Real Estate Campgrounds: How to Invest in Outdoor Hospitality with Campgrounds, RV Parks, and Glamping

INTRODUCTION

Let’s go on a journey together. By the end of it, my goal is to leave you energized, educated, and equipped to start on your own path. And if I am able to do that, I’ll be fulfilled, and my job as your guide will be complete.

This journey is purchasing and running an RV park—and it changed my life. While the experience has given me many joyous high points, I won’t tell you that everything was easy or that I never took a wrong turn. With this book, I intend to tell you about the joys of owning an RV park, as well as the challenges you can expect. By sharing both, hopefully your path will have fewer pitfalls and wrong turns than mine and have more enjoyable moments and opportunities for profit.

Of course, there’s nothing wrong with potholes and wrong turns. Some of the most important things I’ve learned started with a wrong turn. But setbacks can disrupt the journey a bit, and for some, that can be discouraging. I hope to help you avoid those setbacks by being prepared for all that can transpire when purchasing, operating, and maintaining an RV park. Section I will cover the why and how of purchasing an RV park. I’ll take you through a brief history of RV park and campground living to give you a baseline for the activity. We’ll discuss the varying types of RV parks available and how the type of RV park you choose will attract different kinds of people. All of this is in the spirit of helping you be informed when starting your RV park property search.

Next, I’ll shed some light on how to find and fund RV park deals. There are multiple ways to approach an RV park investment, including buying a park as is or building one from scratch. There are certain factors you need to consider, and I’ll help set up your search criteria based on those considerations. I’ll give you some key things to consider as you approach closing on your RV park.

In Section 2, we’ll dive into the potential upgrades and experiences you can offer your RV park guests. We’ll expand on the different types of accommodations and activities you can provide, in addition to hosting activities and events (and some legal considerations too). I’ll also share some lucrative side hustles you can incorporate into your park to add additional income and heightened customer experiences.

The final section will get into the nitty gritty of operating the RV park. Once the groundwork has been laid regarding why you want to run your park and what you want to offer, we get into the how. We’ll cover managing your RV park and running the park itself (including setting up reservation systems, marketing your park to guests, and the day-to-day operations). This section will cover customer service and ways to maximize your RV park. We’ll explore some options for outsourcing to professionals in certain special cases.

And last, but not least, we’ll focus on your mindset and how to persevere through the many challenges that come with owning and operating an RV park. I believe your mindset is an essential aspect of owning a business, and if you aren’t tending to that, your happiness and success will be heavily impacted.

Hi—I’m Heather, and I’ll Be Your Guide

I’m a mother of five amazing kids, and I’m blessed to own a business that allows me to spend time watching them grow up. Thankfully, I will not be one of those who declares from their deathbed, I wish I wouldn’t have worked so much, because I get to structure my days as I like, and that means I spend as much time as I want with my children. I wish the same for you, and I believe the blueprint I describe in this book will get you there.

But this isn’t about children, per se. Whether you have a significant other or you want to invest in yourself rather than put time in at a nine-to-five job, owning an RV park gives you freedom and flexibility. Those are priceless.

Perhaps just as importantly, this isn’t about being lazy and just cashing checks that come in. I think about my investments every day, and I think about how to improve them. I look at new properties, and I work some seriously long hours.

The difference is I decide how many hours I work, and I decide which obligations come first; and those decisions determine how much money I bring home. I absolutely love those three aspects of owning my own business, and I can’t imagine working for someone else again.

How did I get to this point? It was somewhat of an accident. Or perhaps it was meant to be. To borrow a phrase from Tony Robbins, it depends on whether you believe things happen to you or things happen for you. I’m in the latter camp.

A few years back, I took a cross-country RV trip from Florida to California. After staying in several campgrounds and appreciating what each had to offer, I found myself thinking, This wouldn’t be a bad business to own. It’s just a bunch of parking spots, right? What could possibly go wrong?

