Alos Blog

The RV market saw a lot of activity over the last few years in and that is partly due to the increased number of baby boomers retiring, all those snowbirds and the large amount of disposable income available for an average consumer. All these increase, although indirectly, are correlated with the increasing number of RV sales and also to the values and the sales of RV parks. Ultimately, this led to an increased amount of funding available for these RV parks.

Not all Lenders understood the nature of this business. Most of them still fear that all their income will eventually be lost in a day just because of there’s a great mobility of the tenant and because there’s a limited amount of value in the land they own and it could be all lost in the event of a foreclosure. A few years ago, there were only a small number of lenders interested in financing RV parks was only a quarter of what it is nowadays. Those lenders that eventually realized that there’s stability in this income and that most RV parks operate with an excellent cash flow, were able to make secure loans with much higher returns than they are getting from other types of business and commercial properties.