PVI Financial

Category: Acquiring an RV Park

  • How to Buy an RV Park in a Competitive Market: 7 Moves That Win Deals

    How to Buy an RV Park in a Competitive Market: 7 Moves That Win Deals

    If you are trying to figure out how to buy an RV park in a competitive market, you are not alone, and the competition is real. The outdoor hospitality space has exploded in popularity, and the supply of quality parks for sale has not come close to keeping up with demand. Good deals get multiple offers. Sellers know their leverage. And buyers who are not prepared move slow, lose deals, and wonder what happened.

    Here is what serious buyers who know how to buy an RV park in a competitive market do differently.

    How to Buy an RV Park in a Competitive Market: 7 Moves That Win Deals

    1. You have to be underwritten before you make an offer

    This is the single biggest mistake I see new investors make. They fall in love with a deal, make an offer, and then start running the numbers. By the time they figure out what the deal is actually worth, the seller has already accepted someone else’s offer or the LOI window has closed.

    Understanding how to buy an RV park in a competitive market starts with having your numbers ready before you fall in love with a deal. That means looking at the trailing 12 months of revenue and expenses, stress-testing occupancy, modeling your financing, and building a real NOI picture, not the one the broker handed you. You need to know your max price before you enter a negotiation, not after. If you want to understand what that rebuild actually looks like, start with What is NOI? And How to Find the REAL Number in an Acquisition.

    This is the foundation of how to buy an RV park in a competitive market and the step most buyers skip entirely.

    2. Fast underwriting is a competitive advantage

    Most buyers take a week or two to run their numbers. If you can turn a full underwrite in 24 hours, you show up to every deal faster and more credible than the competition. Speed and accuracy are the two things that define how to buy an RV park in a competitive market successfully.

    This is exactly where working with a Fractional CFO who specializes in RV park acquisitions changes the game. I offer deal underwriting as a standalone service for buyers who need speed and accuracy. You send me the financials, I build the model, and you have a decision-quality analysis often within 24 hours. You know your offer price, your cap rate, your cash-on-cash return, and your risk flags before you ever pick up the phone with the broker. Deal screening starts at $500 and a full acquisition underwrite runs $750 to $1,500 depending on complexity. You can see the full breakdown at PVIFinancial.com.

    That is how you buy an RV park in a competitive market and actually win.

    3. Stop relying on the broker’s numbers

    Brokers represent sellers. The OM they hand you is built to make the deal look as good as possible. Expense ratios are often understated. Vacancy assumptions are optimistic. Revenue projections include upside that may or may not materialize.

    Your job is to recast those numbers based on reality. That means using actual industry expense ratios, realistic occupancy by season, market rate comparisons for the area, and your own financing assumptions. I covered exactly how this plays out in The $312,000 Mistake: What Happens When a Buyer Accepts the Seller’s NOI Without Rebuilding It. If the deal still works after your recast, you have something worth pursuing. If it only works using the broker’s numbers, walk away.

    This is one of the most important things to understand about how to buy an RV park in a competitive market.

    4. Know what you’re actually buying

    An RV park is a business, not just a piece of real estate. The land matters, but so does the revenue mix, the customer base, the online reputation, the utility infrastructure, the age of hookups, the permit status, and a dozen other operational factors that do not show up on a cap rate summary.

    Before you get too deep into any deal, make sure you understand where the revenue actually comes from. Is it seasonal or year-round? Is it heavily OTA-dependent? Are there long-term tenants subsidizing the numbers in ways that inflate NOI but limit upside? How old are the electrical pedestals? These are not afterthoughts, they are part of the underwriting. The Due Diligence Items Nobody Talks About is a good place to start, and so is Before You Fall in Love With That RV Park, Do This First.

    5. Get your financing pre-organized

    Competitive sellers favor buyers who can close. If you show up to a deal still figuring out how you are going to finance it, you are already behind. Know your lender before you need them. Understand whether your deal is SBA-eligible or conventional. Have a conversation with a lender who specializes in outdoor hospitality before you are under contract so you know your parameters going in.

    A pre-organized buyer moves faster and negotiates stronger. If you want to understand what lenders are actually looking at when they evaluate a deal, read What a Lender Actually Looks at Before Approving an RV Park Loan.

    Buyers who know how to buy an RV park in a competitive market show up with their financing already figured out.

    6. Build relationships with brokers before you need them

    The best deals in outdoor hospitality do not always make it to LoopNet. Brokers who work this niche have buyers lists and they call their trusted buyers first. If you are not on those lists, you are competing over whatever is left.

    That means proactively reaching out to brokers who specialize in RV parks and campgrounds, telling them exactly what you are looking for, and following up consistently. Be someone they want to call.

    Building broker relationships before you need them is one of the most underrated strategies for how to buy an RV park in a competitive market.

    7. Make clean offers

    One of the most overlooked aspects of how to buy an RV park in a competitive market is how you present yourself as a buyer. Know your price, know your contingency timeline, and do not load up the LOI with unnecessary complexity. Sellers who have multiple offers on the table are going to choose the buyer who looks the most capable of closing, not necessarily the one with the highest price.

    A clean, well-structured offer from a credible, prepared buyer beats a messy high offer more often than people think.

    One more thing most buyers never think about until it is too late: how you present yourself financially matters as much as the offer itself. A seller with multiple LOIs on the table is going to feel more confident in the buyer whose personal financial statement is clean, current, and organized, not the one who scrambles to email over a blurry PDF at the last minute.

    I offer personal financial statement review and packaging as part of my acquisition support services. I will look at what you have, identify anything that could give a seller or lender pause, and help you put together a buyer package that signals you are serious, qualified, and ready to close. It is one of those things that costs very little and can absolutely be the difference in a competitive situation.

    If you want help getting your financials buyer-ready, reach out at PVIFinancial.com.

    The bottom line

    Knowing how to buy an RV park in a competitive market is not impossible, but it is not easy either. The investors who are winning deals are the ones who are prepared before the opportunity shows up, not scrambling to get ready after it does.

    If you want help on the financial side of your next acquisition, from underwriting to deal structure to understanding what the numbers are really telling you, that is exactly what I do. Reach out at PVIFinancial.com and let’s talk about your deal.

    ~Wendi | Fractional CFO | PVIFinancial.com

  • How to Evaluate an RV Park Deal: The 6-Step System That Exposes What the Numbers Are Really Saying

    How to Evaluate an RV Park Deal: The 6-Step System That Exposes What the Numbers Are Really Saying

    Knowing how to evaluate an RV park deal is the single most important skill you can develop as an outdoor hospitality investor. The market is full of parks listed at prices that only work if you accept the seller’s numbers without question. It is not that buyers are careless. It is that most buyers have never been taught a system for pulling those numbers apart and rebuilding them from scratch. They look at the asking price, glance at the occupancy rate, and trust that the broker package reflects reality. Sometimes it does. Often it does not. And the difference between those two outcomes can cost you hundreds of thousands of dollars.

    This post gives you the system I use to evaluate every deal that crosses my desk, step by step, so you can build a clear picture of what any park is actually worth before you ever make an offer. Here is the system:

    Step 1: Verify gross revenue before you do anything else

    The first step in learning how to evaluate an RV park deal is confirming that the revenue number you are working with is real. This sounds obvious but it is where most buyers skip ahead too fast.

    Ask for three years of P&Ls and the trailing 12 months of bank statements. Then match the deposits in the bank statements to the revenue reported on the P&L month by month. If the numbers do not line up, stop and ask why before you go any further. Common discrepancies include revenue running through a personal account, seasonal timing differences, or outright overstatement of income.

    Also look at the revenue trend across three years. Is it growing, flat, or declining? A park showing peak revenue two years ago and declining numbers since is a very different investment than one with steady growth. The trend tells you as much as the number itself.

    Once you have confirmed the revenue is real and the trend makes sense, write down your verified gross revenue number. That is your starting point for everything that follows.

    Step 2: Rebuild expenses from scratch

    This is the step that separates buyers who know how to evaluate an RV park deal from those who get burned. The seller’s expense number is almost never the right expense number for you as the new owner.

    Here is why. Sellers often understate expenses in ways that are entirely legal and sometimes unintentional. They may pay themselves a below-market management salary or no salary at all. They may have deferred maintenance for years. They may own their equipment outright and not account for replacement costs. They may have relationships with vendors that will not transfer to you.

    To rebuild expenses properly, go line by line through the P&L and ask these questions for each category:

    Is this expense realistic for a third-party owned and managed park? Management fees for a professionally managed park typically run 8% to 12% of gross revenue. If the seller manages it themselves and shows zero management expense, add that back in.

    Is this expense complete? Look for missing categories like capital reserves, which should be budgeted at 3% to 5% of gross revenue, and insurance, which many sellers underreport.

    Are there any one-time expenses that should be excluded or one-time revenues that should not be counted going forward?

    When you are done rebuilding expenses, most parks will show a higher expense total than the seller reported. That is normal and expected. For more on what a clean expense rebuild looks like, read RV Park Expenses That Ambush New Owners: 5 Costs Nobody Warns You About After Closing.

    This is one of the most important parts of how to evaluate an RV park deal and the step most buyers rush through.

    Step 3: Calculate your own NOI

    Once you have verified revenue and rebuilt expenses, subtract your expenses from your gross revenue. The result is your reconstructed Net Operating Income, or NOI. This is the number the entire valuation is built on, and it is almost always different from the NOI the seller or broker presented.

    Your reconstructed NOI is the only number you should use going forward. Do not go back to the broker’s NOI at any point in the analysis. If you want to understand why that matters in dollars, read The $312,000 Mistake: What Happens When a Buyer Accepts the Seller’s NOI Without Rebuilding It.

    Understanding how to evaluate an RV park deal really comes down to this step. A wrong NOI produces a wrong valuation every single time. There is no shortcut around it, and no version of how to evaluate an RV park deal that skips this step that ends well.

    Step 4: Apply a market cap rate to determine value

    Now that you have your reconstructed NOI, you can calculate what the park is actually worth. The formula is simple:

    Value = NOI divided by Cap Rate

    The cap rate is the rate of return the market expects for this type of asset in this location. RV parks and campgrounds currently trade in the 7% to 10% cap rate range depending on location, size, amenities, and quality of the revenue stream. Smaller parks in secondary markets typically trade at higher cap rates, meaning lower prices relative to income. Larger, well-located parks with strong occupancy and diversified revenue trade at lower cap rates.

    Here is a quick example. If your reconstructed NOI is $150,000 and the market cap rate for this type of park is 8%, the indicated value is $150,000 divided by 0.08, which equals $1,875,000. If the seller is asking $2,500,000, you now know exactly how far apart you are and why.

    For a deeper explanation of cap rates, read The Number That Tells You If You’re Overpaying for an RV Park Before You Make an Offer.

    Step 5: Stress test the deal

    Knowing how to evaluate an RV park deal means going beyond the best-case scenario. After you calculate value at current NOI, you need to stress test the deal by asking what happens if things go wrong.

    Run three scenarios:

    Base case: Current verified NOI at your market cap rate. This is what you calculated in step 4.

    Downside case: Reduce revenue by 15% to 20% to simulate a soft season, a platform policy change, or a key tenant leaving. Rebuild NOI with that lower revenue and see what the park is worth and whether it still cash flows after debt service.

    Stress case: Reduce revenue by 30% and add a major unexpected capital expense, a failed septic system or a full electrical pedestal replacement. Does the deal survive? Can you still service the debt?

    If the deal only works in the base case, it is a fragile deal. A park that still makes sense in the downside case is a much safer investment. For a real example of occupancy stress testing in action, read RV Park Occupancy Rate: 3 Dangerous Reasons It’s Lying to You.

    Step 6: Model your actual cash on cash return

    The final step in how to evaluate an RV park deal is calculating what you personally will make on your invested capital. Cap rate tells you what the asset is worth in the market. Cash on cash return tells you what it puts in your pocket relative to your down payment.

    Here is how to calculate it:

    Start with your reconstructed NOI. If your expense rebuild in Step 2 was done correctly, property taxes and insurance are already included as line items, which means your NOI is already net of those costs. From your NOI, subtract your annual debt service, your mortgage payment including principal and interest. The result is your pre-tax cash flow, meaning what the park actually puts in your pocket before income taxes.

    Divide that pre-tax cash flow by your total cash invested, your down payment plus closing costs plus any immediate capital improvements needed at closing. That gives you your cash on cash return.

    A healthy RV park acquisition typically targets a cash on cash return of 8% to 12% in year one. If the deal is showing 3% or 4% cash on cash at current NOI and current financing rates, the numbers are not working and you need to either negotiate the price down or walk away.

    This final calculation is where many buyers finally see clearly that how to evaluate an RV park deal is not about whether you like the park. It is about whether the numbers support the investment at the price being asked.

    The RV Industry Association tracks industry benchmarks and market data that can help you calibrate your assumptions when you are modeling a deal.

    Putting the system together

    Here is the full 6-step system in order:

    Step 1: Verify gross revenue against bank statements and check the trend.
    Step 2: Rebuild expenses from scratch using realistic third-party ownership assumptions.
    Step 3: Calculate your own reconstructed NOI.
    Step 4: Apply a market cap rate to determine indicated value.
    Step 5: Stress test with downside and stress scenarios.
    Step 6: Calculate cash on cash return on your actual invested capital.

    Every time you look at a new deal, run it through all six steps before you form an opinion on whether it works. The parks that look great after all six steps are worth pursuing. The ones that only look great after step one or two are the ones that get buyers into trouble.

    If you want help running this system on a specific deal, I offer acquisition underwriting and can often do it with a 24-hour turnaround. You send me the financials and I hand you back a complete model with all six steps completed, your reconstructed NOI, your indicated value, your stress test scenarios, and your projected cash on cash return. Reach out at PVIFinancial.com and let’s look at your deal together.

    ~Wendi | Fractional CFO | PVIFinancial.com

  • RV Park Due Diligence Checklist: 10 Critical Items That Protect You From a Costly Mistake

    RV Park Due Diligence Checklist: 10 Critical Items That Protect You From a Costly Mistake

    Every serious buyer needs an RV park due diligence checklist before they get anywhere near a closing table. Due diligence is not a formality. It is the only window in the entire transaction where you have the legal right to demand the truth, verify every number, and walk away without losing your earnest money if the facts do not support the purchase. Most buyers do not use that window well. They get emotionally attached to the deal, rush through the checklist, and find out what they missed six months after they close.

    This post gives you the RV park due diligence checklist I use when I underwrite deals for buyers, so you know exactly what to look for and why each item matters. Here is what every serious buyer needs to review before they close:

    1. Three years of profit and loss statements

    The first item on any RV park due diligence checklist is the financials, and not just one year of them. You need three full years of P&Ls so you can see trends, not just a snapshot. Revenue going up is great. Revenue that peaked two years ago and has been declining since is a very different story, and one year of numbers will not show you that.

    When you get the P&Ls, do not accept them at face value. Look at the expense ratios. Most RV parks run expenses at 35% to 50% of gross revenue. If the seller’s numbers show expenses at 25%, something is being left out. Rebuilding the NOI from the actual financials is non-negotiable, and I covered exactly why in The $312,000 Mistake: What Happens When a Buyer Accepts the Seller’s NOI Without Rebuilding It.

    2. Trailing 12 months of bank statements

    P&Ls can be manipulated, intentionally or not. Bank statements cannot. Matching the deposits in the bank statements to the revenue on the P&L is one of the most important steps in your RV park due diligence checklist and one of the most commonly skipped.

