How to make $15,300 a month from your first RV park?
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- Опубликовано: 27 июл 2024
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Kenworth bought an RV Park for $400K that cashflows $15,000 A MONTH!! Watch to see why he went from real estate to RV parks and learn how you can Cashflow from RVs too!
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As always the numbers look very inflated. Here are a better numbers:
- 47k down + $1750 on mortgage per month (considering 4.1% interest rate - good luck with that) + Business Insurance (around 1k a month) + permits + 3600 per month for the manager (I still believe you will need a full time employee. How do you avoid people just using the property without paying or any issues (like leaks etc?) do you trust the clients? Also 10k per year on maintenance (which can be much more in case of leaks or extra unplanned work on pavement, etc). So all in all the cost per year should be around should be around 85k per year minimum + the 47k down.
- Considering you are charging 450 per month (not sure you can get all 35 rented all the sabe time always, so I would consider a 80% occupancy rate), so lease call it 28 units occupied. This will Gross around 150k, which will NET around 65k per year. Not bad, but take taxes, self employment taxes, etc, and you end up with around 50k per year. Not bad, but not even close to the numbers she is representing. It should pay for itself on 1 year and cash flow after. But as any business there are risks. You need to work to gte it busy, deal with unhappy clients, lawsuits, lawyers, accountants, etc...
Very realistic outcome.
Agreed…. But there’s more.. Electricity - unless this park only does monthly sites (where electricity is paid by the rv owner) there is a cost for the electricity each RV is consuming and RVs are not the most energy efficient homes. Next, water, 35 campers using water, that’s a lot of water, even though you would consider them low usage. That’s several hundred dollars a month. Trash for 35 homes? That’s going to be a couple of dumpsters a month or several hundred dollars. I would expect unless this is a giant gravel pit in the middle of nowhere, these rv residents would like the lawn to be maintained, that’s going to cost hundreds and hundreds of dollars a month. That person who gets paid $1.73.hr (3600/yr) is not likely to mow the grass.. I bet these residents would be expecting internet via wifi. That’s not free. Sewer usage for 35 homes isn’t exactly free either. The list goes on and on. With larger rv parks, most owners net about 50-100K/yr in profit. I’m not sure how this magical rv park is able to be such a gold strike compared to the rest of the owners…
@@ScottBalkum exactly. And even at a 50k profit, one unplanned event can consume all of it (if any). From all her businesses I am sure the one that she makes all the money is RUclips and all the courses she probably sells. As always ....
And why $450/mo? Isn't that cheap in today's market space for these parks?
The RV park industry in SOOOO much more complex than what is being described here! Also, are we talking about mobile home parks or an RV Park ? The RV park industry is a lot like running a hotel. If it's an RV park, is there a franchise fee? Anyway. This is a complex business. Just saying, and Yes Codie, good comment on the need for good management. Good management is the difference between an RV Park where derelicts cook meth and a place for nice people to live.
Confident, knowledgeable and sassy!! Powerful combo!! Just subscribed!!
Great video Codie.
I like the pro's and cons listed.
Very helpful
Thank you so much for your insights Codi! Just subscribed to your newsletter and hopefully I can learn more from your wealth of knowledge and experience.
Love your videos. Thanks for sharing the amazing content.
Great video and definitely an impressive deal, but to be clear - its not really "cash-flowing" $15k a month if he took a loan on the acquisition that's the total revenue. Most re investors would consider cash flow to be after debt service and expenses. Still a great buy but I think its important to highlight the debt service to get the complete picture.
Hey Max - do you invest in businesses?
Plus property taxes
Yep.
Actual cash flow would kill the click bait title. So just exaggerate for views… trash channel.
Great point we didn’t include debt service in this one and should have. To be fair the property is now doing more like 20-30k a month post a 4.5% debt service.
WOW impressive video, love the energy & the information
love your videos codie. i'm 60 years old, trying to find my second act. could you give us some ideas on getting a marina? it's an idea that has been gnawing at me for quite some time. hell - 3/4ths of the earth is water!
Ok Codie ! I just started following you yesterday and already loving your channel !
Makes my day!!
Here in Southern UT. RV resorts are full in the winter with Snowbirds. And a little less full in the summer months because of extreme heat. 109 tomorrow. Same with resorts in northern states, mostly empty in winter because of brutally cold winters but busier in the spring, summer and fall mos.
Amazing video! If you don't find a means of multiplying your money, you will wake up one day to realise that the money you thought you have has finished. Investment is key..
I strongly agree with you mate. Investment is the key to sustaining our financial longevity, and not just any investment but an investment with guaranteed return.
To earn more you are required to have a multiple diversified stream of income, which is why investment is an avenue of making more money once it's profitable.
