From wheee I’m at in upstate New York it would appear that golf courses are only used 4 or 5 months out of the year. So this made me curious are they a good investment in the snow belt regions?
So I came a cross a listing for a golf course in my area for sale, although I would like to purchase this my self I know I have no funding to make this happen, I would have to wholesale this to another investor and this leads me to my questions.
Are golf courses a good real estate investment?
Can you wholesale a golf course to a investor?
Can you use creative financing using no money down for such a large purchase?
What key finances should I look for in the financial reports?
Any help would be appreciated
I have a friend that retired and owns one. He use to do real estate syndications as a sponsor and then cashed out. Gold courses are a labor of love type thing.
It was his dream to own one. I see golfers in my subdivision on the course all day but it's not my thing as I do not have time for that.
This is what I was wondering. Up here in central New York the season is short so is it worth getting involved in
Hey Joe, I'm another CNY local and I think I know the property you're talking about. What's interesting about that particular property is that the golf course only takes up 180 of the 262 acres. The remaining 82 acres could fit about 200 building lots, per existing preliminary plans. More information is needed on the condition of those lots and what it would cost to get the site ready to build, but my hunch is that if you found a housing developer to buy the individual lots, that would cover the cost of the entire course. Feel free to message me to talk more.
Your absolutely correct about the golf course without naming the name. As I looked at the financials it looks stable and it seems to be expanding. The building lots do have me concerned knowing that there might be wetlands all around it. So this begins the journey as to finding this information out and then verifying it to be accurate.
@Joe Farrance golf courses in general are a tough business. Many struggle and go out of business. Selling lots on a golf course is one major revenue stream, although it runs dry after the lots are all sold. You will want to make sure the lots are on buildable land. If it is swamp land, that could be why the owner wants out. I love golfing, but I wouldn't get into that business.
Joe thanks for that answer it’s a Very good point about the building lots. This is something I’m going to inquire about.
I foreclosed on multiple golf courses as a lawyer. It's a massive money sink unless the person really knows how to run it. Even then it's a struggle and not always a money maker. Not surprisingly, the trend is to convert or form golf clubs as a nonprofit entity.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Chris, thanks for that information now I have a real big concern about it.