From 30 to 60 Pads: Buying an RV Park and Financing Expansion with SBA Loans

From 30 to 60 Pads: Buying an RV Park and Financing Expansion with SBA Loans

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Hey Beau, I’m looking at buying an RV park. I’m interested in SBA financing. The park currently has 30 pads and about another 5 acres that can be developed to add at least another 30 pads.

Could I find financing for the acquisition of the property AND for the addition of the extra 30 pads?

Thank you!
Steve

In this podcast episode, Beau begins by answering the question that comes from Steve, who is interested in purchasing an RV park and using SBA financing. Steve mentions that the park currently has 30 pads, with an additional five acres available for developing at least 30 more pads.

It is possible to obtain financing for both the acquisition of the property and the expansion. The project is potentially eligible for SBA 7a financing, which covers acquisition and construction costs. However, to secure construction financing, the buyer must have all necessary bids, and a general contractor lined up, ready to begin the infrastructure development for the additional pads.

Regarding documentation required for the financing, the host mentions that they would typically review the seller's three years of tax returns, a year-to-date interim statement, and three years of projections. The projections should provide a breakdown of cash flow every month for the first year, as well as for the second and third years. The funds obtained through the loan can be used for construction, including infrastructure development, FF&E (furniture, fixtures, and equipment), and working capital, if necessary. This bundling of construction costs, FF&E, and potentially working capital is a common practice when purchasing an existing RV park with untapped potential.

If you'd like to ask me a question about real estate, do it here -- https://investorfinancingpodcast.com/ask

Timestamps:
(00:15) Go to investorfinancingpodcast.com/ask to ask other questions
(00:30) What SBA loan programs are available for purchasing an RV park?
(00:50) Explanation of potential SBA 7A financing and requirements
(01:30) Required documents for financing and potential funding options
(02:09) Book a call at https://investorfinancingpodcast.com/rumble

💥 Thanks for watching 💥
#RVPark #SBAFinancingExpansion #sba7a

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.

About the Channel: Want to structure your investments in the right and secure way?

Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.