Has Anybody Purchased An Rv Lot?

For our business we spend a lot of time in Moab, Utah. There is an RV park called Portal that we stayed at last month and loved the location, the scenery around the park and the customer service. The lots are 40 x 80 so we were able to pull in our 42' motor home with the 25' enclosed trailer still hooked up, with plenty of room to park our vehicle and our motorcyle on the concrete pad and still had lots of room to walk around without having to walk on the grass or stones. They started selling lots last year and the price has increased 20% since they were first offered.

Several people I met while we were there have purchased RV lots around the country and sold them for big profits. We put a small deposit down which is fully refundable until we sign the contracts. Our problem is that we don't know if we can get the funding for a loan. Most banks are clueless when it comes to RV lots. The owners/developers have made arrangements with a Utah credit union to take care of financing, but we want to shop around to see if we can get a lower interest rate.

Has anybody bought an RV lot and, if so, how did you get financing? Thanks for any help.

 

QUOTE(rangiebob @ Jun 1 2008, 03:25 PM) [snapback]11657[/snapback]

Several people I met while we were there have purchased RV lots around the country and sold them for big profits.


I haven't done it, but it's an option I'm considering, and am interested in how other people do. But, just a caution. Regarding "sold for big profits....".... I'm sure you mentioned this as a matter of record, and as a potential justification to help you in your decision, but please, don't make "big profits" be your major reason for doing this. In my experience, having this as a reason tends to "backfire." Buy a lot if it suits your lifestyle and you intend to remain there for many years. I wouldn't do it if you only intend to stay for, oh, less than five years.

But, like you, I'm interested in this, too! I don't think I want a park model, I just want a place to park my RV.

JJ

 

QUOTE(DXSMac @ Jun 1 2008, 06:58 PM) [snapback]11659[/snapback]

Regarding "sold for big profits....".... I'm sure you mentioned this as a matter of record, and as a potential justification to help you in your decision, but please, don't make "big profits" be your major reason for doing this. In my experience, having this as a reason tends to "backfire." Buy a lot if it suits your lifestyle and you intend to remain there for many years. I wouldn't do it if you only intend to stay for, oh, less than five years.

But, like you, I'm interested in this, too! I don't think I want a park model, I just want a place to park my RV.

JJ




I appreciate your comment, but the reason I said this is that it is one reason for us to invest in it. It's not cheap and we want to know that chances of selling it as an investment in the future are good. And since Moab, UT is a popular vacation destination with quite a few RV parks that always fill up, it is a good sign for selling it for a profit.

But the reason we even thought about doing it is that we are in Moab several times a year for our business and it makes sense for these reasons: RV campground rentals for staying a couple of months, which we generally do when we're there, are expensive. And there are events every single week and weekend spring through fall seasons there and rental reservations need to be made a really long time in advance. Because the site is so wide, we will have the option of building on it, say an outdoor kitchen, a full-size bathroom, laundry room, storage room, etc.

I know I'm seeing many RV lots for sale in other states that are cheaper than Moab, but most of them are places we stay for no more than a few weeks during the course of a year. The only other place we stay for an extended period of time is in Mesa, AZ in the winter, and the place we stay has more park models than motor homes, which doesn't appeal to us.

 

I know some people who bought a lot in Indio, CA, and they regretted it after they did it. But that was CA, you are talking UT, and it sounds like you have good BUSINESS reasons to do this.

I'll admit, I'm ignorant on these RV lots, but still, I wouldn't get your hopes up about "buying it so you can make a killing when you sell it." Who knows?!?!?!?!?

JJ

 

Good topic Rangiebob.
Find ourselves nosing around with similiar idea...different parts of the country. Recommend gaining general overview of area health and various purchasing tactics from the folks who are/ will be your neighbors. Helps tremendously that you all have spent time in this community.

Depending upon the state, recommend a lawyer BEFORE purchase. They'll uncover liens with/on current owners, future hiway projects...(eminent domain) that may impact your targeted property in the future.

Moab IS a bustling community. Targeting themselves as the next Jackson, Wyoming...right?
Cheers!

 

QUOTE(DXSMac @ Jun 1 2008, 10:18 PM) [snapback]11665[/snapback]

I know some people who bought a lot in Indio, CA, and they regretted it after they did it. But that was CA, you are talking UT, and it sounds like you have good BUSINESS reasons to do this.

I'll admit, I'm ignorant on these RV lots, but still, I wouldn't get your hopes up about "buying it so you can make a killing when you sell it." Who knows?!?!?!?!?

JJ




Did the people who bought in Indio say why they regretted it? I'd like to get as much information as I can.

