In Progress

LESSON 7 — WHEN UTILITIES CAN KILL A DEAL

Deals commonly fall apart when buyers discover issues they never expected.

Examples:

❗ Drain fields are already at maximum capacity

❗ Park is 30 amp only and the power company will not support upgrades

❗ No maps exist for water, sewer, or electrical systems

❗ Unpermitted sites or undocumented expansions exist

❗ Well systems do not meet current state testing requirements

❗ Lagoon systems do not meet state or EPA requirements

❗ Infrastructure does not support future expansion

Buyers should also understand:

The local health department is often one of the quietest and most valuable places to investigate a campground.

They may have records involving:

✔ prior inspections

✔ permits

✔ water system history

✔ septic records

✔ violations

✔ complaints

✔ licensing history

✔ expansion approvals

Many states have strict campground licensing requirements and construction standards.

Another issue buyers often overlook:

Inspections and approvals frequently happen very late in the transaction.

In some cases:

  • Closing is approaching
  • Inspection reports arrive
  • Repairs are required
  • But there may not be enough time left before closing to complete the work.
  • The clock can run out quickly.

Buyers must understand:

It is not about what looks pretty.

It is about what is:

✔ functional

✔ compliant

✔ financeable

✔ sustainable

LESSON TAKEAWAY

Campgrounds do not usually fail because of what buyers can see.

Deals often fail because of what buyers never investigate.

Strong buyers learn to look beyond:

✔ beautiful views

✔ cabins

✔ lakes

✔ amenities

✔ aerial photos

and focus on:

✔ infrastructure

✔ compliance

✔ licensing

✔ utility capacity

✔ documentation

✔ long-term functionality

The goal is not finding a perfect campground.

The goal is identifying problems before they become expensive surprises.

“Pretty creates interest. Functional and financeable gets the deal closed.”