Buying a Golf Course

[Christian Beyer]

Hey BP,

I know this is a bit out there... does anyone have experience financing and completing the purchase of a golf course?

There is a beautiful, yet poorly managed, golf course near my home in Suburban Philadelphia near Phoenixville in Chester County that has peaked my interest. It is not for sale currently, but as the owners refuse to invest in proper management and general course etiquette I can’t imagine it will be successful for much longer.

Obviously I have no experience managing a golf course but a trained monkey could do a better job than these guys. A potential exit strategy would be using the land for development as it is a very desirable place to live with some picturesque scenery.

Anyone have any experience doing this or something similar?

[Troy Albers]

@Christian Beyer

I was in the golf business for 28 years, until 2015 when I decided to dive further into real estate. Golf courses seem like a sexy, fun, and exciting business. The truth is it is a lot of hard work. If you are in the right location with the right demographics, some money can be made, but there are a lot of variables that can eat up your profits in a heartbeat. Since Covid hit, a number of courses across the country have had the most profitable year they have had in a decade. It’s one activity or sport that people have been able to participate in. However there are many factors that make it a tough business....weather, rising fixed costs, fertilizer, chemicals, fuel, labor, insurance, and the threat of a recession. Golf is a fairly discretionary activity. Unless you have experience and are willing to be a hands on operator, you can get eaten alive in the golf business.