Campground sellers, campground brokers, sell a campground

The 5 Most Important Tips
When Preparing to Sell a Campground

Our advice on preparing, pricing,
& selling a campground
We've learned a few things over the years...

Report all income and only deduct legitimate expenses

Do you own a “cash business ?" We understand your objective has probably been to keep your tax liability as low as possible, because no one works harder than you do for that income! To accomplish that objective a business wants to keep a very thin line between income and expenses.

In preparing ahead to sell a campground, it is extremely important to report all income from all sources. Equally important is to avoid any “bloating” of expenses. Report only legitimate expenses. The goal is to now keep the gap wider between income and expenses, so that your true net is as high as possible. This net, or expendable cash, is what the potential buyer will be zeroing in on when assessing if there is enough to pay a mortgage payment as well as give them enough to eat 3 meals on! Not only the potential buyer, but the lender will be focusing on this as well.

Yes, you may have a greater tax liability; however on the other hand you may very well command a higher sales price and a quicker sale by doing so and actually benefit when looking at the big picture.

"The goal is to now keep
the gap wider between income and expenses, so that your true net is as high as possible."

Don’t ask too much or too little for your business

This is probably your largest single investment. Your hope is to receive the highest price possible. We understand. Placing an unrealistic price tag on your business, despite your temptation, will lead to absolute frustration and waisted time.

Prospective buyers will be comparing your park to others – and if the price of your park makes no financial sense, they will “pass you by.”

Often owners feel they need a “lot of negotiating room.” This is not necessary. The astute prospective buyer will immediately recognize the value being correct, and may likely assume if they don’t jump on this quickly, someone else will. Another common feeling is “we can always come down in price, but we cannot go up.” Although this sounds very logical, with an unrealistic price tag you could be missing many qualified and cash buyers even viewing your business. Another negative could be the possibility of becoming “market stale” and having prospective buyers wondering “Why has this campground been for sale so long?”

THINGS TO KEEP IN MIND WHEN SETTING YOUR ASKING PRICE:

Don’t be tempted to set your price based upon what you heard one of your competitors received. Often that is an erroneous number inflated by that owner for personal ego purposes.

Consider getting a professional appraisal.

We offer a Campground Business Evaluation, at no cost. Please call if you desire our profile assessment mailed to you. Give yourself an advantage - Price it correctly!

Plan ahead and do not wait too long to get ready

Statistically, most Campground, RV Park and Resorts for sale do not methodically plan for the “sell date.” Many also feel once they decide to sell, it will simply be a matter of a few months process and then they can pack and be on the road. Waiting too long, or not planning in advance, can cause many RV park business owners to miss their window of opportunity. Please keep in mind, it can take a good year, sometimes more (depending primarily upon price and location) to sell a Campground, RV Park or Resort. Don’t count on your business selling in 2-3 months.

Long term planning is a key to any successful sale. Considering wanting to “be out” next year? Now might be an opportune window time to list to accomplish that goal.”

PLAN AHEAD
"It can take a good year, sometimes more to sell a campground, RV park or resort."

Consider seller financing

Simply put, this is where you become the bank. You take the down payment as a bank would do, and you receive the monthly payments from the buyer.
In many cases, you could receive a higher selling price because the buyer feels YOU have enough confidence in your business to “play the bank role.” The campground buyer also avoids a large amount of up front money a lender would charge for document preparation fees, etc. The buyer will also recognize the fact that it will be easier and less stress on them to do seller financing with you opposed to a lender – especially in the present climate with lenders. They’re cautious about lending money for business purposes after being so “burned” in the residential housing foreclosure.

SOME ADVANTAGES OF SELLER FINANCING:
One of the advantages to financing your campground is that you don’t have to “sit it out” for 2-3 months waiting for a lender’s final approval. The risk to you is minimal, likely less than you think. Purchaser should be expected to pay at least 30% of the agreed selling price as a down payment. You can structure these seller-financing terms as creatively as YOU desire. Typical end dates are 3-5 years. If you want to discuss all aspects of potential seller financing, please give us a call.

RV PARK SELLER FINANCING "You can structure seller-financing terms as creatively as YOU desire. Typical end dates are 3-5 years."

Find the right company to represent your business

The right broker is crucial to your success. Parks and Places, Inc. gives you a competitive edge. The wrong firm can cost you valuable marketing time. You deserve nothing less than a brokerage that understands your specific business.
Benefit from our experience in this industry. You will find that we are courteous and candid in our working relationships. You deserve a brokerage that has a national audience of potential buyers. This will contribute to a pleasant experience with a successful end result for you.

We provide references, past sales data, and marketing materials upon request.

CONSIDER PARKS AND PLACES, INC. FOR YOUR SALE!
Compare what the team at Parks and Places, Inc. offers against other campground brokers. If you would like more information on our company and what we can offer you, contact us!
Call: 616.301.0765 | Email: sales@parksandplaces.com | Fax: 616.301.0764

We will lend our expertise and staff to every aspect of the transaction; from information preparation, buyer qualification and arranging visits, through every other step that leads to a successful closing.