What is a CAP rate for Minnesota resorts? Before we understand the answer to this question, buyers and sellers should understand there are many different standards that are used in commercial real estate valuation and appraisal. There is the GIM (Gross Income Multiplier) approach, the NIM (Net Income Multiplier) approach, the replacement cost approach, the EMV (estimated market value) approach and the...
What do you think about when buying a Minnesota resort or campground? One of the first steps in buying a Minnesota resort or campground is deciding what characteristics will be just right for you and your family. For many people, their idea of a classic Minnesota resort is a small number of cabins and/or RVs, a lodge, and a pristine shoreline with great swimming and fishing. However, some families...
Does this resort cash flow? This might be the question we get asked the most about the resorts we have for sale. It is an excellent question and if you are asking this question, it means you know that resort ownership is not all about the lifestyle - you have to pay the bills too! What you may not realize is that resort ownership isn't analyzed like other opportunities. So, what does it mean...
What is Cash On Cash (COC) return for Minnesota resorts and how does this term relate to valuation? Unlike the Capitalization (CAP) Rate for resort valuation, the Cash On Cash (COC) return for Minnesota resorts is not nearly as nuanced. The COC return is also called the Equity Dividend Rate. Simply stated, this is the rate of return on an investment measured as the ratio between the cash flow...
Finding the "Perfect" Minnesota resort for sale is a lot like finding the "Perfect" house. It is all about finding the place that has the right combination of amenities and neighborhood that fit your personality and the lifestyle that you want. Some resorts, like some houses, need some work. In fact, just like everyone has a room that they want to remodel - most resort owners have "rooms" they want...