    If the revenue on the P&L does not match what hit the bank account, you have a problem. Either revenue is being overstated on the P&L, some revenue is being run through a personal account and should not be counted as business income, or there are timing issues that need to be explained. Any of these scenarios changes your valuation.

    3. Current rent roll and occupancy data

    Ask for a current rent roll showing every occupied site, the rate being charged, the length of stay, and whether the guest is short term or long term. This one document tells you more about the real health of the business than almost anything else on your RV park due diligence checklist.

    Pay close attention to the mix of short term versus long term tenants. Long term tenants at below-market rates can inflate occupancy numbers while actually suppressing revenue potential and NOI. I covered why this matters in detail in Long-Term RV Guests Are Taking Over: 5 Ways It Breaks Your Books.

    4. Utility infrastructure inspection

    This is the item most first-time buyers underestimate on their RV park due diligence checklist, and it is often the most expensive surprise after closing. Electrical pedestals, water systems, sewer lines, and septic tanks are all costly to repair or replace and none of them show up on a P&L.

    Hire a licensed electrician to inspect the pedestals and panel capacity. Get the septic system pumped and inspected. Have the water system pressure-tested. If the park is on a well, get a water quality test and a yield test. The age and condition of the utility infrastructure will tell you a lot about what you are really buying and what capital you will need in years one through three. For more on what to look for, read What to Look for in RV Park Utility Infrastructure.

    5. Permits, zoning, and licenses

    A complete RV park due diligence checklist always includes a full review of permits and zoning. You need to confirm the park is legally permitted to operate at its current size and capacity, that all required business licenses are current, and that the zoning allows for continued RV park use. Do not accept the sellers statements as fact, verify these yourself.

    This matters more than most buyers realize. If a park was expanded without permits, or if a portion of the revenue comes from structures that are not permitted, you could be buying a liability. Ask for copies of all permits, certificates of occupancy for any structures on the property, and the current zoning classification. Then verify them yourself with the county.

    6. Environmental review

    No RV park due diligence checklist is complete without at least a Phase 1 environmental assessment. This is especially important if the property has any history of fuel storage, dry cleaning, or industrial use on or near the site. Environmental contamination can make a property essentially unsellable and the cleanup costs can be enormous.

    A Phase 1 is a relatively low-cost document review and site inspection by an environmental professional. If it flags anything, you move to a Phase 2, which involves actual soil and water testing. Do not skip this step to save money on due diligence.

    7. Online reputation and booking platform analysis

    The online reputation of the park is a financial asset and your RV park due diligence checklist should treat it that way. Pull all the reviews on Google, Campendium, The Dyrt, and any OTA platforms the park uses. Look at the trends. Are reviews getting better or worse over the past 12 months? What are guests consistently complaining about?

    Also look at OTA dependency. If 60% or more of bookings come through a single platform like Hipcamp or Campspot, you are buying a business with a single point of failure in its revenue stream. A platform policy change or commission increase can materially impact your income overnight. I wrote about this in The Real Cost of Online Travel Agent OTA Dependency.

    8. Deferred maintenance assessment

    Walk every inch of the property with a contractor or property inspector and document every deferred maintenance item you find. Roads, landscaping, signage, bathhouses, laundry facilities, fencing, and any structures on the property all need to be evaluated.

    Deferred maintenance is one of the most common ways a seller artificially inflates NOI. If they have not been spending money on upkeep, expenses look lower than they really are. The RV park due diligence checklist should include a line-item estimate for bringing everything up to standard, and that cost should factor directly into your offer price or your post-close capital reserve. For more on budgeting for these costs, read RV Park Capital Expenditures: 3 Budgeting Mistakes That Wreck New Owners in Year One.

    9. Title search and survey

    A clean title search confirms there are no liens, encumbrances, easements, or ownership disputes attached to the property. A survey confirms the boundaries match what you think you are buying. Both of these are standard in any real estate transaction but they are especially important in rural properties where boundary disputes and easement issues are more common.

    Make sure your title insurance covers any issues that come up and do not waive the survey even if the seller pushes back on the cost. You need to know exactly what land you are acquiring.

    10. Seller interview and transition plan

    The last item on your RV park due diligence checklist is one that many buyers overlook entirely: a structured conversation with the seller about operations. Who are the key vendors? Are there any verbal agreements with tenants not reflected in writing? What does the seller know about the property that is not in any document? You won’t know the very important answer to this one, unless you ask.

    Ask for a transition period where the seller is available to answer questions after closing. Even 30 to 60 days of email access to the previous owner can save you from costly surprises in your first months of operation. The SCORE Small Business Association also has free resources on business acquisition transitions that are worth reviewing before you sit down with a seller.

    How to use this checklist

    The RV park due diligence checklist above is most effective when you start working through it as soon as you are under contract, not in the last week of your due diligence period. Give yourself time to actually act on what you find. If something comes up in week one, you have time to negotiate a price reduction, request a repair credit, or walk away cleanly. If it comes up in the final days, you are under pressure and that is exactly where buyers make bad decisions.

    If you want help working through the financial side of your due diligence, including rebuilding NOI, stress-testing occupancy (what happens if it suddenly drops by 20%?), and building a model that reflects what you are actually buying, that is exactly what I do. A full acquisition underwrite starts at $750 and often can be turned around in 24 hours. Reach out at PVIFinancial.com and let’s make sure you know what you are buying before you sign.

    If you want the full picture, my book From Offer to Operation: The Complete RV Park Investor’s Guide includes a comprehensive 60-item due diligence checklist that covers every category in detail, from financials and infrastructure to legal, environmental, and operational items. It is the most complete RV park due diligence checklist I know of in one place, and it is built for buyers who want to walk into every deal fully prepared.

    ~Wendi | Fractional CFO | PVIFinancial.com

  • RV Park Due Diligence Red Flags: 5 Financial Lies RV Park Sellers Don’t Want You to Find

    RV Park Due Diligence Red Flags: 5 Financial Lies RV Park Sellers Don’t Want You to Find

    RV park due diligence is not a box to check. I have watched smart people buy bad deals. Not because they were careless or uninformed, but because they fell in love with the asset before they finished the work. The park was beautiful. The seller was charming. The location was exactly what they had been looking for. And somewhere between the letter of intent and the closing table, due diligence became a formality instead of an investigation.

    That is the most expensive mistake you can make in an RV park acquisition. Due diligence is not a box to check. It is the only period in the entire transaction where you have the right to demand the truth and walk away without consequence if you do not like what you find. Every day you spend in due diligence is a day you are still protected. The day you close, that protection is gone.

    This post is about what you are actually looking for during due diligence, specifically on the financial side, and the places where sellers, intentionally or not, present a picture that does not match reality.

    Why the Financials You Receive Are a Starting Point in RV Park Due Diligence, Not an Answer

    The first thing a seller or broker will send you is some version of a profit and loss statement, maybe two or three years of them, along with an occupancy summary and possibly a rent roll if there are long-term guests. These documents are not lies exactly, but they are almost never the complete picture either.

    Seller-provided financials are prepared to support a sale. That does not mean they are fraudulent. It means the seller has every incentive to present the numbers in the most favorable light possible, and most of them do. Expenses get omitted. One-time revenue events get normalized as if they happen every year. The owner’s own labor goes uncompensated in the financials, making profit look higher than it would be for someone who actually has to pay a manager. Capital expenditures get treated as irregular rather than recurring. Deferred maintenance does not appear anywhere because it has not been paid yet.

    Your job in due diligence is not to accept the financials you are given. Your job is to rebuild them from scratch using source documents and ask very specific questions about every line that does not make sense.

    The Documents You Need and Why Each One Matters

    Bank statements are the most important financial document in an RV park acquisition and the one sellers are most reluctant to provide. I want to see at least 24 months of bank statements for every operating account, and I want to reconcile them against the P&L the seller provided. If the deposits in the bank statements do not match the revenue on the P&L, something is wrong. It could be innocent, a timing difference, multiple accounts, a payment processor that settles on a delay. It could also be undisclosed revenue that was kept off the books for tax purposes, which creates a completely different problem for you as a buyer.

    Tax returns are the second most important document. A seller who reports $350,000 in revenue on their P&L but $220,000 on their tax return has some explaining to do. The gap is sometimes legitimate, timing differences, depreciation treatment, entity structure. But it needs to be explained and documented, not hand-waved away. If a seller tells you the tax returns do not reflect the real income because they run personal expenses through the business, that is not a reason to pay more for the park. That is a reason to pay based only on what is verifiable.

    Reservation records and occupancy reports from your property management system give you a transaction-level view of revenue that is very hard to fabricate. I want to see actual reservation data for at least two full seasons, not just a summary. I want to know how many sites were occupied on which nights, at what rates, and through which booking channels. This lets me build my own occupancy and revenue picture independently of anything the seller has told me.

    Utility bills for the last 24 months tell you two things. First, they tell you what utilities actually cost to run the property, which is frequently understated in seller financials. Second, they show you seasonal patterns that can reveal operational issues the seller has not disclosed. A spike in water bills in one particular month might indicate a leak. An electricity cost that is dramatically higher than comparable parks might indicate aging infrastructure or an inefficient system.

    Insurance policies and claims history can reveal things about the property that never make it into a financial document. A park that has filed multiple claims for storm damage, slip and fall incidents, or equipment failures is telling you something about the physical condition and operational risk of the asset. Ask for five years of claims history, not just the current policy.

    How to Rebuild the NOI Yourself

    This is the core financial work of due diligence and the step that most buyers either skip or do superficially. Rebuilding NOI means starting from zero with the revenue and expenses you can verify independently, and arriving at a number you are confident represents what the park actually generates under normal operations.

    On the revenue side, I start with reservation records and calculate an independent occupancy and ADR figure for each of the last two full operating years. I adjust for any one-time revenue events, a special event that happened once, a grant that was received, an insurance settlement that inflated one year. I also adjust for revenue that was present but may not continue, a large group booking from a company that has since relocated, a long-term guest who has already given notice.

    On the expense side, I add back everything the seller left out. A management fee at market rate, typically 8 to 12 percent of revenue, even if the owner self-manages. A capital expenditure reserve, typically 3 to 5 percent of revenue for a well-maintained park and higher for one with deferred maintenance. Any expenses that were run through the business personally and need to be removed. Any expenses that were omitted and need to be added, insurance at actual replacement cost, property taxes at the post-sale assessed value, utilities at the actual historical average.

    The number I arrive at after this rebuild is the NOI I underwrite the deal on. Not the seller’s number. Not the broker’s number. Mine.

    The Conversations That Happen When You Push on the Numbers

    How a seller responds when you start asking detailed questions about their financials tells you as much as the documents themselves. A seller who has nothing to hide will be slightly annoyed by the thoroughness of your requests and will provide what you need, maybe slowly, maybe with some grumbling, but they will provide it. A seller who gets defensive, who tells you the questions are excessive, who suggests you are wasting everyone’s time, who offers explanations that do not quite hold together, is showing you something.

    I have walked away from deals that looked attractive on paper because the seller’s behavior during due diligence made it clear the documents could not be trusted.

    What You Are Buying and What You Are Not

    One final thing worth saying clearly. When you buy an RV park, you are buying a business, not just a piece of real estate. You are buying a guest relationship, an operational infrastructure, a reputation, a staff if there is one, a set of systems, and a financial history. All of those things need to be evaluated independently of how pretty the park looks or how compelling the seller’s story is.

    The financials are the language the business uses to tell you the truth about itself. Due diligence is your job of learning to read that language fluently enough to know when something does not add up. Do that work completely, skeptically, and without rushing, and you will either find a deal you can close with confidence or a reason to walk away before it costs you everything.

    I have reviewed deals where the due diligence process was painful and slow and revealed problems significant enough to kill the transaction entirely. That is not a failure. That is the process working exactly the way it is supposed to. The discomfort of a hard due diligence is infinitely cheaper than the discomfort of closing on a deal that should not have closed.

    Either outcome is a win.

    Read this next: The $312,000 Mistake: What Happens When a Buyer Accepts the Seller’s NOI Without Rebuilding It

    I walk through the full due diligence financial checklist for RV park acquisitions in 𝗙𝗿𝗼𝗺 𝗢𝗳𝗳𝗲𝗿 𝘁𝗼 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻: 𝗧𝗵𝗲 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝗥𝗩 𝗣𝗮𝗿𝗸 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿’𝘀 𝗚𝘂𝗶𝗱𝗲 ($49). Available at wendipvifinancial.gumroad.com/l/kqmyb and on Amazon under my name, Wendi Rook.

  • RV Park Deal Analysis: 5 Red Flags That Made Me Walk Away From a $1.6M Park Yesterday

    RV Park Deal Analysis: 5 Red Flags That Made Me Walk Away From a $1.6M Park Yesterday

    RV park deal analysis is where deals die, and yesterday one died on my desk. I sat down with a package on a 23-site park asking $1.6 million and walked away. I am not going to name the park or the location. What I am going to do is walk you through exactly what I saw, because if you are actively looking at deals right now there is a reasonable chance something with the same fingerprints is sitting in your inbox.

    I walked away. Here is why.

    The financials on this RV park deal analysis told two different stories

    The package came with what I can only describe as a handmade P&L. Not a formal financial statement. Not something pulled from accounting software. A document that someone built themselves, by hand, to present the park in the best possible light.

    The numbers showed roughly $85,000 in NOI across each of the prior four years, then a jump to $199,000 this year. The seller presented that $199,000 as the number to underwrite to.

    When NOI more than doubles in a single year after four years of flat performance, that is not a trend. That is a question. And it is a question that needs a verifiable answer before you go any further.

    Any serious RV park deal analysis has to start by asking why that number moved so dramatically and whether the answer holds up under scrutiny.

    When I adjusted the numbers, the story changed immediately

    I rebuilt the NOI from what they gave me. Before I even got to management fees or real estate taxes, I had already adjusted the presented $199,000 down to $152,000. That $47,000 gap came from the numbers themselves, before accounting for the expenses that were missing entirely from the P&L.

    Then I added back a market-rate management fee. It was not in the expenses anywhere, because the current owner self-manages. On a park this size that is a real cost that belongs in any honest underwriting.

    Then I looked for real estate taxes. They were not there either. On a $1.6 million asking price asset. That is not an oversight. That is a choice someone made when they built the P&L, and it is the kind of choice that inflates NOI in exactly the way that benefits a seller and misleads a buyer.

    By the time I added both of those back, the number I was actually underwriting to looked very different from $199,000.

    That gap between the seller’s number and the real number is what the RV park deal analysis is supposed to find, and it is why the work matters before you ever make an offer.

    November and December were estimated

    For the last two months of the year, the P&L showed revenue listed as estimated based on an average of the previous ten months.

    That is not how financials work. You do not average your way to a year-end number and present it as performance data in a deal package. November and December for most RV parks are slow months. Averaging them against peak season revenue inflates the annual figure in exactly the way that benefits a seller and misleads a buyer.

    If the actual numbers were not available, the right answer is to say so. Substituting an estimate that produces a better annual total is not a financial statement. It is a guess dressed up as one.

    This is exactly the kind of red flag that a thorough RV park deal analysis is designed to surface, and exactly why you should never accept a seller’s financial package at face value without rebuilding the numbers yourself.

    The operations were, generously speaking, informal

    This park took reservations by phone only. No online booking. No property management software. No digital payment processing.

