To keep it clean and organized, due diligence is broken into 3 parts:
PHASE 1 — DOCUMENT REVIEW (Desk Due Diligence)
This includes:
Financial
- P&Ls (3 years + trailing 12)
- Tax returns
- Bank statements (sometimes)
- Add-backs
- Expense detail
- Payroll
- Insurance
Operational
- Reservation software reports
- Rate sheets
- Occupancy history
- Vendor contracts
- Staff structure
Utilities & Infrastructure
- Septic system records
- Well logs
- Water tests
- Electrical schematics
- Site maps
- Septic pump reports
- Engineering drawings (if available)
Compliance
- Zoning
- SUP (Special Use Permit)
- Environmental reports
- Maintenance logs
PHASE 2 — PHYSICAL INSPECTION (On-Site)
You or your inspectors examine:
✔ RV sites
- Water risers
- Sewer drops
- Pedestals
- Grading
- Drainage
✔ Bathhouses
- Plumbing
- Roofs
- Hot water systems
✔ Septic fields / sewer
- Tank condition
- Pump stations
- Drain field saturation
✔ Water system
- Pressure
- Flow
- Pump house
- Lines
✔ Electrical system
- Pedestals
- Breakers
- Panels
- Transformers
✔ Buildings
- Cabins
- Motels
- Store
- Laundry
- Clubhouse
- Office
✔ Roads & infrastructure
- Road health
- Drainage patterns
PHASE 3 — FINAL CONFIRMATION
Once DD is complete, you confirm:
✔ Financing approval
✔ Insurance approval
✔ Title & survey review
✔ Environmental clearance
✔ That the park matches your expectations
If everything checks out → proceed to closing.
If not → you can legally walk away.
