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🏕️Ever dreamed of owning a campground? 🏕️

Typically creating a return on investment between 10% and 30%

Posted: May 16, 2024

It's an exciting venture filled with opportunities, but also requires careful consideration. From cost and revenue analysis to location, infrastructure, market demand, and beyond, there's much to consider. Join us as we dive into these factors one by one.

When considering whether investing in a campground is a wise financial move, there are multiple factors that should be taken into account. Constructing a brand-new RV park could potentially run up costs of $40,000 per site or even higher. On the other hand, procuring an already existing park may fall within the price range of $15,000 to $20,000 per site, sometimes even less. To arrive at guesstimate of the price, you need to split the gross revenue in half to grasp an understanding of the operating costs. Then, take that result and divide it by a 10 cap to get the projected price. It's crucial however, to bear in mind that the initial acquisition cost is merely the starting point.

Next, we ponder upon the location. The location should not just offer popular attractions and easy accessibility, but also be in proximity to tourist hotspots and natural beauty that can justify a higher cost per site. Moving on to the condition of the campground's infrastructure, we need to not just assess the state of it but also look into any deferred maintenance needs. Finally, crucial to explore into market demand research. Not only do we need to examine occupancy rates and growth trends, but also consider the seasonal trends and the overall market growth. As these factors can greatly influence the profitability and success of your campground.

Moving forward, let's analyze the future growth potential, operational expenses, and legalities. To start with, contemplate the acreage on your initial purchase for potential expansion. Bear in mind that utilities will be your highest operating costs. Additionally, take into consideration any regulatory or zoning requirements that may impact the operation of the campground. Ensure compliance with local regulations and evaluate any potential restrictions or limitations. Incorporate all these factors into your decision to ensure long-term prosperity.

Finally, explore on competition, risk evaluation, and the scope of professionals. Competition is always beneficial, just strive to be better. The task of conducting thorough risk evaluations falls upon you, to construct your dream. However, be cautious, as sometimes experts may lack deep industry knowledge. It all begins with a dream, and don't forget, the final decision rests solely with you.

For the past 50 years, we've worked with buyers of all kinds, individuals and companies alike, and we've found a common denominator among them all - it all starts with a dream. Think of the campground as a 'tree' - with diverse types and locations, just like campgrounds and resorts. This dream, your dream, will guide you in numerous directions as you seek the perfect fit for yourself, your family or your company. Consider this your journey into the future. It's not just about acquiring a campground; it's about shaping your destiny. Your dream, your journey, your campground. It all begins right here.

To summarize, realizing your dream of owning a campground is a significant step with numerous aspects to think about. It involves a careful evaluation of costs and potential revenues, prime location, market demand, level of competition, and assessment of risks. But remember, this is your dream and the Campground Marketplace is poised to help you turn that dream into reality. We appreciate your interest. So, are you prepared to embark on this exciting journey?

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Adventure awaits, we are here when you have questions

Let's connect today and discuss how we can assist you in buying your dream campground, RV park, marina or resort. 

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