THE MONDAY LETTER FROM CAMPGROUND DATA

Topics for today:

            What comes first… the offer or the Lawyer?

            What is one key factor predicating your success as a campground owner

 The Order of Making an Offer – What comes first?

 What comes first… a contract or a “mini” meeting of the minds.  It is our recommended procedure to lead with a contract that has a very definite “out”.  Say you have looked at the campground, maybe more than once, examined the financials (you may have to have a contract signed before this is allowed) and you think this is the park for you.  AND you know about how much you want to pay for it.

When do you involve a lawyer?  (We do recommend that you DO use a lawyer).  It is my thinking that the first thing to do is get a meeting of the minds on price.  If you can’t agree on price, why spend the money on a lawyer?  But you say, you get locked in before a lawyer reviews the contract.  Here is how we handle that and the best procedure.  If you are dealing with us, another broker or are using the standard contracts included in our Workbook (www.campground-data.com/workbook.html).  This allows you to lay a number of items on the table beyond just the price and terms… such as when you would like the closing, how you are going to handle the inventory in the store… and on and on.  But how do you allow an “out” before a lawyer reviews the contract.  Simple:  Both parties will want a review of the contract.  So I add a simple clause:  “This contract is contingent upon the review and approval by the attorney for buyer and seller.”  If the attorney for either party does not like any specific item, the contract is null and void.

So, by using a more comprehensive contract you get a lot of things on the table including price and terms AND you come to an agreement on price before you spend money on a lawyer.  The only reason you would not use this method is if you are relying on your attorney to advise you on the value of the campground.  But, I must say, I have not seen too many lawyers that have a clue about campground value!

One of the best indicators of your success as a campground owner is your ability to NEGOTIATE!

One key think that I see in the success or failure of a new campground owner is BUYING RIGHT!  If you pay too much you will always (or for a long time) be under the gun and swimming uphill for a long time.  Get more information on negotiating by getting our Mini Seminar on Negotiations.  (www.campground-data.com/negotiations.html) Please note:  The Negotiation Seminar is now included at no extra charge when you buy our Campground Buyers Workbook.

Dale Bourdette

Campground Data

863 676 0009

db@campground-data.com

END NOTES

"If we become a people who are willing to give up our money and our

freedom in exchange for rhetoric and promises, then nothing can save

us." --Thomas Sowell