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Financing an RV park using an SBA 7a loan
Question: I am looking at purchasing an RV park in the Midwest close to a lake. The business is mom and pop owned and has not been managed well over the past few years as the owners are getting older.
I don’t think the cash flow right now would show well from a banker’s perspective.
There is a ton of upside. I am figuring that property needs about $300k in upgrades. The asking price is $1,175,000.
What might be the best financing option?
Thanks in advance,
[00:36] What is the best option for financing an RV park?
[01:00] Taking a projection-based loan
[01:13] Use SBA 7a with pro forma even if it’s a value-added
[01:34] Bridge financing based on assets
[01:45] The best option to get the highest leverage, highest loan to cost