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Listing #1 - Canoeing Resort On 9.5 River Front Acres - $950,000 Summaries
A Riverfront Operation Offering Cabins, Camping Sites, Canoe Rentals $950,000
Please Do Not Call Resort With Questions. Call Gary Cooley. Please respect that owners do not want calls, which is why they hired a real estate agent. Thank you! Operation Summary Tall hardwoods, a smooth riverfront lawn, and a shallow, safe river create a park-like setting where guests enjoy swimming, fishing, cook-outs, and relaxing with toes in water. Southfork Resort promotes itself as "The Family Place". Family reunions, families on vacation, church groups, scouts, and groups of friends canoeing together comprise the majority of guests enjoying this resort. This is not an upscale resort. Instead it offers budget facilities which are clean and well maintained. This is exactly what many people want. They don't want to pay for "fancy extras", yet they don't want to stay in a "dump". Clean, comfortable, and basic is all they want. Of course this demand makes the resort less expensive, and easier to maintain, than facilities offering higher end features. Area Tourism - Each year some 350,000
tourists visit the Spring River area, mostly to enjoy canoeing and fishing on the region's
rivers. Shopping in nearby quaint Ozark communities is also popular. The area's two main
attractions after the rivers are Old Hardy Town and Mammoth Spring State Park. Why People Float & Fish - The Spring River area of Arkansas has been a draw for thousands of people every year. During summer weekends some 15,000 people come to camp, lodge, and canoe. Indeed this activity is a major draw throughout the Ozarks, and accounts for millions of dollars in recreation sales every year - even in recessions. The scenery is beautiful, the weather is usually very good, people enjoy canoeing with friends and family, and it is very affordable. When the weather cools fishing becomes excellent for trout and smallmouth bass. Recession Effect - As has been proven by three years of solid gross revenue growth, this business is recession proof. Floating rivers and fishing in this area is very economical. So is lodging. You can sleep for $8 a night per person in the camping sites. Ten people can rent one side of the Bunk House for $17 per night each. Or if they want to spend a little more, those same ten people can rent the River Home Cabin for about $22 a night each. A canoe trip is about $40 for two people. Thus 2 people can lodge and canoe for 24 hours for about $28 to $42 each. Guests usually bring their food and cook in the cabins, or outside. In other words, floating the rivers is not only regarded as great fun by thousands of people, but it one of the most affordable outdoor activities.
Future Outlook - A small Ozark resort is a very good business to own for several reasons. The Arkansas Ozarks and the Spring River Area are popular tourism destinations because they are fun, and they are affordable. During the recession many Ozark small resorts experience growing income. Counting the current recession the area has seen 10 recessions since the end of World War Two. In each recession, with the exception of one year in the 1982-1983 recession, area tourism prospered due to the affordability of area recreation and lodging. All current indications are that it will be many years before the average American Family will once again enjoy pre-recession income and credit levels. Further, a large segment of American Families are returning to a simpler, less materialistic lifestyle. These trends play well into a growing Ozark budget tourism industry. Financial Statements - I will discuss on the phone gross sales, gross expenses, and net operating income in relation to a 10% annualized rate of return (capitalization rate). Complete financials are sent only to prospects who have first pre-qualified with an area bank. I will help you with the pre-qual process, which is really quite simple. Lending institutions outside the area do not make loans on small resorts. ( Real estate agents please note that the pre-qual requirement applies to all prospects.) The owners do keep very good financial records which are managed by a CPA. Loan Requirements - Cash needed is 30 to 35 percent of the contract purchase price. The loan down payment is 20 to 25 percent, any bank making the loan will require a cash reserve equal to 10 percent of the borrowed amount, and you'll need $3,000 to $5,000 for various closing costs. Add it all up and it amounts to 30 to 35 percent of the agreed upon purchase price. Owners are not interested in "nothing down" transactions, and owners do not wish to share competitive information with indivduals who have not pre-qualified. Cash Purchases & 1031 Exchanges - If you plan on paying cash if interested, let me know that you will not be applying for a commercial loan. Regarding 1031 exchanges, in the past this property was purchased via a 1031 tax deferred exchange. I was the agent who represented both the buyer and the seller. One of America's top five 1031 lawyers handled the exchange, so I have good exchange documents and experience with this property.