    Rent collection happened when people paid by cash or check. Sometimes the maintenance guy collected it. I say sometimes because the maintenance guy was also living in the one cabin on the property for free in exchange for his services, and his involvement in collections appeared to be, based on what was presented to me, somewhat optional.

    There was no formal rent collection system. There were no documented processes. There was no way to verify that the revenue reported on the handmade P&L bore any reliable relationship to the cash that actually changed hands at this park over the past year.

    When you cannot trace revenue to a reservation system, a payment processor, or a bank deposit pattern that holds up to scrutiny, you do not have verified financials. You have a number someone wrote down.

    The occupancy told a different story than the revenue

    Last month, six of the park’s 23 sites were unoccupied. That is a 26 percent vacancy rate on a small park that is supposedly generating dramatically higher NOI than it has in any of the prior four years. And that vacancy was not the outlier. The occupancy at this park swings wildly, which means the presented number is not a stabilized figure. It is a peak number being presented as if it were normal.

    When I see occupancy swings that dramatic on a small site count with no formal reservation or payment infrastructure, I want to know what is actually driving the revenue spike this year. I did not get a satisfying answer.

    The upside pitch did not hold up either

    The seller’s position on the $1.6 million asking price leaned heavily on an adjacent acre with ten lots already laid out for expansion. The implication was that the development potential justified the premium over what the current financials would support.

    I understand the logic. I do not agree with the math.

    Undeveloped lots are not revenue. They are a capital project with an unknown timeline, unknown permitting risk, unknown infrastructure cost, and zero guarantee of the occupancy needed to justify the investment once built. You do not pay for lots that do not yet exist as if they were producing income. You price the asset on what it actually generates today and negotiate separately for any legitimate upside that can be quantified.

    At $1.6 million, with a presented NOI that I adjusted down significantly before even accounting for missing expenses, with no formal reservation or payment system, with estimated months in the annual financials, and with a maintenance situation I cannot adequately describe with professional language, this deal was not priced on reality. It was priced on a story.

    Why I am telling you this

    Because someone is going to look at this deal when doing their RV park deal analysis. Maybe they already have. And if they have not done this kind of line-by-line analysis on the financials, they might see a park with a big NOI number, an expansion opportunity, and a motivated seller and think they found something.

    They did not find something. They found a deal that needs to be priced correctly before it becomes a good investment, and right now it is not priced correctly.

    This is the work. Not just reviewing the numbers the seller gave you, but pressure testing every line, identifying what is missing, understanding what the operations actually look like behind the headline number, and being willing to walk away when the story does not hold up.

    I walked away yesterday. I will look at the next one tomorrow.

    Read this next: The Seller’s Pro Forma Is Not Your Pro Forma

    If you want the full framework for buying, managing, and understanding the financials on an RV park acquisition, I wrote 𝗙𝗿𝗼𝗺 𝗢𝗳𝗳𝗲𝗿 𝘁𝗼 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻: 𝗧𝗵𝗲 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝗥𝗩 𝗣𝗮𝗿𝗸 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿’𝘀 𝗚𝘂𝗶𝗱𝗲 ($49) specifically for investors who want to get this right. You can get it direct here: https://wendipvifinancial.gumroad.com/l/kqmyb, or Amazon has it too, just search author Wendi Rook.

  • What a Lender Actually Looks at Before Approving an RV Park Loan

    What a Lender Actually Looks at Before Approving an RV Park Loan

    If you have ever tried to get a loan on an RV park and felt like the process was opaque, you are not imagining it. Commercial lending on outdoor hospitality assets is more specialized than a residential mortgage, and lenders are evaluating factors that are not always obvious from the outside. Understanding what they are actually looking for changes how you prepare, and how you show up to that conversation.

    The Property Has to Make Sense on Its Own

    The first thing a commercial lender evaluates is the property’s ability to service the debt from its own income. They are not primarily interested in your personal income or your net worth as a primary repayment source. They want to see that the park itself generates enough NOI to cover the debt payment with a reasonable cushion.

    That cushion is measured by the Debt Service Coverage Ratio, or DSCR. Most conventional commercial lenders want to see a DSCR of at least 1.25, meaning the property generates $1.25 in NOI for every $1.00 of annual debt service. Some SBA lenders will go to 1.15. Below that, the deal typically does not work regardless of how strong everything else looks.

    This is why NOI accuracy matters so much before you walk into a lending conversation. If your books are not clean, the lender cannot confidently calculate your DSCR, and an uncertain DSCR almost always gets discounted in your favor, not the lender’s.

    Your Financials Need to Be Verifiable

    Lenders do not take your word for income. They want to see at least two to three years of tax returns for the business, trailing twelve month profit and loss statements, bank statements that reconcile to your books, and in many cases a rent roll or occupancy history.

    If your books have been kept inconsistently, if you have been running personal expenses through the business, or if there are revenue streams that show up in your bank account but not in your P&L, those discrepancies become problems. The lender’s underwriter will find them, and when they do, it raises questions about the integrity of everything else in the file.

    Clean, consistent, well-organized financials do not just make you look professional. They reduce the friction in underwriting, shorten the timeline, and give the lender confidence that the income they are underwriting is real.

    The Property Itself Gets Scrutinized

    Beyond the financials, lenders look hard at the physical asset. Infrastructure condition matters because a lender does not want to finance a park that has a $200,000 utility replacement sitting in the near future. Environmental considerations matter, particularly for properties with on-site fuel storage, older septic systems, or adjacent land uses that create contamination risk.

    Market position matters too. A lender wants to understand who your guests are, how competitive your market is, and whether your occupancy is driven by genuine demand or by unsustainably low rates. A park with strong occupancy at market rates in an underserved area looks very different to a lender than a park with strong occupancy because it is the cheapest option in a crowded market.

    Your Personal Financial Profile Still Matters

    Commercial lending on a small park is not purely asset-based. The lender is also evaluating you as the operator. They want to see a personal financial statement, a reasonable personal credit profile, and evidence that you have the liquidity to support the business through lean periods.

    For SBA loans specifically, they will also look at your management experience. If you have never operated a hospitality business before, being able to show a management plan, an advisory team, or relevant transferable experience strengthens the file considerably.

    How to Prepare Before You Apply

    The best thing you can do before approaching a lender is build a clean, current financial package. That means up-to-date books, a trailing twelve month P&L, a current balance sheet, bank statements, and a clear narrative of the business that explains the numbers in plain language. If there are anomalies in your financials, a one-page explanation attached to your package is far better than letting the underwriter discover them without context.

    The owners who move through commercial lending the fastest are the ones who show up prepared. Not just with the numbers, but with the story the numbers tell. That is where having a Fractional CFO in your corner before you apply makes a real difference. I have relationships with RV Park lenders, and help get you pointed in the right direction.

    And if you have not grabbed a copy of my book yet, 𝗙𝗿𝗼𝗺 𝗢𝗳𝗳𝗲𝗿 𝘁𝗼 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻: 𝗧𝗵𝗲 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝗥𝗩 𝗣𝗮𝗿𝗸 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿’𝘀 𝗚𝘂𝗶𝗱𝗲 ($49), it covers the full financial and operational management framework for running your park with the discipline it deserves. You can get it direct here: wendipvifinancial.gumroad.com/l/kqmyb, or Amazon has it too, just search author Wendi Rook.

    How to Do Your Monthly Financial Review: A Step by Step Guide for RV Park Owners
  • Ignore This Number and Your RV Park Will Cost You Money Every Single Month

    Ignore This Number and Your RV Park Will Cost You Money Every Single Month

    Here is a scenario that plays out more often than it should in RV park acquisitions.

    A buyer finds a park they love. Good location, solid occupancy, clean financials, a motivated seller, and a cap rate that looks attractive for the market. They make an offer, negotiate a price, get financing, and close. And then somewhere in the first few months of ownership they sit down and actually look at the monthly numbers and realize the park is not producing the cash flow they expected. In some cases it is barely breaking even. In a few cases it is costing them money every month.

    Nothing went wrong with the park. The revenue is performing roughly as projected. The expenses are in line. The problem is that the loan payment is consuming most of what is left after expenses and there is almost nothing flowing through to the owner.

    This is a financing structure problem, not an operational problem. And it is almost always detectable before closing if the buyer runs the debt coverage math before they fall in love with the deal rather than after.

    What Debt Service Coverage Ratio Actually Means

    Debt Service Coverage Ratio, or DSCR, is the relationship between what a property earns and what it costs to service the debt on it. It is calculated by dividing the net operating income by the annual debt service, which is the total of all principal and interest payments on the loan.

    A DSCR of 1.0 means the property earns exactly enough to cover the loan payment. Nothing more. A DSCR of 1.25 means the property earns 25 percent more than the loan payment, which is the minimum most commercial lenders require before they will approve financing. A DSCR of 0.90 means the property does not earn enough to cover the loan payment and the owner is subsidizing the shortfall out of pocket every month.

    The formula is simple. Take your rebuilt NOI, the one you calculated from verified data with all missing expenses added back, not the seller’s version, and divide it by your projected annual loan payment. That ratio tells you whether the deal cash flows at the financing terms you are likely to obtain.

    Why Buyers Skip This Step

    The most common reason buyers do not run this calculation before making an offer is that they do not have their financing terms nailed down yet. They are still in the early stages of evaluating the deal and they have not talked to a lender about specific rates and terms for this property.

    That is understandable but it is not a reason to skip the math. You do not need exact financing terms to model DSCR. You need reasonable assumptions. If you know you are likely to put down 25 percent on a commercial loan at roughly current market rates with a 25-year amortization, you can model your approximate annual debt service before you make an offer. That model may shift slightly when you get actual lender terms but it will be close enough to tell you whether the deal is likely to cash flow or not.

    Running the DSCR model on the front end also helps you negotiate. If you know that the deal only achieves a 1.10 DSCR at the asking price with the financing terms you can obtain, you know exactly how much price reduction you need to get to a comfortable 1.25. That is a much stronger negotiating position than making an offer and hoping the financing works out.

    Walking Through the Math

    Let me show you how this works with a straightforward example.

    A park has a rebuilt NOI of $180,000. The asking price is $2,000,000. You plan to put 25 percent down, which means a loan of $1,500,000. At a current commercial rate of 7.5 percent on a 25-year amortization, your approximate annual debt service is around $133,000.

    DSCR equals $180,000 divided by $133,000, which is 1.35. That clears the lender’s minimum of 1.25 comfortably and produces positive cash flow of about $47,000 per year after debt service. That is a deal that works financially.

    Now change one variable. The seller will not come down on price and you pay $2,400,000. Your down payment is now $600,000 and your loan is $1,800,000. At the same rate and term your annual debt service is approximately $160,000.

    DSCR equals $180,000 divided by $160,000, which is 1.125. That is below most lender minimums and it means the park produces only $20,000 per year in cash flow after debt service. One slow month, one unexpected repair, one staffing disruption and you are subsidizing the park out of pocket.

    Same park. Same NOI. Same financing terms. The only variable that changed was the purchase price, and the difference between paying $2,000,000 and $2,400,000 is the difference between a park that works and one that is a financial stress every single month.

    The Lender’s Perspective and Why It Matters to You

    Your lender calculates DSCR too and their calculation determines whether you get the loan. Most commercial lenders require a minimum DSCR of 1.20 to 1.25 at the loan amount you are requesting. If your deal does not clear that threshold, the lender will either decline the loan, reduce the loan amount, or require a larger down payment.

    Understanding this before you make an offer means you are never surprised by a lender telling you the deal does not pencil at your financing assumptions. You have already run the math and you know exactly what DSCR looks like at different price points and loan amounts.

    It also means you can have a more intelligent conversation with your lender. Instead of presenting a deal and hoping it qualifies, you can walk in and say here is the NOI, here is the purchase price, here is the down payment, and here is the DSCR at those terms. Lenders respond very differently to borrowers who know their numbers going in.

    What to Do When the DSCR Does Not Work

    If you run the DSCR calculation and the deal does not cash flow at the asking price with realistic financing terms, you have several options.

    The first is to negotiate a lower price. Every dollar you take off the purchase price reduces your loan amount, reduces your debt service, and improves your DSCR. Use the DSCR math to calculate exactly how much price reduction you need to reach your target coverage ratio and make that the basis of your negotiation.

    The second option is a larger down payment. Putting 30 or 35 percent down instead of 25 reduces your loan amount and improves your debt coverage. This only works if you have the additional capital available and if the improved cash flow justifies tying up more equity in the deal.

    The third option is to walk away. If the seller will not negotiate to a price that makes the financing work and you do not have the capital for a larger down payment, the deal does not work for you at this time. That is not a failure. That is the discipline that protects you from owning an asset that costs you money every month.

    The Bigger Point

    DSCR is not a complicated concept and the math is not difficult. But it requires you to model the financing before you make an offer rather than after, which means you need to have a reasonably clear picture of the financing terms you are likely to obtain before you get too deep into any deal.

    Talk to your lender early. Not after you have a signed purchase agreement, but before you make an offer on any park you are seriously considering. Understand what rate and terms you are likely to get on a commercial RV park loan at your current financial profile. Then run the DSCR on every deal you evaluate before you get emotionally attached to any of them.

    The buyers who build real wealth in this asset class are the ones who run the numbers before they fall in love, not the ones who fall in love and then hope the numbers work out.

    If you want help modeling the debt coverage on a specific deal you are evaluating, reach out at pvifinancial.com. That is exactly the kind of analysis I do before my clients make an offer.

    And if you have not grabbed a copy of my book yet, 𝗙𝗿𝗼𝗺 𝗢𝗳𝗳𝗲𝗿 𝘁𝗼 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻: 𝗧𝗵𝗲 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝗥𝗩 𝗣𝗮𝗿𝗸 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿’𝘀 𝗚𝘂𝗶𝗱𝗲 ($49), it covers DSCR and every other financial metric you need to evaluate an RV park deal with confidence. You can get it direct here: wendipvifinancial.gumroad.com/l/kqmyb, or Amazon has it too, just search author Wendi Rook.

    You might want to read this next: “Before You Fall in Love With That RV Park, Do This First”

  • Before You Fall in Love With That RV Park, Do This First

    Before You Fall in Love With That RV Park, Do This First

    I looked at a deal yesterday. Someone brought it to me excited, good location, decent revenue, motivated seller, and a price that was at least a starting point worth the conversation. And sitting right there in the property description was a detail that changed the entire conversation.

    The park had its own wastewater treatment plant.

    Not a septic system. Not a municipal sewer connection. A full commercial wastewater treatment facility on the property that the owner was responsible for operating, maintaining, and keeping in compliance with state and federal environmental regulations.

    That single detail did not kill the deal. But it changed everything about how you have to look at it. The capital exposure, the regulatory risk, the operational complexity, the insurance implications, the cost to remediate if something goes wrong. A wastewater plant that fails or falls out of compliance is not a $50,000 problem. It can be a $500,000 to $1,000,000 problem and it can shut your park down while you fix it.

    The buyer who walked into that deal without knowing what to look for would have seen a park with good bones and a motivated seller. The buyer who knows what questions to ask sees a completely different asset.

    Here is how to put eyes on a deal before you fall in love with it.

    Step 1: Run the Red Flag Pass First

    Before you rebuild a single number, before you model the debt coverage, before you think about what you are going to offer, run a red flag pass on the deal. This is a quick but deliberate scan of the property, the financials, and the operational setup specifically looking for the issues that can make a deal uninvestable or require significant price adjustment.

    The red flags fall into five categories and you need to check all five before you go any deeper.

