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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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campinngal
post Sep 28 2009, 12:54 AM
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Thank you so much, particulary KCMOE for your valuable insights. Very much appreciated and a great place for me to start. Would love to hear from owners on KOA vs private. Am interested in a pricey KOA in a busy seasonal area and am wondering if it's worth it.
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kcmoedoe
post Sep 28 2009, 09:37 AM
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QUOTE(campinngal @ Sep 28 2009, 12:54 AM) *

Thank you so much, particulary KCMOE for your valuable insights. Very much appreciated and a great place for me to start. Would love to hear from owners on KOA vs private. Am interested in a pricey KOA in a busy seasonal area and am wondering if it's worth it.
KOA franchise agreements call for 10% franchise fee on all site rentals that are less than 1 year. There is also an upfront franchise fee. Contrary to some posts you read, there IS corporate good will value to KOA. How much is something you will have to research in the area your are looking at. You need to get an idea of the occupancy of similar quality parks in the area. Are they as full or even fuller than the KOA at any given time and priced similarly? If so, the KOA franchise is not adding value in the area. If the KOA does equal or more business, and supports a higher rate, then the franchise is adding value. KOA is very good at helping the franchisee maximize rental incomes. Their nationwide reservation system is an asset, and they have agreements with many RV rental companies that help drive traffic to their franchises. They also provide training and have a support staff to help the business move forward. All that being said, several park owners told me they were more comfortable having a recognized corporate name, they felt it gave them added credibility in the market. About an equal amount of owners felt they wanted to be completely free of any corporate yokes and wanted to do whatever they felt benefited their business and didn't want to feel like they were being watched. Therefore, I guess it is both a financial decision and an emotional one.
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Posts in this topic
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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