Well, the only way we will go through with this is if we can get a reasonably priced loan. And so far, this is a real challenge. So who knows is right!!

 

QUOTE(rangiebob @ Jun 2 2008, 01:48 PM) [snapback]11677[/snapback]

Did the people who bought in Indio say why they regretted it? I'd like to get as much information as I can.


Nothing specific..... just that they kind of felt they wanted to travel a lot yet here they were paying for a "stationary" lot.... something like that, and the "feelings" came after the purchase. The originally thought they would like a "stationary" place for their RV, so it made sense... but their feelings changed after they bought it.....

JJ

 

QUOTE(FosterImposters @ Jun 2 2008, 11:27 AM) [snapback]11676[/snapback]

Moab IS a bustling community. Targeting themselves as the next Jackson, Wyoming...right?
Cheers!




Yes, Moab is a bustling community except for the winter months. Although we have offered a New Year's trip for the past 8 years in our business. This year, I'll stay in AZ and hubby can fly or drive up on his own. Way too cold for me. I don't know anything about Jackson, WY but Moab has a few 5 star restaurants with two of them walking distance from the RV park we're contemplating. And it is a mecca for 4-wheel driving, biking, hiking, horseback riding, rafting, and a great music festival.

Let me know if you take your idea any further and what you find out about financing a lot. Thanks.

 

These RV lots in Florida have gone up at a staggering rate and have now started to come down and be very hard to sell. I would think that how long you wanted to keep it would be a big part of your equation. You might be stuck with it for a while. As the gas prices go up and RV makes continue to go under, you would think the value of these lots and campgrounds in general would not be a good investment. I am speaking in general terms and there will always be exceptions on either side of the equation. I would think the times we are in would tend to push the bar a lots higher on the lot purchase idea.

 

Lindsay has said it well. If the prices keep going the way they are the rv world will be a rich mans luxury thus fewer of them and possibly a bit of a death there until it gets back on track again. Florida rv parks have just about priced themselves out of business. I have heard of some parks selling lots because they are not selling very many of the regular type lots for those in passing. Basically they priced themselves out of that market. Because of prices in Florida we have chosen never to enter that state again if we can help it.
As for Moab they have year round excitement whether anyone short of the locals knowing it. Of course the rv parks shut down because its more like about half as many as summer coming in.

 

QUOTE(rangiebob @ Jun 2 2008, 03:48 PM) [snapback]11677[/snapback]

Did the people who bought in Indio say why they regretted it? I'd like to get as much information as I can.

Well, the only way we will go through with this is if we can get a reasonably priced loan. And so far, this is a real challenge. So who knows is right!!




I own a lot at Outdoor Resorts in Indio, CA. I do not regret buying a lot. My only regret is the lot that I purchased. The lot is for sale---so that I can buy a larger one down the street. Just as with the housing market, sales are slow the price of the lots have gone down.


For some, it is less expensive to rent rather than own. Besides the initial investment, you have the ongoing HOA fees, property taxes, etc---all the stuff that goes with ownership of any kind of real property.

Everyone has different wants and needs. That is why there is a discrepency in the reviews. Someone in a small travel trailer may rate a park as a 10 because they like that kind of place where I may rate it a 6 or less--because it does not have the ammentities, landscaping, and service that I want.

At this time, I am at the Outdoor Resort of the Ozarks near Oak Grove, AR. It is awesome. If it were not so far from CA, I could buy one here. Prices are very reasonable and the monthly HOA fees are cheap.

 

Jurhee: may I read into your post that perhaps PURCHASING in Oak Grove, AR...and RENTING in Indio, CA might have been better in hind-sight? Willing to bet fuel prices are cheaper there right now.
Just researching and sure appreciate the discussions.
Thanks so much B)

 

QUOTE(FosterImposters @ Jun 12 2008, 01:02 PM) [snapback]11812[/snapback]

Jurhee: may I read into your post that perhaps PURCHASING in Oak Grove, AR...and RENTING in Indio, CA might have been better in hind-sight? Willing to bet fuel prices are cheaper there right now.
Just researching and sure appreciate the discussions.
Thanks so much B)



OOPS! hit the send too soon! Don't know how to delete this. And I already sent another reply.

 

QUOTE(FosterImposters @ Jun 12 2008, 01:02 PM) [snapback]11812[/snapback]

Jurhee: may I read into your post that perhaps PURCHASING in Oak Grove, AR...and RENTING in Indio, CA might have been better in hind-sight? Willing to bet fuel prices are cheaper there right now.
Just researching and sure appreciate the discussions.
Thanks so much B)



Well, I responded to this twice, and neither of them posted so I will try again.

