102: $10M Profit On Her First Deal?! It's Possible with Campground Investing
08/07/21 • 55 min
Heather Blankenship was on a road trip from Florida to California, stopping at RV parks and campsites in between driving. She saw how busy these parks were and thought it would be interesting to own one. On her way back to the east coast, she ended up buying a campground in Tennessee for over three million dollars. She had no experience, no team, and no money. Now, that campground is worth over thirteen million dollars!
Although Heather was just 26 at the time, she was able to quickly adapt to the learning curve that the campground presented her. She grew her knowledge and skill set and now oversees around thirty million dollars in RV parks and campgrounds.
We talk about the many different streams of income that a campground or RV park owner can cash in on, how to score financing when buying commercial properties, what to look for in your due diligence phase, and how to underwrite these massive deals. For beginner investors, this can seem like a huge task, but Heather proves that even with no experience, you can put in the work to make massive financial leaps like she did.
In This Episode We Cover
The benefits of owning a campground or RV park
How commercial real estate differs from residential real estate
Financing big deals through bank loans and seller financing
Looking for commercial BRRRRs and value-add opportunities
Long-term parks vs. short-term parks and the benefits of both
Developing systems that leave you less reliant on third-party businesses
And So Much More!
Links from the Show
Real Estate Rookie Facebook Group
Rookie Podcast 100: Why Brandon Turner Encourages Rookies to “Start Small and Scale”
Rookie Podcast 101: Campgrounds: The Investment You’ve (Probably) Never Thought About
Check the full show notes here: https://www.biggerpockets.com/rookie102
Learn more about your ad choices. Visit megaphone.fm/adchoices
Heather Blankenship was on a road trip from Florida to California, stopping at RV parks and campsites in between driving. She saw how busy these parks were and thought it would be interesting to own one. On her way back to the east coast, she ended up buying a campground in Tennessee for over three million dollars. She had no experience, no team, and no money. Now, that campground is worth over thirteen million dollars!
Although Heather was just 26 at the time, she was able to quickly adapt to the learning curve that the campground presented her. She grew her knowledge and skill set and now oversees around thirty million dollars in RV parks and campgrounds.
We talk about the many different streams of income that a campground or RV park owner can cash in on, how to score financing when buying commercial properties, what to look for in your due diligence phase, and how to underwrite these massive deals. For beginner investors, this can seem like a huge task, but Heather proves that even with no experience, you can put in the work to make massive financial leaps like she did.
In This Episode We Cover
The benefits of owning a campground or RV park
How commercial real estate differs from residential real estate
Financing big deals through bank loans and seller financing
Looking for commercial BRRRRs and value-add opportunities
Long-term parks vs. short-term parks and the benefits of both
Developing systems that leave you less reliant on third-party businesses
And So Much More!
Links from the Show
Real Estate Rookie Facebook Group
Rookie Podcast 100: Why Brandon Turner Encourages Rookies to “Start Small and Scale”
Rookie Podcast 101: Campgrounds: The Investment You’ve (Probably) Never Thought About
Check the full show notes here: https://www.biggerpockets.com/rookie102
Learn more about your ad choices. Visit megaphone.fm/adchoices
Previous Episode
101: Campgrounds: The Investment You've (Probably) Never Thought About
As a successful real estate investor, you may be looking for bigger and better deals to take on, but sometimes those deals may come in a different shape and size. Kier Vogt had mastered buy-and-hold rentals, house hacking, and flipping. She wanted to take on a bigger challenge, something that would give her more responsibility with even more upside. After taking a cross-country drive, she found the asset class she was looking for: RV parks and campgrounds.
If you’re a rookie investor, you may have never thought about investing in an RV park or campground, but there are some serious benefits to them. Since these are commercial properties, your ability to obtain seller financing is far more likely and you can build out multiple streams of income from one property, as opposed to solely collecting rent.
Now, Kier is in the stage of analysis. She already has a private-money lender, but has to find a deal that fits her purchasing power and her criteria. Kier shares the mindset behind going into this completely new asset class, and how you have to push through fear to cold call owners, send in offers, and finally get an RV park or campground under contract.
In This Episode We Cover
The difference between RV parks, campgrounds, and mobile home parks
Analyzing larger commercial deals and performing due diligence
The benefits of seller financing compared to bank financing
Submitting a letter of intent (even if you’re scared to do so)
Self-managing a property to learn about the business
The many different revenue streams an RV park or campground can offer
And So Much More!
Links from the Show
Real Estate Rookie Facebook Group
Check the full show notes here: https://www.biggerpockets.com/rookie101
Learn more about your ad choices. Visit megaphone.fm/adchoices
Next Episode
103: From Restaurant Waiter to 100+ Deals in Only 4 Years w/ Derrick Acuff
Derrick Acuff was hungry for success in real estate. So hungry for success, that he would be picking up calls from sellers in the middle of performing his job as a waiter. He was trying to do everything he could to get his first deal; sending out direct mail, texting probate listings, and meeting with potential sellers. Finally, he scored his first wholesale deal, netting him and his wife a combined assignment fee of $8,000.
Now, four years later, Derrick Acuff has built a business around wholesaling and flipping. He and his business partner Ben have done over 100 deals in the Houston, Texas area. He also has a team of VAs (virtual assistants) to help him scrub lists, call potential sellers, and follow up whenever possible. A lot of his success derives from him and his team members treating sellers like people, and not going for the quick and easy sale or selling white lies.
Derrick’s mindset has changed throughout this process and there were times when he felt like giving up. Through perseverance, business optimization, and the will to succeed, he’s built a business that produces not only large amounts of profit but a trail of happy customers ready to give him more deals.
In This Episode We Cover
Choosing to forego college when it may not be a good option for you
Knowing that rejection and failure is part of the process
Staying motivated even when deals become hard to close
Treating sellers with honesty, integrity, and sticking to your word
Finding the “traction” your business needs to grow and succeed
Building rapport with a seller and letting them talk 90% of the time
And So Much More!
Links from the Show
Real Estate Rookie Facebook Group
Check the full show notes here: https://www.biggerpockets.com/rookie103
Learn more about your ad choices. Visit megaphone.fm/adchoices
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