Original article (2010): The
time may be ripe to buy fixer-upper golf courses -- whoops!
2014 - Think Again. We are not seeing a rebound in golf participation. I believe only golf course business experts should be investing in golf courses today.
(Be sure to review my Golf Course Buyer's Guide.)
five years I've been warning about the
financial pitfalls buying fixer-upper golf courses. However, many of
these conditionally challenged properties have been on the market at
"Where's the guy who fell off a turnip truck" prices. Not
many intelligent buyers would touch them at those prices. With reality
sinking in, many are now ready to sell at sensible prices. In my opinion,
it's time to be bullish on fixer-uppers and financially challenged golf
2010 I believe many fixer-uppers can now
be highly profitable, because prices for these golf courses have come
down significantly - some up to 75%. (Update:
I'm seeing golf courses available for less than $1.5 million worth close
to $3.5 million only 3 years ago.)
COURSE CLOSINGS MEAN BETTER OPPORTUNITIES: It's been reported there
was a net drop in golf courses in the USA in 2007
and 2008. Closed golf courses release rounds of play - a benefit
to those still in business. I predict many more. Buying
a golf course now, while prices are still down could be a good decision.
longer money pits! Now they can be opportunities!
you can buy right, fixer-upper golf course can be opportunities. Many
run down golf courses can be acquired for as little as 20 cents on the
dollar. Some can be bought for less than 1/2 their appraised value of
just a few years ago.
uppers I've seen usually have, more or less, the problems listed below.
Most are due to apathy - ownership tired of fighting banks, old members,
roots, city hall, mole crickets, environmental pressures, etc.
paths - often from protruding tree roots
holes in parking lot
grasses on greens
fire prevention system
entry (not disabled-friendly)
old trees interfering with play, disrupting irrigation, or dangerous
competition has better greens, tees, fairways, etc.
of these golf course properties need new blood. They need new ownership
with fresh ideas, enthusiasm, fresh capitol, even completely new personnel
in all positions.
NOW? I WAS DOWN ON FIXER-UPPERS UNTIL 2005
for fixer-upper golf courses have come down significantly. Golf courses
marketed two years ago for $4.2 million can be acquired for less than
$3 million in 2005. We've seen some courses drop in price by over 75%
since 2003. However, most
will need from $1/2 to $1 million in refurbishment and deferred maintenance.
a couple of examples. I cannot name these properties or their locations,
but both are available at Prime Sites USA, Brokerage, Golf Course Sales
Division. The first is an 18-hole, 7000-yard plus, top-line championship
golf course, once worth over $6.5 million - available for $3.5 million.
first sample fixer-upper golf course needs a new irrigation system.
The clubhouse needs decorating and landscaping. The parking lot needs
repairs and a new cap. Meanwhile, the business needs 'new owner' energy
to rejuvenate market share and player loyalty. The reward (in my opinion)
is a business with serious potential earnings - $500 to $600K based
on $2 million plus in sales.
cost to acquire and bring this sample to competitive condition
is estimated at $4.2 million.
Second fixer-upper is a 36-hole, top-line golf club with a full service
clubhouse, swimming pool, tennis center, fitness center, practice range,
practice green with a combined replacement value estimated at close
to $10 million. You can buy it today for $3.5 million - 35-cents on
golf course property once had over 650 members, and over $3 million
in annual sales. Refurbishments and face-lifts for this one might require
around the same capitol budget as the first sample one shown above.
Total cost including acquisition price and capitol = $4.2 million. In
our opinion, this golf course is capable of earning a net of close to
could be the year for fixer-upper opportunities.
you think you're ready, call me: 941-739-3990
or Email: firstname.lastname@example.org