Limited RV Parks for Sale in Texas
Facing limited inventory on the market in 2018, a private investor of RV parks in Texas in the surrounding Houston area was struggling. The investor was having trouble identifying good opportunities that fit their criteria. On top of that, the slow market created many challenges in identifying motivated sellers.
After searching for eight months, the local investor remembered an asset he was previously interested in. It was a pristine 15-plus acre, 93-site RV Park located outside of the Houston market. Back in 2017, the investor had shown interest in the property. However, the ownership wasn’t willing to sell at that time. When approached, the owner explained that they had met with previous prospective buyers on multiple occasions. Yet each time, the deal fell through.
Image by Paul Brennan from Pixabay.
Thanks to the persistence of Cody and his team, not only was I able to purchase this asset in an off-market deal, but they helped me achieve great value by negotiating a sale price well below the original asking price…
In October 2018, Cody Pruitt with CXRE reached out to the previous listing broker for the property in one last-ditch effort to see if the owners would reconsider any offers and to discover specifically why previous deals had fallen through. The listing broker’s response was quite simple. The owner engaged with previous buyers who didn’t follow through due to financial snags, leading to deal fatigue each time.
Hearing this, Cody conveyed to the listing broker that his buyer was motivated and qualified, having closed on a similar property in 2017. After clarifying that he had a capable and credible buyer that would make an offer on the property immediately, Cody ultimately convinced the seller to entertain an offer.
After three weeks of negotiating with the seller, CXRE helped his investor reach a contract on the property resulting in:
- A purchase price 17.5% lower than seller’s initial asking price
- A purchase price approximately 28% lower than the recent sale prices of three comparable properties in the market
- CXRE successfully negotiating the construction of a wooden fence, at seller’s expense, to close in the backside of the property, an invaluable improvement for the investor
RV Park Investor Client Testimonial
“This particular RV Park fit my investment criteria perfectly and I knew I wanted to buy it the second I laid eyes on it. When Cody reached back out to the seller a second time, I was unsure if any negotiations would actually arise from it. But thanks to the persistency of Cody and his team, not only was I able to purchase this asset in an off-market deal, but they helped me achieve great value by negotiating a sale price well below the original asking price at the beginning of negotiations. I am grateful to have had CXRE represent me on this deal and I look forward to working with Cody and his team again.”
Top Reasons to Invest in RV Parks in Texas
There are several reasons to invest in RV parks in Texas. First of all, RV sales are strong. In fact, RV makers are producing record numbers of RVs, trailers as well as motorhomes. In 2016, Americans bought around 430,000 RVs.
According to the RV Industry Association’s 2017 Industry Profile, 2017 wholesale RV shipments reached a record 504,600 units. This was a 17.2% increase over 2016. Furthermore, the total retail value of these 2017 shipments was over $20 billion.
On the heels of steady RV sales, RV parks are doing great business. RV park giant KOA reports that business is good. So good that the company is doing the best it has done in its almost 60-year history.
On top of all that, RV parks offer excellent returns. In general, an investor can expect a 10% to 20% return on their initial investment. If you are an investor who wants to maximize their investment dollars, an RV park could be a solid option.
Lastly, RV parks have little infrastructure to worry about and fewer facilities to maintain. Some properties may have a clubhouse, a swimming pool, tennis courts, or even a fitness center. Yet when compared to office buildings or retail property, RV parks require less overall maintenance. If you’re interested in RV parks for sale in Texas or are looking to diversify your asset portfolio, contact CXRE today.