It turns out plenty can go wrong, but I didn’t know that yet. If someone had pointed out only the negatives to me, I might not have taken the plunge. Luckily, that didn’t happen, and by the time we arrived in California, I had already looked up campgrounds in my home state of Tennessee and found one that was in bankruptcy.

I was 26 years old at the time and hadn’t inherited any family money. But I saw several national headlines about foreclosed properties and people in bankruptcy due to the market collapse we had just gone through. So I thought, Why not? Let’s see what the bank will offer me.

When I called the bank and they asked me how much money I had as a down payment, I told them the truth: nothing. But those were extraordinary times, and banks had more inventory than they wanted. Plus, banks will readily admit they have no business running an RV park. (What bank executive will answer the call when a sewage line backs up?) With those facts in my favor, I was approved for a $3.2 million loan with no money down.

Spoiler alert: No one will give you that kind of a no-money-down loan these days. You could say I was lucky, or that life happened for me. But don’t let a lack of resources make you think you can’t own an RV park.

My First RV Park

I bought the park sight unseen. In case I haven’t stated the obvious yet, I knew nothing about running an RV park—or any business, for that matter. I also happened to get pregnant during the same month I bought the place, and I spent the first two months of RV park ownership sleeping on the office floor and shoveling mulch around the park. (I’m certain I did not make my obstetrician proud.) But I gained one very important thing: I learned how to run a campground the hard way. And sometimes, that’s the best way.

I laugh as I think back to how naive I was. I was excited and thought of the RV park as a fun project, but I got a rude awakening when I saw refrigerators strewn throughout the park and mailboxes hung in the craziest of places. The tenants were paying $300 per month, and that covered their site rental, electricity, water, and everything else. No matter how I looked at it, this business had been poorly operated, and there was no way I would make money keeping things as they were.

I had to remind myself: Things happen for me.

Instead of becoming overwhelmed, I decided to look at the positives. This park was attached to Dollywood, of Dolly Parton fame. That gave it enormous potential. Plus, the neighboring areas were far more attractive than the one I bought. I essentially purchased the cheapest house on the block, which can absolutely be a good thing.

The Rearview Mirror

It’s been quite a few years since my first RV park purchase, and I can proudly say I have learned a lot about operating an RV park. (My children and I are also healthy and happy, despite my various activities while pregnant.)

I turned the property into a short-term rental park and made dozens of changes and upgrades. I built up enough equity in the property to leverage it and purchase additional properties. I now own many RV parks, mobile home parks, multifamily units, and a boutique motel. All my properties are self-managed, and I was able to do all of that without any investors or private equity.

Looking back, I’m often reminded of one of my influencers, Sam Zell, a billionaire real estate investor and philanthropist, who once said, I was successful because I didn’t know I shouldn’t have been. That describes my start in real estate. I shouldn’t have asked for the loan. I shouldn’t have been given the loan. If you consider what I know now compared to how little I knew at 26 years old, it’s remarkable that I made it through the learning curve. I wasn’t qualified. I knew nothing about the industry. I had no one to mentor me (or tell me how little I knew).

But there’s one thing I want you to take from my start in RV park investing: You don’t need to know everything about a potential investment to be successful. Sometimes, you just need to act. If you have others who can be a resource (like I hope to be for you), then by all means, lean on them. Learn what you can, but also take action. You’ll be glad you said yes now instead of letting it become I should have in the rearview mirror.

Don’t Forget the Why

Finally, don’t forget why you are doing this. And I hope it’s not just to get rich. (I assure you, that won’t bring you the happiness you think it will.)

As I said earlier, I sought the freedom and flexibility to spend time with my family. I knew I wanted to model a relationship with work that allowed my children to feel important. I wanted my kids to see me build something and do it while being present in their lives.

While I was chasing this dream, I also learned that I really enjoy serving people. I have beautiful memories of people having some of the greatest times of their lives at one of my parks. My guests experienced true happiness, and I was able to play a part in that.

