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campinngal
post Sep 25 2009, 09:46 PM
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My husband and I are considering purchasing a campground (or dude ranch). My husband has a steady job that he would give up. We are in our 40's. Am just beginning researching this idea and have purchased a book about buying, owning, managing, etc. Have several basic questions and was hoping to hear from campground owners. Hotel values have dropped ridiculously during the recession. My friend in commerical real estate has a resort that was assessed at 10 million, 2 years ago. It's current assessment is 1.5 million. Have the value of campgrounds dropped as well? He says that the standard right now when making an offer is to offer 20 to 30 cents on the dollar and that one cannot judge profits from the last few years in this economy. Thoughts on this (as it would apply to a campground offer)? Would a campground provide a decent living and/or retirement? If you were to have the choice of buying a campground or ranch today, would you do it? If so, would you go for a higher priced campground with a larger profit or a low priced campground with a smaller profit? A seasonal or year round? Both seem to offer the same percentage profit, it's just the numbers are different. Also, what are the benefits and/or pitfalls of going with a franchise (like KOA) vs. an independentally owned campground. Finally, if you can recommend any books, articles, websites, etc., it would be appreciated. Thank you so much. : )
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kcmoedoe
post Sep 27 2009, 07:43 PM
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I hope I haven't turned too many people off of purchasing a park. Speaking as a former bank executive, we had several parks in our portfolio. My experience was they all performed well, we never had a default. We limited our exposure to parks that were full time businesses. We had both owner/operator type operations and corporate parks. The profitability of parks rose over time as they were able to raise rates in response to rising costs, while their investment in the property was steady. Over time, several of the parks sold at a considerable profit to the owner, yet remained profitable to the new owner. Also, we had several that sold to developers for higher use conversions. Again, the investment turned a substantial profit to the park owner. We chose not to finance any park where the financials did not support the payments and provide a livable income to the owner. We were not interested in situations where the owner needed to supliment the income from the park to survive. As I stated in the other post, we required 25% down payments as a minimum. We also required the buyer to have financial reserves to allow for any repairs and allow the owner to carry the property through the off season. Among the reasons we favored RV parks were the fact that the clientel was not a function of ownership. There was little chance that the change in ownership would significantly effect sales. This is not always the case in service businesses. In many businesses, the owner may be the primary reason the business has customers (for example building trades, landscaping businesses, medical practices etc all rely on relationships whereas RV parks generally do not). Parks have substantial tax write offs, so much of the profits stay with ownership. They are good investments for hard working people, but they are not get rich quick or even get rich fair fast schemes. They also are not inexpensive to get started in. Individuals that financed with us, typically invested most of their life savings, usually $200,000 and up. Also, the people that bought parks talked as much or more about buying a lifestyle than they talked about all the money they were going to make. Good luck.
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campinngal   Considering Purchasing A Campground   Sep 25 2009, 09:46 PM
Lindsay Richards   BE CAREFUL   Sep 26 2009, 10:13 PM
kcmoedoe   You can make any offer you wish, but be prepared t...   Sep 27 2009, 11:05 AM
abbygolden   You can make any offer you wish, but be prepared ...   Sep 27 2009, 12:53 PM
rgatijnet   I would think that to some extend a campground is ...   Sep 27 2009, 11:38 AM
kcmoedoe   I would think that to some extend a campground is...   Sep 28 2009, 10:05 AM
Lee and Fran   I know of a park for sell in Utah and the price I ...   Sep 27 2009, 07:01 PM
kcmoedoe   I hope I haven't turned too many people off of...   Sep 27 2009, 07:43 PM
campinngal   Thank you so much, particulary KCMOE for your valu...   Sep 28 2009, 12:54 AM
kcmoedoe   Thank you so much, particulary KCMOE for your val...   Sep 28 2009, 09:37 AM
pogoil   My wife and I are in our 40s and 5 years ago we bo...   Sep 28 2009, 02:38 PM
Lindsay Richards   One thing you must remember in any small business ...   Sep 28 2009, 03:01 PM
kcmoedoe   One thing you must remember in any small business...   Sep 28 2009, 03:14 PM
Gunship Guy   What a great topic. The replies were all very inf...   Sep 28 2009, 09:02 PM
pogoil   What a great topic. The replies were all very in...   Sep 29 2009, 01:36 PM
coacbcps   What a great topic. The replies were all very in...   Sep 29 2009, 03:06 PM
campinngal   Pogoil, Thanks for your insights. Am curious if y...   Sep 29 2009, 10:08 PM
pogoil   Pogoil, Thanks for your insights. Am curious i...   Sep 30 2009, 12:14 PM
Lindsay Richards   Keep in mind that if you live on the property, man...   May 14 2012, 10:48 AM
wantacampground   I would like to revive this topic as I am currentl...   Jun 13 2012, 11:36 AM
kcmoedoe   I would like to revive this topic as I am current...   Jun 13 2012, 11:55 AM
wantacampground   Best place to start is www.rvparkstore.com Many ...   Jun 13 2012, 12:01 PM
kcmoedoe   Kcmoedoe - thank you for your reply. I have read ...   Jun 13 2012, 07:25 PM
wantacampground   I am not sure you will unearth a lot of hidden ge...   Jun 14 2012, 10:11 AM
Lindsay Richards   You might consider scheduling an appointment with ...   Jun 13 2012, 01:17 PM
wantacampground   You might consider scheduling an appointment with...   Jun 13 2012, 02:40 PM
Lindsay Richards   We bought an old house in the down town of a res...   Jun 14 2012, 12:25 PM
kcmoedoe   If you are willing to wade through a bunch of dead...   Jun 14 2012, 01:34 PM
SASMITH   wantacampground, Thanks for reviving this thread, ...   Aug 4 2012, 07:39 PM
wantacampground   wantacampground, Thanks for reviving this thread,...   Aug 15 2012, 02:21 PM
SASMITH   Sorry, been out for awhile. I think it would be gr...   Aug 15 2012, 09:01 PM
Lindsay Richards   We go by there on most trips as it is about 4 or 5...   Aug 4 2012, 07:52 PM
Lindsay Richards   I was going to college in Tampa from 1962 to 1966 ...   Aug 5 2012, 09:35 AM
Texasrvers   SASMITH, We are glad that you are a member of our...   Aug 5 2012, 11:36 AM
SASMITH   SASMITH, We are glad that you are a member of ou...   Aug 10 2012, 07:44 PM
Lindsay Richards   I think a fair price is about 5 to 6 times the gro...   Aug 15 2012, 09:24 PM
kcmoedoe   I think a fair price is about 5 to 6 times the gr...   Aug 16 2012, 09:17 AM


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