Convert Golf Course to Campground

[Kimberly Gamez]

We have a beautiful golf course in our area that I believe, after meeting with the owners, would sell super cheap --- potentially on a land contract too. I have been thinking about ways to capitalize on the opportunity and I keep going back to a campground. The property already has picnic areas, a clubhouse, large pond and a very nice personal residence. Do you have any experience in this arena or ideas/thoughts on the opportunity?

[Henry Clark]

Your already a seasoned investor and developer, so I hopefully just stick to basic considerations and not Rah Rah.

Below is a checklist we use for developing Self Storage locations.  Please take it and change it to your needs.  Have other "RV Park" owners look at it and add to it (drive about 2 hours away, so they are not your competition or email and call them).  The below is on the development side.  Or do a post on this Forum after you have put your efforts into it.  Try to use one of the BP calculators if it applies.

On the Cash flow or Income statement side, major considerations:

a.  Property taxes

b.  Interest/Principal payments.  If you do a loan, ask for a Construction loan.  Only pay interest only during construction and for 18 months after or xx% full, during rent up phase.  Since you will be seasonal, I would shoot for two seasons.

c.  Insurance

d.  Repair costs.

e.  Marketing costs- we use Sparefoot for Self Storage, I'm sure there is a similar service or Association for RV parks.

f.  Along the above line, there might be an Affiliate group, you can buy into.  I saw a Yogi the bear sign down in Texas, that might be a program that takes care of all of your needs.  Contracts, insurance, marketing, etc.

I would think your biggest misses will be roads, pads, electric (metered or not), water ((big enough city line or do you need a larger well (use a cistern well if on a private well, that way you have a lot of reserve water)), sewer, wifi, marketing, maintenance- lot of mowing, trash, etc.  Our family owned a trailer park and it was a lot of work setting it up.  Cheap labor.  My brother and I did a lot of digging Water, sewer lines, concrete pads, propane lines, in one summer.

This is an example, for discussion only.
A. Project Cost estimate from ground up.
B. P/L revenue stream
C. Valuation Buy/Sell
Adjust all of the above to your local market and situation.
	A. Self Storage Project Worksheet
	Drive up Storage
			Notes:
Land	$200,000		4 acres at $50,000/acre
Survey	$7,000		Site, elevation and building layout
Fence	$30,000		Black chainlink
Gate system	$25,000		Automated rolling 20ft
Engineer			if needed; $30,000 to $60,000
Dirt work	$15,000		Slight roll, no dirt brought on site
Building demo			if needed, $15,000 to $60,000
Electrical- site	$7,000		building lighting and office if needed, LED.
Electric poles			if needed; $2,000 per pole. First is free if nearby.
Security	$10,000
Storm drains			if needed; $50,000 to $150,000
Water			if needed; $5,000 just plumbing
Water line			?? if an extension could be $10,000 up to $150,000
Fire Hydrant			if needed, $3,000
Sewer			if needed: $5,000 plumbing
Sewer Line			if needed; $10,000 up to ????
Buildings	$1,180,800		Phase 1 2 acres
Office			if needed, plain storage unit 20x30; $25,000 insulated.
Office setup			if needed, $5,000- computers, printers, HVAC, frig, cabinets, etc
Footings			if needed. ??????
Roads
Gravel			if needed, ?????
Asphalt			if needed, ?????
Concrete	$676,133		6 inch Cubic yards, framed, poured, sawn,
Retention Pond			if needed, part of dirt work cost, less land for buildings
Landscaping	$5,000		I like trees and bushes. Less sterile
Road Sign	$15,000		For highway 55mph billboard sign
Total	$2,170,933