Anyone Tried Starting A Camp Ground?

[Brendon Borrego]

Hello BP world! 

This is my first discussion, so forgive me if I have left any information that could be of use. 

I have looked around and seen a little bit on camp grounds but none on building one and was curious if anyone had some knowledge they would like to share. There is a potential opportunity to purchase 140 acres for roughly $350,000. This piece of property has water rights associated as well as backs up to a 50,000 acre parcel of land that is well known for off-road use. What I am curious of is if anyone has built a camp ground and has ideas of costs associated with doing so. I am unsure of most all costs associated with this style of land use and hope that someone out there can help me with some rough pricing.

Again I am new to this style of land use so any info or ideas help!

[Ken Shipp]

Hey Brendon,

We have a small campground we built so hopefully I can offer a little help until others contribute.Lots of things determine the construction cost and not being from your desired location handicaps me.That being said maybe I can at least shed some light on your idea.Things that will determine actual per lot cost are power,sewer and water.

1-Underground power is the way to go,more cost but more spaces because of overhead clearance restrictions.

2-Available sewer also is best but septic systems work fine but cost more and chew up land area and require more long term maintenance (we have septic systems,3 spaces per system). 

3- Water,there again country,or city water is best but a well and your own systems works fine also just requires more upkeep.

As far as the park itself it's best to (IMO).

1-set park up with three sections to accommodate different styles of campers,over night,seasonal and annual (if area warrants),all three have there pros and cons,overnight area is cheapest to construct since you'll just have bathhouse ( no septic,power or water per site). seasonal spaces will be completely developed but will rent for highest amt because it's short term (usually power is included into rate).Last is annual which again lots are fully developed but not so much in and out and consistent cash flow,tenants put utilities in there name as they would a SFR. Most of them have little sheds and golf carts and basically just like campground lift year a round.

This mixture is usually the best and helps with up front cost to you since you can start with basic camp sites like state parks which are very low cost and then phase in the other areas when demand is there.Natually the cheap sites rent cheap and higher cost rents higher.the mixture is the key because there are all different styles of camp life.

Ok, that's construction. Campgrounds require one of two things to be successful .

1-On or close to an interstate highway for over night campers,or

2- a destination location,such as beach (me) or mountains.

Last is amenities, pool, game rooms,on site laundry etc... biggest mistake you can make is put all your money in spaces  and nothing built to attract campers! built these things first and they'll come.

In today's world internet and cable are getting to be necessities at campgrounds so people can stay in touch with family,friends or business so figure that in also.

Might be a little overwhelming but once done beats any property ROI I've acquired in over 40 years.

1-low insurance very little if any structures,basically lia policy.

2-low up keep,90% of your investment is underground and protected.

3-low taxes,there again no structures so land tax is it.

Hope this helps,good luck