Module 9: Due Diligence

Campground Buyer Academy — The Campground Marketplace  WHY THIS MODULE MATTERS This is where most deals fall apart because buyers: This module teaches you the

Due diligence is your protected period AFTER an accepted offer to: ✔ Verify the numbers ✔ Inspect the property ✔ Review documents ✔ Confirm utilities

Due diligence is NOT: ❌ A chance to renegotiate the entire deal ❌ A time to ask hundreds of unnecessary questions ❌ A fishing expedition

Due diligence happens ONLY after: ✔ You submit an LOI or PSA ✔ The seller accepts the offer ✔ Earnest money is placed (usually) Pre-offer

To keep it clean and organized, due diligence is broken into 3 parts: PHASE 1 — DOCUMENT REVIEW (Desk Due Diligence) This includes: Financial Operational

To keep it clean and organized, due diligence is broken into 3 parts: After the offer is accepted, sellers will provide: Buyers should expect that

Due diligence is NOT DIY. You must hire: ✔ Certified home/building inspector ✔ Licensed plumber ✔ Septic inspector ✔ Well inspector ✔ Electrician ✔ General

You need to: ✔ Compare P&Ls to tax returns ✔ Validate add-backs ✔ Understand labor costs ✔ Identify seasonal trends ✔ Cross-check occupancy in reservation

❌ Massive utility spikes ❌ Septic near end-of-life ❌ Undocumented expansions ❌ Non-conforming zoning ❌ Illegal cabins or additions ❌ Structural issues ❌ Inconsistent P&Ls

Buyers MUST follow these rules: ✔ Ask for documents in batches ✔ Keep communication clear ✔ Keep questions grouped ✔ Don’t nitpick minor details ✔

Renegotiation is appropriate ONLY when: ✔ A major structural or utility issue is discovered ✔ Material financial discrepancies exist ✔ Septic system is failing ✔

Buyers should approach due diligence as: ✔ Fact-finding ✔ Not fault-finding ✔ Professional ✔ Data-driven ✔ Organized ✔ Respectful ✔ Focused on major items ✔

Downloads I will create: 📄 Due Diligence Master Checklist (50 items)📄 Document Request List (organized by phase)📄 Seller-Friendly Questionnaire📄 Inspector Checklist (Utilities, buildings, cabins)📄 Renegotiation