    Financial red flags are the ones hiding in the numbers. Is the NOI missing a management fee because the owner self-manages? Is the owner working full time in the business without drawing a market rate salary? Are the utility costs suspiciously low? Is maintenance running below 4 percent of gross revenue, which almost always means deferred capital is building up? Does the revenue show a declining trend over the last three years? Any one of these changes the value of the deal.

    Operational red flags tell you whether the business actually runs without the current owner. Is there a manager in place or does the owner handle everything personally? Are there documented systems and processes or does the institutional knowledge live entirely in one person’s head? What do the online reviews look like over the last two years? A park with declining review scores is showing you the early signs of a revenue problem that has not shown up in the financials yet.

    Infrastructure red flags are the ones that cost you the most money and give you the least warning. When was the septic or wastewater system last inspected? What is the age and capacity of the electrical distribution system? Are the roads maintained or are there signs of deferred grading and drainage issues? What is the condition of the bathhouses? Every major system has a finite lifespan and a replacement cost. Know where each one sits in that lifespan before you make an offer.

    And then there is the wastewater plant situation. A private wastewater treatment facility is a category of infrastructure risk that goes beyond a standard septic inspection. You are looking at regulatory compliance requirements, operator licensing, ongoing testing and reporting obligations, and capital exposure that is difficult to estimate without an environmental engineer on site. If a deal has one, it needs a specialist assessment before you can price it accurately. Do not guess on this one.

    Legal and compliance red flags include zoning that has not been confirmed in writing, permits that may not transfer to a new owner, open code violations, environmental concerns including flood plain designation and wetlands, and any pending or threatened legal claims. Zoning nonconformity in particular is one of the most dangerous and least visible risks in any RV park acquisition. A park that has been operating for years without anyone ever confirming the use is legally conforming can face serious exposure if the municipality ever decides to enforce.

    Structural red flags are about the deal itself rather than the property. Is this an asset purchase or a stock purchase and do you fully understand the liability implications? Has the revenue mix been verified and does it create financing challenges with your lender? Are there advance reservation deposits that are not properly accounted for? Are there OTA contracts with auto-renewal clauses or rate parity requirements that limit how you can run the park after closing?

    If the red flag pass surfaces more than two or three significant issues, that does not automatically mean you walk away. It means you need to understand the cost and complexity of each issue before you go any further. A red flag with a quantifiable cost is a negotiating point. A red flag with an unknown cost is a reason to slow down.

    Step 2: If It Passes, Underwrite It

    If the red flag pass comes back clean or with issues you understand and can price, now you underwrite the deal.

    Start by rebuilding the NOI from the source documents. Not from the broker package. Not from the seller’s summary. From the actual bank statements and tax returns. Three years of each.

    Pull the gross revenue from the bank deposits and confirm it matches what the financials show. Then rebuild the expense side from scratch. Add back every missing expense, the management fee if the owner self-manages, market rate compensation for any owner labor not reflected in the books, normalized maintenance to at minimum 4 percent of gross, a capital reserve contribution of 5 percent of gross, and any utility costs that have been understated or absorbed.

    What you are left with after that rebuild is the real NOI. Divide that by the cap rate appropriate for the market and the asset quality and you have your supportable value. Compare that to the asking price and you know whether you have a deal worth pursuing or a price negotiation to have.

    Then model the debt coverage at the financing terms you can realistically obtain. Does the rebuilt NOI support your loan payment with a DSCR of at least 1.20 to 1.25? What does your cash-on-cash return look like on your total capital deployment including down payment, closing costs, reserves, and any identified CapEx?

    If the numbers hold up after that analysis you have a deal worth making an offer on. If they do not, you have the information you need to either renegotiate or move on.

    The Most Expensive Mistake in RV Park Investing

    The most expensive mistake buyers make is doing these two steps in the wrong order. They underwrite the deal first, fall in love with the numbers, start imagining what the park could be, and then run the red flag pass as a formality rather than a genuine investigation. By that point they are emotionally committed and the red flags become obstacles to rationalize rather than signals to respect.

    Run the red flag pass first. Every time. On every deal. Before you model a single number.

    The wastewater plant deal I mentioned at the top? The buyer is still evaluating it. It may still be a good deal at the right price with the right environmental assessment and the right capital budget. But they are going into that assessment with clear eyes because they ran the flags first, not after they had already decided they wanted the park.

    That is the difference between a buyer who knows what they are buying and one who finds out after they close.

    If you want a second set of eyes on a deal you are evaluating, reach out at pvifinancial.com. Acquisition underwriting and red flag review is exactly what I do.

    And if you have not grabbed a copy of my book yet, 𝗙𝗿𝗼𝗺 𝗢𝗳𝗳𝗲𝗿 𝘁𝗼 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻: 𝗧𝗵𝗲 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝗥𝗩 𝗣𝗮𝗿𝗸 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿’𝘀 𝗚𝘂𝗶𝗱𝗲 ($49), it covers the full red flag framework and underwriting process in detail, plus a bonus report with 34 specific red flags to verify before you close. You can get it direct here: wendipvifinancial.gumroad.com/l/kqmyb, or Amazon has it too, just search author Wendi Rook.

    Read this next: “The $312,000 Mistake: What Happens When a Buyer Accepts the Seller’s NOI Without Rebuilding It”

  • The Due Diligence Items Nobody Talks About (That Could Cost You More Than the Septic)

    The Due Diligence Items Nobody Talks About (That Could Cost You More Than the Septic)

    Everyone who has spent time in the RV park acquisition space knows to inspect the septic. They know to pull the financials and verify the revenue. They know to walk the property and assess deferred maintenance.

    What most buyers, including experienced ones, do not think to dig into are the operational and technology commitments that come with the park. The contracts, platforms, software subscriptions, and commission arrangements that are quietly running in the background and that transfer to you at closing whether you knew about them or not.

    These are not the sexiest due diligence items. They are not the ones that show up in the inspection report or the title commitment. But they are the ones that quietly erode your NOI in year one while you are busy trying to figure out everything else.

    Here are the ones that matter most and what to ask about each one.

    OTA Contracts and What They Are Actually Costing

    Most buyers look at the revenue a park generates through online travel agencies like Hipcamp, Campspot, Booking.com, and Good Sam and see it as a positive. Online bookings mean occupancy. Occupancy means revenue. Revenue is good.

    What they do not look at carefully enough is what that revenue actually costs to generate.

    OTA commissions in the outdoor hospitality space typically run between 8 and 25 percent of the booking value depending on the platform and the agreement. On a park generating $200,000 in OTA-sourced revenue at an average commission of 15 percent, that is $30,000 per year in commission expense. If that $30,000 is not clearly broken out as a line item in the seller’s financials, which it often is not because it gets netted out of revenue rather than shown as an expense, the NOI looks better than it actually is.

    Beyond the commission cost, OTA contracts can contain terms that significantly affect how you run the park after closing. Rate parity clauses require you to offer the same rate on the OTA platform as on your own website, which prevents you from incentivizing direct bookings. Auto-renewal clauses lock you into a platform for another year if you do not give notice within a specific window. Termination provisions can require 30 to 90 days notice and sometimes carry penalties.

    What to ask: Request copies of all active OTA contracts before you remove contingencies. What are the commission rates on each platform? Are there rate parity requirements? What is the termination notice period and are there any penalties? What percentage of total bookings came through each OTA versus direct channels in the last 12 months?

    What to do: Model the true net revenue from OTA bookings after commissions. Assess whether the park has a direct booking strategy and what it would cost in time and marketing spend to shift the mix toward direct over time. Factor the transition period into your first year revenue projections.

    The Property Management Software Situation

    Every operating RV park runs on some kind of reservation and property management system. It might be a sophisticated platform like Campspot, RMS Cloud, or ResNexus. It might be a basic system that was set up ten years ago and has never been updated. It might be a combination of a spreadsheet and a phone.

    The software the park runs on matters for three reasons.

    First, it holds all the historical data. Reservation history, guest contact information, occupancy records, rate history. That data is one of your most valuable operational assets going into year one and you need to confirm it transfers to you at closing. Some platforms make data export straightforward. Others make it difficult or expensive. And if the reservation system login credentials are tied to the seller’s personal account rather than a business account, you could find yourself locked out of your own booking history after closing.

    Second, the software has costs that may not be visible in the financials. Subscription fees, per-booking fees, processing fees. These are often small individually but they add up and they belong in your expense model.

    Third, the software determines what you can and cannot do operationally. A park on an outdated system with no online booking capability is a value-add opportunity but also an immediate operational project in year one. Budget for it, plan for the transition period, and factor the potential occupancy disruption into your projections.

    What to ask: What reservation and property management software does the park currently use? Is the account tied to the seller personally or to the business? Can all historical reservation and guest data be exported and transferred at closing? What are the monthly costs? Is the contract month-to-month or does it have a remaining term?

    What to do: Log into the system with the seller during due diligence and confirm you can see the data. Understand the transfer process before closing day, not after. If the system is outdated or inadequate, get quotes on replacement and include the cost and transition timeline in your planning.

    Wi-Fi Infrastructure and the Contracts Behind It

    Wi-Fi has gone from a nice-to-have amenity to a basic guest expectation in almost every market. Guests arrive with multiple devices and they expect to stream, work, and stay connected. A park with inadequate Wi-Fi coverage or speed gets penalized in reviews in ways that directly affect future bookings.

    What most buyers do not look at carefully enough is what the park’s Wi-Fi infrastructure actually consists of and what contracts support it. Is it a consumer-grade router plugged into a cable modem or a purpose-built outdoor Wi-Fi system with access points distributed across the property? Is there a managed service provider handling the network or is it the seller’s personal internet account?

    Managed Wi-Fi service contracts for RV parks, companies like Tengo Internet or RV Park Wi-Fi, are common and they often have multi-year terms with early termination fees. If the park is locked into a contract for another 18 months at $800 per month and the service is inadequate, you are paying for something that is generating negative reviews until the contract expires.

    What to ask: Who provides the Wi-Fi service and what are the contract terms? Is there a managed service provider or is the internet service tied to the seller’s personal account? What is the monthly cost? Are there any minimum term commitments or early termination fees? What does the coverage look like across the full property including the back sites?

    What to do: Walk the property with your phone and test the Wi-Fi signal in multiple locations including the sites furthest from the office. If coverage is spotty or the system is inadequate, get quotes on upgrade or replacement before closing and include the cost in your acquisition budget.

    Vendor Contracts With Remaining Terms

    Beyond the technology-specific contracts, parks often have vendor relationships with remaining contractual terms that are not immediately visible in a review of the financials. Laundry equipment leases. Propane supply agreements. Pest control contracts. Vending machine arrangements. Pool chemical service agreements. Landscaping contracts.

    Each of these individually is small. Collectively they can represent a meaningful set of commitments that transfer to you at closing. A laundry equipment lease with 30 months remaining at $400 per month is a $12,000 obligation you are inheriting. A propane supply agreement with a price lock that expires next year may mean you are about to face a significant cost increase.

    What to ask: What vendor contracts does the park currently have and what are the remaining terms on each? Are any of these contracts personally guaranteed by the seller? Which of these transfer automatically to a new owner and which require the vendor to consent to the assignment?

    What to do: Request copies of all vendor contracts as part of your due diligence document request. Review the remaining terms and calculate the total committed obligation across all of them. Confirm which require consent to assign and start that process early enough that it does not delay your closing.

    The Guest Database and What It Is Worth

    This one almost nobody thinks about until after they close and realize the previous owner took the guest list with them.

    A park with three or four years of operation has a guest database that represents real value. Past guests are your highest probability future guests. They have stayed at the park, they liked it enough to complete their stay, and if you can reach them directly you can market to them for essentially zero cost.

    The guest database lives in the reservation system. If the reservation system account transfers cleanly to you at closing, the database transfers with it. If the account is tied to the seller personally, they may have the ability to export the guest data and you may end up with nothing.

    This is not hypothetical. It happens in acquisitions when nobody thinks to address it specifically in the purchase agreement.

    What to ask: Where does the guest database live and who controls it? Can you confirm at closing that the full guest history and contact database will transfer to the new owner? Is there any data that is stored outside the reservation system?

    What to do: Address the guest data transfer specifically in the purchase agreement. Require that the full guest database be exported and delivered to the buyer at closing as a condition of the sale. This costs the seller nothing and protects you from losing an asset that has real marketing value.

    Why This All Matters

    None of the items above are individually deal-breakers. But collectively they represent a category of due diligence that most buyers, including experienced ones, give minimal attention to because they are focused on the bigger ticket items like infrastructure, financials, and legal.

    The pattern is this: buyers close on a park, spend the first few weeks getting oriented, and then start discovering commitments they did not know they had, platforms they cannot access, contracts they cannot exit, and a guest database that the seller took with them.

    Every one of those discoveries is avoidable with the right questions asked at the right time in the due diligence process.

    If you want help building a complete due diligence framework for a specific deal you are evaluating, reach out at pvifinancial.com. And if you have not grabbed a copy of my book yet, 𝗙𝗿𝗼𝗺 𝗢𝗳𝗳𝗲𝗿 𝘁𝗼 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻: 𝗧𝗵𝗲 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝗥𝗩 𝗣𝗮𝗿𝗸 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿’𝘀 𝗚𝘂𝗶𝗱𝗲 ($49), it covers the full due diligence framework in great detail.

    You can get it direct here: wendipvifinancial.gumroad.com/l/kqmyb, or Amazon has it too, just search author Wendi Rook.

    Click here to read “The $312,000 Mistake: What Happens When a Buyer Accepts the Seller’s NOI Without Rebuilding It” (psst, it includes a FREE calculator)

  • The $312,000 Mistake: What Happens When a Buyer Accepts the Seller’s NOI Without Rebuilding It

    The $312,000 Mistake: What Happens When a Buyer Accepts the Seller’s NOI Without Rebuilding It

    This is not a story about one specific deal. It is a pattern that shows up in RV park acquisitions over and over again, different parks, different markets, different sellers, same mistake. A buyer does little investigation, accepts the seller’s NOI nearly at face value, makes an offer based on that number, and closes on a park that is worth significantly less than what they paid.

    Here is what that pattern typically looks like, and more importantly, what to do about it before you make your next offer.

    The Deal That Looks Clean

    Picture a mixed use park, call it Cedar Creek RV and Mobile Home Resort. Sixty-two sites, sitting on twelve acres about twenty minutes outside a mid-size recreational market. Decent reviews, a mix of long-term monthly tenants and transient nightly guests, a motivated seller, and a broker package that looks clean.

    The financials presented look like this:

    Gross Revenue: $524,000 Operating Expenses: $274,000 Net Operating Income: $250,000 Asking Price: $1,875,000 Implied Cap Rate: 7.5%

    On the surface that looks reasonable. A 7.5 cap in a decent market, expenses running at about 52 percent of gross. Nothing obviously wrong.

    But when you rebuild NOI for a real acquisition you do not accept the surface. You go line by line.

    Line by Line: Where the Numbers Change

    Management Fee The seller has owned and operated this park for eleven years. He lives on the property, handles guest check-ins personally, manages all vendor relationships, and coordinates maintenance. There is no management fee in the expenses because he never paid one. He just worked.

    Market rate management for a park this size runs 9 percent of gross revenue. On $524,000 that is $47,160 in annual expenses that are nowhere in the seller’s numbers. This is the single most common omission in owner-operated park financials and it is almost always significant.

