RV Park Investment Articles

There has been a disconnect in financial markets between values and making money. Michael Burry, the “Big Short” investor, recently noted that "This morning there were still 218 primary stock listings in the United States with a market cap over $1 billion and EBITDA less than NEGATIVE $100 million," he posted on Twitter. "29 of them had market caps over $10 billion, totaling $655 billion.". In addition to his concern about the fact that Wall Street is valuing worthless companies (based on actual net income) at billions of dollars, the results are already in based on the market’s performance. Over the past year, the Dow Jones, the Nasdaq and the S&P 500 are all down over 20%. And if you factor in the rate of inflation, that number jumps to nearly 30% in real dollars. That’s a terrible performance. And one that no RV park could ever possibly match.

Nobody likes to fire their manager, and this is as true for RV park owners as any other group. When you get rid of your manager you set in motion having to find, train and hire their replacement, as well as the unhappy act of letting someone go. It’s perfectly natural to have an aversion to firing an employee, for a multitude of reasons.

We have been educating RV park buyers for years on the simple maxim that you can NEVER tie up an RV park under contract without 1) a due diligence contingency 2) a financing contingency and 3) no buyer’s specificperformance agreement. It looks like Elon Musk forgot about all three of these principles with his contract to buy Twitter and there are many morals to the story of Musk contracting to buy Twitter.

If you’re wanting to by an RV park, don’t forget that you only live once – don’t blow it! Instead of being concerned about entering a new sector outside your comfort zone you should be more haunted by the concept of missed opportunities. RV parks are attainable investments but only if you approach the business of finding good RV park deals in the right way. Here are the five steps required to accomplish this important mission.

The U.S. is clearly heading into an era of “stagflation” which is defined as high levels of inflation coupled with a sluggish economy. The last time America saw this phenomenon was in the 1970s – nearly a half-century ago. But history repeats itself and thanks to some poor decision making in Washington and the impact of Covid-19 on inventory, that appears to be the main economic news for the near term. If you are looking at buying an RV park, you should be concerned regarding how these properties will perform during periods of stagflation. Here are some observations.

There are a lot of great RV park investments to be made in the U.S., but even the greatest deals of all time can easily be destroyed by buyers who make some fundamental mistakes. Some of these are the result of bad business habits, and others from simply lack of knowledge. But they can all derail your financial independence and make you regret what you did. Here they are:

“Chainsaw” Al Dunlap was a well-known corporate raider and business efficiency stalwart of the 1960s through 1990s. His approach to turning businesses around was a simple motto: “sell, sell, sell and cut, cut, cut”. And it’s not a bad mantra for RV park owners, as well. When you buy an old RV park and bring it back to life financially, there are typically three key areas to focus on for maximum impact to the bottom line.

Some buyers can’t move beyond the idea of buying an RV park simply because they have “paralysis by analysis” on how to write a contract. To top it off, they won’t seek legal counsel because of the cost, so they end up never acting on their dream of RV park ownership. Since that’s a terrible ending to your investment options, here’s a quick guide to try and illustrate the basic parts of a contract, not from the perspective of an attorney, but simply an observant RV park buyer.

The stock market has had a great ride since it’s Covid-inspired bottom. But how much of that was reality and how much was fantasy? The current decline in the Dow Jones and the Nasdaq are sobering reflections on the fact that the market is mover overvalued than at any other moment in American history – even worse than 1929 based on analytics. Charlie Munger – Warren Buffett’s business partner – has been warning about an apocalyptic market correction for months. And now it appears to be finally here. So in light of the fact that stock market “gambling” is no longer paying off, have you considered investing in an arena that is built on the fundamentals of income and cash flow and not PR and logo design? And a great investment niche that meets all these criteria is the simple RV park.

Many people know nothing about RV park investing. But others are aware of the opportunity. And if you are one of those people, the big question is if you are going to take action on that desire in 2022, or let another year pass without exploring the possibilities of building financial independence with one of these properties.

When you buy an RV park, sometimes the seller offers to stay on as the manager of the property. Or maybe you’re thinking of approaching the seller to assume this role. Does this work? Here are our observations on this management concept.

Omar Bradley was a U.S. General during World War II, and was known as a no-nonsense leader that had a continual focus on planning.

The above announcement came out in a market research report that caters to large portfolio-type investors, bragging about the potential in the RV park industry.

The “Great Resignation” is a national trend based around the fact that more Americans than ever before are not returning to their jobs post-Covid.

There’s an old expression that says “better lucky than smart” and that’s been holding true for RV park owners for years no as all American megatrends are fueling continually higher demand for RV park lots and there is nothing on the horizon to reduce this phenomenon. So what are the trends pushing RV park occupancy ever higher?

It should come as no surprise that nobody is concerned about your financial security as much as you are. And recent events show that, more than ever, relying on others is the worst plan you can make. The stock market and housing markets are at all-time highs despite Covid, inflation, urban unrest and world instability. So how can you take your own destiny into your own control? The answer for many is by buying an RV park.

A recent study by a well-respected research firm produced some interesting statistics that should be of interest to any RV park buyer or owner. It helps to put into perspective the real motivations by RV park customers in the post-Covid era.

Shenandoah Acres is located in Virginia near the Shenandoah Valley. It’s a location that’s known for a scenic setting with fun activities. But it’s also now known to be a huge money-maker for the recent owners who bought it for reportedly $3 million and then sold it in less than a year for $17 million to SUN, a mobile home park and RV park REIT. It’s discussed in this article https://www.rvtravel.com/andy1003/ . The question is, how did this property go up in value around $14 million in less than a year?

The Biden administration is proposing new changes to all forms of government, including tax codes, immigration, energy and other platforms. Assuming that all investors want to be on the correct side of megatrends – which is true – it then begs the question: “how will these proposals effect RV parks in the years ahead?”

Every RV park owner will have a problem at some point. It may be minor like not being able to decide between two different banks on a loan, or it may be major like a flood or a reduction in revenue due to road construction. But how we approach problems is extremely important. Many of the top business people in U.S. history saw problems as learning experiences to shape and improve their finances. They did not fear problems but they embraced them. And this is a much more healthy approach.

We’ve all heard the rhetorical question: “is the glass half empty or half full”? It represents two different perceptions: 1) optimism or 2) pessimism. It’s a fact that most people fall into one of these two camps. Of course, both have their benefits for self-preservation, but it can also hurt your ability to buy an RV park if you listen to only that one portion of your personality and not moderate it with other viewpoints.

It is estimated that there will be roughly 51,000 new sites of expansion in the U.S. among existing RV park owners. In many markets, this can be the right choice to expand your profitability and the depth of your product offerings. But is this the right choice for your RV park? Here’s a primer on the key issues to consider.

2021 will be no different than 2020 if you don’t take action today. Just like a gardener, you will not have a majestic oak in the future unless you plant that acorn today. And if you want to improve your financial health, then this is the time to make movement. For many investors, the correct action should be to buy an RV park. Just one of these assets can change your financial stability for generations. So how do you take the first steps toward successfully buying and operating an RV park?

The concept of “retirement” is overworked and commonplace on any investing website. But their concept of “retirement” and yours may be completely different. Sure, you’ll get social security, but at $1,200 per month on average it’s less than impressive. So what’s your plan? For many investors, a good one is buying an RV park. And it only takes one if properly purchased and operated.

In the journey to buy an RV park at the correct price, it is common practice to have a period of renegotiation. Remember that the seller knows much more than you do when you sign that contract, and as you learn more of the facts in due diligence, it’s perfectly reasonable to need to adjust the price to reflect that reality. So how do you do it properly?