Commercial / Campground / RV Park Agent Commissions

Commercial / Campground / RV Park Agent Commissions

Member since 2020 · 4 posts · 2 votes

Hello everyone!

My husband and I are in the process of hunting for an RV park to purchase. We have purchased and sold several residential properties before but never a commercial property so we’re unfamiliar with how commercial brokers/agents work specifically RV Park/Campground brokers.

Do you recommend being represented by a separate buyers “agent” like typical with residential purchases and having them reach out to the listing broker for specific properties? If so, how is their commission usually paid? Unlike with residential real estate (where the seller usually pays the agents commissions) it seems so far that we would be paying a 3% commission ourselves if we have a separate agent/broker represent us in the transaction. Otherwise, if you reach out to a listing broker directly regarding a property they are selling does the buyer pay them a commission, the seller, or do both?

Which approach have y’all done taken when purchasing an existing RV park? What would you recommend?

Also, I apologize if this is the wrong forum to ask this question I chose this as Mobile Home and RV park investing seem to often go hand in hand. 

Thanks in advance!

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Investor · Naples, FL · Member since 2009 · 167 posts · 165 votes
3y

Kathy, in commercial real estate brokers usually list the property and you can hire one to help you. sometimes the listing agent will not agree to share commissions with a buyers agent but often they do. You’re not going to do an exclusive right to rep with a buyer broker though like it’s customary in some states for resi. 

My suggestion is you forget brokers/agents all together and go straight to owners. Market to them and build relationship yourself. You’ll make much better deals that way. I’ve never bought a commercial property using a broker because I’ve never found one that made any sense with a broker involved. They set sellers expectations too high.

I’m not putting brokers down and I have a brokers lic myself for a reason unrelated but knowing how to use them is important… 

Buy direct from owners and sell with brokers. 

Check out my profile for some resources for park buyers (rv too). 

Go get em! 📈

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  • Investor · Naples, FL · Member since 2009 · 167 posts · 165 votes
    3y

    Kathy, in commercial real estate brokers usually list the property and you can hire one to help you. sometimes the listing agent will not agree to share commissions with a buyers agent but often they do. You’re not going to do an exclusive right to rep with a buyer broker though like it’s customary in some states for resi. 

    My suggestion is you forget brokers/agents all together and go straight to owners. Market to them and build relationship yourself. You’ll make much better deals that way. I’ve never bought a commercial property using a broker because I’ve never found one that made any sense with a broker involved. They set sellers expectations too high.

    I’m not putting brokers down and I have a brokers lic myself for a reason unrelated but knowing how to use them is important… 

    Buy direct from owners and sell with brokers. 

    Check out my profile for some resources for park buyers (rv too). 

    Go get em! 📈

  • Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    To my understanding the seller is obligated to pay the buyer and sellers commission for commercial real estate. Nonetheless, you should have a realtor who is going to represent you and draft up contracts. 

  • Investor · Naples, FL · Member since 2009 · 167 posts · 165 votes
    3y

    Do not use agents to draft contracts on commercial property. Use an attorney. The agents just fill out state templates.

    If a broker is representing the seller, the seller will pay a commission to the listing broker. The listing broker can choose if he wants to work with other brokers and share their commission.

    Most agents/brokers in commercial are not members of Assoc of realtors which means they don’t have all the rules of reciprocity etc that the resi agents have to follow. It’s a whole different world in commercial brokerage. 

  • Investor · CO · Member since 2017 · 60 posts · 44 votes
    3y

    Mario's advice is sound. Unless you use a broker who specializes in campgrounds and understands how they work, you are likely wasting your time/money. At the same time, you're not going to want to go in blind, especially if this is your first campground. The due diligence on these is way more complex than most real estate and you don't want to miss little things which can cost a ton. My advice:

    1. Get educated on how to buy a campground. There are books and courses which will help you (happy to recommend a couple).

    2. Find a mentor or a partner who has experience.

    3. Get a good real estate attorney, preferably one who has experience in RV destinations. There are specific contractual clauses you'll need for these properties.

    Reach out if I can be of service. I own 5 campgrounds and have a good deal of experience.

    • Member since 2024 · 2 posts · 0 votes
      1y
      Quote from @Adam Lendi:

      Mario's advice is sound. Unless you use a broker who specializes in campgrounds and understands how they work, you are likely wasting your time/money. At the same time, you're not going to want to go in blind, especially if this is your first campground. The due diligence on these is way more complex than most real estate and you don't want to miss little things which can cost a ton. My advice:

      1. Get educated on how to buy a campground. There are books and courses which will help you (happy to recommend a couple).

      2. Find a mentor or a partner who has experience.

      3. Get a good real estate attorney, preferably one who has experience in RV destinations. There are specific contractual clauses you'll need for these properties.

      Reach out if I can be of service. I own 5 campgrounds and have a good deal of experience.


  • Atlanta, GA · Member since 2017 · 1 post · 0 votes
    3y
    Do or have you own(ed) any campgrounds in Fl. or Ga.?
  • Rental Property Investor · Oklahoma City · Member since 2018 · 5 posts · 0 votes
    3y

    How is this working out?

  • Member since 2024 · 2 posts · 0 votes
    1y

    @Adam Lendi do you know any good RE Lawyers that specialize in RV Parks in Indiana? We are looking at possibly buying one for the first time, so we certainly need to consult someone. Any info is helpful.

    Thanks!

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