Nobody buys an RV park for cash – at least not anyone trying to maximize their yield on the investment. While buying without debt may make you feelsafer since there’s no risk of foreclosure, the truth is that the ability to obtain sensible debt is what makes real estate the #1 source of wealth in the U.S. Debt allows you to buy RV parks that are roughly 5 times bigger than you could with just cash, and then the spread between the interest rate and the cap rate is what allows you to hit 20%+ cash-on-cash returns given the right ingredients. So how do you obtain financing on an RV park?:

Buying an RV Park – like buying any asset – is a stressful experience filled with doubts and concerns. However, there is an easy way to get around this hurdle and make informed, accurate decisions that you can feel good about. In this RV Park Mastery podcast we’re going to discuss a simple method we developed years ago to make buying an RV Park a scientific decision based on math and risk assessment and not just gut feel. If you’re buying an RV Park, you want to learn this method.

An RV park is, by definition, an income property – it’s value is based on how much income it produces. Some sectors of real estate offer low returns and others higher. But to really make impressive returns a property has to provide some simply tools to drive the numbers to a high level. And RV parks offer these tools. So what are the three steps to making a huge return with an RV park?

Science is defined as “the intellectual and practical activity encompassing the systematic study of the structure and behavior of the physical and natural world through observation and experiment”. So how can you apply that lofty goal to RV parks? In this episode of the RV Park Mastery podcast series, we’re going to drill down on the science of evaluating RV parks and bringing factual discipline to the emotional process of investing.

RV parks, like all real estate, offers higher yields in situations of higher risk. But this can also serve as a buying opportunity if you can find methods to lower the risk while keeping the higher yield. So how can you have the best of both worlds with an RV park?

There are several valuation methods that appraisers use – and we’re going to review each of them on this episode of the RV Park Mastery podcast. Between the cost approach, comparable sales approach and income approach, each has its place and some are more important than others. Since the goal of buying an RV park is to arrive at the fair price, understanding appraisals and their methods is a key part of the purchasing process.