For those who don’t want to rough it in a tent, an RV is the way to go. You can find RV parks and campgrounds in prime locations and vacation spots right around the country. If you’re thinking of buying an RV park, either to manage yourself or as an investment, there are several things you need to consider before signing the contract. Show
How can I finance the purchase of an RV park?Finance the purchase of an RV park with a commercial loan secured by the property. However, as these properties are generally seen as specialized security, some lenders may classify them as high-risk investments. That means higher down payments of 25% to 30% of the property’s value. If you’re buying a lower-cost RV park and want to pay for it completely up front, you may be able to use an unsecured, fixed-term business loan. Lenders often require that you provide evidence of your financial situation, details of your relevant management experience and a business plan that shows revenue and cash flow forecasts. If you have existing RV parks in your business portfolio, your chances of approval will likely be higher. Your accountant can help you draw up comprehensive business statements that could help improve your chance of approval and get you a decent rate. Business loans to consider when buying an RV parkHow much does it cost to buy an RV park?What you’ll pay for an RV park or campground varies and can depend on if you buy both the land and the business, buy the business and lease the land or buy the land and start the business from the ground up. Generally speaking, small RV parks in less popular areas could cost as little as $300,000 while the most successful RV parks can cost over $1 million to purchase. Other considerations may include:
This is far from an exhaustive list. Accurately valuing a business is complicated. Beyond the purchase price of the property and business, determine if you need money for immediate improvements and repairs. With this in mind, consult with your accountant or business advisor to determine a fair price for your RV park. What business factors should I consider when buying an RV park?An RV park is a big investment that takes time, so consider these factors before making your purchase:
How can I make sure the business is worth buying?If you’re buying an RV park that’s up and running, it could make it that much easier when transitioning owners. But before you decide if it’s a worthwhile purchase, dig into its finances. Consider these points when evaluating a business’s worth:
Bottom lineBuying a campground or RV park can be a solid way to earn a steady income and own a business, but because of the different regulations across states and within counties, you may have a hard time pinning down the right property. Once you’ve built up your savings for a down payment and found a business you want to buy or the land you want to use, you can find a business loan to finance your purchase. Interested in purchasing a different type of business? Check our guide on business loans to buy an existing business. Frequently asked questionsHow can I finance improvements to my property? When you own an RV park, you’ll have to maintain the parking slips, restrooms, common areas and main office. If these aren’t in the best shape or need to be renovated, a business line of credit may be useful. What interest-free repayment options are available? Some lenders offer a period interest-only repayments on commercial property loans. The length of this agreement varies by lender. How long does it take to get an RV park appraised? The appraisal process can take between two to three weeks. Alex Jeffs is the senior publisher for personal, car and business finance at Finder. He has been building websites since he was 14 years old and has tested cars everywhere from race tracks to Oodnadatta. More guides on Finder
How do you finance a campsite?Visit with an official SBA or USDA participating lender to determine your business' eligibility. In many instances, these federal loan programs offer financing with down payment requirements half of traditional bank financing. Also, most conventional bank loans are short-term with maturities less than five years.
How profitable is owning a campground?In North America, the campground franchise can make 80% of its annual returns over only three months. This period is usually between June throughout August. The campground business is very lucrative, but only if you do it right. Owning a campground or RV park is not for everyone.
How do I start a campground business?How to Start a Campground or RV Park. Pinpoint what kind of park you want to open. ... . Create a Business Plan. ... . Secure a loan if needed. ... . Research the region. ... . Get the permits. ... . Build relationships with your community. ... . Create a website and find software. ... . Marketing.. Is buying a campsite a good investment?Generally, RV parks offer a higher ROI than most other types of commercial properties. According to most sources, you can expect anywhere from a 10% to 20% return on your initial RV park investment.
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