Buying a Campground – FAQs

Why don’t you advertise specific locations or campground names on your site?
These campgrounds are active businesses, in operation and the owners have requested confidentiality for several reasons. Most importantly, if regular guests learn that a campground is for sale, they may choose not to visit, which could negatively impact the owner’s revenue and, in turn, affect a potential buyer’s earnings. These businesses depend on public patronage, and owners aim is to protect both current and future revenue streams.

How Much Down Payment Do You Need?
The down payment required for a campground purchase can vary depending on factors like the campground’s financial health and your personal financial situation. The Typical Down Payment Range is 20-30%. This is a common requirement for bank financing or owner financing. In some cases, a larger down payment may be necessary, especially if the campground faces financial challenges. A financially sound campground is more likely to secure favorable loan terms and remember to factor in closing costs, operating capital, and potential repairs.

I have a home or a business to sell, will the seller wait?
When purchasing a campground, it’s ideal to be prepared with the necessary funds. However, if you need to sell a home or business to secure the funds, you may encounter certain contractual terms such as a kick-out clause. The seller might include a clause that allows them to continue marketing the campground while you work to finalize the sale of your property. There is a risk of losing the deal if you’re unable to secure the funds in time, and another cash ready buyer steps in and purchases the campground.

What is Seller/Owner Financing?
Seller financing is an arrangement where the seller of a business provides a loan to the buyer. Usually, the purchaser will make some sort of down payment to the seller, and then make installment payments (usually on a monthly basis) over a specified time, at an agreed-upon interest rate, until the loan is fully repaid. It is not uncommon to see a balloon payment required after a 5 year term. In this case it would be the purchaser’s responsibility to seek refinancing prior to the term expiration date. Consult with a financial advisor to understand the potential benefits and drawbacks of seller financing and to determine if it’s the right option for your situation.

What is Due Diligence and when do I do it?
Due Diligence is an investigation of a business, to evaluate the overall feasibility of the purchase. You will look at physical, economic, demographic and market feasibility of the campground. This is your opportunity to inspect the records, books, licenses, leases, permits, 4-point inspections, etc. The time period is typically 60 - 90 days after contract is executed by both parties and if you are not satisfied with your findings, this serves as your exit period. Typically, and in most cases, you cannot perform any of these duties prior to the executed purchase contract.

How quickly can I close on the sale after the contract is executed?
Typically, it will take 90 - 120 days to complete all the necessary paperwork, go through the loan process and due diligence. Seller financing can close in as little as 45 days and certainly within 60 days.

What in the world is 401(k) Small Business Financing?
This allows you to use your existing IRA or 401(k) funds to invest in a campground without taking a distribution or applying for a loan. That’s right, no penalties or distributions, it’s merely an investment in the stock of your newly formed company and does not trigger a distribution or any penalties. You still get tax deferred savings and still have complete control over your retirement’s growth. It’s easier than you think!

Ready to get started?
Simply click here to fill out our contact form. This is an on-line form submission and does not require you to print or fax the document back to us. Just simply fill in the required areas, click the “Submit” icon at the end of the form and it automatically emails back to us. So easy!