A note on seller financing

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.

$10,950,000  SOUTH CENTRAL

Family resort on a 185k acre lake offers luxury cabins, RV sites, and a water park

Guests come back year after year to this charming lakeside resort. The property features 32 well appointed cabins and 43 FHU RV sites on 70.64 acres. The resort is a perfect setting for weddings and reunions. An event center features bride and groom dressing suites, a full service kitchen, 2 banquet rooms, and a large deck overlooking one of the park’s 3 ponds. A large covered fishing pier juts out into one of the most popular lakes in the region. The water park is in the final stages of completion and will offer water slides, a lazy river, food and beverage service, mini-golf, and many other family friendly amenities. Additional profit sources include a camp store, tackle shop, restaurant, and a newly built enclosed RV/boat storage building.

Mountainside resort with beautiful sites and deluxe cabins

This PA campground resort for sale is built into a mountainside and every site is unique. There are full hook-up sites that have 20, 30 or 50 amp service along with water/sewer and electric. Cabins, motel units, and a large rental lodge offer accommodations for all types of vacationers. Amenities include a horseshoe pit, shuffleboard, basketball, swimming pool, game room, camp store, general store, ice cream parlor, propane filling station, and a laundry. A large restaurant at the base of the mountain and near the entrance of a state park offers a seasonal menu of “made in house” items. A full service bar and lounge has the best beer selection on the creek along with a variety of mixed drinks. The restaurant, lounge, and general store draw from guests staying at the resort and vacationers passing through to the state park and river.

Mountain camping experience & convenience store within an hour of metro Denver

This scenic destination at 9,230’ elevation is just 30 miles from Denver and five minutes from a State Park. Guests come for the many local attractions and natural beauty. The business is unique to the competition because of its location and amenities. Laundry facilities, hot showers, liquor store, convenience store, gas station, and propane filling are features that other area campgrounds lack. Having these amenities on site ensures the park receives a lot of business from the local community and campers staying at other parks. 13.8 CAP,  $2 MIL+ gross in 2021.

52 site campground on 21.72 acres in a popular area

This NC campground for sale offers full hook up RV sites and caters to traveling workers and full time residents. The business features 52 sites on 21.72 acres. 600’ of stream frontage has been used in the past for gold panning and there is a historical mine from the late 1,800’s on the property. There are 10 acres available for expansion, with demand for additional sites as the owners regularly turn potential guests away. The area offers professional racing, fishing tournaments, state parks, and much more.

Cabins & RV sites located in a scenic motorcycle touring region

Closed in 2020, this park previously catered to motorcycle tours in the area. The area features destination motorcycle drives including a very popular one 9 miles away. Sports cars are increasingly touring the area, and this could extend the months of operation past the typical motorcycle riding season. Guests can relax with like-minded folks around the campfire, or on the covered deck overlooking the campground. The area has trails for hiking, biking, and horseback riding. There are rafting and fishing rivers, as well as several lakes in the area.

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 seller financing a buyer and seller can “get creative” to both parties 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 campground buyer and seller.