REVAMPING RETIREMENT: REAPING REWARDS FROM INVESTING IN RV PARKS By Frank Rolfe
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The conventional American retirement plan is often less than desirable, with current statistics painting a rather bleak picture for U.S. retirees: an average social security payment of $14,400 per year, average savings of $88,000, and approximately 70% of retirees receiving little to no pension. Add to this, current CD rates do not even keep with inflation – so you’re not actually getting anywhere as far as wealth-building. The question then arises: how can you secure a comfortable retirement under these conditions?
RV Parks as High-Yield Investment Options
Enter RV parks, a promising alternative investment that offers potentially high returns. Buying an RV park at a 10% capitalization rate (the projected return on the total investment) and financing it with a 20% down payment at 7% interest (the current standard bank rate) can yield a 20% cash-on-cash return on your investment. Now you’re well exceeding inflation and actually making a positive return and building wealth.
Moreover, an RV park can generate a significant cash flow from daily operations. For instance, if you purchase a property with a 50% occupancy rate and manage to increase it to 75%, your returns can inflate by 50%. Such a high yield is not comparable with traditional investments like stocks and bonds. Hence, an RV park can offer a viable path to a comfortable retirement, especially when traditional methods fall short.
RV Parks and Market Megatrends
The potential of RV parks aligns with current and forecasted market trends. Every day, 10,000 Baby Boomers retire in the U.S, with a considerable number of them looking to purchase and utilize RVs for their retirement years. Consequently, RV sales have seen an upswing of almost 30% in recent years. Experts predict that this trend will continue for more than two decades. This megatrend represents a significant opportunity for RV park owners to thrive.
The Rewarding Lifestyle of an RV Park Owner
Beyond the financial rewards, owning an RV park offers a dynamic and fulfilling lifestyle. As an RV park owner, you assume various roles such as a travel agent, philosopher, salesman, executive, problem-solver, and outdoors enthusiast, all in a day's work. You essentially become the mayor of your own little community, calling the shots and crafting your own schedule. Many RV park owners confess, "I'd do this for free, and I can't believe I'm making money with it". Whether you enjoy multitasking or prefer a slower pace, an RV park can provide a gratifying venture. Moreover, you have the freedom to delegate tasks and work as much or as little as you desire, all while enjoying a beautiful daily setting.
Conclusion
Investing in an RV park presents an ideal alternative to traditional retirement plans. Unfortunately, this promising option remains unknown to many retirees. Don't miss out on this exciting and rewarding opportunity. An RV park can serve as the perfect transition from a working life to retirement, potentially rescuing a dire financial situation in an exhilarating and fun way. Consider this unique investment strategy and witness the potential benefits for yourself.
By Frank Rolfe
Frank Rolfe has been an active investor in RV parks for nearly two decades. As a result of his large collection of RV and mobile home parks, he has amassed a virtual reference book of knowledge on what makes for a successful RV park investment, as well as the potential pitfalls that destroy many investors.