I also love that you are reading this book, which can play a part in your path to freedom and flexibility. This is why I hold free seminars and mentor hundreds of people. I feel truly blessed to be able to help others—to bring happiness, success, or even just knowledge to people. Those are some of the greatest rewards and a big part of my why.

We live in a world of abundance. There is plenty to go around. We don’t need to keep success to ourselves. We don’t need to hide the way we built something from others for fear that they might compete with us. Share yourself, and you will receive the greatest gift of all. Thank you for joining me on this journey.

Section I

THE WHY AND HOW OF PURCHASING RV PARKS

Chapter 1

RV CAMPING: THEN AND NOW

(AND WHY NOW IS A GREAT TIME TO INVEST)

America has always enticed exploration. From the time Native Americans spanned the continent to the time Europeans claimed it as their own, every culture has revered the opportunity to explore the varied expanse between the Atlantic and Pacific shores. We have learned about historic journeys across land, including the Lewis and Clark expedition and the Oregon Trail. Our minds have always been captivated with what is out there that we haven’t yet seen before. Whether exploring by the shoes on our feet or covered wagon or automobile, adventure is a key element to our culture and soul.

It didn’t take long after the first automobile made its appearance on U.S. roads in 1893 for Americans to start thinking about how they could put all of the comforts of home on four wheels. In 1904, the earliest known version of an RV was built—by hand—on top of an automobile chassis. It boasted two bunk beds, an icebox, incandescent lights, and a radio. It had just enough room for four people.

At the same time, camping was becoming increasingly popular, boosted by books and newspapers that offered pictures of previously unseen and amazing places. What started as backpacking became camping via horseback. Eventually, wagons and vehicles became the preferred methods to reach the great outdoors.

The Conklin Family Gypsy Van

In 1915, a New York bus manufacturer named Roland Conklin took recreational travel to an entirely new level when he unveiled his luxurious, eight-ton Conklin Family Gypsy Van. With an onboard hot-water shower, a covered observation deck, and a dance floor, Conklin took his family on a much-publicized trip across the country, starting in Albany, New York, and arriving in San Francisco, California, two months later.

The New York Times wrote articles about the family and their revolutionary new vehicle, and the Conklins made sure to stop for photo opportunities and chats with admirers throughout their journey. To Conklin’s delight, onlookers were mesmerized by the twenty-five-foot, double-decker minibus. Conklin proudly showed off how a family could live aboard for extensive trips, given the early RV’s kitchen, bathroom, and sofas that easily turned into beds. Such a fully equipped vehicle opened up a world of possibilities for those who wanted to explore faraway places but not be confined to the schedule and stops of a train. The desire for a home on wheels—one that you could take almost any-where—was born.

The Model T and the Original Traveling Groups

In the early 1920s, Henry Ford offered a specialized version of the Model T that satisfied the desire for a motorized home that people could live in for extended trips. Owners of these vehicles formed traveling groups, and the term tin can tourists took hold. Famous for eating most of their meals out of tin cans, the community grew to nearly 300,000 drivers and even adopted a special pin so they could easily spot fellow members along their journeys.

In the late 1920s, the Great Depression hit the U.S., and living on the road became the only option for a lot of families. Even though the trend of living on the road full time started out of necessity, many people grew accustomed to this nomadic lifestyle and continued it even after the economy bounced back.

Enter the Trailer

Since the special Ford Model Ts were clunky and expensive, competitors soon developed alternative models. Trailers became more popular, as they could be towed and left at campgrounds. This allowed trailer owners who were seeking work to drive their vehicle around without dragging the entire family with them.

