Please, be honest about your finances.
A credit score of 700 or better, and cash, are optimum.
We have been selling resorts for many years and have heard all the stories of optimism, but just be honest and factual, because we will ask you to substantiate your qualifications.
Resorts are selling, and this is one of the best real estate markets we have seen in many years. The "proper planners" that have made plans (homes sold etc.) and have down payment cash will be rewarded with an exceptional deal. We have successfully operated a number of resorts and campgrounds and will pass on experience on how to prioritize, budget, plan rate structures, operating procedures and the best places to advertise. Be a wise planner and you will be rewarded.
When we council buyers, here is a sampling of what we look for:
Review of first impressions:
- Presence on the web
- Brochure and stationery
- Phone manners
- Entrance to the resort
- First greeter
- Entrance of each cabin
- General appearances of grounds, docks and equipment.
- Daily routines
- Change over days
- Check in/out
- Time saving devices and equipment
- Have recent improvements increased income? Have they improved the appearance and operation of the business? A 20% improvement is optimum.
- There are some exceptions to this rule if it improves rates or occupancy.
Questions to Ask:
- Are you interested in a campground, resort, or combination?
- Do you have a general area of the state that you are interested in?
- Would you like a restaurant/bar on the property?
- Would you like to be close to a town or more remote?
- Are you interested in a family or fishing resort or combination?
- Would you like to operate in the winter?
- Do you have experience in the hospitality indutry and interacting with people?
- What will be your source of funding for a down payment?
- Do you have another source for financial help from a partner or family member?
- Do you plan to operate the property as a family or hire a manger?
- Are you looking at this as a lifestyle/career change or as an investment?
- External is getting guests to the resort; internal is getting them to spend more money once they are there. (Example: The use of discount coupons given upon arrival for equipment that is not rented prior to arrival.)
- In the resort business we all have perishable inventory and need to manage it correctly. What we have to sell is an increment of time. If it doesn't sell, it should be wholesaled for last minute purchasers, traded for something the operator needs or given away for a future benefit.
- Price cabins by demand, comforts, view and privacy.
- You MUST track your advertising. Use what works and cut the unnecessary expenses.
- Shop everything: Insurances, Credit Card Fees, Online purchase of supplies, pre-planning for turn over days to maximize labor efficiency and trade out labor.
Working with lenders:
- Once you are an owner, first rule of thumb, never borrow money when you really need it. Set up your lines of credit when you are in the very best cash position. Make your payments just after cash flow peaks.
- Don't store cash in a checking account earning 0 while your debt is accruing interest.
- Make sure your banker is working with you, your loan is as much of a problem to the banker as it is to you.
- Show your banker you are organized, feed them good information and always negotiate for a better rate.
- Orion has many resources and financial connections to ease the process of buying.
Ready to buy or sell?
If you would like to be sent more information on our listings or are interested in our buyer broker services, please get in touch with us.