide you with a suggestion…RENT.. the space annually, first you can leave your unit there and go back every time you wish, you may rent your trailer and space, if you are not there, you may rent it and make some money and if you are not happy after a while, well, you only have to stay there until your lease is over.
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