    Owner Labor Beyond Management Beyond the management function the seller is also performing the role of maintenance coordinator and handling all bookkeeping internally. To replace those two functions with hired help would cost approximately $28,000 per year combined. Also not in the expenses.

    Utility Costs Pulling the actual utility bills and comparing them to what is in the financials reveals that the seller has been absorbing electrical costs for the long-term tenant sites without passing any of it through to tenants. The actual utility cost when you include the tenant site electrical is $18,400 higher than what is presented in the financials.

    Maintenance The park has not had a significant capital expenditure in four years. The maintenance expense in the financials is running unusually low at $14,200 per year for a sixty-two site property with aging road infrastructure and bathhouses that were last renovated years ago. A normalized maintenance budget for a park this size and age runs closer to $28,000 per year. That is another $13,800 in understated expenses that will land on the new owner whether they budgeted for it or not.

    Insurance The seller’s current policy is significantly underinsured for a hospitality property of this type. An independent quote at appropriate coverage levels comes in $9,600 higher than what is reflected in the financials.

    The Rebuilt Numbers

    Here is what the NOI actually looks like once every missing and understated expense is added back:

    Seller PresentedRebuilt
    Gross Revenue$524,000$524,000
    Management Fee$0$47,160
    Owner Labor$0$28,000
    Utility ExpenseUnderstated by $18,400Corrected
    Maintenance$14,200$28,000
    InsuranceUnderstated by $9,600Corrected
    Total Additional Expenses$0$116,960
    Net Operating Income$250,000$133,040

    Want to run these numbers on your own deal? Use the free NOI Calculator here.

    The seller presented an NOI of $250,000. The real NOI is $133,040. Not because the seller is being dishonest. Because an owner-operator presenting their own financials shows the business the way they experience it, not the way a buyer needs to evaluate it. They absorbed their own labor, let deferred costs accumulate, and presented the numbers the way they actually look from the inside.

    That is not fraud. It is just the natural gap between owner financials and acquisition financials. And closing that gap is the buyer’s responsibility, not the seller’s.

    What That Means for the Price

    At the seller’s presented NOI of $250,000 and a 7.5 cap, the asking price of $1,875,000 is internally consistent.

    At the real NOI of $133,040 and the same 7.5 cap, the supportable value drops to $1,773,867.

    But there is more to it than just recalculating at the same cap rate. A park with this many normalization adjustments required carries more execution risk than a clean stabilized asset. Sophisticated buyers in this market apply a 7.5 cap to well-run stabilized parks. A park with missing management infrastructure, deferred maintenance, and understated utilities warrants a higher cap rate to reflect that risk. At an 8.5 cap the supportable value based on the real NOI is $1,565,176.

    The asking price is $1,875,000. The supportable value based on verified numbers and an appropriate cap rate is approximately $1,563,000. That is a $312,000 gap between what the seller is asking and what the park is actually worth.

    A buyer who catches this before making an offer has a very different negotiating conversation than a buyer who catches it after closing.

    This Is Not a Rare Deal. This Is a Typical Deal.

    The pattern in Cedar Creek shows up in the overwhelming majority of RV park acquisitions that get reviewed carefully. Missing management fees, understated owner labor, deferred maintenance masquerading as a lean expense structure, utility costs that do not reflect actual consumption.

    The specific numbers vary. The pattern does not.

    The buyers who avoid overpaying are the ones who rebuild the NOI from source documents before they make an offer. They pull three years of bank statements and tax returns. They add back what is missing. They normalize what is understated. They apply a cap rate that reflects the real risk profile of the asset. And they make their offer based on that number, not the seller’s version.

    The buyers who overpay are the ones who trusted the broker package.

    Do the Work Before You Make the Offer

    If you are evaluating a park right now, go through the Cedar Creek checklist on your own deal before you make an offer. Is there a management fee in the expenses? Is there market-rate owner compensation reflected? Have you pulled the actual utility bills and compared them to the financials? Have you normalized the maintenance budget based on the age and condition of the property? Have you gotten an independent insurance quote?

    Every one of those questions has a dollar value attached to it. And every dollar of missing expense translates directly into overstated NOI and an inflated asking price.

    To make this easier, there is a free NOI calculator at PVIFinancial.com that walks through this same rebuilding process line by line. Plug in your numbers and see what the real NOI looks like on the deal you are evaluating before you commit to anything.

    And if you want professional eyes on a specific deal before you make an offer, acquisition underwriting is available at PVIFinancial.com. No retainer required.

    If you have not grabbed a copy of my book yet, 𝗙𝗿𝗼𝗺 𝗢𝗳𝗳𝗲𝗿 𝘁𝗼 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻: 𝗧𝗵𝗲 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝗥𝗩 𝗣𝗮𝗿𝗸 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿’𝘀 𝗚𝘂𝗶𝗱𝗲 ($49), it covers the full underwriting framework including everything you need to know about rebuilding NOI, evaluating cap rates, and structuring your offer.

    You can get it direct here: https://wendipvifinancial.gumroad.com/l/kqmyb, or Amazon has it too, just search author Wendi Rook.

    Click here to use my FREE RV Park NOI Calculator to rebuild the NOI before you make an offer.

    You might want to read this next: “The Seller’s Pro Forma Is Not Your Pro Forma”

  • Not All RV Parks Are Created Equal: What Every Investor Needs to Know Before They Buy

    Not All RV Parks Are Created Equal: What Every Investor Needs to Know Before They Buy

    One of the most common mistakes I see buyers make before they ever look at a single financial statement is assuming that an RV park is an RV park. They find a listing, they like the location, they request the financials, and they start running numbers without ever stopping to ask a more fundamental question.

    What kind of park is this, and does that match what I am trying to buy?

    It sounds basic. It is not. The type of park you are buying determines your revenue model, your financing options, your operational complexity, your guest profile, your risk exposure, and ultimately your returns. Getting clear on park type before you underwrite a deal is not a detail. It is the foundation.

    There are five distinct types of RV parks, and each one operates as a fundamentally different business.

    1. Roadside RV Parks

    These are the highway corridor stops, the parks that exist because a traveler needs to sleep somewhere between Point A and Point B. Guests stay one to two nights and move on. There is no loyalty, no repeat booking relationship, and no reason for the guest to choose your park specifically over the one three exits down except convenience and availability.

    From an investor standpoint, roadside parks are the most traffic-dependent and the most volatile. A new highway bypass, a competing park with better online reviews, or a slow travel season can all hit occupancy hard and fast. They can work as investments but they require the right price, the right location, and a clear-eyed view of the demand drivers before you commit.

    2. RV Park Campgrounds

    Typically located one to two hours outside a metro area, these parks benefit from tourism demand, nearby outdoor recreation, lakes, trails, state parks, and the kind of destination that draws weekend and week-long travelers. Guests are not just passing through. They chose this area.

    These parks tend to have stronger repeat guest potential than roadside parks and benefit from the growing demand for outdoor recreation experiences. They are also more sensitive to seasonal patterns, so monthly cash flow modeling matters significantly when you are underwriting one of these.

    3. RV Park Communities

    Long-term stay communities where residents live on-site full time or for extended periods. The revenue profile looks more like a mobile home park than a hospitality business, predictable monthly income from a stable tenant base with low turnover.

    The tradeoff is rate. Long-term tenants pay significantly less per night than transient guests, and as I have written about before, a heavy concentration of long-term tenant revenue can create real financing challenges with SBA and conventional lenders who classify that income as residential rather than commercial. If you are buying a community-style park, understand the financing implications before you go under contract.

    4. RV Park Resorts

    The premium tier. These parks compete on amenities and experience, pools, water slides, clubhouses, entertainment, the full resort package. Guests come specifically because of what the park offers, not just where it is located. Premium nightly rates are possible and repeat guest loyalty can be very strong.

    The operational overhead is higher, the amenity capital requirements are real, and the management complexity is greater than any other park type. These are not beginner acquisitions. But for an experienced operator with the capital and the team to run them well, the return profile can be exceptional.

    5. Hybrid RV Parks

    The newest and most complex category. Hybrid parks combine multiple revenue models, sometimes including fractional ownership or timeshare-style interests alongside traditional site rentals. The revenue diversification can be attractive but the legal and operational complexity is genuinely significant.

    If you are evaluating a hybrid park, make sure you have both a real estate attorney and a CFO in your corner before you go far down the road. The structures vary widely and the due diligence required goes well beyond what a standard park acquisition demands.

    Why This Matters for Your Underwriting

    Every number in a park’s financials means something different depending on the park type. A 70 percent occupancy rate at a roadside park tells a very different story than a 70 percent occupancy rate at a destination campground. A strong T12 at a resort park built on amenity-driven demand is a different asset than a strong T12 at a community park built on long-term tenant stability.

    When I underwrite a park deal for a client, the first thing I want to understand is not the revenue number. It is the revenue model. What type of park is this, who is the guest, why do they come, and what happens to occupancy if one of those drivers changes?

    The type determines the risk. The risk determines the price.

    The Bottom Line

    Before you request financials on your next deal, ask yourself what type of park you are actually looking at. Each model has different risks, different rewards, and a different operational reality once you own it. Knowing the difference before you make an offer is not optional. It is the starting point for every other analysis you are going to do.

    If you want help figuring out what type of park you are evaluating and whether the numbers support the price being asked, that is exactly what I do at pvifinancial.com.

    And if you have not grabbed a copy of my book yet, From Offer to Operation: The Complete RV Park Investor’s Guide ($49), it covers the full acquisition and operations framework including a bonus report with 34 red flags to verify before you close. I am very confident you will learn something you had not thought of.

    You can get it direct here: https://wendipvifinancial.gumroad.com/l/kqmyb

    Or if you prefer Amazon has it too, just search author Wendi Rook.

    ~Wendi | Fractional CFO | PVIFinancial.com

    Click here to read “The Sellers Proforma is Not Your Proforma” next

  • I Have Never Owned an RV Park. Here Is Why I Am the Person You Want Looking at Your Deal.

    I Have Never Owned an RV Park. Here Is Why I Am the Person You Want Looking at Your Deal.


    I get this question more than you might think. Sometimes it is asked directly. Sometimes I can just feel it hanging in the air when I am talking to a buyer or an owner for the first time.

    You have never owned an RV park. So why should I listen to you? Just the other day someone commented on one of my Facebook posts “why should we listen to you? What makes you special over all the other mentors out there teaching about RV parks?”

    It is a fair question and I want to answer it honestly, because I think the honest answer is actually more useful to you than the polished version.

    I am a real estate investor who has built and sold a seven figure real estate portfolio over the last 30 years. I am a private money lender who has put over $4 million into first trust deeds secured by real estate over the last 8 years. I bootstrapped a seven figure business from $500 and built it into something worth selling. And I am a Fractional CFO and bookkeeper who lives in business financials every single day. That combination of skills is exactly what you need when you are evaluating an RV park deal, and it is not a combination you find very often in one person

    Here is what I mean by that.

    The Investor Lens

    When I look at an RV park deal, I am not looking at it as a consultant who has read about investing. I am looking at it as someone who has personally been through the acquisition process, understands what it feels like to have real money on the line, and knows the difference between a deal that looks good on paper and a deal that actually holds up when you start pulling on the threads.

    I have walked away from deals that did not pencil. I have pushed through deals that had problems because the problems were quantifiable and the price reflected them. I have been the person sitting at the closing table wondering if I did enough diligence. That experience does not come from a textbook and it changes how you look at everything.

    The Lender Lens

    Eight years of lending on real estate has taught me something that most people on the buyer side never fully appreciate. The lender sees everything. Every deal that came across my desk as a private money lender came with a story the borrower was telling me about why it was a good investment. My job was to look past the story and evaluate the collateral, the numbers, and the risk.

    When you have spent years on the lender side of the table, you develop a very specific kind of skepticism about financial presentations. You learn to ask where a number came from before you accept it. You learn that the most important information in any deal package is often what is missing, not what is there. That skepticism is exactly what a buyer needs when they are evaluating a seller’s financials.

    I did not have to take somebody’s word for what a property was worth. I had to verify it independently, every single time, because my own money was on the line if I got it wrong. That discipline is built into how I approach every underwriting engagement I take on for a client.

    The CFO and Bookkeeper Lens

    This is the one people underestimate the most.

    I spend my professional life inside the financials of small businesses. I know what clean books look like and I know what messy books look like. I know the difference between a P&L that was prepared to accurately reflect the business and one that was prepared to tell a specific story to a specific audience. I know where expenses get buried, how revenue gets overstated, and which line items are the first places a seller cleans up before putting a park on the market.

    I also know what it takes to build the financial infrastructure to run a business properly after you close. Not just the acquisition, but the day-to-day systems, the reporting, the cash flow management, the bank account structure, the chart of accounts that actually gives you visibility into how the business is performing. Most buyers close on a park and then figure this part out as they go. The ones who have it in place from day one make better decisions faster and avoid the expensive lessons that come from flying blind in the first year of ownership.

    So Why Not Just Hire Someone Who Owns Parks?

    You can. There are operators out there with direct park ownership experience who offer consulting services. That experience is genuinely valuable, particularly on the operational side.

    But ownership experience alone does not make someone qualified to pressure test your financial assumptions, rebuild a seller’s NOI from the source documents, identify what is missing from a set of financials, or set up the bookkeeping infrastructure that turns your new acquisition into a manageable business. That work requires a specific financial skill set, and it is the skill set I have been building for over a decade across real estate, lending, and CFO work.

    I bring three lenses to every RV park deal I look at. The investor who understands what is at stake. The lender who has been trained to verify everything. And the CFO who knows what the numbers are supposed to look like and what to do when they do not.

    That combination is what I offer. And I think it is exactly what most buyers in this space are missing.

    If you are evaluating a park right now and want that combination working for you before you commit, reach out at pvifinancial.com.

    And if you have not already grabbed a copy of my book, From Offer to Operation: The Complete RV Park Investor’s Guide ($49), it is everything you want to know about how to evaluate, acquire, and run an RV park, plus a bonus report with 34 red flags to verify before you close so you are not buying someone else’s problem.

    You can get it direct here: https://wendipvifinancial.gumroad.com/l/kqmyb

    Or if you prefer Amazon has it too, just search author Wendi Rook.

    ~Wendi | Fractional CFO | PVIFinancial.com

    Read this next “The Two Line Items That Will Wreck Your First RV Park Deal”

  • The Two Line Items That Will Wreck Your First RV Park Deal (And Why They Never Show Up in the Broker Package)

    The Two Line Items That Will Wreck Your First RV Park Deal (And Why They Never Show Up in the Broker Package)

    I have reviewed a lot of RV park deals. Rebuilt the NOI from scratch, stress tested the assumptions, gone line by line through the financials looking for what the seller was not saying out loud.

    And over and over again, the same two things show up after closing that nobody budgeted for. Not because the buyer was careless. Not because they skipped the financials. But because these two items do not live in the financials at all.

    They live in the ground. And in the walls. And by the time you find out they are a problem, you already own the park.

    I am talking about septic and electrical.

    If you are evaluating an RV park right now, or planning to, read this before you make an offer.

    The Septic Problem

    A private septic system does not show up on a profit and loss statement. It does not appear in the T12. It will not come up in a conversation with the seller unless you specifically ask for inspection records, and even then, many sellers have not had the system professionally inspected in years.

    Here is why this matters. A commercial septic system serving an RV park is not the same animal as the system behind a single family home. It is handling waste from dozens or hundreds of connections simultaneously, often for extended periods during peak season. These systems have a capacity rating and a lifespan, and when they are at or near the end of both, the indicators are not always visible. The grass looks fine. The system seems to be draining. And then on your busiest weekend in July, it fails.

