Seeking Partial Downpayment for a Money Maker!


#1

I couldn’t locate a separate forum for RV Park investors ~ sorry! We did purchase the download book by Dave Reynolds ~ excellent! We are in the process of purchasing an RV Park. There are two we are considering. #1 Price $350k, 6-7% CAP (no website!), needs substantial improvement to make the sites big rig friendly, small town location. #2 Price 750k, proven 18-20% CAP, no web presence but is easy access to major interstate and no other similar parks in 75 mile radius. This park is open year round, ready to run without any immediate necessary investments. I used the REI Property Cashflow Analyzer format to input the actual figures for both parks for the past 2 years to get the CAPs. Loan approval is in place for either park BUT we only have enough down and capital reserves for Park #1. Obviously we want to purchase Park #2 and are trying to find a private lender. Experience: I have been a custom home builder for over 30 years. DW has several years experience managing construction offices, and most recently 2 years exp managing a 60 space RV Park and 24 space MH Park (a 2 million dollar facility). We have been full time RVers for over 3 years and know this is the perfect business choice for our combined experience. Neither park has owner’s quarters, but Park #2 does have a beautiful home for sale in a separate listing, borders the park on its own 1+ acre deeded lot. Although the home is currently listed, the owner will not sell it until the park sells. We were just notified today that another investor is also working to purchase Park #2. I’m thinking we could get a private lender with $200 - $250k for a downpayment on both items - the park AND the house. We have no desire to live in the house so would sell it asap to pay off that loan, and repay the lender with interest. In this scenario, I THINK we should be able to increase the purchase amount on the park to lessen the purchase amount on the house, making a sale/payoff feasible. I believe many RV park buyers wait to purchase until they have retired, then aren’t able to work the park as hard as the job requires. We are in our young 50’s with many good hard working years left. We realize we would be “buying a job”, but what a great job for us! Any and all comments or info will be greatly appreciated! Thanks much, Greg