RV and Boat Storage Business -

[Tony Perrella]

I've been looking into a for-sale RV and boat storage property/business. I'm very interested in this opportunity and would love to learn more. Specifically, I need to understand how to value this property type to determine if it's a good investment.

If you know an expert in this field, may I ask for your help in arranging a phone call or connecting us over email? Also, are there any books or other resources you can recommend to help me get started?

[Michael K Gallagher]

Hey @Tony Perrella first off I am not an expert in this asset class, but I do fancy myself a bit of an underwriting guru so I'll take a crack at this from that angle.  regardless of the asset, valuing a commercial property like this follows the same strategy as any other property.  We need to understand how much the property makes, ie what the income of the rentals biz is, and we need to understand the debts against the business.  Once we understand that operating income we simply need to understand what other such business sell for as a multiple of that operating income.  But beyond that I'd want to understand what the operating relationship between the property and the business is, because there is an instance where if they are not separate entities you could have the biz lease the land from the entity that owns the land and through that income increase the value of the land and refi it out.