Although owning an RV park may not seem like an obvious first step in getting a larger business off the ground, it can actually be quite beneficial. With an RV site, you can branch out into any number of other ventures. Here are four of the ways in which investing in an RV park can help you get your business started.
It Provides a Stable and Largely Passive Income
One of the beauties of RV park ownership is that the income is predictable and largely passive. As a result, your RV park can provide the cash flow you need to launch other businesses or keep your family’s bills paid while you work toward other projects. While there will be some maintenance and management, the time input for an RV site is relatively low, and you’ll have plenty of time for whatever else you want to work on.
It’s a Great Foundation for a Tourism Business
If you want to build a broader tourism business, an RV park is a great place to start. The people who are camping in your park will be looking for local attractions and activities, putting you in the perfect position to provide them. If you own an RV park on a good fishing lake, for example, you could add to your business by offering boat rentals or guided fishing tours. Talk to your RV park broker about local activities or attractions that you could capitalize on when you’re in the buying process, and you’ll be amazed at the opportunities that exist to build your business. RV park brokers in particular understand the industry and will keep your budget in mind as they look for investment opportunities that will suit your particular needs. Do your research when looking for a broker to ensure that they are experienced. You can find out if a broker is reputable based on the reviews that they have received online.
You’ll Get Some Beginner-friendly Real Estate Experience
Real estate is one of the best industries to be in, and owning an RV park will help you get some entry-level experience owning and renting out a piece of property. This experience can easily translate over into building other vacation rentals or even owning single-family rental properties. After owning and operating an RV park for a year or two, you’ll be ready to tackle other real estate projects.
You Can Borrow Against the Equity in the Park
If your next business will require a substantial amount of capital to get started, you may be able to secure a lower interest rate on your loan by borrowing against the RV park. As a fixed real estate asset, an RV park has considerable collateral value. As a result, RV park ownership can make financing your next business project easier and less expensive.
As you can see, buying an RV park is a great way to set yourself up for future business success. If you’re considering becoming an RV park owner, now is a great time to get in while interest rates remain relatively low.
