Hey SMB people:

🧵 Looking at a biz that sells sheds and auxiliary buildings. Not much inventory, mostly custom orders taken from customers and sent to the builders. Biz receives unit from builder and delivers to customer.

What kind of multiple on EBITDA I should be targeting?
And keep in mind I’m a real estate guy so please explain it like I’m a full-on idiot. #SMBTwit #SMB

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More from @ibuyrvparks

Feb 23
🧵 RV Park 101:

(1/8) Let’s talk about financing RV parks. This is one of the great inefficiencies in the industry that stops a ton of investors in their tracks, but also creates a lot of opportunity.

There are a few obscure national banks out there who will lend on RV parks…
(2/8) that will lend at up to ~65% LTV, 20 yr amort, and interest rates in the 5’s. However, they’re likely not going to lend to anyone that doesn’t have a track record in the industry.

Next stop, local banks located near your target RV park: certainly worth reaching out to…
(3/8) but you’ll quickly find they either “get it” or they don’t. You may find better terms here if they’ll lend on RV parks, because they simply have a general commercial loan product they slap on everything.

Any of these bankers you come across may be thinking of pushing you..
Read 8 tweets
Feb 22
🧵 RV Park 101:

(1/4) On the hospitality side of the industry, we generally have 2 broad categories of parks/campsites:

Transient - short-term stays. Near tourist destinations or conveniently located off the highway with easy in/out sites, “pull-throughs”. E.g. KOA Journey…
(2/4) Seasonal/long-term stay - more of a destination park. Also more common in colder climates as parks are closed for the winter season. More highly amenitized. Sometimes “resort-style”. Think of the RV as becoming a vacation home for the consumer. E.g. KOA Holiday or Resort…
(3/4) Analysis.

Transients - ⬆️ revenue but also more operationally intensive w/ ⬆️ payroll. More dependence on camp store income.

Seasonal - lower revenue but more predictable and much less operationally intensive. Campers typically maintain their own sites and pay electric…
Read 4 tweets

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