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4tumbleweeds

Las Vegas, NV

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Posted: 08/29/08 12:57pm Link  |  Quote  |  Print  |  Notify Moderator

Do you intend to charge rent to these folks? Is it your intent to start a business? Talk with an attorney first. There are all sorts of issues jumping out.

Rick & Cheryl

Texas

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Posted: 08/29/08 12:59pm Link  |  Quote  |  Print  |  Notify Moderator

atb wrote:

Rick & Cheryl wrote:

Non-commercial?? You mean one that is non-profit or just one that loses money. I think a commercial park is exactly what the OP wants to build. Just one that has a slightly different appeal and amenities than what we now would identify as a deluxe park.

I dont think the OP is building this park for the health and welfare for the occupants without regard to the profit/investment return.
Were I an occupant, I too would want the park to be financially healthy as well, that way the owner has the $ to make improvements and to have good quality maintenance.

With only 5 sites on 20 acres or so, the potential of failure is increased rather than decreased.

I'm the builder. Our goal is to have our hobby farm earn a little more money. We'll be fine with or without the RV sites. We would like to build something that we would enjoy, if we were in your shoes. I would want a shed, and I would install a washer and a dryer - so that's what I'm doing.

We also do not want to overdevelop our property. We are taking a less is more approach. We have more than twenty acres, but the field that the rv's will be in is a twenty acre field. If we like the business aspect of it we have another field mapped out for six more sites. That is all we would want to put on the property.

I'm sure that we could install hundreds of sites on the place, but we feel that it wouldn't be a nice place anymore.

I'm avoiding communal buildings because I will have to clean them. I only need five customers. If some sites sit for a while until we find the right folks that's ok.

I've settled on $375.00/month plus electricity for our rates. That's less than the KOA, and more than the trailer parks. Hopefully we can attract the right customer base at this rate. We'll adjust what we need to.


Thanks for the input. You took the time to contribute, and I thank you.

I'll check in Monday evening. Have a good holiday everybody.


Sounds as if your plans are set in stone, so there's really no need to seek further advice or for me to suggest any, just plough ahead. Only the future will reveal whether your business plan will be successful.

Oh, by the way, who cleans each storage shed/washer/dryer after an occupant leaves?

To my way of thinking you will be more likely to attract permenant residents rather than seasonal or snowbirds as occupants. All I know is, its colder in Chattanooga than in Atlanta.

atb

Chattanooga,TN

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Posted: 08/29/08 01:01pm Link  |  Quote  |  Print  |  Notify Moderator

It is a commercial, for profit development. We didn't buy this land to start this business. The income from the sites will be a nice bonus for us.

I'm heading to Dale Hollow Lake!


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DianneOK

Donnelly, ID

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Posted: 08/29/08 01:09pm Link  |  Quote  |  Print  |  Notify Moderator

atb....you go ahead and do what you are planning...we understand where you are coming from...see you in Jan.....


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atb

Chattanooga,TN

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Posted: 09/02/08 10:15am Link  |  Quote  |  Print  |  Notify Moderator

DianneOK wrote:

atb....you go ahead and do what you are planning...we understand where you are coming from...see you in Jan.....


I'm looking forward to it!

atb

Chattanooga,TN

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Posted: 09/02/08 10:16am Link  |  Quote  |  Print  |  Notify Moderator

4tumbleweeds wrote:

Do you intend to charge rent to these folks? Is it your intent to start a business? Talk with an attorney first. There are all sorts of issues jumping out.


Please elaborate. You have my attention.

Rick & Cheryl

Texas

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Posted: 09/02/08 07:49pm Link  |  Quote  |  Print  |  Notify Moderator

Since the legal aspect poster hasnt responded, I will make an attempt.

You are embarking on a commercial businness and that evokes several legal and tax issues that will eventually need to be addressed. Since you will be dealing with the public there is always the question of liability and how you will protect your other assets from any potential problems from the rv park.

One of the first issues therefore is how to provide maximum protection of your other assets and usually that would be to have a corporate umbrella to conduct rv park activities. A knowledgeable attorney could outline the options, but based on the anticipated revenue, I would predict a sub-chapter s corporation might provide the greatest flexibility in both liability and tax treatments.

Another issue is just to evaluate what you will actually need in terms of an insurance policies and to weight the cost vs benefit of such a policies. There are issues of liability and property damage, and perhaps other issues that need to be addressed.

There may also be other issues that relate to zoning, utilities and etc that being forewarned by an attorney may prove beneficial and perhaps to even prevent a costly disaster.

The right attorney can become much more than a legal advisor but also a valuable member of your business team to help you achieve your goals.

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