Help on Purchase - Posted by Pete

Posted by Steve-WA on June 17, 2006 at 10:29:08:

me offended? nah.

Help on Purchase - Posted by Pete

Posted by Pete on June 14, 2006 at 12:32:15:

I am a firsttime investor with an opportunity to buy into a first Phase construction RV-Resort. You Purchase the Lot and RV-Cabin in a Resort style Campground. Thet collect the Rent and Maintain the RV for a Fee. I was wondering is this investment has ever crossed your path and is thier a big demand for RV-Resort vaction sites. This one is right next to a Amusment park and thier is not a hotel in site.
Any advice?

Re: Help on Purchase - Posted by Daphne Lowe

Posted by Daphne Lowe on June 15, 2006 at 18:43:57:

The concept is an extension of the condo hotel financing strategy, which has had a surge in popularity of late. The key to the success of an investment like this lies in the viability and execution of the business. Firstly, location is critical- what’s the demand for this product? The developers should be able to prove that the market will pay for this product (ie. was this the site of a previously successful RV park). I have a hard time believing there is an amusement park large enough to support a motel, that isn’t being serviced by one. Do your own independent market research, don’t just listen to the promoters. Secondly, who are these guys? Do they have experience developing (bringing a project in on time and within budget) and the ongoing management of these places? Or are they undercapitalized, Clayton wannabes. If they are inexperienced, look into how much $kin they have in this venture. If someone wants me to invest money with them and they’re novices, they better have some money at stake also. If I’m fronting all the money and all they’re putting on the table is newbie enthusiasm, their sweat equity is worth 25%, I get the rest. But that’s just me, I digress… Last thing to assess is the valuation and ROI. Make sure its priced such that you can make a profit. Estimate best case and worse case figures for occupancy and expenses then determine NOI. Evaluate this in light of the purchase price. In today’s RE investing frenzy, developers can leave unsavvy investors with very thin margins. Case in point: “wholesalers” that acquire distressed properties at deep discounts then flip them to investors at 75% of ARV, who are left to fix and retail 'em to earn their 25% profit. Caveat emptor your assets.


Re: Help on Purchase - Posted by John

Posted by John on June 15, 2006 at 06:57:21:

I assume you are new to the board because of your question.
Hmmmm lets see should I buy into this for Status? Impulse? or maybe the presentation is irresistable, An Investment? Or maybe it is just a cool idea. Pete your reason for buying is totally up to you, But when you are HERE the return on investment RULES and if you are not immidiatly getting over 100% return on the money you have spent then your doing it wrong. The last deal I did went something this I bought a house for this family that cost me 4K total, they are happy paying me $505.00 per month for the next 36 months, so I will profit by 14k over the course of the next 3 years. Is that a good deal Pete? Gee maybe I could spend thier money on an RV space.

how do you profit? - Posted by Steve-WA

Posted by Steve-WA on June 14, 2006 at 13:07:27:

uh - are you investing in the construction? if not, and you’re just buying a space, can you sublease the space? will you be maintaining the tenant’s RV? Is it your RV that you are renting out? You’re not giving us enough info . . .

I know there’s money to be made with RV parks, but in owning one of the spots, I just am not familiar enough with the vehicle to understand where this becomes an “investment”

If YOU do know, then tell us . . . and you should be able to run the numbers to determine if it provides the percentage yield that you are willing to tie up that amount of money to obtain. Calculate any expenses, vacancies, costs against income (?) that this will provide, and compare that to your cash (?) or loan payment (?) invested -

too vague - but i’d like to know more - where is this?

dont be a flamer - Posted by Steve-WA

Posted by Steve-WA on June 15, 2006 at 10:41:53:

your response seems a little (little?) sarcastic. 100% is not necessarily a minimum standard, especially when you are talking about a higher dollar initial investment.

Your response rings of truth, but tone down your ire.



Re: No Ire intended - Posted by John

Posted by John on June 17, 2006 at 06:55:39:

Ire= intense and usually openly displayed anger, I am a fiftish guy who started working at the age of 13 or less followed by active military service at the age of 18 and have worked every since. Anger was certainly the most distant thing on my mind, I could settle on constructive critisism or maybe just a little bar room humor. I believe Pete to be a newbie ( maybe I am wrong) I believe Pete to be young ( about 25, maybe I am wrong) I believe Pete has limited capitol (MIAW) I think Pete should/is looking for something to enhance his monthly income ( not put a strain on it). So since Pete did not provide any of this important info I did make some assumptions. I think the constructive critisism provided was on the mark cause I am seeing a young man with maybe a family struggling to make ends meet and he suddenly found himself with a few thousand bucks burning a hole in his pocket, so with his eye on the future he is looking for the best place to park his few thousand bucks, He has somehow came across this RV investment idea and is about to get tied up with a saleman that has the skill to paint him into a corner, By the time this saleman gets done with him he may steal the next 10 years of his life, all for the dream of wealth and financial independance.
So Pete if you are reading these posts, Buy Lonnie’s book and spend the next 10 years focusing your efforts on making it work, I think the outcome is far more profitable than an RV space/time share cause those things are best left to a person with passive income.
Steve I have read many of your posts and appreciate if not look forward to them, you are no doubt a valued asset here, so if I have offended you I appologize. Have a great and profitable day!