Financing insights / 19
RV Park, RV Resort & Campground Financing
RV parks and resorts combine commercial real estate with operating-business characteristics and often require lenders familiar with the asset class.
At a glance
RV parks and resorts combine commercial real estate with operating-business characteristics and often require lenders familiar with the asset class.
MDN Capital Consulting helps owners, investors and developers evaluate financing for acquisitions, ground-up development, construction, expansion, refinancing and transitional RV properties.
Financing overview
Financing at a Glance
Potential Property Types
- RV parks
- RV resorts
- Campgrounds
- Destination RV properties
- Mixed RV and cabin resorts
- Extended-stay RV communities
- Certain recreational lodging properties
What Do RV Park Lenders Evaluate?
- Number of RV sites
- Site mix
- Daily, weekly, monthly and seasonal rates
- Historical occupancy
- Seasonal revenue patterns
- Cabin or rental-unit income
- Amenities
- Utility infrastructure
- Development approvals
- Sponsor/operator experience
- Market demand
- Exit strategy
Can Cabins Be Included?
Many RV resorts include cabins, cottages or other rental accommodations. The lender will generally want to understand how these units contribute to revenue, whether they are real or personal property, their condition and role in the business plan.
Hypothetical example
Illustrative Scenario — Ground-Up RV Resort
Total development cost: $16,000,000, funded in two $8,000,000 phases. A construction lender would typically evaluate land value, sponsor equity, development budget, permits, infrastructure, projected occupancy, operating assumptions and the plan for completing and stabilizing each phase.
Illustrative only. Financing and terms depend on lender underwriting.Borrower questions
Frequently Asked Questions
Can I finance construction of a new RV resort?
Potentially. Ground-up projects require detailed development and construction underwriting.
Can RV park financing include cabins?
Potentially, depending on the collateral and lender.
Can I finance an RV park expansion?
Potentially. Existing property performance and the proposed expansion will both be evaluated.
Can I obtain a bridge loan while an RV park stabilizes?
Potentially. Bridge financing may provide time to improve occupancy and operating performance.
Is SBA financing available for an RV park?
Certain owner-operated transactions may potentially qualify depending on the business, ownership, property use and applicable SBA/lender requirements.
Financing inquiry
Financing an RV Park or Resort?
MDN Capital can evaluate acquisition, development, construction, expansion and refinance requirements.