Investing
What To Look For
Resorts in states, regions that offer all the options the RV families are looking for are enjoying record rentals. Tourist destinations, water sports, hiking, bicycling, proximity to hunting, fishing areas.. Additionally, the facility/resort itself need to be acceptable. Repeat, year after year business, is very big and a key factor in this industry. Clean laundry, shower and bathroom facilities. On-resort activities such as sports courts (horseshoes, badminton, kiddy parks and basketball courts) and being pet-friendly are ALL things that make for memorable vacation family time. There are currently over 13,000 RV parks and 1900 State parks located throughout the U.S. Many of these are “mom and pop” operations that are family owned and operated.
While very attractive, long-term leases can satisfy the need for the land, its most desirous to OWN the land: Free and Clear: That is often not an option for individual ownership of a RV resort property, but through collective ownership, easier to accomplish.
Once a primary location has been established, the resort must get built out. There’s a number of considerations, however NOT a lot of moving parts. Like many things of merit, its fairly simple: Besides the proper permits and authorizations, there’s the sewer, water, electric, architectural plans, one or two main “buildings” (Administration, convenience store etc.) grading, form setting, concrete pads, installation of picnic tables, fire pits, land clearance (camp sites or cabins), landscaping, gravel and lighting. So again, while simple…. It’s NOT easy! Diligence as to costs, labor, materials, all is necessary to building out a first class resort. Amenities can always be added over time as well.
Management – as important as LOCATION is management. One of the reasons for the success of so many “mom and pop” or family run resorts is that ownership IS management. Friendly, professional, knowledgeable and service oriented personality is required to make any resort a “year after year” experience for the RV family. So, when investing, look at management’s commitment and experience.