Getting the RV Park Contract Right Before You Spend Real Money By Frank Rolfe

Buying an RV Park becomes serious when you put the deal under contract. That contract decides whether you can inspect the property, arrange financing, protect your earnest money, and walk away if the facts do not support the purchase. A good contract does not make a bad deal good, but a bad contract can turn a good opportunity into an expensive mistake.

Protect Your Right to Inspect the Property

Every RV Park contract should include a clear due diligence contingency. You need time to review the rent roll, financial statements, utility systems, permits, zoning, leases, insurance, roads, and operating issues that may not be obvious during the first visit.

A seller may want a short inspection period, but that usually works against the buyer. At a minimum, you need enough time for third-party work such as a Phase I Environmental Site Assessment, and you do not control how fast those reports come back. In most cases, a reasonable diligence window, often around 30 days, is the safer route, with the right to cancel and recover your earnest money if the property does not check out.

Do Not Ignore the Financing Contingency

Financing remains one of the biggest risks in buying commercial real estate. RV parks can require extra explanation depending on the mix of long-term residents, overnight guests, cabins, park models, and seasonal income.

Your contract should give you time to secure acceptable financing. A 30-day financing period may work in some situations, but 60 days is often safer. If the loan cannot be obtained on terms that make sense, you need a clean way to exit the deal.

Avoid Buyer Traps

Be careful with any contract language that forces the buyer to close no matter what. “Specific performance” against the buyer can create a bad situation where you are pressured to buy a property even after financing, diligence, or operational issues make the deal unattractive.

The seller, however, should be obligated to sell if you meet the terms of the contract. Otherwise, they can use your diligence work to shop the deal to someone else.

Start Close Enough to the Real Number

Some buyers think they can put a property under contract at a high price and then renegotiate heavily later. That rarely works well. If the seller wants a price that is wildly above what the numbers support, you are usually better off staying in contact rather than tying up the deal at a fantasy number. Renegotiation is possible when diligence finds real problems, but expecting a seller to drop the price by 40% or 50% after signing is not a plan. It is hope.

Be Easy to Deal With

Many RV Park owners are not desperate sellers. They may own the property free and clear, enjoy the income, and have no urgent reason to sell. That means your conduct matters.

Show up on time. Return calls. Do what you say you will do. Treat the seller’s time and history with respect. A buyer who acts careless before closing looks like a buyer who will become a headache later.

Build a Real Relationship

The best information often comes from simple conversation. Ask the seller how they came to own the RV Park, what has worked, what has not worked, and what they would fix if they were keeping it. You may learn about utility lines, difficult tenants, city politics, seasonal patterns, or hidden income opportunities that never appear in the offering package.

Renegotiate When the Facts Require It

Being respectful does not mean overpaying. If diligence shows that income is weaker, expenses are higher, utility systems need major work, or occupancy is less stable than represented, then the price should reflect that. Renegotiate based on facts, not emotion.

Final Thoughts

An RV Park contract should give you enough control to inspect the property, secure financing, protect your earnest money, and avoid being forced into a bad purchase. The goal is not to win at the seller’s expense. The goal is to reach a deal that works on paper, survives diligence, and still feels fair at closing.

By Frank Rolfe

Frank Rolfe has been an active investor in RV parks for nearly two decades. As a result of his large collection of RV and mobile home parks, he has amassed a virtual reference book of knowledge on what makes for a successful RV park investment, as well as the potential pitfalls that destroy many investors.