Labor Requirements - A husband/wife team, along with 2 to 3 part-time employees, can run Southfork Resort. Two couples and one part-time employee could run the operation as well. One person is needed in the store office. One person is needed on the grounds. Two people, possibly three, are needed to run float shuttles. During high season it works better to have at least two people in the store office due to the high volume of incoming telephone calls. One needs to be reasonably physically fit, but not athletic. Endurance, not physical strength, is what is needed. During the high season you will do a lot of walking and moving about for up to 14 hours a day. Government Regulations - Small resort operations suffer little county, state, or federal governmental regulation. Arkansas is a Right-To-Work state, so unions are not involved. There are no county building codes, or zoning regulations, so there are no building inspections. Since all lodging cabins are small, they do not require sprinkler systems, so there are no fire inspections. The only inspections made are conducted by the county health inspector, who simply visits the store to see what food items are being sold, and if they are being sold properly. Since all foods sold in the resort store are pre-packaged, meeting health codes is simple. Life jackets must be in watercraft by state law. Well water samples must be pulled and mailed in for testing on a monthly basis. License and permits are inexpensive and have no special requirements for annual renewal. State and Federal laws governing part-time employees are relatively easy to meet for this operation, all of which are currently in place. It is also possible to use independent contractors for part time labor. Location Summary - Southfork Resort, which takes it's name from the South Fork of the Spring River, is 8 miles south (as a crow flies) from the Arkansas-Missouri state line near Cherokee Village, Arkansas. In the north-east section of an Arkansas map, look for a little spot called Saddle, which is just a few houses and a church. Where Arkansas State Highway 289 crosses the South Fork of the Spring River is the spot you are looking for. More location details GPS - Copy and Paste these GPS coordinates in
Google Maps to see the exact location: Neighborhood Summary - The resort is in a scenic, low population rural area. Beef cattle farms with rolling hillside pastures are your neighbors, along with a very few residential properties. The terrain ranges from around 500 feet to 800 feet above sea level. Technically the area is part of the Ozark Mountains, but a more accurate description would be "Ozark Hills". You'll drive roller-coaster type roads, rising and falling with the hills. Highways are scenic drives through an even mixture of beautiful hillside pastures and hardwood forests. Unlike other resorts in the area, Southfork is not near noisy train tracks. The only noise you will hear are your guests, a barking dog from time to time, and vehicles on the highway. The highway traffic is not steady. Average annual traffic count is about 500 vehicles per day, which on an average summer day is about one vehicle every two minutes. Pollution - The air, water, and land are clean and free of pollution. There are no dumps or trash piles. There are no records of any underground tanks. There have been no chemical spills on the property, or near the property. There are no known hazardous wastes on the property. There are no high voltage electrical transmission lines on, or near the property. Civil Amenities - Restaurants, banks, schools, medical services, and other civil amenities are 10 to 15 minutes away in the towns of Ash Flat, Cherokee Village, and Highland, Arkansas. More of the same can be found 15 to 25 minutes away in Hardy, Salem, and Mammoth Spring, Arkansas. A Super Walmart is 15 minutes away. Two well maintained 18 hole golf courses are 15 minutes away in Cherokee Village. The Highland School District school bus stops at the property. More Civil Amenities & Attractions
