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RV Park Financing

The Madison Group arranged the $2.357M purchase financing for a RV Park in Texas

Tags: RV Park financing, RV Park loans, commercial loans, SBA loans for RV Parks
Tuesday, Aug 24, 2021
by Angela Kesselman

Summary:  The Madison Group (TMG), a leading national source for RV Park financing, arranged the $2.357M purchase financing for a 98-pad park in Texas.

The 55+ park is located on Lake Tawakoni, 50 miles outside of Dallas and has a laundromat, pool, playground, lake access, along with a bathhouse and store.  The property is on a long-term leasehold with the River Authority which made it a bit more challenging to finance.

The borrowers relocated to Texas to buy and move to this location as an owner occupied property.  It is the first park for them to own or operate, yet they had operational life skills that would allow them to be successful in this type of business.   The financing had been denied by several lenders due to their lack of experience, the location, land lease, and also the loan to value. 

TMG has a relationship with a SBA lender that could get comfortable with the collateral and land lease to fund the transaction at 81% leverage.  The borrowers were able to buy the park and still have some cash left to make some upgrades that will increase their revenue moving forward.   TMG was also able to fund in time for the buyers to get the SBA waiver for no payments for the first three months of operations. 

Location:  Texas

Property:  98 Site RV Park            

Loan Amount: $ 2.357M including a $21,000 operating capital line

Interest Rate:  6% or prime plus 2.75% adjusting quarterly

Term:   25 Years

Amortization:  25 Years

Prepayment:   5/3/1                             

LTV:   81%

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