Module 4: Campground Financing

Financing is one of the biggest hurdles campground buyers face — and one of the biggest reasons deals never make it to closing. Many buyers

Most campground buyers will typically encounter three common financing structures. Each works differently and each serves a different purpose. No one option is automatically better

DSCR = Debt Service Coverage RatioThis determines whether a bank will approve you. Formula: DSCR = NOI ÷ Loan Payment Example:NOI = $150,000Loan payment =

SBA loans allow lower down payments BUT require more documentation and strict qualifications. Common SBA requirements: When SBA works well: When SBA does NOT work:

Seller financing is the most powerful tool in the industry — when offered. Typical structures: Why sellers offer it: Why buyers love it: What buyers

Buyers drastically underestimate capital needs. You need: ✔ Down payment: 30% Standard commercial loan expectations. ✔ Closing costs: 3–5% Appraisal, fees, legal, loan costs. ✔

Buyers MUST calculate their personal buying power BEFORE looking at parks. Here’s the formula: STEP 1 — What do you have for down payment? Example:

Financing fails when: ❌ Seller books are messy Buyers MUST accept this. Older parks rarely have perfect P&Ls. ❌ Buyer can’t provide proof of funds

To get accepted, your offer must be: ✔ clean ✔ realistic ✔ simple ✔ supported by your financials Sellers say YES to offers that include:

Before approaching a bank, you need: ✔ 1. Personal financial statement Assets → liabilities → net worth. ✔ 2. 2 years tax returns Banks need

Downloads I will create: 📄 Financing Prep Checklist📄 DSCR Calculator Worksheet📄 Know Your Price Range Tool📄 Loan Comparison Sheet (DSCR vs SBA vs Seller Financing)📄