Owner's Home - The 3,260 sqft. 3 bedroom 3 full bath owner's home, built in 2007, has wrap-around decks and open floor plans. It has two levels, the main floor, and a fully finished walk-out basement. The main floor has a large open great room with kitchen, dining, and living areas, all with deck doors. The great room has vaulted ceilings with a floor-to-ceiling river stone working wood-burning fire place. The lower level has a large family room, office, and utility room, with three entrances. More Owners Home Seasons - High Season typically runs from mid May through Labor Day. During high season you will work long days, typically from about 6:30 A.M. to about 9:30 P.M., especially on weekends. Week days are not as busy. Shoulder seasons are from March 15 to mid May, then from September to November 1. Low season is November, December, January, and February. If you want, you can shut down for those four months of the year. If you stay open the amount of business activity is low. Cabins - Southfork Resort has a total of eight separate cabins which include 3 one-room studio cabins, 1 one bedroom cabin, 3 two bedroom cabins, and 1 three bedroom cabin. Total lodging capacity is about 64 persons. See Cabins Camping Sites - A total of 22 camping sites run along the riverfront. All sites have picnic tables and camp fire pits. Seven sites have electrical connections, of which one site also has a water connection. During busy weekends campers are allowed to pitch tents in additional spots. A bath house provides showers and toilets for campers. See Camping Sites RV Sites - Two RV sites have electrical, water, and sewer connections. RVers also use the camp sites having electrical service. A dump station by the bath house allows them to use the RV holding tank which they drain at the dump as needed. See RV Sites Fishing - Trout and smallmouth bass fishing is good in the area. Fishing is good all year, but tends to be better in the cooler months when there are fewer people floating the rivers, and when water temperatures are also cooler. Fisherman can be a good source of cool weather income. More on Fishing Watercraft & Shuttles - The operation typically has about 70 canoes, 30 kayaks, 10 rafts, and 40 float tubes. Each has related life jackets, paddles, and trash nets. Shuttles typically include 3 school buses and 2 passenger vans. The exact number and size of shuttle vehicles changes from time to time as all are purchased as used vehicles. More on Canoeing Store And Office - The store building has two larger rooms, 2 small storage rooms, and a half-bath. One of the larger rooms is the retail floor. Commercial refrigerators and freezers, retail shelving, and display racks transfer with the sale. Inventory is limited to items which turn fast and include snacks, ice, basic sundries, soda, tee-shirts, ball caps, bait, fishing tackle, and seasonal items. The resort also sells Arkansas fishing and hunting licenses. The second larger room serves as the resort laundry and private office. This room has also served well as a child care room. See Store
Property Activities - After a day on the river most guests are ready to relax. However, not everyone in a group goes canoeing or floating. These guests stay at the resort, or go shopping, etc. Those who stay on site set up chairs in the shallows and watch their children swim and play in the river. Others fish for smallmouth bass, which are numerous and grow large in this river. The 800 foot long riverfront lawn is free of rocks and has a sandy soil base. Some guests sun themselves here, others relax under the trees and prepare cook-outs for the rest of their party. More on Site Activities Area Activities - Guests have a wide range of restaurants to choose from within a short drive of the resort. ATMs and banks are also close by. About 15 minutes away is Mammoth Spring State Park at the world's tenth largest natural spring. A large trout hatchery is at the State Park site. An hour away is the Ozark Folk Center, as is great shopping for art and unique Ozark gifts in Mountain View, Arkansas. Trout fishing is excellent in the nearby Spring River. More on Area Activities and Attractions Expansion Potential - There is considerable land available for adding more cabins. The market demand is high for cabins, as evidenced by all the cabin business Southfork turns away because they are full. However, in order to add more cabins, or even more RV sites, an additional septic system will need to be installed. This will require an alternate system, not a standard gravity flow system. Commercial treatment plants which would work at Southfork will cost somewhere between $15,000 to $25,000. However, these units can process upwards of 1,500 to 2,500 gallons per day. A good way to "bootstrap" into more and larger units is to start with the very popular "camper cabin". This is a small unit with four wood walls, wood floor, and large enough to sleep four people. They are small, and are typically referred to as a "solid tent". They are basic structures with no running water ( they use the bath house). They do have electricity and air conditioners, small refrigerators and microwaves. They cost about $3,500 to $4,500 to build and furnish. They rent for about $50 per night. Putting these in place of the camping sites is a very good way to build gross sales. Owners Home - >>>
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