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Buying an RV park costs around $100,000 to $2,000,000, as reported by Campground Solutions. Typical turnaround time for large, commercial loans can take a few months, and if you’re buying an existing RV park, the appraisal process can take between two to three weeks.
Big banks are likely your best bet in getting a large enough loan to purchase a campground, but there are also online lenders that can lend a few million.
3 types of financing to buy an RV campground
If you have existing RV parks in your business portfolio, your chance of approval for your next campground purchase is better, since it’s generally considered a high-risk investment by a lender. Your accountant can help you draw up comprehensive business statements to help improve your chance of approval and a decent rate.
Here are three financing methods to consider when you’re looking to buy an RV park:
1. Commercial loan
Typical turnaround time: Three months
Secured by the property
Suited for real estate
Typically customized for your business
New businesses can struggle to qualify
Commercial loans are often used for real estate purchases. These loans can be taken out by individuals, partnerships, or on behalf of an existing business. RV parks may be considered specialized, and may be viewed as high-risk. So you may have to plan for a high down payment requirement — possibly around 25% to 30% of the property’s value.
2. Small business loan
Typical turnaround time: Few business days or longer
Many types of business loans, including SBA loans
May be smaller amounts than commercial loans
You may be able to use an, fixed-term business loan to start an RV park or buy an existing RV park. Lenders often require that you provide evidence of your financial situation, details of your relevant management experience and a business plan that shows revenue and cash flow forecasts.
3. Unsecured personal loan
Typical turnaround time: Same-day or few business days
May be easier to qualify for compared to business loans
Maximum amounts may not be enough
It may be a longshot, but if you’ve found a campground that’s not too pricey — $100,000 or less — a personal loan may suit you just fine. Or maybe you’re just looking to buy the land for a future campground. Personal loans are versatile and can be used for anything, but most lenders don’t offer personal loans over $100,000. While personal loans don’t offer the highest loan amounts on this list, they may be easier to qualify for to get the ball rolling.
How much does it cost to buy an RV park?
Of course, this answer varies. It depends on whether you’re buying an existing campground, or the land to construct a park on later.
Small RV parks in less popular areas could cost as little as $100,000 while the most successful RV parks can cost over $2 million to purchase.
Additionally, how large of a park you can buy may depend on your state, as some towns, cities or counties have minimum requirements. More requirements crop up if you’re franchising, an example being Kampgrounds of American (KOA), which requires you to have at least 10 acres of land.
Beyond the purchase price of the property and business, determine if you need money for immediate improvements and repairs. With this in mind, consult with your accountant or business advisor to determine a budget and fair price for your RV park.
What other RV costs or improvements can I finance?
When you own an RV park, you’ll have to maintain some facilities. A business line of credit may be useful for things like:
Upkeep of accommodations, such as restrooms
Repair and upkeep of guest facilities, such as tennis courts or club houses
Covering upkeep and expenses during slow seasons
Read our guide on how a business line of credit works and its benefits for more information.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
The documents you need to apply for the loan depend on the type of loan you choose and whether or not you have a current RV park business.
Documents to prepare can include:
Balance sheets
Business bank statements
Business licenses and permits
Business plan and financial projections
Information regarding personal and business debts
Profit and loss statements
Personal bank statements
Personal resume, often optional
Personal valid ID
Tax returns
Bottom line
Buying a campground or RV park may have its difficulties, such as having varying regulations across states, finding the right property and ultimately getting financing. However, once you have a down payment, you may be able to find a business loan to finance your purchase.
Bethany Hickey is a personal finance writer at Finder, specializing in banking, lending, insurance, and crypto.
Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance and AOL. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt.
Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others.
Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine.
Thanks for your message. It’s nice to hear you are purchasing a campground. The information above shows how you can do just that! To start comparing lenders, go to the part that says “Business loans to consider when buying an RV park” and enter your credit score and state.
Click the GO TO SITE button to be brought to the main provider’s webpage or click MORE INFO to read through the lender via a Finder review page. Once you have a deposit ready, you can proceed with your application. As a friendly reminder, carefully review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.
Hope this helps. Feel free to reach out to us again for further assistance.
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Trying to purchase a campground and need financing
Hi Audra,
Thanks for your message. It’s nice to hear you are purchasing a campground. The information above shows how you can do just that! To start comparing lenders, go to the part that says “Business loans to consider when buying an RV park” and enter your credit score and state.
Click the GO TO SITE button to be brought to the main provider’s webpage or click MORE INFO to read through the lender via a Finder review page. Once you have a deposit ready, you can proceed with your application. As a friendly reminder, carefully review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.
Hope this helps. Feel free to reach out to us again for further assistance.
Best,
Nikki