Bull Creek RV Park

Campground Expansion WIth Park Model Homes

Summary

Bull Creek RV Resort has a long history of providing families with memorable vacations and great amenities. However, it was time for them to take their grounds to the next level by offering a high-quality glamping experience. To achieve this, they contacted us here at Zook Cabins to help them navigate the landscape of doing a project like this.

Company Profile

Bull Creek RV Resort wanted to offer more high-end finishes to its RV park, yet doing a project like this seemed financially difficult. They knew it was something that needed to be done, but they were coming up short on ideas. In contacting Zook Cabins, Bull Creek was presented with the tried-and-true Revenue Sharing model. This allowed Bull Creek to bring in 6 new Park Model RVs at minimal cost to them. All of these Park models produce income when being rented out yet remove the hurdle of large upfront costs for park model homes.

Modern park models for sale in Branson MO

Business Plan

Bull Creek RV Park’s plan focused on bringing in Park Model homes to offer glamping experiences while keeping building costs low. All of the park models on the grounds are owned by private investors who share a portion of the revenue made with Bull Creek RV Park. This Business model is known as Revenue Sharing or RevShare for short.

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Park Models As Investments

RevShare Buildings

RevShare Buildings are located on the campground but are not owned by the campground. They are owned by independent investors who oversee the costs of maintaining the building and the initial cost of purchasing it. This benefits the campground in two ways.

First, the campground receives a financial benefit from the building being on the property through revenue sharing. This happens because the independent owner provides the campground with a percentage of the revenue they receive from their park model bookings. Second, allowing independent investors to work with the campground investors lowers the initial capital. This means the campground can host the building while only being required to take care of the grounds on which the building is located.

Still a little puzzled about how this model works? That’s ok. Let us guide you through the process a little bit more.

For example, all 6 Park Models utilize RevShare at Bull Creek RV Park. If each building costs $100,000*, the campground owners would need at least $600,000* to have the park models on site. By offering park models as Revshare sites, Bull Creek RV Park did not need to spend money on the park model homes. All they needed to do was ensure each site was prepared to accept the Park model. In turn, Bull Creek RV Park then set up a revenue-sharing program for the owners of each individual Park Model home. This allows the investors to make money on the rental while it is rented out, and the campground receives a portion of the proceeds for hosting the unit on their grounds.

In this situation, it is a win-win for all. There is less upfront capital for the campground, yet they still make money by hosting the unit. A location for the investor’s park model, which otherwise could face difficulty in finding a location to house it.

* monetary figures shown are for simplistic math representation only. The actual cost of your park model will vary on multiple factors.