How We'll Double the Value of this $3M RV Park Business

Hey, guys, Chris Kerner here. So I want to talk about this park, this RV park that I'm standing at for a minute. I'm standing on an 8.7 acre lake. It's really nice. I want to talk about four things. Quick facts, what I like about the park, what I don't like about the park, and then the meat left on the bone or levers left to pull, as I like to call it. What levers can we pull after we buy the park? That will really kind of crank up the value. So one facts. We are 45 minutes from Baton Rouge, about 250,000 people there, and an hour from Orleans. Great location. It's right on a highway and then about two and a half miles off of freeway. So a lot of marketing opportunities there. You kind of have to drive through a casino parking lot to get here, which is a little odd, but it's also kind of cool because the guests here can literally walk to some amenities, some attractions that we don't have to pay for. So other facts about the park. It's on 60 acres. 20 of the acres are in the back. Back. It used to be kind of camping sites, but they abandoned that. There's a creek and a river back there. 8.7 acres are here on this lake. And you've got a gorgeous gazebo right here. And it's just a really beautiful setup. You can tell there's some pride of ownership. And then the remaining, what, 30 acres or so are comprised of 135 pad sites and it's about 90% full right now. On the pad sides we've got some FEMA trailers which are actually in really good condition. These are like, I think single wide mobile homes, but a little bit shorter. And then you've got mostly RVs. And then you've got about a dozen cabins, nice wood cabins that people live in long term. So those are the facts about the park. What I like about the park, it's well maintained. There is a lot of room left to grow. If we do get the occupancy to 100 after raising rents, then it only makes sense to add more pad sites. I love that it has a lake. This is a highly sought after amenity. There are other amenities. There's a pool. You've got an arcade which you don't normally see. And you even have like a putt putt golf course and a volleyball court. You got a laundromat in the back. It's really cheap. And then you have three fixed structures as well. So you could just tell that whoever built this park took really good pride of ownership. What I don't like about the park, so what I do like about the park is it also has cement roads. I forgot to mention that you've got, like, dirt roads and you've got crushed granite. You got asphalt, and then you've got cement, which is great. But one downside is the cement is kind of in rough shape. There's some cracks, a couple here and there. Something that we might want to fix. Not a big deal. Could use some tree trimming. It looks kind of just tired, like it was well built. But I believe the owner passed away a couple years ago, and it's fallen into a little bit of disrepair. But honestly, I'm kind of reaching to find things I dislike about this park. This is why we got it under contract, because we really like it. It's a great park. Levers left to pull. There's a lot. So we just talked to a nice lady in the laundromat. She talked her ears off. She was a great resource for us. She told us that people love living here. She told us what we already know, and that's that monthly rents are 595, which is pretty outrageous here in the area. They're a thousand to twelve hundred bucks a month. So this park is full at 595, and we're buying it at an 11 cap rate. Right? So 2023 net operating income was 330,000, and our contracted purchase price is $3 million. So we're going in at an 11 cap, which is a great deal. Furthermore, there's a lot of room left to raise the rents. Furthermore, they don't have WI fi here. They do, but they don't. There's a couple kind of spotty areas, but it's the one main complaint that the tenants have, and I can't even list that as a dislike because it's a great cheap lever left to pull when we can advertise. Hey, we've got Starlink on both sides of the park. We've got 150 megabytes per second download speeds that will really, really bring in the traffic. More levers left to pull. We've got 20 vacant acres of land that are on a creek and on a small river. We can do glamping back there. If you put a nice glamping site up on Airbnb, it can command 150 to 300 a night. Or we can just not try to reinvent the wheel and put 30, 40, 50 more pad sites and make this close to a 200 pad site park. So at the end of the day, if we fully optimize this park, we're buying it for three. It's probably worth about four. After raising rents, it's probably worth about five or six if we completely optimize it, pretty it up a little bit, adds more pad sites and, or glamping, could be 8, 9, even $10 million park here in a couple of years. So there's a lot of meat left on the bone. It's a beautiful park. I would be proud to own this park. And so hopefully here in about eight weeks, we'll close. We're going to wrap up the deck, send it out to our investors, and we'll have a good little asset under our hands.