The trailers also became more comfort focused and began to shift away from the boxy profile of early RVs. In 1934, the first aerodynamic trailer, known as an Airstream, came on the market. Inspired by the aircraft of the day, the curved aluminum exterior minimized wind resistance, improved durability, and decreased the weight of the trailer. An enclosed galley kitchen, onboard water supply, and electric lights allowed families to live in unprecedented comfort. Despite the high cost of $1,200 (more than most families made in a year at that time), Airstream’s first model, the Clipper, flew out the doors.

Demand Goes up and Supply … Closes Up?

Trailer sales boomed, and more companies started manufacturing fancier trailers and RVs, but no one predicted what would happen next. On December 7, 1941, the Japanese attacked Hawaii’s Pearl Harbor, and the U.S. entered World War II. Leisure travel and the materials needed to build trailers were luxuries the U.S. could no longer afford. Structural aluminum became classified as a critical war material, available only for the building of vital aircraft. Tires and gasoline also became scarce, and Airstream had no choice but to close its doors.

Fortunately, with the end of the war, the pent-up demand and desire to forget some of the atrocities of war prompted Airstream and other RV manufacturers to reopen, and the U.S. entered a new era of recreational travel. Led by veterans reunited with their families, sales began to skyrocket, and additional competitors entered the market.

RVs through the Decades

In the 1950s, companies like Winnebago introduced customizable RVs through do-it-yourself kits. The new RVs also had plumbing systems, making traveling a breeze compared to that with older trailers. When the 1970s hit, young people were looking for affordable ways to travel between music festivals and political protests, and the appeal of RVs rose yet again.

Over the next couple of decades, manufacturers found ways to make RVs cheaper. Many manufacturers (not including Airstream) replaced aluminum with less expensive materials. Vehicles became more affordable, durable, and larger over time.

By the early 2000s, the variety of trailers and RVs was so vast that families of any size could find an RV to fit their needs. On the high end, Airstream continued to buck the trend of becoming cheaper and bigger by consistently producing new, unique models coated entirely in aluminum. Motor coach manufacturers also launched lines so luxurious that headliner bands preferred them over other modes of transportation. Some models offered over 350 sq. ft. of space (the size of an apartment in some cities), and prices could easily exceed six figures.

On the other end of the spectrum, simple, fully functional RVs cost less than the price of some cars. For the first time ever, young adults could afford months-long adventures and even work as they traveled the country. When they finished that stage of their lives, they still had the underlying investment—the RV or van—that they could sell and use the proceeds to start their next stage.

With the advent of social media, movements like #RoadLife and #VanLife have prompted people to explore the world via RV travel, or watch those who do with envy through their phones.

Today, RV customizations are limitless. Want a special compartment so you can travel with your favorite lizard? Totally doable. Need solar panels so you can live off the grid? Check.

RV Parks Are Reaping the Benefits

With the arrival of COVID-19, in 2020, it was no surprise that the popularity of RVs reached its highest point ever. Faced with the alternative of staying at home with restricted social gatherings, the prospect of taking to the road sounded better than ever during the pandemic. For those who didn’t venture out, the pent-up wanderlust has driven them to new travels now that the danger has ebbed.

Every age group has a reason to choose RV life over any other form of travel. For retirees, RV life offers a safe, inexpensive way to see all their favorite locales or their bucket list travel destinations. For midlifers who are starting to question the purpose of life and their work/life balance, RVs offer an opportunity to obtain some balance while still having office space when needed. Now that many people work remotely, rather than going into an office, remote work from an RV is more attractive than ever.

And finally, for twenty-somethings who are just starting their careers, the global pandemic provided many with a feeling of uncertainty. As a result, this generation believes that if you want to do something extraordinary, now is the time to do it. You can’t wait to start exploring, because nothing about the future is certain. The RV lifestyle appeals to the digital generation, who can take their work with them and see the world.

These Aren’t Your Grandparents’ RV Parks

Modern RV parks offer themes and amenities that never existed decades ago. Whether you are looking to get deep off the grid and enjoy time in nature or you want to golf, soak in a hot tub, and visit upscale restaurants, today’s RV parks offer