RV Campground Resort and marina

[Don Spafford]

Investment Info:

Other commercial investment investment.

Purchase price: $2,975,000
Cash invested: $90,000

RV Campground Resort outside of Huntsville, AL. Beyonder Getaway Wheeler Lake. Purchased through a syndication with Beyonder Holdings. Sourced off-market. Included in a fund which holds several properties so investing in the fund therefore invests in all of them together. Tons of fun amenities including water sports, ropes courses, beach activities, etc. Huge expansion plans to add on 200+ additional RV sites, large boat marina, and more amenities.

What made you interested in investing in this type of deal?

Excellent cash flows (12-15% cash on cash average) and potential for huge depreciation and an investment I can visit and enjoy.

How did you find this deal and how did you negotiate it?

Off market, sourced by calling up the campground and talking with the previous owners

How did you finance this deal?

Syndication. Used bank financing for 75% LTV and sourced investor equity for the rest.

How did you add value to the deal?

We will be expanding the property, likely quadrupling the size of the available RV sites, adding more cabins and glamping options, adding a marina, adding an aquapark, bringing in food options for guests, better marketing, etc.

What was the outcome?

This will be an excellent cash flow and huge value add investment. Occupancy levels are already double what standard occupancy is for this asset class.

Lessons learned? Challenges?

Had some issues when the previous owners were leaving, causing some of the key staff to leave before we took over and also leaving many of the supplies to be an out before closing. Implementing policies so that this does not happen again.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lenders, worked with Mordy Jurkowitz. We've used him on several deals.