Board Topic: buying a campground
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buying a campground

Posted by: Doug K. May 23 2004, 03:17 PM
I'm looking at buying a small campground. My family and I would also be living on the property. I'm not sure how to proceed regarding securing financing. Any advice would be helpful.

Posted by: loanuniverse May 24 2004, 08:51 PM
Doug:

I think this is one of those questions of where does the house stops and where does the business begins.

In your position, I would look at this as a primary residence loan first, and only in the case of not being able to secure regular residential financing would I go after a commercial loan. The reason behind this is that residential loans are a really cheap source of funding when compared to commercial borrowings.

If that fails, there is the chance that you can have someone look at this as a hybrid that gives you credit for the campground income.

As a last resort, you can have someone take a look at this as a commercial loan, which would require looking at the cash flow of the business as the source of repayment.

The approach will be determined mostly by the amount of the transaction, and whether or not you have an outside source of repayment such as a job.

Good luck
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