Crypto currency is one strong means people are raising their financial status now, so when you think investment I recommend you make it an option.
Crypto investment requires good experience and knowledge to carry out good and successful trade. because I have actually lost a lot trying to trade all by myself.
It's professionally recommended to trade your coins with experience brokers, who can help grow your coins while assisting you learn the trade.
I love your content Codie, I am a recent subscriber and aspire to be just like you when I grow up!
What property manager would work for $3.5k salary and $4k worth of free rent, per year?
Before you invest in an RV park, check on County, City regulations on length of stay allowed. L.A. County Ca. limits stay to 90 days in a 6 month period.
Stupid rules….I like liberty
I did know know most rv parks undercharge, interesting stuff to know. Thanks for sharing this story!
well 350 a night is crazy expensive for a typical rv space nightly..... so yeah the numbers are massaged as she stated!
Did you mean to say he pays his property manager $3600 a month or $36,000 a year?
problem with this is quite simple... to qualify for a 400k loan you need to show the lendor or the bank that you have at least two years experience in the business or are bringing in at least 10k a month in revenue.... so ya.. read the fine print people
There’s a lot of things missing. What are the net operating expenses? Debt service? Taxes? There are a lot of expenses being left out here which can be very misleading. Rv parks are great cash flowing assets if you can get a good off market deal but there is definitely more to it then a down payment and closing costs and then boom your cash flowing.
Super helpful intro to this market.
thank you for the information very helpful 👍👍
love your vids and all but do you have a video on how you find these business that are being sold you talk about the math behind it and the mark but idk seen a vid about how you can find one being sell yet, love the vids again and keep it up
Excellent video. I am a part time RV’r and hope to one day own a park(s)!
You'd certainly have an advantage if you live on your site!
Where can I hire a property manager for $3600/yr for an rv park? 😂
Plus a free home
$3600 a year for Management? What are they NOT doing for just $3600 a year?
They get free rent in a dwelling on premise plus the $3500.00
I’m think she meant per month because at the end she said a few hundred-a few thousand per month depending on size butttt who knows
Free rent and electric and a paycheck. You guys are pretty clueless
@@RyanW3112your joking right? Free rent? Your hove 3500 a year you can’t even buy food with that
No living expenses and $300 per month for food. For a single person, it seems fine.🤷♂️
Hi
Thank you for your great info
Can you makes more videos on how to invest with small budgets to help more and more people to move on to get there goals 🙏
Yes!
Some people are not making the distinction and think this is a campground. This is a mobile home park so there are no restrictions on length of stay. Leases are signed here too. The issue also is that there are NOT many that actually are profitable or they are in areas where they will not be profitable....ever.
Interesting points. Why not convert RV parks into mobile home parks?
How many acres was the RV park? What’s a nice size to start with?
$400K for a 35 slot RV park? The park we are at here in Clearwater Florida (granted it’s a expensive location), but the park sold for 5 million and it’s being demolished to create condos. My point is, if the location is desirable at all, it won’t be less than a million+.
🎉🎉
Agreed, that’s why finding off-market deals is a key ability to landing big deals as an investor!
Maybe that's cuz Clearwater is owned by scientology😅
Get it guuuuuurl!!! Keep up the good work!!
I am about to build several different things including assisted living, RV park and a storage facility. Good video even if the numbers are a little wild lol.
Did you build the RV storage yet?
Not only is the content gold but-the editing is fire!🔥
didnt include the cost of insurance, property taxes, water, electricity, or septic/setpic just to name a few
so is this a trailer park where basically people are barely getting by? where increases in rent mean homelessness? if thatʻs the case, why is it so necessary to make 373% coc vs 200+ % coc without rent increases?
Great info I am in the early stages of building a rv/campground now
how is that going? Any updates?
@@xxlnomadlxx yes we got approval to start a few weeks ago
$350 a month lol. I have been looking cause I want to buy an RV for my travel work, I have been getting 30 day quotes of $1800 plus. Total price gpuging
Codie, in this example is he just taking lot rent? Or are they park owned trailers? Keep the real estate content coming. Loving it!
Just taking rent. Not lot owned.
5 achers inverness fl WORKING IN IT. THANKS FOR THE ENCOURAGEMENT..!
🔝 Tell Max to get you newest update on investment.
Wait, the property manage only makes$3,600?
$3500 a yr for a prop manager? I think you meant per month. However, 3500 is still waaaay to low-even with room and board.
All of the slots are filled? 100% occupancy? I like your channel but maybe the numbers a bit off.
You are talking about RV part like it is the same as a trailer park. They are different investments.
