Why RV Parks Are the Best Investment Over the Next Decade

Let’s talk about one of the hottest asset classes you can focus on over the next decade—RV parks. Seriously, RV parks are easily in the top three, and I’m speaking from experience.

Located in Montana, I snagged this amazing RV Park called Glacier Peaks RV Park for $5 million in the last 12 months. Did I put any money down? Nope. Did I need a credit check? Not at all. That’s the power of creative finance, my friends.

For those who don’t know me, I’m Pace Morby, the Sub2 King. I thrive on creative finance, sub2, seller finance, and other innovative strategies. Today, though, I'm not just sharing my story—I’m here to show you how you can do this too.

I get a ton of questions in my DMs like:

• Should I start with an RV park if it’s my first deal?
• How do I find an RV park?
• How do I know if it’s a good deal?
• Why should I even go after RV parks?
• What’s the difference between an RV park and a mobile home park?

Let’s dive in.

Breaking Down the Deal

Here's the scoop on this deal:

• Purchase Price: $5 million
• Down Payment: 5% (that’s $250,000)
• Funding Source: Private money lender at 10% interest ($2,100 per month)

We didn’t spend a dime on development. The seller owned another park a mile away, marketed separately. This park has:

• 65 RV pads
• 40 storage units
• 20 cabins
• An acre for tent camping

The seller had two of everything—techs, managers, and websites. He never thought of cross-promoting. People would call one park and get turned away if it didn’t meet their needs, instead of being redirected to the sister park.

Imagine the missed opportunities!

Here’s what we’re doing differently:

• Smart Marketing: Create YouTube content about the area, subtly promoting the parks.
• Ask for Reviews: Simple but effective. Offer $10 off for a review.
• Cross-Promote: Make sure both parks help each other out.

Why Was the Seller Selling?

A few reasons:

• Mismanagement: It wasn’t growing as he hoped.
• Distance: He lived five hours away.
• Family Strife: Partnered with family members who wanted out.

We took over an SBA loan ($1.2 million) sub2 and the remaining equity seller-financed at 4% interest over a 10-year note. This gives us plenty of time to stabilize and refinance.

Tips for Finding Deals

• Kxy.com: Search for owner-financed properties.
• LoopNet: Great for commercial properties.
• Land Watch: Often overlooked but valuable.
• MLS: Always check the MLS for deals.
• Zillow and Craigslist: Surprisingly useful.

Mobile Home Park vs. RV Park

RV stands for Recreational Vehicle, meaning this is about recreation. Think summer camp vibes. Mobile homes are more about living. There’s some crossover, but remember:

• RV parks are for activities.
• Mobile home parks are for permanent living.

Should Newbies Start with RV Parks?

Absolutely, especially with a supportive community like ours. If you’re adventurous and willing to learn from mistakes, go for it. However, starting with single-family homes can be a good way to get your feet wet.

Top Three Things I Love About RV Parks

1. Affordability: Solves the problem of affordable vacationing and living.
2. Maintenance: Minimal issues compared to single-family homes—no framing, wood rot, mold, etc.
3. Revenue Potential: RV parks are valued based on cash flow, not comps. Increase revenue, and you increase value.

Here’s a little more on why RV parks are amazing. They’re priced based on net operating income (NOI) and cap rate, not comps. By improving the park’s operations and marketing, you can significantly boost its value.

For instance, marrying two websites, reducing expenses, and strategic cross-promotion can double the park’s value.

If you’re ready to jump into the world of RV parks, start by networking, making offers, and learning from the community. Whether you’re new or experienced, the potential is incredible.

Let’s stay connected,

Pace