MC Fireside Chats - July 13th, 2022

MC Fireside Chats

In this episode of MC Fireside Chats, sponsored by Let’s Camp, we are joined by Ken Kaplan, CEO of K2 Commercial Finance, who talked about the whys and hows of campground and RV park financing, and Bill McLeod and D Melton, owners of Big Rig Friendly RV Resort in South Carolina who shared the story on how they built and developed their RV resort from the ground up.

McLeod and Melton started in the industry around 12 years ago; since then, they’ve seen the market get hotter and hotter.

Big Rig Friendly RV Resort has full hookup sites that measure between 75 feet to 120 feet, with most sites being pull-throughs.

“The demand has gotten so much stronger than it was and steadily increasing year by year,” Melton said.

Melton also mentioned that he’s seen the age group of RVers get younger and younger as it goes.

Kaplan, who has been financing RV parks and campgrounds, said he’s seen people struggling with finances.

This motivated him to help people reach their goals and dream of owning properties.“Small mistakes in financing can cost tens of thousands if not more over the term of owning an asset,” Kaplan said.

Kaplan also highlighted that things that make a successful park had changed a lot with respect to modernization.

“A lot of the things that make a borrower a solid borrower and that make an asset [RV park] a good investment from a lending investment haven’t changed very much. What changed is the economy that we’re all operating in,” Kaplan added.

Kaplan highlighted the significance of relationship in lending and financing, saying that an appropriate lender and a good borrower is fueled by relationships and preparation–making transactions easy.