Because of the distance from SoCal, purchasing a lot in AR would be out of the question. If we were full-time, maybe so, but DH is not interested in that. If full-time, we might have one here and the one in Indio as well and just go back and forth every 6 months or so.

There are pros and cons of owning a lot. Of course, the initial investment being a big one. But, by owning, you can add on things like entertainment centers if you want---and almost everyone does something to personalize it. Of course, that is more $$$

To rent for a season would cost no more than paying the HOA fees for the year, so that is a wash, just spreads out the cost over the year.

The only regret in purchasing the Indio property is the lot that we bought. We should have spent a little more and got a lot on the golf course with a prettier view. At this time, probably the only reason that we would sell and not but another lot would be if the house sold and we bought a house in Indio---which we would like to do.

http://www.jerry-jurhee.blogspot.com/

 

I have heard that some of the lot owner associations and be very testy. Things like assessments and the like. I belonged to a condo association in Florida once, and it was not a happy experience. The leadership came right from prewar Germany. I would be very careful to not get involved in this type of thing. We got an assessment for $1200 for repainting the exterior of the condo. Looked great to me, but the committee said the paint was good for only 5 years and then it lost it's warrantee and we had to repaint. Very dumb. Some owner associations have this type of thing and they should be avoided. People will never agree and frequently the loudest one wins. Be careful.

 

QUOTE(Lindsay Richards @ Jun 13 2008, 07:40 PM) [snapback]11835[/snapback]

I have heard that some of the lot owner associations and be very testy. Things like assessments and the like. I belonged to a condo association in Florida once, and it was not a happy experience. The leadership came right from prewar Germany. I would be very careful to not get involved in this type of thing. We got an assessment for $1200 for repainting the exterior of the condo. Looked great to me, but the committee said the paint was good for only 5 years and then it lost it's warrantee and we had to repaint. Very dumb. Some owner associations have this type of thing and they should be avoided. People will never agree and frequently the loudest one wins. Be careful.



Well, I have made lengthly posts 2 times, and about the time I finish, everything goes away.

I give up!!!

I am not concerned with my property and the management of it.

Motorcoach CC of Indio and of Las Vegas are no longer associated with Outdoor Resorts. Don't know what the deal is with them. Just heard about it today, and their web sites verify this information.

Closing before this is lost!!!

Jurhee

 

Thanks Jurhee for wrestling with the postings. Sure appreciate your sharing.
Cheers!
B)

 

I appreciate hearing about all of your experiences. To update my original post, three weeks ago I put a call into the credit union that the developer has made arrangements with for financing which at the time was around 8+ percent. They haven't returned my call, so that's not encouraging.

But I did talk to someone at the branch of our bank that is in Moab, UT. They actually knew what an RV lot was and said they would do a loan for 70% of the value, but after 2 years we would be required to improve the lot and they will refinance the loan. Improving would be something like adding an outdoor kitchen, a bathroom/laundry room, etc. The lot site will already have concrete and all utilities included.

The RV lot is being appraised by them this month sometime. Once we get that information, it will help us decide what to do. We're leaning toward not buying it because of the 70% loan thing which would make our monthly payments unaffordable. It really clicked when someone on this thread mentioned that renting for a season would cost no more than paying the HOA fees (which could change on a dime), plus a huge loan payment. Ouch.

 

QUOTE(rangiebob @ Jun 21 2008, 06:05 PM) [snapback]11984[/snapback]

IThe RV lot is being appraised by them this month sometime. Once we get that information, it will help us decide what to do. We're leaning toward not buying it because of the 70% loan thing which would make our monthly payments unaffordable. It really clicked when someone on this thread mentioned that renting for a season would cost no more than paying the HOA fees (which could change on a dime), plus a huge loan payment. Ouch.




Of course, no one can predict HOA fee increases and assessments. But, our HOA fees only increased $25 last year--($350 to $375) and there has not been any assessments (www.orindio.com). But, our resort is well established and sold out. The MotorCoach Country club across the street had a $1600 assessment last year, and I don't know how much their HOA's are.

Like we have seen by all the problems people have had with purchasing a home, it is easy to get in over your head. Fortunately, we were able to purchase our lot without having to borrow. I would not have done it otherwise.

Jurhee

 

With all the sales declines in the motorhome industry now, the idea of a lot as a permanent base is interesting but I feel they will be alot cheaper soon. They have not felt the decline in sales yet that will come from a big decline in new sales. Now every year some RV will get taken off the road to hunting camps or to rot in a field. The new ones coming in are more than the ones going out and therefore you will have an increasing base of people looking to buy. BUt now the deleveraging of america and the slow down and near stoppage of sales is going to ripple through the entire RV industry. RV resorts are late stage and will be the last to be hit. I would be very careful buying one now.