You’ve likely found our blog because you’re an RV park owner who’s already mastered the art of running a successful park and now, you see the value and opportunity in acquiring another one to expand your portfolio. Or maybe you’re new to the world of RV parks, having discovered this under-the-radar asset class, and you’re strongly considering making your first acquisition.
Whichever category you fall into, acquiring an RV park is a smart way to capitalize on a promising asset class. With so many ways to generate profits at an RV park — from nightly rentals and seasonal stays to upselling amenities and value-added services — these properties are becoming more lucrative than ever. But purchasing a park isn’t just about picking the right property — it’s about structuring a deal that works for you, securing the necessary capital, and setting the stage for long-term growth. Whether you’re looking to expand your empire or make your debut in the RV park business, this guide will walk you through every key step of the process.
1. Setting Your Growth Goals: Where Do You Want to Go?
Before diving into an acquisition, start by outlining your growth goals. Are you looking to add a single RV park to your portfolio, or are you envisioning a network of parks under your brand? Knowing your objectives will guide every decision, from deal sourcing and financing to operational setup and long-term strategy.
Consider what “growth” means for you. Is it purely financial, like increasing cash flow and net operating income? Or are you looking to build a recognizable brand of RV parks that attract loyal, repeat customers? Your growth goals should also account for the type of experience you want to offer guests. Are you aiming for rustic campgrounds with minimal amenities or luxury RV resorts with pools, playgrounds, and Wi-Fi? Each goal will shape the type of park you acquire and how you operate it.
Having clarity on your end game can also help you align with the right partners and lenders. If you want to scale quickly, you might seek partners with access to capital and operational expertise. If your plan is to hold and grow slowly, you might prioritize cash flow and operational efficiency. The more specific your growth goals are, the easier it will be to identify properties that fit your vision.
2. Deal Sourcing: Finding the Perfect Fit
Once your goals are clear, the next step is sourcing deals. This process involves more than browsing listings—it’s about digging deep to find properties that meet your criteria.
Network with brokers specializing in RV parks, work with consultants, and explore off-market opportunities. Consider working with partners who have experience in identifying undervalued or high-growth potential properties.
3. Partnering for Success: Should You Go Solo or Team Up?
Deciding whether to acquire an RV park on your own or with a partner is a pivotal choice. Going solo gives you full control over the business, but it also means shouldering all the risks and responsibilities.
Bringing in partners can lighten the financial and operational load, especially if they bring complementary skills or access to additional capital. However, it’s important to clearly define roles, responsibilities, and profit-sharing arrangements to avoid future conflicts.
4. Capital Considerations: Financing the Dream
Financing is often the biggest hurdle in an RV park acquisition. Start by evaluating your current financial position. Do you have enough capital for the down payment, or will you need to leverage existing assets?
If you already own an RV park, consider accessing the equity in that property to fund your new purchase. Borrowing against equity can provide a significant cash injection while keeping your liquidity intact. Partnering with lenders experienced in the RV park industry can also streamline the financing process.
5. Structuring the Deal: Underwriting for Growth
The structure of your deal can make or break your acquisition. Consider working with financial experts to underwrite the property carefully. Look at the park’s historical financials, including income , expenses, and growth trends. Equally important is deciding on the optimal business model for the property you are pursuing. This will influence not only the way you operate the park but also the potential for profitability.
For example, are you targeting a seasonal campground with a focus on short-term rentals, or a full-service RV resort offering long-term stays, amenities, and premium services? Will the park cater to a niche market, such as pet-friendly or eco-conscious travelers, or will it offer a broad range of experiences? Each business model has its unique financial implications, including pricing strategies, occupancy rates, and operating costs.
Additionally, consider the specific use cases for the property. Are there opportunities to expand or repurpose areas of the park to diversify revenue streams, such as adding cabin rentals, offering additional services like equipment rentals, or creating spaces for events and group gatherings? The more you can tailor the business model to the property’s characteristics and market demand, the more flexibility and potential for growth you’ll have post-acquisition.
6. Due Diligence: Leave No Stone Unturned
Conducting thorough due diligence is critical to mitigating acquisition risks. This involves reviewing everything from property condition and zoning compliance to financial records and customer reviews.
Engage necessary consultants to help guide your due diligence process. This could include property inspectors, environmental experts, legal advisors, and industry-specific consultants who can offer valuable insights into zoning, land use, and market trends. Don’t rush this step. Taking the time to gather input from professionals will ensure that you fully understand the property’s current condition and its future potential.
Use the insights gained during this process to negotiate adjustments to the terms of the deal if necessary. If issues arise during the inspection or you uncover potential liabilities, such as deferred maintenance or environmental concerns, you can use this information as leverage in price negotiations. Due diligence isn’t just about finding problems; it’s about ensuring you have a complete picture of the property’s potential. It also provides an opportunity to identify areas where you can add value—whether through improvements, operational changes, or strategic shifts. By thoroughly assessing every aspect of the property, you can make a more informed decision and avoid unexpected surprises down the road.
7. Operational Setup & Transition: Smooth Sailing Post-Closing
After the purchase, the hard work of integrating the new RV park into your operations begins. If you’re adding to an existing portfolio, focus on creating consistency in management and customer experience across all properties.
For standalone acquisitions, prioritize staff retention and customer satisfaction during the transition. A seamless operational setup will ensure the park continues to thrive while you implement your growth strategies.
8. Planning for Long-Term Growth: Think Beyond the Basics
Acquiring an RV park isn’t the end goal—it’s just the beginning. Develop a plan to maximize your new park’s profitability. Can you add amenities or sites, extend the season, or cater to a new customer segment?
Don’t forget to consider refinancing options once your new park starts generating consistent cash flow. A higher appraised value can give you access to more capital for future acquisitions, fueling your growth ambitions.
9. The Role of Partners in Scaling Your Vision
Partners can play a transformative role in scaling your RV park investments. They can bring capital, operational expertise, or connections that help you grow faster.
Be strategic about who you bring on board. A good partner isn’t just someone with deep pockets—they’re someone who shares your vision and complements your strengths. Clearly outline your shared goals and establish a framework for decision-making.
Acquiring your next RV park is an exciting journey filled with opportunities for growth and financial success. By carefully planning every step—from deal sourcing and financing to operational transitions—you can set yourself up for long-term rewards. Whether you’re venturing into this alone or with a trusted partner, the key is to remain focused on your goals, leverage your resources wisely, and keep an eye on the big picture.
Ready to take the next step? The RV park market is ripe with possibilities, and the right strategies can turn your acquisition into a thriving investment. Happy deal hunting!