Building an RV park from scratch. Newish investor.

Building an RV park from scratch. Newish investor.

Member since 2022 · 2 posts · 1 vote

Hello everyone!  This is the first time I am considering commercial real estate. If anyone has expirence in this area and can suggest tips or guidance. Recently, I have had the desire to purchase a 3-4 acre plot of land and build an RV park from scratch. This includes purchasing the property, graveling the lot, installing utilities including septic. Again, assume I know nothing in this area so any advice is much appreciated. Thanks! 

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Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
4y

@Morgan Menshouse

Advice:

This is your first post and you're asking for entire book in a forum post. 

You need to do a lot of work yourself as follows:

1.  Have you read every post in this forum on this topic?

2.  As mentioned above have you joined a specific group or taken training on this topic?

3.  3 to 4 acres is either the worst or the best decision you ever made for your first outing.  Do you understand why?

4.  Do you have $100,000 for the fire hydrant?  $50,000 for the storm pond?  $50,000 for the engineering plans? Do you have the $30,000 for the interest cost during construction and rent up?  What is your market like, both occupancy, availability and rent rates? 

5.  Find 5 similar properties that are for sale, anywhere in the US and do your number crunching.  Each time bring to this group for review and suggestions.  You got to do the work.

10,000 other questions.  To many for this post.  Seek out a specific group, or as mentioned purchase an existing location first.

See this reply in the discussion

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  • CPA · Colorado Springs, CO · Member since 2016 · 413 posts · 258 votes
    4y

    @Morgan Menshouse - RV Park University is a good resource. Around which city/state are you thinking about doing this?

  • Member since 2022 · 2 posts · 1 vote
    4y

    I don't have a city yet but I am considering Florida. 

  • Mike ReynoldsPro Member
    construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
    4y
    Quote from @Morgan Menshouse:

    Hello everyone!  This is the first time I am considering commercial real estate. If anyone has expirence in this area and can suggest tips or guidance. Recently, I have had the desire to purchase a 3-4 acre plot of land and build an RV park from scratch. This includes purchasing the property, graveling the lot, installing utilities including septic. Again, assume I know nothing in this area so any advice is much appreciated. Thanks! 

    Water and septic are your biggest issues. Especially in the country. You would be surprised at how many water companies are at the max. They just don't spend they money unless they need to. 

    Septic is next in line. If you build near a water source or lake, you will have to jump through hoops with the Corps or the local authority.
  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    4y

    Have you managed an existing park? Why not start there and buy a lot with additional land? Development is costly and burns a lot of cash with 0 cash flow.

  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    4y

    @Morgan Menshouse

    Advice:

    This is your first post and you're asking for entire book in a forum post. 

    You need to do a lot of work yourself as follows:

    1.  Have you read every post in this forum on this topic?

    2.  As mentioned above have you joined a specific group or taken training on this topic?

    3.  3 to 4 acres is either the worst or the best decision you ever made for your first outing.  Do you understand why?

    4.  Do you have $100,000 for the fire hydrant?  $50,000 for the storm pond?  $50,000 for the engineering plans? Do you have the $30,000 for the interest cost during construction and rent up?  What is your market like, both occupancy, availability and rent rates? 

    5.  Find 5 similar properties that are for sale, anywhere in the US and do your number crunching.  Each time bring to this group for review and suggestions.  You got to do the work.

    10,000 other questions.  To many for this post.  Seek out a specific group, or as mentioned purchase an existing location first.

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