Navigating Your First RV Park Investment
I’ve worked with several investors in the RV space. This includes individuals who have full time jobs and are collecting a paycheck, from the largest REIT in the country. After working with the full spectrum of buyers, here are a few things I can tell you.
Seasonal RV Resorts
If you’re looking for your first RV resort and you find one that is all seasonal campers, take a good look at it. When an RV resort is filled with seasonal campers, they are usually much easier to operate. A campground store isn’t really that important to the operation and there isn’t a need to do a bunch of check-ins. Your activities will usually be run by volunteers and the campers are usually happy if you operate as a decent person. On top of all of that, you won’t have to be a great marketer to keep the business going.
This doesn’t mean that I don’t like RV resorts that have a thriving store, lots of short-term guests, and expansive activities and amenities. These are all great things, just keep in mind that these businesses take more time and energy. If you have a lot of that, these RV resorts may be right for you. They will also have a higher potential for earning, allowing you to gain equity much quicker. You will reap what you sow.
Evaluating Your Investment Goals: Passive vs. Active
What I would suggest when you’re going into your first RV resort is to ask yourself the following question. Am I looking for a more passive or active investment? If you’re looking for a passive investment, find an RV resort where most campers are seasonal. If you’re looking for an active investment, find one that has more short term guests.
RV Park Investing
Are you interested in investing in RV Parks and need some guidance? IRE Investment is one of the nation’s leading consulting and brokerage firm for RV and mobile home parks.