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Introducing The First and
Only
Book of Its Kind...
A 'Step-By-Step'
Book that Removes the
Guesswork and Frustration out
Of Buying, Selling, and Operating
RV Parks and Campgrounds
and it is... GUARANTEED!!!
RVParkStore.com Presents...
How to Buy, Sell, and
Operate RV Parks and Campgrounds
Written by Dave Reynolds, RVParkStore.com
March 26, 2007
130 Page E-Book
Available for Instant
Download!
For those of you who don't know me, my
name is Dave Reynolds. Over the past 10 years I have been involved in
many aspects of the RV Park and Campground Industry including:
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Purchasing, Operating, and Selling RV Parks and Campgrounds as an
investor
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Selling RV Parks and Campgrounds as a licensed broker
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Helping 1000's of buyers and sellers either buy or sell an RV Park or
Campground through RVParkStore.com
I do not know of anyone else that has been
involved in one capacity or another with as many RV Parks and
Campgrounds than I have been.
Here is a sample of what you will find inside:
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How I Started in the RV and
Campground Business
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Why you should or shouldn't invest
in an RV Park
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Over 15 ways to find RV Parks to
Purchase
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REAL Life Valuation Methods on how
to figure out what an RV Park or Campground is Worth to YOU (not
someone else).
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A list of over 50 Due Diligence
items - Would you like to save Hundreds of Thousands of Dollars by
not making key Mistakes?
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Powerful ways to Increase the Value
of your RV Park and Campground
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Information on
getting Financing and Insurance on your RV Park
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What to do
when the Seller of an RV Park is not reporting all of his income or
is padding the expenses with everything under the sun!
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Internet
Marketing for Campground Owners - I have spent well over $20,000 to
learn more on Internet Marketing and I will give you some powerful
strategies on using the information I have learned to apply it to RV
Parks.
This book is for: First-time
investors, Seasoned investors and any other Business Professionals in the
Recreational Vehicle Park and Campground Industry
Find out more about my new book and the Promotion
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Differences between buying a Mobile Home vs RV Park:
When considering the purchase of a
mobile home park as compared to an RV park there are many factors to
consider. While mobile home parks and RV parks are often sold by the
same brokers and are combined in one facility, they are not the same and
both require different amounts and types of management. The following
comparisons are for Overnight/Destination RV parks as compared to the
typical mobile home park in which the lots are rented out on a monthly
basis. In many cases, the seasonal or extended stay RV parks will have
more of the qualities of the typical mobile home park rather than those
of the Overnight/Destination type RV parks.
Length of Stay:
Mobile Home owners are in the park permanently or at least until they
sell their home and move somewhere else. RVer’s are in the park for
usually a week or less. The longer a home or resident stays in the
park, the more likely it will have the qualities of a mobile home park
and the less time a home or resident stays in the park, the more likely
it will resemble the operations of an RV park.
Management:
This is probably one of the most
significant differences between RV and mobile home parks. In most
cases, it takes less time and manpower to run a mobile home park than an
RV park. There are several factors for this:
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With a mobile home park, the manager
will typically see the residents of each space only once per month
when the rent is paid and anytime there is a problem. However, with
an RV Park you may have a new camper in the space every day or every
few days. You may have to acquaint them with the park, the
facilities, and in many cases the area. How to get here or there,
where to eat, etc.
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In addition, many RV parks will have
showers and restrooms that need to be cleaned several times during
the day. Most mobile home owners have their own showers and
toilets.
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In Mobile Home Parks, the manager
usually only maintains the common areas and the residents maintain
their own spaces, etc. However, in an RV Park, the manager will not
only maintain the common areas, but should check each space to make
sure it is clean before renting. As before, these spots may have a
different RV’er each day and so it is ongoing.
Ease of Movement: While it will
cost an owner of a mobile home 1-2 thousand dollars or more to move
their mobile home out of the park and set it up somewhere else, the
owner of an Recreational Vehicle can hook up, move and reset their RV up
in another park in a couple of hours or less and for the cost of gas.
