Does anyone here own a site in a campground? Advice needed.

[CaptnJohn]

On a 100 year lease so it becomes a depreciating real estate asset.

[Springerdad]

Originally Posted by CaptnJohn

On a 100 year lease so it becomes a depreciating real estate asset.

I think I get your drift..... can you elaborate? At this point I understand the seller will hold the note with a substantial down payment. Lease, I don't think so. Yes, we are looking at it from that angle too.

[CaptnJohn]

Originally Posted by Springerdad

I think I get your drift..... can you elaborate? At this point I understand the seller will hold the note with a substantial down payment. Lease, I don't think so. Yes, we are looking at it from that angle too.

If you are looking at it as a short term holding you may be fine. If looking at it as something your children or grandchildren will use or sell it will at some point become of less and less value as potential buyers and possibly long term renters will question.
Two examples I'm aware of. Near where I had a hunting cabin. Some land people had homes/cabins on was on a 99 year lease. As the lease would down the land owner let it be known he may sell it or lease it or even develop it. At that point most stopped improvements or anything other than required maintenance. Near the beach an owner let it be known when the lease was up property owners would need to remove their homes or they would be demolished as homes and condos would be built on the land. Those 'deeds' were only good as long as the lease existed. Both parties could have renewed the leases. Your deed may be different, I'd ask a real estate attorney unless you view it as a disposable asset.

[Jmkjr72]

If the Where has a long term lease out on the property make sure the lease can be broken and what it’s going to cost you to break the lease. We looked at a house 2 years ag we really liked and we found out it was being rented out and a new 2 year lease had just be signed. When our agent got ahold of the lease and found Even though the house was on the market there was no clause in the lease about the sale and that it would have been very expensive for us to break the lease. Then to make things worse the lease wouldn’t have even come close to covering the note and property taxes(family members leasing from the estate)

[Springerdad]

Both of you make good points. This is a purchase to own. I could say we are buying a place in a deed restricted community - which we live in now. The only question is how long the renter has on this lease, and what are the terms of the current lease. We won't be able to use the lot until Thanksgiving anyway so we're not in a rush to remove them. If they pay their rent until then, so much the better. I know, lots of details.

[Springerdad]

As a followup, we are looking at this as a 20 to 30 year ownership. By then we'll be in rocking chairs...... But if the numbers are right, we may keep it longer. Wife has no children, I only have one of three that talks to me (long story) from a former marriage, and he and his wife don't have a lot of interest in the RV world.

[PenJoe]

Originally Posted by Springerdad

Good advice. We will be paying property taxes, and by virtue of ownership we are all voting members of the HOA. We can use it all we want with no limitations, and can either let the management rent it for us, or advertise and rent it ourselves. We're going back there in a few weeks, and I'm going to look at a three year history of gross income from rental. The current owner has 5 other lots there that she owns, some have park models on them, this one we are looking at has a long term TT renter on it now...... If we eventually own it, they will not be there long term......

Renters are one of the hardest people to deal with when trying to get them to move. Do the renters have a lease agreement with the present owner? If so, what are the conditions.Be aware, those conditions may carry to the new owners. And if the renter causes problems or chooses to become contrary to the HOA rules, the property owner is ultimately responsible.

A lease is the same as a contract. Both parties are bound by the terms contained in "the four corners" of the contract. Verbal or any conditions outside those four corners are not enforceable.

I would consider putting a contingency on your offer to purchase that the tenant be off the property at closing. Otherwise, you will have a hard time dealing with it if you are not there.

This may be another reason to have an attorney in your corner.

[Springerdad]

Thank you for pointing that out. My understanding is that in this case it is an annual lease, payments are made to the management of the campground, and that money is sent to the property owner on a monthly basis. I'm told ALL rentals go through the office and not the property owner. As an example, we stayed a week in a spot at the established weekly rate. All of our dealings were with the office. I would think that process keeps things more consistent. I have a list of questions that need answers and documents I need to see before an offer is made. The list gets longer and longer.

