Hiring a qualified RV park and campground broker to sell your park will increase your chances of obtaining the best price and terms for your park. This article will go over the right questions you should ask potential brokers to find the best individual for the job.
How many RV parks or campgrounds have you and your company sold?
This number should be greater than ten with at least one sale in the last twelve months. Your broker should focus on campground and RV parks—no ranches, houses or apartment buildings.
How are you going to evaluate/price my park?
An answer of “How much do you want?” should raise an immediate red flag. A knowledgeable broker should be able to provide at least five comparable sales from the preceding twelve months for your review. Given that a lot of parks are in secondary markets and campground sales are not as frequent as apartment buildings or mobile home parks, there might not be comparable sales available in the same city or even county. However, a broker should still be able to access sales data that provides relevant comparable information to support a proposed listing price.
Do you cooperate with other RV park brokers?
Have the candidate provide examples of deals involving a buyer who was represented by another broker. There is a network of brokers who focus on RV parks and campgrounds. A property that is only served to only one broker’s clients is not in the best interest of the seller. You want your property to be exposed to all potential buyers in the RV park market.
Can you provide examples of current marketing materials?
The days of a one page black-and-white flyer are over. Today’s campground buyer is sophisticated, internet savvy and data-driven. Sales packages should contain:
- Previous and current income and expense reports
- A broker proforma, showing operating income and expenses that a new owner could expect
- A rent roll showing a long-term, monthly, weekly and daily rental break down
The package should also include a map, a site layout, color pictures covering both the good and the bad areas of the property and an aerial view of the property if available.
What is your plan to get the deal done?
Ask your broker to indentify how they will see this transaction through to the close escrow. Your broker should be able to provide at least three or four possible lenders that are familiar with RV Park financing and should have experience closing on loans for campgrounds. If you are not financing the sale of your RV park or campground, then this hurdle is as big as agreeing to a sales price. Don’t rely solely on the buyer to find a loan to purchase your park. A broker should be an active participant in obtaining financing to complete the sale.
These are just a few of the key items for an owner to consider when placing their campground or RV park up for sale. Once the park is listed, there are many other important items that need to be addressed: managers and buyer discretion, advertising, qualifying buyers, etc.
If an RV Park owner follows the steps above and interviews 3 or 4 perspective brokers, then they can feel more certain that they have chosen the right team for an important job.
MHRV Advisors specializes in the sale and financing of Mobile Home Parks, RV Parks and Campgrounds. They have sold over 100 parks and provided loans, either refinancing or new acquisition financing for all of those transactions. Vince Reynolds and Norman Sangalang are based in San Diego and work throughout the states of California, Arizona and Nevada. Contact them by visiting their website www.mhrvadvisors.com
