Calculating Cap Rates For Campgrounds – A Quick and Easy Guide


Howdy, fellow campground enthusiasts! If you’re like me, you probably got into this business because of your love for the great outdoors. But let’s face it; sometimes, the numbers game can feel like trying to light a campfire in the pouring rain. That’s why we’re here today, to unravel the mysteries of cap rates for campgrounds.

What are Cap Rates?

Did someone say ‘cap rates’? I know, I know. It sounds about as exciting as watching paint dry on an RV. But buckle up, buttercup, because understanding cap rates might just be the key to unlocking your campground’s financial potential. And who doesn’t want that?

Meet The Experts

Our friends at Campground Accounting, a team of CPA wizards and RV enthusiasts, have taken the pledge to save us from the horrors of decision-fatigue and operations overwhelm. They’re all about helping you press play on your bigger ideas and breathing life into your campground ownership. Hallelujah!

How to Calculate Cap Rates?

The ever-passionate Donna, the heart of Campground Accounting, is known for her progressive perspective on accounting. She never misses an opportunity for exploration or understanding, and she’s here to guide us through the wilderness of campground cap rates.

Practical Example

Let’s break it down with some easy math, shall we? Imagine your campground nets $100,000 after expenses and you’re selling it for $1 million. Divide $100,000 by $1 million, and ta-da! You’ve got a 10% cap rate. As Donna says, “A 10% cap rate is good, really good.”

Things to Keep in Mind

But wait, there’s more! Cap rates can also be used as a measuring tool to decide whether to buy or sell. Plus, they’re just one piece of the puzzle. There are many other factors to consider, like opportunities, potential, and what’s happening in the campground world.

Conclusion

So there you have it, folks! A quick and easy guide to calculating cap rates for campgrounds. Remember, there’s more to life than business, but understanding your business can help you get more out of life. So, take a deep breath, look at your cap rates, and let’s make campground ownership a walk in the park.

Further Reading

Want to learn more? Dive into the full article to get all the juicy details. Trust me; you won’t want to miss this!

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Connect with us!

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Donna Bordeaux, CPA with Campground Accounting

Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.

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