- Hard money loan. Hard money loans offer quick closing and lower LTVs, but are typically repaid over just a few years, which can be difficult for some borrowers.
- Conventional Financing. With conventional financing, banks will typically offer you a recourse loan to help get you started on your golf course.
- Small Business Administration (SBA) Loans. You can choose between an SBA 7a or SBA 504 loan. ...
- Life Insurance Companies. You’ll find that life insurance companies commonly offer non-recourse loans, meaning that you won’t be liable in the event you default on your loan.
- CMBS Loans. Similar to life insurance companies, CMBS or Commercial Mortgage-Backed Securities loans, also commonly offer non-recourse loans where you can avoid personal liability in the case of loan default.
- Private Equity Financing. This is one of the most popular financing options for businesses. Private equity financing allows you far more flexibility than traditional loans.
- Bridge Loans. For golf courses that may not qualify for permanent financing, a bridge loan may be the ideal solution– especially for courses that are looking to undergo a speedy ...
What can I finance for my golf course?
Funds for improvements such as a clubhouse expansion or renovation, the purchase of new maintenance equipment, an irrigation system overhaul, or upgrading locker rooms may now be financed at long term mortgage rates. We hold and service all our golf course loans so you will always have direct contact with your lender.
How does the process of buying a golf course work?
The process usually starts in one of two ways: a prospective owner has a specific golf property in mind (having played there or heard about it from a friend), or the person knows they want to buy a course and starts by talking with a broker who specializes in golf course properties.
Why choose a golf course lender?
Because we know the nuances of golf course operations and make our own loan commitment decisions, we can execute programs more quickly and with greater flexibility than traditional lenders or larger institutions.
How much does it cost to buy a golf course in Florida?
“And then I did it.” The $3.8 million Doyle paid for the course, in Florida’s third-biggest market, is slightly more than the average purchase price ($3.1 million) for the 114 golf course sales tracked by Leisure Investment Properties Group last year. And the majority of transactions in the current environment involve first-time buyers, like Doyle.
How profitable is owning a golf course?
Profitable golf courses are generally selling for six to eight times EBITDA, while courses that aren't profitable tend to sell at 0.8 to 1.4 times revenue.
How much money do golf courses make?
Golf Course Owners make between $30,000 to several hundred thousand dollars per year. However, golf course owners sometimes will lose money if the course has a bad year. Overall, the golf course industry is very volatile, and there is no guarantee that money will be made.
Should I invest in a golf course?
Golf course properties typically have great resale value, selling at two to three times that of an average home – which is a magnet for investors.
Do golf courses actually make money?
The most common income streams are green fees, membership fees, pro shop sales, and food and beverage sales. While increasing membership fees or green fees might seem like a good way to increase revenue, it might put off more golfers than the additional income earned.
How do golf businesses make money?
How to Make Money Playing GolfGet a Job as a Golf Pro. If you generally enjoy the game of golf and think you could handle a career in the industry, becoming a golf pro is a great choice. ... Play in Golf Tournaments. ... Place Friendly Bets with Your Friends. ... Become a Mystery Shopper. ... Get Sponsorships/Become an Influencer.
How many acres is a typical 18-hole golf course?
150 acresAt the individual level, an average 18-hole golf course covers 150 acres, approximately 100 (67 percent) of which is maintained turfgrass. This area is predominantly comprised of rough (51 acres) and fairways (30 acres).
How do you value a golf course?
As with most property types, golf courses can be valued via the income approach, sales approach, or cost approach. Each method has its limitations. Given the specialized nature of golf course properties, the application of the comparable sales approach is preferred.
Is gold a good investment?
Although the price of gold can be volatile in the short term, it has always maintained its value over the long term. Through the years, it has served as a hedge against inflation and the erosion of major currencies, and thus is an investment well worth considering.
How long does it take to build a golf course?
The actual construction time for a golf course from ground -breaking to opening can be from one to two years, depending on the weather and amount of equipment used. But today it often takes an additional one to two years to obtain all of the permits and required approvals before construction can begin.
How many acres are needed to build a golf course?
“This means an 18-hole course of all short par 3s could be built on as little as 30 acres, while an intermediate length or executive course of 18 holes of par 3s and 4s would require 75-100 acres, and a full size par 72 course would need 120-200 acres.
How many gallons of water do golf courses use?
In California, an average 18-hole golf course sprawls over 110 to 115 acres and conservatively uses almost 90 million gallons of water per year, enough to fill 136 Olympic-size swimming pools, said Mike Huck, a water management consultant who works with golf courses statewide.
How can I make my golf clubs profitable?
Strategies to Boost Revenue at Your Course This SeasonSell packages.Custom memberships.A well-designed loyalty rewards program.Branded merchandise.Sponsorships.Add an eCommerce page to your website.Open up an online booking channel.Upselling and cross-selling.More items...•
What is conventional financing?
