How to Find Golf Courses for Sale
By Jeff Gordon
How to Find Golf Courses for Sale. Things You'll NeedReal estate broker with golf course expertiseIndependent consultant on golf course management If you have always dreamed of owning your own golf course, there are plenty of properties to choose from:
Instructions
Difficulty: Easy
Real estate broker with golf course expertise
Independent consultant on golf course management
If you have always dreamed of owning your own golf course, there are plenty of properties to choose from: Industry experts estimate that between 175 and 200 courses are available at any given time.
You will need some capital, since courses typically fetch from $1.5 million to $15 million. You can find properties selling for less than $1 million, and you may also find properties ripe for redevelopment and even some real bargains. The golf industry slumped in response to the real estate downturn and economic slowdown, as courses lost up to one-fifth of their value and course activity hit a plateau, creating a favorable market to shop in.
Step 1: Survey the marketplace by surfing the many websites that list courses for sale (see Resources below). This will give you a good idea of the range of prices and properties available.
Step 2: Define what you are looking for and the price range you are willing to pay. Consider the geography, course type, current operational quality and the business upside of courses you would be interested in.
Step 3: Consult with a broker who has experience in course sales. An experienced broker may be able to locate properties that aren't widely listed for sale and can help you zero in on potential targets.
Step 4: Examine all aspects of any course you find interesting. Factor maintenance costs, for instance, into the potential investment. Routine course upkeep can run from $450,000 to several million dollars a year.
Step 5: Make sure the property matches the business plan you have in mind for your operation. Consider whether you are looking to build a property up, scale it back or run it as is.
Look for undervalued properties near golfing hotbeds such as Scottsdale, Arizona and huge metropolitan areas, including New York, Los Angeles and Chicago. Poorly managed properties in these areas offer turnaround potential.
Look for courses in congested areas. If there is not much open space, how could somebody build a competing course?
Examine the redevelopment potential of the course. Perhaps there is extra land on the course perimeter that could be converted into housing.
Be wary of courses that are threatened by weather extremities and water issues.
Be mindful of the region's economic condition.
