WelcomeCampgrounds for saleList with usOur storyVendorsEmail us

SELLER FINANCED CAMPGROUNDS

This is a business-financing technique in which a buyer borrows from the campground seller instead of, or at times in addition to, a bank. It is sometimes referred to, or called owner financing, land contract or purchase-money mortgage.

A campground seller agrees to finance a portion of the sales price over a specified term at a specified interest rate. If the campground seller is doing seller financing on the entire amount, the buyer pays a down payment up front, to the seller directly, and continues to make payments according to the agreement with the seller.






$540,000 434757

This park of approximately 29 acres includes a private, spring-fed 14-acre lake. Many of this property’s 100 sites are along the shores of this lake. The park has 2 full hook-up sites, 70 with water and electric, 9 with electric only, and a number of rustic sites. All sites have a fire pit. There are also 6 cabins which have electricity and air conditioning. The park has many on-site activities available including its private beach, row-boating, “catch and release” fishing, paddle boats, and other typical campground amenities.


$390,000
426521

Built with quality products and the convenience of guests in mind. Located just off a major highway, the area attracts travelers all seasons. Completed features include 30 sites, half are full hookup with 30/50/110 amps, other half are water and electric, bathhouse, store and laundry on 40 acres.




Why would an owner offer
seller financing on a campground?

Many potential buyers just don’t have the necessary capital or business lender resources to cash a seller completely out.

Even if they do, they might be reluctant for what they consider an untried new venture in unknown waters. When that buyer opens the doors to their lender of choice, they will find many hoops they need to go through and many personal documents they will need to supply. Of course they will reach into resources for the down payment the lender requires (20% to 30%) – and added to that will be extra costs – like document prep fees, etc. It is a common misconception in this industry for a seller to assume that if a buyer has a great credit score and the necessary down, it’s pretty much a “done deal.” Not so. The entire business will come under a magnifying glass as much, if not more, than the potential buyer. In order to sell a campground it will have to appraise at agreed sale price or more, or the lender will not open the vault. In the meantime, the seller are “mentally packing” with fingers and toes crossed, hoping the lender says “yes” many weeks after the application process is first started. With lenders experiencing recent losses from escalating housing foreclosures, they are very cautious about lending money right now. They’re requiring more i’s to dot and t’s to cross.

With seller financing a buyer and seller can “get creative” to each others advantage. The agreement can be “interest only” payments, for a part, or full duration of the time frame before a balloon payoff is due. If a buyer has intentions of investing in something to bring in needed revenue to support the business, the agreement can contain escalating payments each year for the duration of the agreement – even adjusted interest rates (starting lower, and each year increasing one half to one percent). The balloon term can be as few as 3 years before the balloon payment is due in full, or the loan can run the full course of years until the entire balance is paid off. This creativity often makes seller financing attractive to a buyer and seller.

If you desire to have any amount calculated in amortization forms, please do not hesitate to call. Our intent at PARKS AND PLACES is to insure you understand all the “doors” available to you toward the goal of buying or to sell a campground or to sell an rv park.

PARKS AND PLACES INC :: Phone 616.301.0765 - Email sales@parksandplaces.com - FAX 616.431.4140
Florida Office :: 2937 Brandemere Dr, Tallahassee, FL 32712
Michigan Office :: 1734 Timberlane Ln NE, Grand Rapids, MI 49505

Welcome | Campgrounds for sale | Campground Brokers | About Us | RV Park Consulting | Contact Us | Privacy Policy

Information deemed reliable but not guaranteed


arvc supplier

:: Copyright © 2017 Parks and Places Inc. ::