Hi BP community! My husband and I are actively looking to purchase and operate an RV park or campground in the Pacific Northwest, Colorado, or the Northeast. We've got the operational side covered (bookkeeping, teaching, maintenance, guest services) and plan to live onsite and run it ourselves.
We’re currently seeking a capital partner or investor to help fund the down payment. Ideally, we’d offer a preferred return, equity stake, and a clear path to return of capital via sale or refinance.
We’d love to hear from anyone who’s done a similar deal:
How did you structure your partnership?
What do investors typically want to see in a deal like this?
Any red flags or tips to avoid common pitfalls?
Is seller financing + investor capital a realistic combo?
Would love feedback on our pitch if anyone is open to it!
Thanks in advance—we’re passionate about this path and appreciate any insights!
I hope you're doing great. Generally, in your situation we may recommend having a partnership LLC for the ownership interest of the RV Park or Campground. The LLC would be owned by yourself or preferably a Holding LLC that has Charging Order Protection and their interest would be the same. The Partnership LLC would need to have strong language in its Operating Agreement for asset protection as well as outlining return on capital. We would be cautious on how you advertise or seek investors so that you don't trigger SEC laws for accidentally offering securities for the partnership. We would also try to do any background check on anyone who you may plan to work or invest with.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.
Thank you so much for this thoughtful and detailed reply! I really appreciate the insight into structuring the ownership through a partnership LLC and using a Holding LLC for added protection—that makes a lot of sense. We're definitely planning to include strong asset protection language in the Operating Agreement and outline clear terms for return of capital. And yes, I'm being very mindful about how we engage with potential investors to stay compliant with SEC regulations. I also agree that background checks are a smart precaution. Thanks again for sharing this—it's incredibly helpful as we move forward!
I think the structure question was answered well but there are several possible ways to form a partnership.
For investors and what they want to see that can vary as well. In a lot of deals if the deal is passive they want a pref payout of funds before anything else is paid. Typical is 8% and then a split of funds of say 70/30 which is 70% to them and 30% to you but again that can vary. There is a website called GP LP Split that is no charge and in essence if you have a good plan as a General Partner you can pitch it to a large amount of Limited Partners and potentially find your investor.
There are a lot of pitfalls but the main issue is to make sure that you can pay debt + pref + split and have money to operate the campground. This sounds hard and it can be hard if you don't find the right deal and have the right structure to pay out.
Seller Financing + Investor Capital is a very realistic combo and if you can get Seller Financing that is the route you want to go. Just make sure their terms are better than any loan you can secure. You may even be able to negotiate an interest only term at the start of the loan which could help with cashflow early on in the deal.
Would be happy to help if you are still looking for it. I'm sure you have learned a lot in the 3 months since posting. Both myself and my wife are looking at Campgrounds/RV parks everyday as far as buying and selling so we can be a good resource.