Catherine BellEmpowering Women to Create Financial Freedom Through Passive Income, Real Estate, and Social Impact

Price Your Offers: Income & Risk Dictate Your Value! #shorts

30 Jun 2026 · 1 min

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In this YouTube short, Catherine Bell explains how to price an offer for a campground business by linking the asking price to the property's annual income and its capitalization (cap) rate. She illustrates that a campground generating $250,000 in annual income would be valued around $2.3‑$2.8 million, depending on the cap rate. The cap rate reflects risk: well‑known, nationally accredited brands like KOA or Camping World command low cap rates (6‑7 %), which increase valuation, while less‑established operations have higher, double‑digit cap rates, lowering price. The speaker emphasizes that lower cap rates mean higher prices and lower perceived risk.

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But if they're only making $250,000, you're gonna wanna offer less than $280,000, $2.8 million. You're gonna wanna offer close to $2.3 million. Because again, the price is based on the income, and that income dictates what your value cap is gonna be. If they're not a nationally accredited, open for 20 years, been doing, like, if they're not that, they are double-digit cap rate, always and forever. No, because again, the cap rate helps you determine your risk. So if it's under 10%, that means you're dealing with a bigger name brand like Camping World or something like that, or KOA. You got a KOA campground, that's a franchise. They get a 6 or 7% cap rate, right? Because the lower the number, the higher the price.