Module 2: Understanding Financials

Campground Buyer Academy — The Campground Marketplace 🔹 WHY THIS MODULE MATTERS Most buyers struggle here. They’ve never analyzed a business, and they assume buying

Many buyers get excited when they see big gross income numbers.Example: “This park grosses $800,000!” That means NOTHING without knowing: ✔ NOI (Net Operating Income)

Every campground operates differently, but here’s the typical cost structure: Average expense ratio: 25% to 45% of gross revenue High-cost parks: Low-cost parks: Buyers MUST

Sellers often run personal expenses through the business.These are called add-backs, and they matter because they increase NOI. Common add-backs: Why this matters to buyers:

Buyers often misunderstand cap rates.A cap rate is simply: CAP RATE = NOI ÷ PURCHASE PRICE Examples: ❗Important: The lower the cap rate, the HIGHER

Sellers usually think in two ways: 1. The emotional price (“what it’s worth to me”) Not relevant. 2. The financial price (NOI × cap rate)

Even if a park has a strong NOI, you must calculate: Can this park pay for itself with today’s loan terms? Key points: Example: Park

Down payment: 30% minimum ✔ Closing costs: 3–5% ✔ Working capital: $30–100k (depending on park size) ✔ First-year “surprise fund”: always needed Buyers often underestimate

Here’s the exact formula we recommend to buyers: 🔹 STEP 1 — Look at gross sales Where does money come from? 🔹 STEP 2 —

I will create downloads for this module: 📄 Financial Analysis Worksheet📄 NOI + Add-Back Calculator📄 CAP Rate Cheat Sheet📄 Bankability Test📄 How to Calculate Your