Perhaps the ultimate deal is the one that you buy with no money down. Real estate investors consider this the Holy Grail - the \"hole-in-one\" of RV parks purchasing. We've done this twelve times over the past two decades. So how do you buy an RV park with no money down
Now here's an important step in pulling of a zero-down deal. You've got to convince the seller that the \"ugly\" property is going to require a huge amount of capital to fix - namely the amount of money you were going to use as your down-payment. But here's the trick: the actual amount needed to fix the property is actually not large. For example, an RV park can look horrible if it is not mowed. But the actual cost of the mowing is not much. It's a question of bang for the buck issues, things like mowing, tree trimming, and repairs that look awful but don't actually cost much money to complete.
One of the most important building blocks of getting these steps done is to \"bond\" with the seller. When you \"bond\" with the seller, you gain their trust and friendship. A seller who does not trust you will not even think about carrying the financing with 0% down. So build that \"bond\" from your first encounter. Our favorite opening question to get the \"bonding\" going is \"so how did you come to own this RV park\" The answer to that question could take an hour, and be a good listener as it's not only a good part of \"bonding\" but also a chance to learn a great deal of information about the property.
The key to buying an RV park with zero money down is basically 1) find a deal that shows poorly but can be fixed for very little money 2) convince the seller that you need to use your down-payment to fix it (when you really don't have to spend much at all) 3) get the seller to agree to carry the financing and 4) make sure you are continually bonding with the seller to gain their trust. It's that simple.
When it comes to buying a campground with no money down, you have several options. Keep these suggestions in mind as you continue to look for a campground and decide whether these strategies will work for you.
FYI: the largest loan/highest amount of financing you can get with an SBA 504 loan with just 10% down is approximately $11 million. With more down, transactions of approx $20 million are possible, so if you have access to a larger down payment then you can get fairly high leverage on much larger parks.
In other words, if you are already in the business and want to buy or build another park and you are going to do it under the same corporation, then you can put down just 10% with some 504 lenders.
In summary, it is difficult, but not impossible to legitimately qualify to finance an RV park with no money down. It will not happen if you are looking to finance your first park, but given the above somewhat creative sources of down payment, many borrowers can find a way to come up with the cash needed to close.
RV parks and family campgrounds are often found in prime locations and vacation spots across North America. You may have to part with a pretty hefty sum to afford the land. Small campsites may set you back an average of 300000 while you may need over a million to buy a successful campground.
Banks and mortgage companies are another excellent financing option that you can utilize to purchase a campground. However, you may have to bear with the strict background checks and red tape. Some lenders may classify the purchase as a high-risk investment, requiring you to deposit huge equity before loan approval.
You may need to provide evidence of your financial situation, a well-thought-out business plan, cash flow and revenue forecasts, and experience within the industry. Owning existing RV parks may increase your chances for approval. Your interest rates may vary depending on the loan amount, repayment period, LTV ratio, condition of the property, credit scores, and down payment.
Conventional loans (a loan NOT backed by a government guarantee) usually require 25% down and borrowers with solid financials, relevant experience and very good credit are able to get very good terms on loans between $1 million and $20 million+.
In fact, very experienced RV park owners can occassionally purchase an RV Park with no down payment using the SBA 7a loan (assuming you have enough SBA eligibility). Only certain lenders will allow this, and you will need to already own a few cash flowing parks, but it is possible.
*FYI: There are also a few lenders who will occassionally allow transactions up to $10 million with the SBA 7a with just a 10% to 15% down payment/equity by offering a unusual 2 loan structure, but those transactions/borrowers have to be extraordinarily strong and will usually need to pledge additional collateral/equity in other property to qualify.
The SBA 7a program only has a 3 year prepayment penalty and SBA lenders cannot change the terms of it, which is a bonus for borrowers. (Keep in mind that you are allowed to pay down 25% of the principal in each of the first 3 years without triggering the penalty).
This number is deceiving however, because with the 504 program, only the 2nd mortgage which is used to finance 30% to 40% of the total project, is SBA guaranteed, so this can equate to $30 to $40 million in total financing depending on whether you put down 10%, 15% or 20%.
Unfortunately, as mentioned before, there are some cons that are associated with no-money-down RV loans. These are pretty big drawbacks and might make you hesitate to jump right in, so be sure to read this section and carefully consider whether this is the right choice for you.
It should come as no surprise that anybody giving you a no-money-down loan is going to want you to have a really good credit score. Since securing financing for an RV usually requires a good credit score to begin with, finding somebody that will finance an RV with no money down is probably going to mean having an excellent score.
Interest rates are going to be higher if you choose to take a loan without making a down payment. This, coupled with the fact that you will likely be paying the loan off over a longer period of time, means you will pay a whole lot in interest when all is said and done. In fact, some people even find that they end up paying more in interest than the RV is actually worth.
A loan given with no down payment will almost certainly be secured with the RV being financed. While this can be true with any RV loan, it is pretty much unavoidable with a no-money-down RV loan, meaning if you miss a payment, the bank could easily show up to take the rig from you.
If you are still thinking a loan without a down payment is the best way for you to acquire an RV, the next step is finding a lender who will give you such a loan. While we usually recommend going through your own bank (or better yet, a credit union if possible), in the case of a zero-down loan, you might be better off financing through the RV dealership. Watch for sales events to find zero-down specials and jump on such a deal when you find one.
A much better option is to save some money up so you can make a decent down payment and avoid outrageous interest rates. Better yet, save for a while and pay cash for a rig so you can avoid paying interest altogether. This will save you money in the long run and give you peace of mind.
Yes. You may find loans for no money down for and RV. However this probably means you will not have the money to operate the RV you just bought. Using an RV is pretty expensive. Take in all the cost of use before you step out with a new loan to pay off.
If you love the outdoors and some hard work, you could start a campground business. Whether you have land or are purchasing land, you could start enjoying the great outdoors and working for yourself as soon as you get everything set up. You'll provide a place for people who are passing through on their way to another destination and for those who want to enjoy some time connecting with nature. Campers use all sorts of shelters from tents to fully contained RVs.
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your campground. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
A campground makes its main income by renting out sites. It may also have a small store that is stocked with camping gear, non-perishable food and other items that campers may find useful. A popular seller is ice, so adding an ice freezer will also make some money for the business.
Profit is dependent on many things, including the number of sites you have, whether you have cabins for rent, the business expenses and start-up liabilities, such as loans for land. A smaller campground with extensive liabilities will make less profit than a larger campground with the same amount of liabilities.
In order to attract and retain customers, you need to target your advertising to those who would most likely use your campground. If offer only primitive campsites that require a hike to get to, advertise to those who like to hike. If you provide enough hiking trails with great sights, hikers will come back time and again.
A campground business is perfect for someone who loves the outdoors and dealing with people. The right person for this business also has experience in management, including accounting, budgeting, hiring staff, and keeping inventory.
When it comes to classic sleeping bags, the Alps OutdoorZ Redwood is a step above the rest. This well-made bag features a sturdy cotton canvas shell with a cozy flannel liner. Its generous dimensions and rectangular shape only enhance its comfort, ensuring a pleasant and spacious sleeping experience. Combine these dimensions with a wrap-around zipper, and you also get a bag that doubles as an excellent picnic blanket. With a -10 F rating and loads of TechLoft insulation, the warmth is substantial. Although we wouldn't recommend it down to quite that frigid of temps, it proved capable down to the single digits. 59ce067264