Pretty sweet. If he put 40 k into BTC he’d have no maintenance, no mortgage and it will (if history is any indication) 10x in about 4-5 years. Then he could either buy the park outright or borrow against his BTC holdings and buy a property or more BTC, which is considered property, it’s just digital property that doesn’t degrade, need maintenance, can be moved for almost free, and can be sold in seconds. Liquid property.
That’s right around my area.
Oh wow is 13 Stripes the brewery that he is an owner? The one in Taylors I believe close to Greenville
Buy near plants. Always hard to find open spots in Beaumont Texas, dude owns a huge firework/Rv park. Guy makes a killing. I gladly pay 600 month. Cable/ good WiFi/electric. And he has a laundry mat.....
How does he have a property manager for $3600/year??
There’s always so much detail left out of these videos. Obviously there was a reason it wasn’t selling that should be pointed out. Assuming no vacancy is always weird. Sometimes a more in depth video would be way more beneficial
no way...a property manager here makes 3600 a year? is that livable or is it because they manage multiple properties?
tHanks for the fun video,.
How does a property manager make so little money. $3,600? Really?
The property manager makes $3600 a year or $36,000 a year? $3600 a year would be pretty criminal.
They also get free rent.
Nice work.
Why was the park for sale in the first place?
I have 7 acres of land but idk what to do with it ?
There's an rv park a mile from my home on McClain lake in northern Wisconsin. They have 218 spots and charge $650 a month in rent. I wonder what their cash flow is? I do know that 70% of their spots are permanently full.
Damn got a bargain and still raised everyone's rent $100 a month. Guy sounds like a piece of work
If I buy land for the trailer parks how or where do I get the water, plumming and electricity from? :)
Who knows 💀
Have you ever dealt with resentment from employees who watch your videos about escaping the 9-5?
How do you balance your personal brand (leverage other peoples labor to get rich) with keeping employees happy working for you?
This is very common. They can leave
I don't think you'll ever hear me say "escape the 9-5" instead it's do what you love with who you want. I treat my employees like partners, they do deals, add clients, do other stuff but stay with me because that love what we do. It's a fine line.
Super question Sid
NEVER and I repeat NEVER let the employees know where you live and don't drive high dollar cars to work and be that show off.
I have to admit....I'm guilty of doing just that and the thing is.....the employees only see the results of your investment. I had 2 childcare centers and a bunch of rentals, bought the nice house, Hummer H2, z06, Cadillac XLR, Silverado truck, had the nice watches. The employees become resentful and that was even after I gave everyone 500.00 Christmas bonuses and on random days I would single out an employee and tell them to leave my building only to hand them a steakhouse dinner gift card that covered their whole familys meal for the evening. I even bought things for their kids if they were active in certain activities. In the end I was the rich guy that didn't do shit but make myself money......never got that one. Now I never let on that I am the owner of the business.
Ready to take a conventional loan for the park together!
This sounds great but you're stating the income figures as if they're net but they're really gross. There's no mention of expenses like repairs, utilities, improvements, vacancy. I think his P&L would look very different than explained here. A property manager for $300 a month sounds doubtful, likely more like someone on site who handles odds & ends, but he's still managing things from afar (i.e. who does the bookings, interfaces with contractors/vendors/etc.). I'm researching rv parks & campgrounds, but management/operation time investment is making me skittish. Would be great to hear directly from him on these topics.
🔝 Tell Max to get you newest update on investment.
You pay a property manager $3600/yr? So, their rv spot is free ($350/mo value) as part of their package. Their total compensation is $7800/yr for a 35 spot RV Park?! I dont know where you're finding these suckers but I'm looking for someone to work their ass off for that type of pay at my tiny home community.
What does the operator do? Only getting $300/m
Love this, someday soon I will own one!
Hell ya
why the previous owner unload it if its profitable
Could you do more videos like this with other businesses..this was 👍
Totally we have 7 like this new one coming out every week. Spread the word and we can do more
@@CodieSanchezCT awesome thank you! Could you possibly do a video on how to properly approach somebody asking them to invest in a business with you if you don't have any money to bring to the deal..and how to break down how everybody gets paid back in that situation
@@CodieSanchezCT perfect
Huh so a property manager only costs $3600 a year?? Is that missing a 0?
@Wyatt Borden Yes it is, was just confused about that number.
So how this works is for rv parks you typically give them a free spot to live for the year. So they get free rent and utilities and that payout.
@@CodieSanchezCT makes sense. I'm just wondering how he found the manager - was she already there?
@@CodieSanchezCT Those are called park hosts. They are not property managers. Also, if they were getting rent and utilities for free, would there not be only 34 sites of this 35 site rv park contributing revenue? You counted their rent as revenue.
BRB gonna go buy an RV park
He bought the park already filled though correct?
Why rent an rv park when I can park at the park in california.
Why do you assume 100% occupancy?