[PenJoe]

Originally Posted by Springerdad

Thank you for pointing that out. My understanding is that in this case it is an annual lease, payments are made to the management of the campground, and that money is sent to the property owner on a monthly basis. I'm told ALL rentals go through the office and not the property owner. As an example, we stayed a week in a spot at the established weekly rate. All of our dealings were with the office. I would think that process keeps things more consistent. I have a list of questions that need answers and documents I need to see before an offer is made. The list gets longer and longer.

Make sure the lease is terminable at the end of the year. Determine what the office does if a tenant refuses too leave.It could end in a court to get an eviction. It can get very messy. Worse case, I know, but cover the bases as best you can.

[Springerdad]

I'm already thinking down those lines. More questions for the park management to answer to.

[Springerdad]

Originally Posted by DJP6371

Camping in the Keys was on my bucket list For this summer, however since the hurricane, we canceled.

How is the recovery looking down there?

The lower Keys got pounded. I have a friend that has two CBS stilt houses on Cudjo Key, where landfall was. The buildings are still standing but they suffered heavy damage. It will be years before the Keys look like they used to. Campgrounds are struggling to get back up and running but they are making progress. Where we stayed there was minimal damage, trees down and utilities disrupted, but life is pretty much like normal on Key Largo.

[whj77372]

There is no place like the Keys in the US!
We own two RV lots on the UP of MI. On Lake Huron, POA dues about $700 each per year. Taxes about $200 each per year. Comes to about $150 per month for 12 months. It is only open from May 1st until October 15th. That's makes it about $300 per usable month. I paid $18,000 for the two lots. You own the lots and it is run by board of directors. There are 55 lots and each lot has one vote. We love it. Good Luck

[RVBuff]

Also check for deed restrictions and what happens if you fail to pay assessments.

[Springerdad]

Originally Posted by RVBuff

Also check for deed restrictions and what happens if you fail to pay assessments.

Thanks,,,,,,. It's in the works.

[RacerRalph]

Originally Posted by PenJoe

Can you provide a little more information.

*If you are buying a lot, do you have a deed to the property? Or are you buying shares?
*Is this a home owners association?
*Are there monthly fees associated with ownership? If so, how are those fees governed?
*Is it a corporation, developer, or private party selling the properties?

Here is the reason for all these questions. More and more camp grounds with a mix of seasonal and park model spaces are being purchased by large corporations. Once the corporation has established, they start raising the fees. The fees get to the point that the residents can no longer afford living there. And because of the high fees, not many buyers are willing to make the commitment.



You have started to do your homework, but most of the questions you need answered are with the organization selling them. You may also want a real estate attorney to advise you on this.

It may be a deal of a lifetime or it may be too good to be true. Due diligence time.

We had a similar experience with an "owned" boat slip on the Mississippi. They were selling for $30,000 in the 70's with low maintenance fees. We bought one for $12,000 in the early 80's, a real deal. Used it for 18 years through a couple of rally bad, month long floods. As maintenance fees went up. prices went down. Sold the boat in 1999, had to give away the slip for $100 to get out from under the maintenance fees. Probably saved vs. rental but disappointed in value drop.

[whj77372]

Unless I don't understand, if you


don't pay your PO fees you will lose the property. How could it not be so!
There are 55 lots in the park that I have two lots in. It takes $35,500 per year to run the
place so that comes to about $645 per lot. If I don't pay for my two lots who will. Of course if I don't pay the will take the lots from me.

[Bckdraft]

We have owned a lot,in a campground,on VA on the eastern shore since 1978. Last year we were able to purchase the lot next to us. The trailer was old and in bad shape so we just had it moved. Each lot has it's own water, electric, and sewage if it perks. The camp ground is Trails End in Horntown VA. There are 2500 lots and are across the water from Chintoteague VA. Last year we put a new Forest River Wildwood 353FLFB park model on the one lot, and think of this as our summer home. We can sit in the trailer and watch the cars cross the causeway on the way out to the island. One big factor is we are both have been retired about 15 years, and have friends there. I think cost has a good bit to do with camping this way. If you can handle the outlay of cost to put this together, it can be great. We are taking a cruse to Alaska next year, so we still do some trips along with having this.