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Updated over 2 years ago,
Buying a dilapidated campground: Where/How to start?
Lessee, how do I make this short 'n sweet. There's a campground somewhere in central Montana where I've stayed a number of times over the years. It's small... only like 25-30 sites. Its current owner is going through a nasty divorce and the place has to get sold. We think we can get it pretty cheap. I have a partner in this... he has $100k cash in the bank and a modest income; I have very little cash in the bank, but I have a good income as a software engineer. We both have credit scores in the high 600's to low 700's (depending on how the wind blows).
Based on what I learned while dabbling in commercial real estate about ten years ago in SoCal, I know we'll need a business plan. My parter, we'll call him Tim (may or may not be his real name) says we need to have an actual appraisal done. I tend to agree. Then we need to get copies of the campground's financials (to build the business plan and ultimately decide if this place is worth going after in the first place). Do we need to get a commercial real estate agent involved? We were going to hire an attorney too. But to be honest, we're both fairly clueless about this and would very much appreciate any info we could get on how to proceed. We just figure that if we have a solid business plan, and can show that to the bank along with an appraisal that's well above our purchase price, it has a chance of succeeding.
Help please? :)