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Raw Land Financing for RV and Boat Storage

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  • Raw Land Financing for RV and Boat Storage

    Does anyone have a recommendation as far as financing is concerned for raw land/acreage purchase? We are looking to purchase property for the sole purpose of offering simple, affordable, and secure parking for RVs, Boats, Utility Trailers, Trucks, etc. Local banks/CUs have restrictions on "use" of property and SBA financing, based on a couple people I've spoken too, say our type of deal doesn't fit the mold since we aren't looking to have "storage units" or covered parking (at least initially). I know there has to be storage owners that there sole business is RV and boat storage and would love any guidance as to the type of financing options out there. We won't have collateral but have capital ready to start the project.

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    • #3
      IMO, it makes no sense to build a facility like you propose without any covered parking. I would bite the bullet on cost and offer that at the very least, as well as uncovered parking. Most RV owners are very aware of how direct sun effects the sealing properties of the sealers of vents, a/c units and windows and anything else that needs outside sealing. There will always be RV owners that simply play the odds and pay the the cheapest priced slot. You are going to have to do it eventually, do it now.
      "Never let the inmates run the asylum!"

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      • #4
        Id look into lending partners that play in this industry. Typical banks have very square mold that they may have trouble fitting you into.

        Even with our large deals, we sometimes find that our traditional partners dont want to touch properties due to their internal restrictions.

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        • #5
          Originally posted by Stalling430 View Post
          Does anyone have a recommendation as far as financing is concerned for raw land/acreage purchase? We are looking to purchase property for the sole purpose of offering simple, affordable, and secure parking for RVs, Boats, Utility Trailers, Trucks, etc. Local banks/CUs have restrictions on "use" of property and SBA financing, based on a couple people I've spoken too, say our type of deal doesn't fit the mold since we aren't looking to have "storage units" or covered parking (at least initially). I know there has to be storage owners that there sole business is RV and boat storage and would love any guidance as to the type of financing options out there. We won't have collateral but have capital ready to start the project.
          So, I was listening to a guy on the radio and he said ask your local bank or credit union for a small business loan, don't go with the big guys or chain banks.
          Why are I-phone chargers not called 'apple juice'???

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          • #6
            Originally posted by KrisinNC View Post

            So, I was listening to a guy on the radio and he said ask your local bank or credit union for a small business loan, don't go with the big guys or chain banks.
            I 100% agree. I am currently looking into CUs to see what acreage loans are offered. I was curious to know if anyone on here had luck with a loan type via a small bank or CU.

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            • #7
              Originally posted by mmidgley View Post
              Id look into lending partners that play in this industry. Typical banks have very square mold that they may have trouble fitting you into.

              Even with our large deals, we sometimes find that our traditional partners dont want to touch properties due to their internal restrictions.
              I will do just that. Do you or anyone on here have any recommendations as to what lending partners might be worth having a conversation with? Yes. From my research to date, most do have a very square mold and our deal just doesn't work for them.

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              • #8
                Most lenders don't want to mess with raw land unless there is a solid development plan by an experienced developer. Too many were burned on land loans when the housing market cratered in 2008. Advance rates generally run 50%-65%. Some hard money lenders still do land loans but advance rates are the same and rates higher. I'd get a plan to develop this property into a real self storage with boat and RV parking as an added service. You could more easily get a lender to value the property on an "as completed" basis, producing a higher advance rate. All the same you'll need to come up with 25% down in most cases.

                I've done a few SBA loans for self storage with 10%-15% down. You can PM me if you want more info.

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