By Dale Bourdette

For most this is a new experience, not dealing with bank, but dealing with banks in a business purchase. I hear some of the same thoughts as in dealing with a bank in a home loan situation. Folks, it is different!

An owner might say to me; "Is the buyer pre-qualified?" This is a question and term used in purchasing a house, not quite the same as buying a business. I guess the only pre-qualification that you can do is how much money does he have. Is it reasonable for this buyer with this amount of money considering this sized park? That is a reasonable "ore-qualification". But you can never completely "pre-qualify anyone until all of the parts of the deal are examined; Park, deal, buyer and cash flow. In a sense we have to "pre-qualify" the campground especially the sales price AND the sale price. If that is within reason and the buyer has enough cash to consider this park… we are well on the way to finishing the deal… and not until. So we have to "Pre-qualify" the buyer AND the campground (deal and cash flow).

Another serious problem with the buyer (and the seller) is the lack of understanding of the needs of the banker. The banker has to have the facts… on buyer and campground business. They have to have a vision of what the buyer wants to do with the campground, he wants to see if the buyer has a clue on what is involved in running a business. In short he want so see an exciting vision, something that he can be proud and confident to take to the loan committee! This is done with the Business Plan.

The third thing I want to bring to mind is… It Takes Time. The bankers a cautious, slow moving and has not heard the phrase: "Get ‘r done!" As buyer and seller you have to provide the information, the excitement AND THE BOOT IN THE PANTS!

To get more education on the process, go to the "Library" on our website. Click on the Resources section. Reminder; the current username is "winner", password is "camper".

The Campground Buyers Home Study Workbook has a section on the "Business Plan". Go to: www.campground-data.com/workbook.html to get more information or to purchase.