    Remediation costs for a failed commercial septic system start around $50,000 on the low end. Parks with larger systems, difficult soil conditions, or local regulatory requirements can be looking at $200,000 to $500,000 or more. I have seen it. The number is real.

    What makes this particularly dangerous in an acquisition is that the seller may genuinely not know the system is approaching failure. They have been running the park successfully for years. The system has always worked. They have no reason to disclose a problem they are not aware of.

    Your job as a buyer is not to assume good faith covers the risk. Your job is to require a professional inspection with a written capacity assessment before you remove contingencies. Not after. Before.

    What you want from that inspection is not just confirmation that the system is currently functioning. You want to know the rated capacity relative to the number of sites, the estimated remaining useful life, and whether the system has ever been pumped, repaired, or expanded. If the seller cannot provide documentation and will not allow an independent inspection, that is your answer.

    The Electrical Problem

    The electrical distribution system at an RV park is infrastructure most buyers never think to interrogate because it is invisible. You cannot see it during a walkthrough the way you can see a deteriorating road or a bathhouse that needs renovation. The pedestals look fine. The lights are on. Guests are plugging in without complaint.

    But here is the reality. The average RV on the road today draws significantly more power than the average RV from 15 or 20 years ago. Modern rigs with residential refrigerators, washer-dryer combos, multiple air conditioning units, and entertainment systems routinely require 50-amp service. Many parks, especially those built or last upgraded in the 1990s or early 2000s, were wired for a world of 30-amp service that no longer reflects the market.

    An aging electrical distribution system creates three problems. First, it limits the guest segment you can serve. Larger, newer rigs will either avoid your park or generate complaints when they cannot get the power they need. Second, it creates reliability issues. Older wiring and pedestals fail more frequently, and a power outage during peak occupancy is a guest experience and revenue problem on top of a maintenance problem. Third, upgrading the system is one of the most expensive capital projects you will face as a park owner. Running new service, replacing pedestals, upgrading panel capacity, and bringing a dated system to current standards can run well into six figures on a mid-sized park.

    Like the septic issue, none of this appears in the financials. The seller is not hiding it. It just is not a line item. It is a future capital requirement that the current owner has been deferring, intentionally or not, and that you will inherit at closing.

    The fix here is straightforward. Hire an independent licensed electrician to assess the distribution system before you close. Not the electrician the seller recommends. An independent one. Ask specifically for the amperage capacity at each site type, the age and condition of the distribution panels, and a written estimate on what it would cost to bring the system to current standards. Get that number before you finalize your offer, because it belongs in your total acquisition cost calculation, not as a surprise in year one.

    Why These Two Items Are Different From Everything Else

    When you find a problem in the financials, you can quantify it and negotiate it into the price. A seller who left out a management fee, a revenue figure that does not reconcile with the bank statements, an expense that looks inflated, these are all things you can put a number on and address at the negotiating table.

    Infrastructure surprises do not work that way. You cannot negotiate a septic replacement after you close. You cannot renegotiate the purchase price because the electrical system you did not inspect turned out to be inadequate. The risk transfers at closing, fully and completely, to you.

    This is why the physical inspection of the utility infrastructure is not a nice-to-have in your due diligence process. It is a requirement. The cost of the inspection is a rounding error compared to the cost of discovering the problem after you own the park.

    What This Means for Your Offer

    If you complete independent inspections of both systems and they come back clean, great. You have eliminated two of the most significant sources of post-close capital surprise and you can price the deal with confidence.

    If the inspections surface problems, you have options. You can negotiate a price reduction that reflects the remediation cost. You can require the seller to address the issue before closing. You can use the findings to renegotiate other terms. Or you can walk away from a deal that does not work at a price that accounts for what you found.

    None of those options are available to you if you skip the inspection.

    A Practical Checklist Before You Remove Contingencies

    Before you finalize any RV park acquisition, make sure you have checked off both of these:

    Septic: Written professional inspection with capacity assessment relative to number of sites, documentation of pumping and maintenance history, and an independent estimate on remaining useful life and any recommended repairs.

    Electrical: Independent licensed electrician assessment of the full distribution system, site-level amperage capacity documentation, age and condition of all panels and pedestals, and a written estimate on what upgrade to current standards would cost.

    If either of those is missing when you are heading into the final stretch of due diligence, get them before you remove your contingencies. Not after.

    The Bottom Line

    The broker package shows you what the park looks like on paper. The physical infrastructure shows you what the park will cost you to operate. Those are two different conversations, and the second one only happens if you go looking for it.

    I help buyers pressure test RV park deals before they commit, including identifying the capital requirements that do not show up in the financials.

    If you are evaluating a park right now and want a second set of eyes on the numbers, reach out at pvifinancial.com, and before you make your next offer, request a copy of my book, From Offer to Operation: The Complete RV Park Investor’s Guide ($49). It covers everything from underwriting the deal to running the asset, and includes a bonus report with 34 red flags to verify before you close so you are not buying someone else’s problem.

    You can get it direct here: https://wendipvifinancial.gumroad.com/l/kqmyb

    Or if you prefer Amazon has it too, just search author Wendi Rook.

    ~Wendi | Fractional CFO | PVIFinancial.com

    Click here to read “The Seller’s Proforma is Not Your Proforma”

    Click here to Download my free guide, “The 5 Numbers Every RV Park Buyer Must Know Before Making an Offer”

  • The Seller’s Pro Forma Is Not Your Pro Forma

    The Seller’s Pro Forma Is Not Your Pro Forma

    Every RV park listing comes with a pro forma. A clean one page summary showing gross revenue, expenses, NOI, and a cap rate that makes the deal look compelling. It is professionally formatted. The numbers add up. And it was built entirely to sell you the park.

    That is not your pro forma. That is the seller’s story.

    Here is what I mean by that.

    A pro forma is only as honest as the assumptions behind it. And the seller’s assumptions are always the most optimistic version of the truth. Not necessarily because anyone is lying. But because every single line item in that document was built from the seller’s cost structure, the seller’s relationships, the seller’s management style, and the seller’s years of accumulated advantages that will not transfer to you at closing.

    Let me show you what I mean.

    The seller self manages the park. No management fee in the expenses. Looks lean and efficient. But you are not moving to that park to work 60 hours a week. You need a manager. Add $40,000 to $60,000 in annual expenses that are nowhere on that pro forma.

    The seller has had the same insurance broker for 20 years. Grandfathered rate. Not available to new buyers. Your quote comes in $8,000 higher. Not on the pro forma.

    The seller’s maintenance guy has been coming out for half price for years because they are old friends. He retires when the seller does. Your maintenance costs double. Not on the pro forma.

    The seller has not put meaningful money back into the property in five years. No CapEx line item because nothing major has broken yet. But the electrical pedestals are aging, the bathhouse fixtures are worn, and the roads need grading. All of that is coming out of your pocket in year one. Not on the pro forma.

    By the time you rebuild the NOI honestly, adding real management costs, market rate expenses, normalized CapEx, and actual vacancy, that 8% cap rate on the flyer is often a 5% cap rate in reality. And at the asking price that is a completely different deal.

    So how do you build your own pro forma?

    This is the part most buyers skip because it feels complicated. It is not. It is methodical. Here is exactly how I do it.

    Step 1 — Start with verified gross revenue.

    Do not use the number on the flyer. Ask for three years of bank statements and tax returns and build the revenue from actual deposits, not reported income. Look at each revenue stream separately. Site rentals, laundry, store sales, event income. Know which ones are recurring and which ones are one time. If the seller cannot provide bank statements that match the reported revenue that is a red flag before you even get to expenses.

    Step 2 — Apply a real vacancy rate.

    Most pro formas use 5% vacancy or less. The reality for most parks is closer to 8 to 12% depending on seasonality and market. This is one variable that sellers almost universally get wrong in a pro forma.

    A seller’s pro forma is typically built on either current peak occupancy, historical best year occupancy, or a stabilized projection that assumes everything goes right. What it rarely accounts for is a realistic vacancy factor based on the actual seasonal patterns of that specific park in that specific market.

    Before you accept any revenue projection at face value, pull the monthly occupancy numbers for the last three years and build your own occupancy assumption from the bottom up. If the park runs at 90 percent in July and 20 percent in January, your annual average is not 55 percent and your cash flow model needs to reflect the monthly reality, not the annual average.

    A pro forma that ignores vacancy is not a financial model. It is a best case scenario dressed up as a projection.

    Step 3 — Rebuild every expense line from scratch.

    Do not accept the seller’s expense numbers. Go line by line and ask yourself one question for each item. Is this what I would actually pay? Here is what to examine:

    Property taxes: Call the county assessor and confirm the current tax bill. Ask whether a sale would trigger a reassessment. In some states a sale resets the assessed value and your tax bill goes up significantly.

    Insurance: Get your own quote before you make an offer. Do not use the seller’s number.

    Management: If you are not self managing add 8 to 12% of gross revenue as a management fee regardless of whether it is in the current expenses. If you are self managing, add it anyway and then decide if the deal still works. Because someday you will not want to self manage and you need to know the park can support that cost.

    Maintenance: Industry standard is 5 to 8% of gross revenue for a well maintained park. If the seller is showing less than that ask why. If the park has deferred maintenance budget more.

    CapEx reserve: This is the one most buyers skip entirely. Every major system in an RV park has a finite lifespan. A healthy CapEx reserve is typically 3 to 5% of gross revenue set aside annually for future capital needs. If the seller has no CapEx in their expenses they have been withdrawing equity from the property and handing you the bill.

    Utilities: Get the actual utility bills for 24 months. Not the seller’s estimate. The actual bills.

    Payroll: Get the actual payroll records. Know who is on payroll, what they make, and whether any of them are family members being compensated below or above market.

    Step 4 — Add your debt service.

    This is where most deals either work or fall apart. Take your actual financing terms, the real loan amount, the real interest rate, the real payment, and model it against the NOI you just rebuilt. Not the seller’s NOI. Yours. The debt service coverage ratio should be at least 1.25. I want to see 1.5 or above before I feel comfortable.

    Step 5 — Model the seasonality.

    Build a 12 month cash flow projection, not just an annual total. Map revenue and expenses month by month. Identify your worst cash month. Make sure you have enough reserves to cover it. A park that generates 80% of its revenue in three months needs a financial cushion that most buyers do not account for until they are sitting in month 9 with an empty park and a full expense load.

    Step 6 — Stress test the assumptions.

    Run the numbers at 10% lower revenue than your projection. Run them at 10% higher expenses. If the deal still works under those scenarios you have a margin of safety. If it only works when everything goes exactly as planned, it is too thin.

    When you have done all six of those steps you have your pro forma. Not the seller’s version. Yours. Built from real numbers, real costs, and assumptions that reflect what this park will actually look like under your ownership.

    That is the number that tells you what the deal is worth. And that is the only number that matters when you are deciding whether to make an offer.

    The seller’s pro forma tells you what they want you to believe. Your pro forma tells you what you are actually buying.

    If you want to go deeper on what to look for before you close; (and to protect yourself) you might want to pickup a copy of my $49 book “From Offer to Operations: The Complete RV Park Investor’s Guide”. This guide covers exactly this and a lot more, and it could save you from a very expensive mistake!

    You can get it direct here: https://wendipvifinancial.gumroad.com/l/kqmyb

    Or if you prefer Amazon has it too, just search author Wendi Rook.

    ~Wendi | Fractional CFO | PVIFinancial.com

    If you liked that one, read this next “What is NOI and How to Find the Real Number in an Acquisition”

    Click here to Download my free guide, The 5 Numbers Every RV Park Buyer Must Know Before Making an Offer

  • The Number That Tells You If You’re Overpaying for an RV Park Before You Make an Offer

    The Number That Tells You If You’re Overpaying for an RV Park Before You Make an Offer

    Most buyers look at the asking price, see the NOI on the broker’s flyer, do some quick math, and decide the deal makes sense. I get it. The numbers look clean. The cap rate looks reasonable. The cash flow looks solid.

    But here is the thing. That is not underwriting. That is the seller’s story. And the seller’s story is always the best version of the truth.

    The number that actually tells you whether you are overpaying is not on any flyer. You have to build it yourself. And most buyers never do.

    What most buyers actually do

    They take the NOI the broker provides, divide it by the asking cap rate, and decide if the price feels right. Maybe they run it through a quick calculator. Maybe they check the debt service and see that it cash flows on paper.

    That is it. Deal made.

    And then six months after closing they are sitting at their kitchen table wondering why the numbers do not look anything like what they were shown. Not because they were lied to. Because nobody rebuilt the numbers honestly before they signed.

    The number that actually matters

    Your reconstructed NOI. Not the seller’s NOI. Yours.

    Built from verified income, real vacancy, market rate management costs, honest CapEx, accurate expenses, and a debt structure you can actually survive. That number, divided by what you are paying, is the only cap rate that matters.

    Everything else is marketing.

    The three things that inflate almost every seller’s NOI

    I have underwritten a lot of RV park deals. And I see the same three things inflating the NOI on almost every single one.

    The first one is no management fee. The current owner self manages the park. They take no salary, they charge no management fee, and their expenses look lean and efficient. Except you are not them. If you plan to hire a manager, or if you ever want to sell this park to someone who will not self manage, that NOI is overstated by $40,000 to $60,000 a year on a park doing $500,000 in revenue. That is not a small number.

    The second one is deferred CapEx. The seller has not put meaningful money back into the property in years. Roads, bathhouses, electrical, roofs, equipment. None of it shows up as an ongoing expense because they have just been letting things age. But you are going to inherit all of it. And in your first few years of ownership you will pay for every dollar they did not spend.

    The third one is below market expenses. Long term vendors, family deals, owner relationships that disappear the day you close. The insurance agent who gave them a deal because they have been friends for 20 years. The maintenance guy who works cheap because the owner does half the work himself. Those numbers are not your numbers.

    What the reconstructed NOI usually looks like

    Let me give you a real example of how this plays out.

    A park is advertised at a 9% cap rate. Looks great on paper. Buyer gets excited. But when you rebuild the NOI honestly, adding a market rate management fee, normalizing CapEx, adjusting the vendor expenses to what a new owner would actually pay, and running real vacancy numbers, that 9% cap rate becomes a 5.5% cap rate.

    At the asking price that is a completely different deal. At a 5.5% cap rate you are now overpaying by hundreds of thousands of dollars for the same cash flow. And you will not find that out until after you close.

    That is not a hypothetical. That is what I see on a regular basis.

    This is the sentence I want you to write down:

    The price you pay is permanent. The NOI you inherit is not.

    The price you agree to on day one is locked in. You cannot go back and renegotiate it when the numbers do not pan out. But the NOI is not fixed. It can go up and it can go down, and the seller has every incentive to show you the version where it goes up.

    Your job before you make an offer is to figure out what the NOI actually looks like under your ownership, with your costs, your management structure, and your debt. Not the seller’s version. Yours.

    That reconstructed NOI is the number that tells you if you are overpaying. And it is the only number that matters.

    If you want help rebuilding the numbers on a deal you are looking at before you make an offer, that is exactly what I do – Acquisition Underwriting for RV parks. Reach out at pvifinancial.com before you sign anything.

