How to Buy a Campground or Park for Sale
Campgrounds, RV parks and trailer parks can be a great investment opportunity. This area of real estate is very lucrative. Doing some research and having a sound business plan will enable you to have the most success with this type of business purchase.
Real Estate Value
Regardless if you buy a campground, RV park or trailer park it is imperative to look at the land value. Check with the clerk of deeds in the area for the business that you will be purchasing. Has the land value increased or decreased? Is the land value projected to increase or decrease? For example, if there is additional commercial zoning or even airport zoning in an area it can greatly affect the projected real estate values. The campground for sale might be for sale because the land value was expected to significantly decrease and the present owner wanted out before the plummet.
Trailers Currently in the Trailer Park
When you are looking for a trailer park for sale it is important to ascertain who owns the trailers. There are many trailer parks that the tenants own the actual trailers and simply pay rent on the land and for the utility connections.
If the business owner owns some of the trailers, will they be included in the trailer park sale? Do not just assume that since the trailers are owned and rented out to tenants by the current owner that they will be a part of the business sale package.
RV Park Considerations
When you are looking for a RV park for sale there are things to keep in mind as well. For example, how much do the utilities average for the RV park? What types of maintenance contracts are already established and will you be able to assume those contracts instead of securing new ones?
Legalities
When you decide to buy a campground or park for sale, be certain to have a good business attorney present prior to the signing of any agreements. There are many details that will need to be ironed out for transferring the land deed, utility contracts, items on the land and so forth.
Flood Zones
Throughout the years the flood zones for various areas change as the overall climate and the actual land changes. One reason that a campground or park is for sale could be that the flood zone changed and the area is now a complete waste of land during the rainy seasons. Be certain to check if the land is sitting in a flood zone or even bordering a flood zone when you look at the record of deeds. Just because it is dry, sunny and a nice day when you inspect the land does not mean that it will not flood in rainy weather if it is indeed in a flood zone.
