12-02-2011, 09:17 PM
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#16
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Senior Member
Join Date: Aug 2001
Location: North America somewhere
Posts: 30,953
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Quote:
Originally Posted by akadeadeye
My life long career has been in real estate.
First, determine the real world value of the two acres. Second, calculate a reasonable rate of return on that value annually. Third, add the cost of the RV park to the value of the land. Fourth, calculate a reasonable rate of return on the total package (total value plus cost, times a percentage, say 10%) Fifth, do an objective cash flow model for your RV park which allows for realistic income and expenses, arriving at a Net Income figure. If this Net Income figure is less than the amounts you calculated above, then you are not developing the tract of land to its highest and best use.
Don
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Expert advice, for free; can't do better than that. I've had a lot of ideas that quickly turned out to be full of holes. Sadly, many of them after I was in deep.
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2000 Winnebago Ultimate Freedom USQ40JD , ISC 8.3 Cummins 350, Spartan MM Chassis. USA IN 1SG 11B5MX,Infantry retired;Good Sam Life member,FMCA. " My fellow Americans, ask not what your country can do for you, ask what you can do for your country. John F. Kennedy
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