Not sure where to start, Curious about financing and locating commercial real estate.
This is all about location, are you looking to buy an existing park or develop a new one?
Building an RV park from scratch is very risky. Lending is hard, getting the permits is hard, getting customers from scratch is hard. And the financial returns rarely justify that risk.
You would be vastly better off to buy an existing RV park that is poorly managed, and then fix it. You can sometimes buy these for less than construction cost (that's a win) and they already have existing cash flow and the ability to get a loan sometimes through the mom and pop sellers (and that's another win). And you already have a customer base to work from (and that's another win).
Thank you for replying, I Live in the white mountains of Arizona and it’s a main attraction for People in the Phoenix area trying to escape the heat. I know the demand for RV locations is high and it’s about a 7-9 month season they are here, I believe it is a profitable business of course it could just be my naïve ambition. But if it’s easier to just buy and existing park maybe that’s the better option.
I would say that as well because I know a lot of folks from Phoenix and most of them all have their favorite spot to escape the heat and most of the ones that go to the the mountains stay in closer to places like Strawberry, Pine or Payson. Those that go farther out like to head for the bigger cities like Flagstaff or San Diego. The main concern being that people are creatures of habit and will often go back to the same place over and over.
Having the seller finance (seller carryback) the note for you will more than likely be the best financing option on them especially when you buy a poorly managed one, you can offer them a lesser interest rate than bank financing would provide.
I know there are tons of badly run ones in yuma
I am currently working on buying a mobile home park. I have gotten far enough along in the purchase process to make an offer twice, but both sellers declined my offers (one said my offer was too low, the other said he wants to wait until January because he is "busy" working on a different park he owns). So I am back to square one.
Phoenix needs RV Parks, everything they have are 55 and older parks, none for families or workers.
We came here to work on some Walmart’s and Sherwin Williams and we had to go to a park in Casa Grand, because there were no parks in Phoenix or surrounding area.
We ended moving out here and thought about the same thing, starting up a RV Park that was family orientated.
We had to work in Scottsdale, Mesa, Tempe, and Phoenix and had to drive from Casa Grand.