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Updated almost 8 years ago on .
Lease vs Buy Land to Build RV Park, Mini Storage, Drive Thru
I've found a prime vacant 2 acre lot at major intersection of 2 state highways, on route to the coast. An absolute goldmine of a location! I can't afford to buy the lot from the owner right now, however, they will do long term lease, maybe with option to buy after so many years. I want to install 20-30 RV spaces, some mini storage and a drive thru food / coffee stand. The drive thru and the mini storage could potentially be mobile, ie. steel shipping containers, which I could take with me should the lease ever fall apart / expire. Question for the forum is would it be recommended or not recommended to invest in this type of project, ie. infrastructure for the RV spaces (water, sewer, pavement etc), on a leased piece of dirt? I'd love to own the dirt but I am on a budget and avoiding the capx of land purchase actually sounds great. Should I offer the owner a percentage of my revenue as incentive for a low base lease amount? What, if any, are the potential risks with this scenario, or can these risks be addressed by a properly written lease agreement with a buyout option? I'm new to all this, appreciate any advice. Thanks!