This case study delves into the experience of aiding the owner of Lost River RV Park in Baytown, TX, through the complexities of managing and ultimately selling the park under distinctive circumstances, leading to a successful, strategic, seller-financed sale to an enthusiastic buyer.
Challenge
In April 2023, our team had the pleasure of meeting the owner of Lost River RV Park situated in Baytown, TX. He not only owned but also personally managed the park, leading a small team. Unfortunately, the park faced a significant challenge with the untimely passing of the park manager. This unexpected loss placed the entire spectrum of park responsibilities squarely on the owner's shoulders. Despite having navigated the intricacies of running an RV Park in the past, the owner, now older, found himself grappling with the physical demands that ownership entailed. Faced with these challenges, he wanted to transition out of the management-intensive role, seeking to retire and gracefully pass the park over to new leadership.
Action
Our initial steps in the process was taking a look at Lost River RV Park financials. We delved into the Profit & Loss statement, gauged market conditions, and conducted comprehensive rental comparisons with other parks in the vicinity. Our objective was to establish an accurate valuation of the park, considering its unique attributes and potential. We then presented a well-defined marketing strategy, emphasizing the importance of reaching a broad audience to stimulate a competitive bidding environment. This involved a proactive approach, where we engaged with hundreds of RV Park owners in the Houston area, ensuring timely responses to inquiries from those exploring our online listings. Our comprehensive approach aimed to maximize exposure and optimize the park's perceived value in the market. We sorted through many offers and scheduled park visits and meetings.
Results
Navigating the challenges posed by elevated interest rates and the complexities associated with securing lending, we steered negotiations toward a solution that proved beneficial for all parties involved. Recognizing the constraints of conventional financing, we successfully structured a deal using seller financing. The culmination of our efforts came to fruition with a successful closing on December 29th. Prior to finalizing the transaction, we facilitated a comprehensive site visit for the prospective buyer and their agent, ensuring transparency and satisfaction in the property acquisition process. Our client has since been able to retire and was relieved of the property-related debt through the terms agreed upon in the financing arrangement.
Testimonial
“I had been approached to sell my RV Park numerous times in the past and ultimately told everyone the same thing - not interested. However, due to personal reasons, I decided that I needed to sell the property early in 2023. While I had plenty of options to choose from - both buyers and brokers - I ultimately chose to work with Landan Dory and Cole Little because they came and met me at the park and offered up an entire marketing strategy and timeline that I felt would highlight the strongest aspects of the park and provide me with the most credible offers. Their efforts were successful, as the buyer they sourced was from California and highly motivated to close the sale in 2023 for his own tax reasons. With this being a seller-financed sale, there were certainly challenges along the way, but the brokers stayed with me every step of the way and completed the sale on the last business day of the year. I’d love to recommend Landan and Cole to any other RV park owners looking to sell their RV Park.” -Eric L.
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