    ~Wendi | Fractional CFO | PVIFinancial.com

    If you liked this, read this next “What is NOI and How to Find the Real Number in an Acquisition”

    Click here to Download my free guide, The 5 Numbers Every RV Park Buyer Must Know Before Making an Offer

  • How to Analyze a Seller Carry Deal and Whether the Terms Actually Work for You

    How to Analyze a Seller Carry Deal and Whether the Terms Actually Work for You

    Because seller financing sounds great until you run the actual numbers

    If you spend any time in the creative real estate space you hear about seller carry deals constantly. And for good reason, when they’re structured well they can be genuinely transformative. Lower barriers to entry, flexible terms, no bank approval required, and a motivated seller who wants the deal to work as much as you do.

    But here’s what doesn’t get talked about enough. Seller carry deals can also be structured in ways that look attractive on the surface and quietly destroy your returns underneath. The terms matter enormously and not all seller financing is created equal.

    I’ve analyzed a lot of these deals. Here’s how I think through them and what I look for before I ever say yes.

    What is a seller carry deal?

    For anyone newer to the concept, a seller carry deal, also called seller financing or an owner carry, is when the seller of a property acts as the lender instead of a bank. Rather than you going to a bank to borrow the purchase price the seller carries a note and you make payments directly to them over time.

    The appeal is obvious. No bank qualification process, potentially lower interest rates than conventional financing, more flexible terms, and a seller who is often motivated to make the deal work because they’re receiving monthly payments rather than a lump sum.

    The risk is equally obvious once you understand it. The terms are entirely negotiable which means they can be structured in your favor or against you depending on how well you understand what you’re agreeing to.

    The four numbers that determine whether a seller carry deal actually works

    Before I get excited about any seller carry deal I run four numbers. All four have to make sense together or I keep negotiating or I walk.

    1. The interest rate

    Seller carry deals typically come with interest rates somewhere between 5% and 8% in today’s market though this varies widely. The rate matters because it directly determines your monthly payment and therefore your cash flow.

    A $3,000,000 seller carry note at 5% interest only for 10 years costs you $12,500 per month. The same note at 7% costs you $17,500 per month. That $5,000 monthly difference is $60,000 per year that comes directly out of your cash flow.

    Always model the payment at the actual proposed rate and make sure your NOI can absorb it with adequate cushion. Which brings me to the second number.

    2. The debt service coverage ratio

    The DSCR is especially critical in seller carry deals because the terms are flexible and sellers sometimes propose payment structures that look affordable without being sustainable.

    Divide your adjusted NOI by your annual debt service. I want to see at least 1.5x coverage, meaning my NOI covers the payments by 50%. Anything below 1.25x and I’m either renegotiating the terms or walking away.

    A seller carry deal with a 1.05x DSCR looks like it works on paper. But one bad month, one unexpected expense, one occupancy dip, and you’re behind on your payments to the seller. That’s not a position you want to be in.

    3. The balloon payment

    Most seller carry deals have a balloon payment, a point in time where the remaining balance becomes due in full. Common balloon terms are 3, 5, 7, or 10 years.

    The balloon is where a lot of buyers get into trouble. They structure a deal that cash flows well for 5 years and then discover they can’t refinance or sell at the balloon date under favorable conditions. Maybe the market shifted. Maybe their credit situation changed. Maybe interest rates moved and conventional financing no longer pencils.

    Before you sign any seller carry agreement you need a clear plan for what happens at the balloon date. Can you refinance with a conventional lender at that point? Will the property have realistically appreciated enough to sell? Can you negotiate an extension with the seller if needed?

    Never assume the balloon will take care of itself. Plan for it from day one.

    4. The amortization schedule

    This one surprises a lot of newer investors. A seller carry note can have an interest only payment structure, a fully amortizing structure, or something in between. The difference matters enormously for your cash flow and your equity building.

    An interest only note means every payment goes entirely to interest and your principal balance never decreases. Your monthly payment is lower which helps cash flow but you’re not building equity through paydown and you’ll owe the full original balance at the balloon date.

    A fully amortizing note means each payment includes both principal and interest. Your payment is higher but your balance decreases over time and you’re building equity with every payment.

    Neither structure is automatically better. It depends on your cash flow situation, your hold period, and your exit strategy. What matters is that you understand exactly what you’re agreeing to and have modeled both scenarios.

    The terms that are negotiable and the ones that matter most

    Everything in a seller carry deal is negotiable. Here are the terms worth fighting hardest for:

    The interest rate is obviously important but it’s not always the most important. A slightly higher rate with a longer balloon and no prepayment penalty can be better than a lower rate with a short balloon and a penalty for paying it off early.

    The prepayment penalty is one people often overlook. If you plan to refinance or sell before the balloon date a prepayment penalty can cost you significantly. Always ask about prepayment terms and try to negotiate them out entirely or limit them to the first year or two.

    The balloon date itself is worth negotiating hard on. Longer is almost always better because it gives you more time to stabilize the asset, build your cash reserves, and position yourself for a favorable refinance or sale.

    A real world example

    Let me walk you through how I analyzed the seller carry on an RV park deal recently.

    The property had an adjusted NOI of approximately $400,000. The seller carry was structured at approximately $220,000 in annual debt service on a $4,500,000 purchase price.

    DSCR: $400,000 divided by $220,000 equals 1.82x. Healthy coverage with good cushion.

    Cash flow after debt service: $180,000 annually or $15,000 per month.

    After a 5% CapEx reserve of $25,000 annually the free cash flow was $155,000 per year.

    The terms worked mathematically. The deal ultimately didn’t close for reasons unrelated to the financing structure but the seller carry terms themselves were workable and the numbers supported them.

    That’s what a properly analyzed seller carry deal looks like. The numbers tell a clear and consistent story at every level.

    The bottom line

    Seller carry deals are a powerful tool when they’re structured correctly and analyzed rigorously. They can open doors that conventional financing closes and create win-win situations for both buyer and seller.

    But the flexibility that makes them attractive is the same flexibility that can get you into trouble if you don’t know what you’re analyzing. Know your four numbers. Understand your balloon. Negotiate your terms. And make sure the deal works not just at closing but at every point in your hold period.

    If you want help analyzing the terms of a seller carry deal you’re looking at I would love to work through the numbers with you. That’s exactly the kind of analysis that can save you from a deal that looks good and isn’t, or give you the confidence to move forward on one that truly is.

    Visit me at https://www.pvifinancial.com and let’s look at your deal together.

    ~Wendi | PVI Financial | Fractional CFO & Bookkeeping Services for Small Business & Outdoor Hospitality

    Click here to read “I Have Analyzed Dozens of RV Park Deals, Here is What I Look At Before I Look At Anything Else”

    Click here to Download my free guide, The 5 Numbers Every RV Park Buyer Must Know Before Making an Offer

  • What Squeezed NOI Actually Looks Like (And How to Fix It)

    What Squeezed NOI Actually Looks Like (And How to Fix It)

    New to NOI? Read this first, What is NOI, then come back here.

    You’ve probably heard the term NOI thrown around constantly in the investment space. Net Operating Income. The number everyone uses to value a property, qualify for financing, and measure performance.

    But what happens when NOI stops growing and starts shrinking?

    That’s called squeezed NOI and it’s happening across the outdoor hospitality space right now. Revenue softening while expenses keep climbing. The gap between what comes in and what goes out getting tighter every month. And a lot of new owners who bought at peak valuations in 2020 to 2022 are now staring at a financial picture that looks nothing like what the pro forma said.

    So what does squeezed NOI actually look like in real life?

    It looks like this:

    Your occupancy is solid but your net is shrinking. You raised rates a little but utilities, insurance, payroll and maintenance ate the increase before it hit the bottom line. You’re busy but you don’t feel profitable. Your bank balance looks ok but you can’t figure out where the money went.

    Sound familiar?

    Here’s what’s usually driving it:

    Expenses that were never properly tracked or categorized so you don’t even know where the leaks are. Rate structures that haven’t been pressure tested against actual cost increases. Revenue streams that are underleveraged, amenities, add-ons, extended stays, that are generating activity but not optimized for profitability. And books that can’t tell you which part of the business is making money and which part is dragging everything down.

    Here’s how you fix it:

    First you have to be able to see it clearly. That means clean books, real numbers, and a P&L that breaks down revenue and expenses by category, not just one big blended picture. You cannot fix what you cannot measure.

    Second you look at every expense line and ask whether it’s fixed, variable, or discretionary. Fixed costs are what they are. Variable and discretionary costs are where you find the margin.

    Third you look at revenue per site, per night, per guest, and ask honestly whether you’re leaving money on the table. Most properties are. Not because owners are lazy but because they’re too busy operating to step back and analyze.

    Fourth you build a simple 12 month forward projection so you’re not reacting to the numbers every month, you’re anticipating them.

    This is exactly the kind of work a fractional CFO does. Not just recording what happened but helping you understand why it happened and what to do about it.

    Squeezed NOI is a warning, not a death sentence. But you have to catch it early and you have to have the right financial visibility to act on it.

    If your books can’t tell you where your margin is going, that’s the first thing to fix.

    Questions about your NOI picture? I offer a free initial financial review. Let’s talk.

    ~Wendi | Fractional CFO | PVIFinancial.com

    If your NOI is getting squeezed there’s a good chance cash flow is feeling it too. Read this next: “Why Profitable Businesses Run Out of Cash and How To Make Sure Your’s Doesn’t”

    Click here to Download my free guide, The 5 Numbers Every RV Park Buyer Must Know Before Making an Offer

  • The Hidden Financial Risks of Buying a Mom-and-Pop Operation

    The Hidden Financial Risks of Buying a Mom-and-Pop Operation

    You found the deal. You closed it. You’re fired up and ready to go.

    And then you open the books.

    If you’ve recently acquired a small business or hospitality property, an RV park, a resort, a retail operation, there’s a good chance you inherited more than you bargained for financially. Not because the seller was necessarily dishonest. But because most mom-and-pop operations were never run with clean books to begin with.

    Here are some of the most common things I find hiding in inherited QuickBooks files:

    🔴 Bank accounts that aren’t connected to the books. Multiple checking accounts, a savings account, credit cards, and only one of them actually flows through the accounting software. That means a significant portion of real business activity is either missing entirely or manually entered with no reconciliation. The P&L looks like it has expenses. But none of it can be verified. You can’t make good decisions on numbers you can’t trust.

    🔴 Payroll liabilities recorded incorrectly. Negative payroll liability balances are a red flag. It usually means someone was recording tax payments by going directly into the bank register instead of using the proper payroll workflow. The taxes may have actually been paid, but the books can’t prove it without a CPA reconciling IRS transcripts against what the software shows.

    🔴 Employee loans buried as business expenses. This one comes up more than you’d think. A loan to an employee gets quietly written off as an operating expense instead of being run through payroll as taxable compensation. The prior owner may have filed a tax return with that entry in it. Now it’s sitting in your inherited file. Know what’s in there before anyone touches it.

    🔴 Depreciation recapture exposure. When you buy an LLC outright you may be stepping into the prior owner’s accumulated depreciation, which means when those assets are eventually sold the IRS will recapture that depreciation as ordinary income regardless of who took the original deductions. This is a conversation to have with your CPA before you close, not after. Understanding what you’re buying and how it’s structured can significantly impact your long term tax picture.

    🔴 Balance sheet accounts that are pure fiction. Inventory balances from years ago never updated. Loans that were paid off at closing still showing as liabilities. Assets with no supporting documentation. A balance sheet that looks complete but reflects nothing about the real state of the business you just bought.

    So What Do You Do About It?

    Don’t panic and don’t start fixing things randomly. A wrong entry in the wrong place makes a mess worse.

    Get your closing statement and purchase agreement in hand before anyone touches anything. That document establishes what you actually bought, what liabilities you assumed, and what your opening balances should look like.

    Draw a clean line at your acquisition date. Archive the prior owner’s history. Build your books forward from day one of YOUR ownership with correct opening balances established by a CPA.

    And understand that this isn’t just a cleanup, it’s a new owner setup. One of the most important investments you’ll make in your first 90 days.

    The money you spent to acquire that business deserves a financial foundation that actually reflects reality. You can’t make smart decisions on rates, staffing, capital improvements, or exit strategy if your books are built on someone else’s mess.

    Get the foundation right first. Everything else flows from there.

    Questions about what you inherited? I offer a free initial file review. Let’s talk.

    ~Wendi | Fractional CFO | PVIFinancial.com

    Click here to read “What Good Bookkeeping Looks Like and Why Most Small Businesses Don’t Have It”

    Click here to read “How To Structure Your First 90 Days as a New RV Park Owner”

  • I Have Underwritten Dozens of RV Park Deals. Here is Exactly What I Look at Before I Look at Anything Else.

    I Have Underwritten Dozens of RV Park Deals. Here is Exactly What I Look at Before I Look at Anything Else.

    If you have been scrolling through RV park listings lately you already know the feeling. The photos look great, the location seems solid, and the revenue numbers the broker is showing you look attractive. So you start getting excited. You start running the math in your head. You maybe even start picturing yourself as the owner.

    And then you dig in and realize the deal is nothing like what it appeared to be on the surface.

    I have been there more times than I can count. I have underwritten RV park deals that looked incredible on a one page marketing flyer and fell completely apart under scrutiny. I have also passed on deals that looked rough on the outside and turned out to have real upside hiding underneath the surface numbers.

    After doing this work over and over the same framework keeps proving itself. Here is exactly what I look at before I look at anything else.

    The Revenue Mix Tells You Everything

    Before I look at a single expense I want to understand how the revenue is being generated. Specifically I want to know the breakdown between long term tenants, short term seasonal guests, and transient nightly guests.

    This matters more than most buyers realize. A park that generates 80% of its revenue from long term tenants looks stable on paper but carries significant risk. Long term tenants pay less per night, they are harder to remove if needed, and many lenders including SBA will not finance a park with that revenue composition. If you are planning to reposition the park toward higher paying short term guests you need to understand exactly what that transition looks like, how long it takes, and what happens to your cash flow during the process.

    A healthy revenue mix for most acquisition purposes is somewhere around 60% short term and transient combined with no more than 40% long term. If the numbers are flipped that is not automatically a dealbreaker but it is the first conversation you need to have.

    The Occupancy Number is Rarely What It Seems

    Sellers love to quote peak season occupancy. What you need is annual average occupancy by site type and by month. Twelve months of data minimum. Ideally two to three years.

    A park that runs at 95% occupancy in July and 20% in January is a very different investment than a park that runs at 70% occupancy year round. The blended annual average tells you the real story and it directly determines how you underwrite the income.

    Also ask how many sites are actually available for rent versus taken offline for storage, employee use, or owner personal use. I have seen parks quote 150 sites where 30 of them were permanently occupied by staff or family members generating zero revenue. That changes your effective inventory and your income projections significantly.

    The Seller’s NOI is a Starting Point Not a Destination

    Every broker and seller will present you with a net operating income figure. Your job is to treat that number as a starting point for your own investigation, not a conclusion.

    Here is what commonly gets left out of a seller’s NOI that you need to add back in as expenses before you can trust the number. Management fees are almost always missing if the owner is self managing. A professional management fee typically runs 8 to 12 percent of gross revenue. If you are not planning to self manage you need to include this. If you are planning to self manage you still need to include it because your time has value and you need to understand what the park looks like without you in it.

    Owner salary is another common omission. If the owner is working full time in the park and not paying themselves a salary the expenses are understated. Capital expenditure history is almost always missing. When was the last time the roofs were replaced, the bathhouses were renovated, the electrical was upgraded? Deferred maintenance shows up in the purchase price negotiation and in your first year of ownership.

