All Forum Posts by: Ken Shipp

At 61 this is a problem that we have to address.It's easy to set goals and buy properties throughout ones career,it's exciting ,rewarding and a great feeling to have.But after 20 or more years,that's who you are..a property buyer.You wake up one morning and it's time to change gears and do what you purchased them for in the beginning,Retire with a comfortable income. I think BP would benefit and encourage more people to become active in real estate if there was a dedicated section for this phase of the business.A lot of the rewards in property ownership is retiring comfortable,one way to get there is suffer,live below your means while buying and risk, that's what we did and, I assume others as well.That being said there's to much talent and experience on BP to cover the rewards (retirement with money) that we should all embrace the conversation and teach each other the do's and don't.One thing is for sure'when your starting out in any business you can and will make mistakes,No problem.Retiring is a different beast,not a lot of room for error'sorta like you have one strike left in the batters box.You gotta make it count. 

Additional info is our properties consist of vacant comm land,leased comm buildings spaces,MHP,RV Park and SF and a couple duplexes.We lean towards selling some low return properties and either purchase or construct (in phases) another RV Park.We have seen that taxes and ins are very low (no structures) 90% of improvements are underground (low maintenance).Basically we can contract grass and garbage.This would create more profit and We could step back from all the maintenance as we age but have the income we desire.In our area spaces lease annually roughly for $300 a month,so with 100 or so spaces,financially we would be fine. Then start selling other properties and leave RV Park to our child.

Hey,Thanks to all that posted. Sorry for the delayed reply,eastern NC got hit with an ice/snow storm and well,the properties come first.

James-The trust route is something we are strongly considering,we only have 1 child and are also considering a % transferred yearly.Sorta scared of the owner finance route,young enough a lot of notes might mature before needs stop and,getting out of property business and getting into the banking business.

Yonah-Thanks for the offer,Let us get a little more educated and decide needs and such,then I'll take you up on it.

Tommy-We did a 1031 last year and our health ins has gone through the roof.The property had a note to be paid off and we think that since we didn't exchange ALL the proceeds that the note amt was added to our income and did this.Gotta talk to our CPA and see if this was the cause,and how to avoid it in the future.We have talked to property mgr co. in our area and between their fees,taxes,ins,vacancies and maintenance there wouldn't be a lot of meat on the bone left to live on.

Ron-Agreed,trust is top consideration.

Dave-Great detailed advice,but very deep (as should be).Need to start addressing each subject on it's own that you listed and get on paper before asking experts.

Thanks Joseph for the informative post and for your Service.Great job and discipline,man you juggle a lot of hats! One suggestion you might consider,Landscape designer.More curb appeal from colors and professional balance I think would fit well into your overall business/marketing plan.Keep it up. 

Okay,please point me in the direction where there's the strategies,the been there done that stories of this chosen path to wealth.Quickly approaching that age now, hopefully there's a forum or group that addresses this .Everything I see is about  getting started and how to grow with real estate,surely there's advice and tips for different ways to liquidate, and how to manage the proceeds when the time comes. Any business plan is incomplete, without an exit strategy.Any input would  be welcomed.  

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