How to find outdoor hospitality deals
7 steps to building out a robust pipeline of deals
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Estimated time to read: 5 minutes
TL;DR:
Step 1: Define (or refine) your goals and thesis.
Step 2: Filter applicable regions/locations.
Step 3: Build your prospecting list.
Step 4: Search Crexi, LoopNet, etc.
Step 5: Develop your broker and seller pitches.
Step 6: Reach out to brokers.
Step 7: Reach out to potential sellers.
Keep reading for tips and tricks for each step!
Step 1: Define (or refine) your goals and thesis.
I talk to many aspiring outdoor hospitality investors who lack a clear thesis. My advice to people who are thinking about getting into the industry is to refine their thesis and goals around the following questions/ideas:
How much capital do you have access to for down payment and improvements?
If you plan to use outside investor capital, your thesis and strategy must align with their goals. What type of return are they seeking? When do they want their money back? Most investors gravitate towards larger RV parks or resorts with strong in-place revenue.
What type of customer do you want to serve?
What type of revenue makeup excites you about investing in outdoor hospitality? Long-term RV stays? High-end glamping? Short-term RV stays at well-located parks on the interstate? Food and beverage? Ancillary services or recreational income?
Do you want to buy or build a single property that meets your financial goals or build a portfolio?
Does long-term cash flow excite you or do you want a big payday from a short-term hold/flip?
Do you even want to be in hospitality? Or do you want a quasi-mobile home park filled with RVs that meets an affordable or transient housing need?
I wrote a newsletter in May about some ideas to ponder before getting into the campground business here: So, You Want To Buy A Campground?
Refining your thoughts about the items above will naturally lead you to the next step:
Step 2: Filter applicable regions/locations.
Many investors conclude that seasonal parks that close completely in the winter are less desirable investments than year-round parks. This steers them away from many properties in northern states with freezing temperatures in the winter.
Consider:
What type of customer draw excites you?
Proximity/access to national parks/forests, state parks/forests, or bodies of water? Other recreational draws?
Do you want to be located in a top-tier tourist or vacation destination? Do you want to be strategically located between a major metro and a major destination for overnight stays?
Step 3: Build your prospecting list.
If you want to buy an existing campground, glamping site, or other type of existing business, your most useful tools will be Google/Google Maps and directories like RVLife.com, AllStays.com, etc.
If you want to build a property from the ground up, you should use software like Reonomy, PropStream, etc., to find suitable land.
Step 4: Search Crexi, LoopNet, etc.
If you’re serious about getting into the industry, you better know all the properties for sale in your desired locations. The best way to do that is to search the top commercial real estate listing sites.
I’ve found that the search functionality on Crexi and LoopNet leaves much to be desired. Don’t rely solely on searching with the built-in property types and filters. Search for keywords such as “campground,” “RV park,” and “glamping,” etc. in addition to the native filters.
You’ll naturally want to contact the listing agents when you find properties you like. That takes us to our next step:
Step 5: Develop your broker and seller pitches.
If you think you might buy property from a broker, you should strategize a bit about how to convince them you’re someone they should take seriously. The broker wants to know:
Do you have the capital to close the deal?
Do you or your team members have experience in the business?
Many brokers’ primary concern is to weed out the tire kickers and time wasters.
If you’re going directly to the seller, you’ll want to be able to alleviate the same concerns, but, in my experience, making a personal connection with a seller is more important than with a broker. The seller will want to get comfortable with your character and ability to perform and carry on their legacy.
Step 6: Reach out to brokers.
This one is pretty self-explanatory. Reach out to the listing brokers you come across as you review listings. Also, find the top outdoor hospitality brokers. Search “campground brokers” and “RV park brokers" on Google.
Step 7: Reach out to potential sellers.
I like to call the campground/business number to see if I can reach the owner. If an employee picks up the phone, I try to determine if I can ever reach the owner via that number. If not, I look harder at the business and determine if I should try to use other means to reach the owner (direct mail, email, find another number, etc.). The business is probably not a great acquisition prospect for me if it is nearly impossible to contact the owner.
That’s all for this week. Thank you so much for reading!
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hi! So far I'm finding your Substack helpful, even if I am in an adjacent field to what you do. (I'm a gear maker for people who take thier pets along on outdoors adventures). It helps to see the other side of things and the thought process involved, so that I can make better choices and decisions in terms of materials and pricing for what I do. Thank you so much!