Thursday, April 8, 2010

RV Park Investment : An enlightening blog post

Sheri and I sometimes think about owning an RV park. We've played with the financials, our own spreadsheets as well as friends who've been doing land development. We've even spoke to a small handful of park owners. We believe it is a viable business.

However, by visiting with the developers, we have learned that simply working in the planning with the local authorities, putting in septic, water, and electric, as well as roads is a non-trivial task. Add in the conundrum that RV parks are businesses but banks see them as land deals, and well, you have a difficult formula.

I found this on the web today which looks like a real cautionary tale about being careful when investing in an RV park.

I think of a checklist of basics - by no way complete - that cannot be ignored :
* Your spouse is the only partner that matters.
* Try NOT to involve family.
* Try NOT to involve partners.
* Make sure you have a complete plan for development and planning.
* Make sure you have money.

One small footnote. When we spoke to other RV park owners, particularly very experienced ones, we found that they simply OUTSOURCED something so simple as the coin operated laundry. Yes, they may have left money on the table, but at the same time, they could offer the service to someone who is in the business.

Anyway, I hope this is helpful for anyone interested in this type of investment.

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