With conventional financing, banks will typically offer you a recourse loan to help get you started on your golf course or resort project. Conventional financing offers more flexibility in both pricing and your loan structure along with a more personal relationship with your lender.
What is private equity financing?
One of the most popular financing options for businesses, private equity financing allows you far more flexibility than traditional loans. With few stipulations, private equity lenders are free to lend on whatever they see as a viable business opportunity and set their own loan parameters.
Can life insurance be used on golf courses?
Life insurance companies avoid ground-up construction, distressed properties, or renovation projects. But, if your golf course or resort is high quality, and in a major metropolitan area, you’ll have better results with your life insurance loan .
Is a SBA loan good for a project?
If you’re looking to buy an existing property or need to purchase equipment to jump start your project, an SBA loan might be a good choice. However, if eliminating personal liability is your main priority, working with a life insurance company or a CMBS lender might be your best bet.
How much did Doyle pay for the golf course in Florida?
The $3.8 million Doyle paid for the course, in Florida’s third-biggest market, is slightly more than the average purchase price ($3.1 million) for the 114 golf course sales tracked by Leisure Investment Properties Group last year.
What is the National Golf Foundation's GolfMAP system?
The National Golf Foundation’s GolfMAP system, for example, provides a detailed look at demand-related variables such as participation rates, golfing households, rounds played, interest among non-golfers, and household income in a particular region.
Where did Dan Doyle Jr. play golf?
E very day for almost 20 years, Dan Doyle Jr. passed the same public golf course near Tampa, Fla., while driving his kids to school or heading to the office. The town-owned Belleview Biltmore Golf Club in Bellaire was the venue at which Doyle learned to play the game as a youngster and he’d frequently feel pangs of disappointment ...
How long can a new owner of a golf course live without money?
Moreover, the new owner should be able to support themselves for a period of six months to a year without drawing money from the golf course. There may also be capital expenses that may be incurred upon acquisition. Some of these may be known from inspections done prior to acquisition.
Can a golf course have positive cash flow?
One should not count on a golf course being able to provide a positive cash flow immediately, especially if under new management. Too many variables, including uncontrollable ones such as the weather and the timing of the turnover, can make the f irst several months difficult.
What to do when buying a golf course?
The first thing to do when you want to buy a golf course is to carry out financial analysis on the business. A potential buyer’s first analysis of a business will likely be numbers driven. Buyer will evaluate income and expense in gross, by categories, by trends, etc. If you are interested in the business, you should ask for detailed financial information.
When buying a golf course, should a buyer review existing contracts?
When buying a golf course, a buyer should review existing contracts to determine which can and which must be assumed by Buyer. When leases expire and whether Buyer can negotiate more favorable terms with lessors will factor into Buyer’s analysis and the purchase price. There may be some contracts you will require a Buyer to assume, and you need to have your list of deal points prepared before negotiations begin.
What is conventional financing?
With conventional financing, banks will typically offer you a recourse loan to help get you started on your golf course. Conventional financing offers more flexibility in both pricing and your loan structure along with a more personal relationship with your lender. This personal relationship allows your lender to better customize your loan to meet your specific business goals and provide ongoing loan management support as your needs evolve.
What is hard money loan?
In some cases, the borrower can use bank statements instead of tax returns, and can qualify with a FICO score as low as 500. In exchange, the lender will offer a higher interest rate but may be able to close in a matter of days or weeks. Hard money loans are equity based, meaning that LTVs of 50% to 65% are common.
Is private equity financing more flexible than traditional financing?
This is one of the most popular financing options for businesses. Private equity financing allows you far more flexibility than traditional loans. With few stipulations, private equity lenders are free to lend on whatever they see as a viable business opportunity and set their own loan parameters. Essentially, they have a lot of buying power and are willing to take on more risk than other lending sources.
What is Affirm?
Affirm is a financing service that lets you pay for your purchase over time instead of all up front.
How long do I have to pay?
You have options for how long to pay off the loan amount. Learn more HERE.
What are the interest rates?
The interest rates range from 0-30%, depending on what you qualify for. When you checkout, you'll see the total amount you'll pay, including interest, so you know exactly how much the total will be.
How do I make a payment?
Before each payment is due, Affirm sends you an email or SMS reminder with the installment amount that is coming due and the due date. You have the option to sign up for autopay, so you don’t risk missing a payment.
What if I return the purchase?
Let's face it, not everything we buy fits right or performs the way we would like. If you need to return an item, contact us and we’ll help you get the process started. For complete details on the refund process, including how low it takes, please visit this Affirm FAQ page.
Have other questions?
This is a high overview of the Affirm financing program. For answers to other FAQs, please check out their Help Center. You can also contact us with further questions.