You didn’t include utilities at all????
Great video! What do you pay your editor to create them? Looking to hire at at least that level of quality per edit. Maybe the actual editor will answer this. lol
ty! AFTER reading some of the moronic comments on here , I understand why there are so many sore losers, working sheep, you cant do thatttt...thank for showing me that my ideas are good, valid just get off my ass at 65 and do it. Start small go big! the hell with some here!
How many businesses do you have? I was just curious. I found this channel from your laundromat business. I have family in TX that owned a laundromat business for years Crow brothers laundry in Waco Tx. It’s a service people always need. Laundry doesn’t go away because of a recession or pandemic.
Eventually it will go down .. might not completely disappear.. more and more people have washer and dryers in their homes .. even some small apartments and condos have small washer and dryers inside .. sometimes the apartment complex provides a laundry room .. anyways it’s a good business .. my friend owns one
@@MalluStyleMultiMedia stop being a dooms-dayer. You’ll live a better life that way, trust me
@@TonyWTFscream not being a di*khead but that’s the truth.. I got few small businesses like rental properties but it’s not always rainbows and unicorns 😂 .. $hit happens .. but as long as you’re ready to face the challenges, it’s all good. In the case of laundromat, eventually innovation is needed .. for creative people, it won’t be a problem
@@TonyWTFscream even during covid, people were so scared to use the same washer that others have used. I know many that bought small washers for their units .. but like I said I got a friend who’s still doing good with the laundromat business
@@MalluStyleMultiMedia covid has passed my friend. I don't think it's anywhere near as bleak as you paint it to be. Where there's money to be made, there will be someone to receive it and that'll be me, so the other obstacles don't mean much to me.
These numbers seem way off. First it is assuming that all 35 spots will be full every month for a year and that is very unlikely. Second you said the property manager was 3600 a year. That can't be right even if he is living onsite. That is 75.00 a week.
Charging your rv? You mean powering? Also…you’re assuming 100% occupancy. Which is impossible year round.
What ever you decide sanchez. Ready to move on with the RV mobile deal. We need to start that business. A tone of my gentlemen wait on my last decision. I'll bring on table. Let's start it now in this summer 2021. For me. Mine start july 21, 2021. I don't know who's the boss yet. But, I'm waitinggggggg For a good, sweet. Sensual. Hot boss to start my first deal!!!👂🤝♥️
You are about to BLOW UP on youtube
Thanks friend!!
Now if it’s doing so well why would someone sell it in the first place…
Take care of your plants.
Holy smoke, ridiculous cap rate for sure. Here I am up in Vancouver Canada, looking at on average 3.5% cap rates and if I'm lucky maybe a 5 cap. Lol
Wow that's so low. I'm down in Houston and the average CAP I look for for an investment is at minimum 7%
So 100% of the sites are rented for 100% of the year and 100% of people pay 100% of what they owe????? Sure.
Ain't no traveling nurses or windmill workers in the crowd staying there, I take it.
Retirees. Also yes, most ppl are adults and pay what they owe or get kicked
02:51 Property manager @3600 yearly?
Who has access to land purchasing loan options?
I have been working in IT for a while. Always wanted to switch to venture capital. Do you have any advice e on career pivot? Just don't want to go back to school. Doing one BS is more than enough. Hahahahha
this isnʻt venture capital. itʻs real estate investing with lots of leverage
Great video
🔝 Tell Max to get you newest update on investment..
I can launch a product on Amazon for 20k and it will give me back 69.7k a year coc.
After cogs and management.
But I'd rather have the deed to thst land.
Is the fuel price increase affecting these figures currently? (A decrease in RV travelers due to inflating fuel cost.)
🔝 Tell Max to get you newest update on investment.
People being pushed into rvs. Ie poverty, is a huge growth market
Where did he get the loan with 10% down?
His local bank. He does many deals with them so your terms would probably be a higher % down on your first deal
Profit?
not an RV park but just a trailer park huge difference!
How different are "RV" parks verse "Camp grounds"
Terms are synonymous. However “camp ground” is generally reserved for vacation destinations rather than some random park along the interstate
@@rileyhiggins4753 good point I travel a good deal to ride mountain bikes in the south east. I usually look for camp grounds which usually have a mix of tents and RV/Campers. RV Resorts typically have no trees, and lots are crammed on top of each other.
Can you make a video on auto car wash buisness?
Build a mini mart in the RV park
RV Parks are way more complex than this breakdown. I'm in South Carolina and RV Parks are selling for ridiculous multiples.Just looked at one making $300,000 in revenue selling for $2.3M.
You are my new fav sprit animal.
So if this was profitable, why was it sold for that little?
Don't forget about property taxes and insurance
Nice 👍