    Legal and professional fees that spike in a single year are worth investigating. I have seen deals where a large legal fee appeared in one year of the financials that turned out to be related to a tenant dispute or regulatory issue that was never fully disclosed.

    Infrastructure is Where Deals Go to Die

    The physical infrastructure of an RV park is where deals go to die if you are not paying attention. Utility systems, septic, water, electrical, and roads are the unglamorous backbone of the operation and they are expensive to fix when they fail.

    Here is what I specifically investigate on every deal. Who owns the utilities? A park on city water and sewer is a very different risk profile than a park on a private well and septic system. Private systems require regular maintenance, have finite lifespans, and can come with significant regulatory requirements depending on the state. Find out the age of every major system, when it was last serviced, and what the estimated remaining useful life is.

    Roads and common areas are often overlooked. Gravel roads that have not been graded in years, drainage issues, and aging common area infrastructure all represent capital expenditure that needs to be budgeted. Walk the property on foot, not just in a car. The things you see on foot tell a completely different story than the aerial photos in the marketing package.

    The Real Estate and the Business are Two Separate Things

    One of the most common mistakes I see buyers make is evaluating the real estate and the business as one thing. They are not. You are buying both and they need to be evaluated separately.

    The real estate question is straightforward. What is the land worth, what are the comparable sales in the area, and is the property appropriately zoned for its current and intended use? Are there any title issues, easements, or encumbrances that affect the property?

    The business question is more nuanced. What systems are in place for reservations, guest management, and operations? Is there a management team or is everything dependent on the owner? What is the online reputation of the park on Google, Campendium, and The Dyrt? Reviews tell you what the financials cannot. They tell you whether guests are happy, whether the facilities are well maintained, and whether there are recurring issues that show up over and over in the comments.

    A park with strong financials and terrible reviews is a business that is heading in the wrong direction. A park with modest financials and excellent reviews is a business with real upside potential.

    The Lease and Permit Situation

    If the park is on leased land rather than owned land this is the first thing I want to understand. What are the lease terms, what happens at expiration, is there a right of first refusal, and what does the rent escalation look like over time? A 25 year lease with a first right of refusal is very different from a 5 year lease with no renewal option.

    Permits and licenses are equally important. Is the park operating with all required permits current and in good standing? Are there any open violations, pending regulatory actions, or zoning issues? In some states RV parks require specific operating licenses and the transfer of those licenses to a new owner is not always automatic. Find out before you close, not after.

    My Final Rule

    After doing this work across dozens of deals I have one rule that I always come back to. Never fall in love with a deal before you have verified the numbers yourself.

    The seller’s package is a marketing document. The broker’s pro forma is an optimistic projection. Your job as the buyer is to reconstruct the financials from scratch using verified data, apply your own expense assumptions, and determine what the property is worth to you at your required return, not what the seller thinks it is worth to them.

    If the deal still works after you have done that work it is worth pursuing. If it does not you just saved yourself from a very expensive mistake.

    That is the job. And if you want someone in your corner who has done this work on real deals and knows exactly what to look for, that is exactly what I do at PVI Financial.

    Reach out at pvifinancial.com and let’s take a look at what you are working with.

    And if you have not grabbed a copy of my book yet, From Offer to Operation: The Complete RV Park Investor’s Guide ($49), it covers the full acquisition and operations framework including a bonus report with 34 red flags to verify before you close. I am very confident you will learn something you had not thought of.

    You can get it direct here: https://wendipvifinancial.gumroad.com/l/kqmyb

    Or if you prefer Amazon has it too, just search author Wendi Rook.

    Click here to read “What is NOI? And How To Find the REAL Number in an Acquisition”

    Click here to Download my free guide, The 5 Numbers Every RV Park Buyer Must Know Before Making an Offer

  • What is NOI? And How to Find the REAL Number in an Acquisition

    What is NOI? And How to Find the REAL Number in an Acquisition

    Because the number on the listing and the number that matters are often very different things

    If you’ve spent any time looking at RV parks, campgrounds, or commercial real estate you’ve seen the term NOI everywhere. Net Operating Income. It’s the number brokers lead with, sellers brag about, and buyers base their offers on.

    And it’s also one of the most manipulated numbers in a deal.

    I don’t say that to scare you. I say it because understanding how NOI gets inflated, and how to find the real number, is one of the most valuable skills you can develop as a real estate investor. It’s the difference between buying a great asset and buying a great story.

    Let’s break it down.

    What is NOI really?

    Net Operating Income is the income a property generates after operating expenses but before debt service, taxes, depreciation, and capital expenditures.

    The formula is simple:

    Gross Revenue − Operating Expenses = NOI

    A property with $738,000 in gross revenue and $338,000 in operating expenses has a $400,000 NOI. Simple right?

    Sure, until you start asking what’s actually in those two numbers.

    The revenue side and what to verify

    Sellers and brokers present gross revenue in the most favorable light possible. That’s not dishonest, it’s how deals get done. But your job as a buyer is to verify every dollar.

    Here’s what to look for on the revenue side:

    One time or non-recurring income. Did they have an unusually strong season last year due to a local event, a viral social media moment, or a competitor closing? One time revenue inflates the T12 and won’t repeat. Back it out.

    Owner managed revenue. If the current owner is personally managing the property and not taking a salary that income looks great on paper. The moment you hire a manager that expense hits and your NOI drops. Always underwrite a management fee even if the current owner doesn’t take one, a safe number to use would be 8-10% of gross revenue for an RV park or campground.

    Projected or pro forma revenue. Some listings include “projected” revenue from planned improvements or expansions that haven’t happened yet. That is not T12 income. It’s a dream. Underwrite only what the property is actually producing right now.

    Gross vs net revenue. If the property uses OTA platforms like Airbnb, Hipcamp, or Booking.com those platforms take 15-25% in commissions. Make sure you’re looking at net revenue after commissions, not gross bookings.

    The expense side and what gets left out

    This is where the real manipulation happens. Expenses get minimized, forgotten, or deliberately excluded to make NOI look bigger. Here’s what to watch for:

    Owner salary or management fee. As mentioned above. If the owner runs the property themselves and takes no salary add a market rate management fee back in. This alone can drop NOI by $50,000-$80,000 on a mid-size park.

    Deferred maintenance. The roof that needs replacing next year, the electrical hookups that are aging out, the roads that need grading. These aren’t on the income statement but they’re coming out of your pocket. A thorough property inspection and a CapEx analysis will surface these. Budget 5% of gross revenue annually for CapEx and make sure your NOI can absorb it.

    Property management software and booking systems. Small line items but real costs that often get buried or omitted in seller financials.

    Insurance. Was the property underinsured? I’ve talked to some owners recently who are not insured! Get your own insurance quote before you close and make sure the actual cost is in your underwriting not the seller’s potentially outdated number.

    Utilities. Did the seller get a sweetheart rate that won’t transfer to you? Verify utility costs independently especially if the property has well water, septic, or propane infrastructure.

    Seasonal labor. Some sellers understate seasonal staffing costs. Ask for payroll records not just the summary expense line.

    Non-arm’s-length expenses. Did the seller’s brother-in-law do the landscaping for below market rates? Did they use their own equipment instead of hiring out? Real world costs may be higher than what the books show.

    The adjustments that give you REAL NOI

    Once you’ve verified the revenue and normalized the expenses you’re ready to calculate what I call Adjusted NOI; the number that actually tells you what the property will perform to under YOUR ownership.

    Here’s the adjustment process:

    Start with the seller’s stated NOI. Then:

    +Add back any non-arm’s length expenses that were below market

    -Subtract any one time or non-recurring revenue that won’t repeat

    -Subtract a market rate management fee if not already included

    -Subtract a CapEx reserve (5% of gross revenue)

    -Subtract any expenses that were omitted or understated

    -Subtract OTA commissions if not already netted out

    What you’re left with is your Adjusted NOI; the real number. And I promise you it is almost always lower than what was on the listing.

    That doesn’t mean it’s a bad deal. It means you’re buying it with your eyes open.

    Why this matters so much

    NOI drives valuation. Most commercial properties are valued using a cap rate; you divide NOI by the cap rate to get value. If a broker is using an inflated NOI to set the asking price the property is overvalued relative to what it will actually produce for you.

    A $50,000 difference in NOI at a 7% cap rate is a $714,000 difference in value. That’s not a rounding error. That’s the difference between a great deal and a very expensive mistake.

    Know your NOI. Know how it was calculated. And always, always, build your own adjusted number from verified data before you make an offer.

    You can do this

    I know this might feel like a lot, but I promise you it’s learnable. Every sophisticated real estate investor goes through this process on every deal. It becomes second nature.

    And if you want a partner to help you work through the numbers on a specific acquisition, that’s exactly what I do. Acquisition underwriting is one of my favorite things because there’s nothing more satisfying than helping an investor see a deal clearly and make a confident decision.

    Whether you decide to buy or walk away, you deserve to do it with full clarity!

    Visit me at https://www.pvifinancial.com and let’s talk about your next deal.

    — Wendi | PVI Financial | Fractional CFO & Bookkeeping Services for Small Business & Outdoor Hospitality

    Click here to read “5 Financial Mistakes New RV Park Owners Make in Year One”

    Click here to Download my free guide, The 5 Numbers Every RV Park Buyer Must Know Before Making an Offer

  • How to Evaluate an RV Park Manager Before You Close

    How to Evaluate an RV Park Manager Before You Close

    Because the person running your park day to day can make or break your investment

    When investors analyze an RV park acquisition they spend a lot of time on the financials. They verify the T12, they stress test the NOI, they model the debt service coverage, and they walk the physical property looking for deferred maintenance and capital needs.

    All of that is absolutely right and necessary.

    But there’s one due diligence item that often gets less attention than it deserves and in my experience it’s one of the most important factors in whether a stabilized RV park stays stabilized after you close.

    The manager.

    The person or people running your park day to day are not just employees. They are the face of your business to every guest who checks in. They are the reason your long term guests come back year after year. They are the operational backbone that keeps things running while you’re not on site. And in a remotely operated park they are essentially the business.

    Getting this evaluation right before you close can save you enormous headaches, expense, and lost revenue after you close. Here’s how I think about it.

    Why the manager evaluation matters so much

    Let me paint two pictures for you.

    In the first picture you close on a stabilized park, the manager stays on, guests love them, operations continue smoothly, and your financial results in year one track closely to the T12 you underwrote. Your transition is seamless.

    In the second picture you close on the same park, the manager leaves or turns out to be underperforming, guests notice the change in service quality, your online reviews take a hit, your repeat guest rate drops, and six months into ownership you’re scrambling to hire and train a replacement while trying to figure out why your revenue is running 15% below pro forma.

    The difference between those two scenarios is often the manager. And you have a much better chance of landing in the first picture if you do a thorough manager evaluation before you close rather than just hoping for the best.

    Step 1, understand the current manager’s relationship with the owner

    The first thing to understand is how the current manager relates to the outgoing owner. Are they a professional property manager with a formal contract? A longtime employee who has been there for years? A family member of the seller? Someone who was recently hired and has no deep roots in the property?

    Each of those situations has very different implications for your transition.

    A professional manager with a formal contract gives you clarity on terms, compensation, and expectations. A longtime employee with deep guest relationships is a huge asset worth protecting but may also have loyalty to the previous owner that takes time to transfer. A family member of the seller may not be interested in staying under new ownership at all. A recently hired manager may have less institutional knowledge than you’d hope.

    Understanding this dynamic tells you a lot about the stability of your management situation going into close.

    Step 2, review their track record objectively

    Look at the operational results on their watch. Occupancy trends, online review scores and volume, repeat guest rates if you can get them, maintenance response times, and any guest complaints or incidents that are documented.

    A manager who has been running a park at 85% occupancy with 4.7 stars on Google for three years is a very different asset than one who recently took over a declining property that happens to look stabilized on a trailing 12 month basis.

    Ask the seller directly how long the current manager has been in the role and what the occupancy and review trends looked like before and after they took over. The answer tells you a lot about whether the financial performance you’re underwriting is because of the manager or in spite of them.

    Step 3, have a direct conversation with them

    This is the step many buyers skip and it’s a mistake. Before you close ask the seller for permission to have a direct conversation with the manager. Most sellers will agree especially if they want a smooth transition.

    In that conversation you’re not just gathering information. You’re also building a relationship. Here’s what to cover:

    How long have they been in the role and what did they do before. What they love about the property and what they find challenging. How they handle guest complaints and difficult situations. What systems and processes they have in place for operations. What they think the property needs most. Whether they’re interested in continuing under new ownership and what their expectations are around compensation and their role going forward.

    Pay attention not just to what they say but how they say it. Do they talk about guests with genuine care? Do they have a clear and organized approach to operations? Do they seem proud of the property? Do they ask thoughtful questions about your plans as the new owner?

    A manager who is engaged, knowledgeable, and genuinely invested in the property is an asset worth paying for. A manager who seems checked out, vague about operations, or primarily concerned about their own situation is a risk worth understanding before you close.

    Step 4, verify their compensation and understand the full cost

    Make sure you understand exactly what the current manager is being paid, including salary or hourly rate, any housing provided on site, utilities covered, bonuses, and any other benefits or perks.

    This matters for two reasons. First, you need to make sure the full cost of management is accurately reflected in your underwriting. Second you need to know what it will take to retain them if you want to.

    A manager who is being paid below market is a flight risk. If they leave shortly after your acquisition because a competitor offers them more money, you’re left scrambling at exactly the wrong time. If retaining them requires a compensation adjustment factor that into your numbers before you close not after.

    Step 5, have a retention plan ready

    If your evaluation tells you this is a strong manager worth keeping have a retention conversation before or immediately after closing. Not a vague “we hope you’ll stay” conversation but a specific discussion about their role, their compensation, their responsibilities, and your expectations going forward.

    Strong managers have options. They know good parks want them. If you want to keep yours, give them a reason to stay early and make it concrete.

    A simple retention bonus tied to staying through the first 12 months of your ownership, a modest compensation increase that reflects their value, and a clear conversation about your plans for the property and their role in those plans goes a long way toward securing the continuity that protects your investment.

    What to do if the manager is a risk

    Sometimes your evaluation tells you the current manager is not someone you want to retain. Maybe their track record doesn’t support the financial results. Maybe they’re clearly not interested in staying. Maybe the seller confirms they’re planning to leave regardless.

    In that case your job before closing is to have a replacement plan ready. Not a theoretical plan but an actual plan. Who will manage the property on day one if the current manager walks? Do you have a candidate identified? Do you have a relationship with a professional property management company that specializes in RV parks?

    Walking into close without a management succession plan when you know the current manager is a risk is one of the most preventable mistakes in RV park acquisition. Don’t let it happen to you.

    The bottom line

    The financial analysis you do before closing tells you what the property has been. The manager evaluation tells you a big part of what it will be under your ownership.

    A great manager is one of the most valuable assets you can inherit in an acquisition. A problematic management situation is one of the most expensive problems to fix after the fact.

    Do the work before you close. Have the conversation. Understand what you have. And walk in on closing day with a clear plan for the person who is going to run your investment every single day.

    If you want help reviewing the deal or thinking through your management transition plan, I would love to work with you.

    Visit me at https://www.pvifinancial.com and let’s make sure you’re set up for success from day one.

    ~Wendi | PVI Financial | Fractional CFO & Bookkeeping Services for Small Business & Outdoor Hospitality

    Click here to read “How to Structure Your First 90 Days as a New RV Park Owner”