Thus, you have to work much harder at keeping the RV’er satisfied with
the park if you want to keep them there.
Eviction:
In a mobile home park if you have someone that is not paying rent or
causing other problems, you will have to go to court and deal with the
judges and it may take several weeks to have them evicted out of the
park. However, in an RV Park, the rent is usually paid in advance and
if it is not paid, you should be able to have the RV removed immediately
for lack of payment or other issues. These laws differ from state to
state so make sure to check first to stay legal.
Rent Control:
RV parks owners are not typically subject to rent control ordinances as
are mobile home park owners.
Utilities:
In a mobile home park the park owner will generally only pay the
utilities for any common areas and buildings as well as for street
lights. The individual mobile home owners will pay for their own gas,
electric, water, sewer, cable, and internet. However, in an RV Park,
this is all bundled up in a nightly or weekly rate and that rate should
be adjusted to include all these utilities and amenities. You might
shudder when a big 40’ rig pulls in the middle of July and powers up a
couple of a/c units after plugging into your electric pedestal.
Other Improvements:
While both RV & MH parks will have the sites, utilities, roads, it is
common for RV parks to also have a store, recreational hall, and
restrooms and showers. In addition, a higher percentage of RV parks
compared to MH parks will have a swimming pool and other recreational
facilities such as shuffleboard, basketball, and video games. What this
will equate to is once again, more management time and energy. An RV
Park of 400 spaces will probably have two to three times more employees
than a comparably sized mobile home park.
Taxes:
Just like the taxes you pay when you stay at a motel, you will pay
taxes to stay in an RV park. Usually the only way around the
lodging/transient tax is to stay for 30 days or more. The residents in
a mobile home park are not subject to this type of tax. They are just
subject to the yearly mobile home taxes to the county treasurer. The
park owner will pay the taxes on the land (dirt and improvements) for
both MH & RV parks.
Capitalization Rate:
Typically a mobile home park will sell at a lower cap rate than an RV
park. There are always exceptions but this is the general rule. If a
mobile home park is selling at a cap rate of 10% then an RV park in that
same market area will typically be selling for a 11-13% cap rate.
Smaller RV parks generally sell for higher cap rates than do larger
ones. Destination and overnight style RV parks are generally priced at
higher cap rates than the extended stay and seasonal type RV parks.
Also, parks that are rated higher by Woodalls or any type of star
ratings will generally sell for more $$$ (a smaller cap rate).
Finding a Park to Buy:
In my experiences as a broker, investor and by running the Mobile Home
Park Website as well as the RV Park Website for many years, I have
noticed that there are usually five times or more buyers out there
looking for Mobile Home Parks than there are for RV Parks. What this
equates to for the RV Park Investor, is that there is a better inventory
of potential RV Parks to purchase as well as less competition. I have
seen some very good RV Parks sit on the website for a few months and
wonder why they have not sold. There are Great Opportunities out there
especially if you are not set on one particular area.
Long Distance Ownership:
Mobile Home Parks are often owned by individuals or companies that do
not live in the same city or state where the park is located. They hire
an onsite manager and visit a couple of times per year. However, with
an RV Park, most owners live at the park or nearby and are involved with
the management of the park on a day to day basis. It is possible to run
an RV Park from a distance but in order to do so you have to really
trust your manager and other staff and have a good system in place.
Financing:
It is usually harder to obtain a loan for an RV park than a mobile home
park and that is one reason why a higher percentage of owners offer to
seller finance RV Parks as compared to Mobile Home Parks. When seeking
financing on an RV park, you will be typically obtaining a loan with
interest rates a point or two higher than that of a mobile home park.
For many types of investment properties, the loan is based on the
property more so than the purchaser. However, with an RV Park, the loan
is not only based on the property itself, but also the borrower’s credit
and experience in running similar types of businesses. It often helps
to have a well drafted business plan when applying for financing.
Excerpt from "How to Buy, Sell, and Operate RV Parks and Campgrounds
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