Important tips on campground purchasing & saving money
06/14/09
A REMEMBER - If you want to be in a
campground this season, you need to be starting to
make a decision on which one - NOW - in order to be
in by mid-season. And, as explained in my last eNews,
we can often help you obtain financing even if your
house hasn’t sold; although some cash would be
helpful. And, SBA is offering some special financing
packages. However, at the moment, they are waiving
their fees through the end of this year, only.
B Also, a very smart purchasing tactic is to be identifying a campground that you want to buy and perhaps putting it Under Agreement this Summer or Fall to Close next Spring thereby beating the probable rush of campground Buyers next Spring – if this economy continues to show signs of improvement and consumer confidence. This has been what has happened in the past downturns – essentially current Buyers hold off because of the uncertainty of the economy and, perhaps, their jobs, then as the economy bounces back, not only do the “current” Buyers become more active but also so does a whole new season of Buyers start looking. AND - there will only be a very few campgrounds available at any one time that will meet your criteria. So, you may want to be prepared to beat the possible rush of Campground Buyers who will likely turn out next Spring (or late Winter.) In addition, if you put a campground Under Agreement now or in the Fall for Closing next Spring, you avoid the mortgage payments and other carrying costs such as insurance, property taxes, etc until the season and the cash flow starts next year.
C News the past couple of days about interest rates probably rising significantly above today’s really low rates over the next year or so means that those of you who also anticipate this, might be well ahead of the game if you purchase a campground while rates are still low. AND, by combining it with an SBA Mortgage will save you thousands more as SBA is waiving their significant fee through Dec. 31 2009.
Example: a 1% increase on a 500,000 mortgage will cost you approximately 75,000 over the life of the Mortgage. Up three points and it will probably be around 250,000 just in actual interest costs. (Still much better then the 8 – to – 10% or more that had been standard for 2 or 3 decades before interest rates modified in the 1990s.) ADD the SBA waiver fee (it would vary – perhaps 15,000 – 25,000) onto the interest savings
B Also, a very smart purchasing tactic is to be identifying a campground that you want to buy and perhaps putting it Under Agreement this Summer or Fall to Close next Spring thereby beating the probable rush of campground Buyers next Spring – if this economy continues to show signs of improvement and consumer confidence. This has been what has happened in the past downturns – essentially current Buyers hold off because of the uncertainty of the economy and, perhaps, their jobs, then as the economy bounces back, not only do the “current” Buyers become more active but also so does a whole new season of Buyers start looking. AND - there will only be a very few campgrounds available at any one time that will meet your criteria. So, you may want to be prepared to beat the possible rush of Campground Buyers who will likely turn out next Spring (or late Winter.) In addition, if you put a campground Under Agreement now or in the Fall for Closing next Spring, you avoid the mortgage payments and other carrying costs such as insurance, property taxes, etc until the season and the cash flow starts next year.
C News the past couple of days about interest rates probably rising significantly above today’s really low rates over the next year or so means that those of you who also anticipate this, might be well ahead of the game if you purchase a campground while rates are still low. AND, by combining it with an SBA Mortgage will save you thousands more as SBA is waiving their significant fee through Dec. 31 2009.
Example: a 1% increase on a 500,000 mortgage will cost you approximately 75,000 over the life of the Mortgage. Up three points and it will probably be around 250,000 just in actual interest costs. (Still much better then the 8 – to – 10% or more that had been standard for 2 or 3 decades before interest rates modified in the 1990s.) ADD the SBA waiver fee (it would vary – perhaps 15,000 – 25,000) onto the interest savings