Business Model
Marina
A marina is a facility used for the mooring of boats, but often also includes refueling, washing and repair facilities, marine and boat chandlers and stores and restaurants. There are roughly 12,000 marinas in the U.S. and they contain roughly 1.1 million boat slips for mooring. Marinas can be extremely elaborate or very simple, and come in all types of price points. Some marinas garner additional revenue with seasonal boat storage and even parking charges.
Marinas are limited in location to a body of water, of which there are three variety: oceans, lakes and rivers. Because of this, they can be found throughout America, and not just on the coasts. With 10,000 Americans retiring per day thanks to the aging of the Baby Boomer generation, and the fact that there are only a limited number of potential future marina locations, the ratio of supply and demand is favorable for this asset type.
Rent Land
Marketing
Re-Investment
Business Model
Marina
A marina is a facility used for the mooring of boats, but often also includes refueling, washing and repair facilities, marine and boat chandlers and stores and restaurants. There are roughly 12,000 marinas in the U.S. and they contain roughly 1.1 million boat slips for mooring. Marinas can be extremely elaborate or very simple, and come in all types of price points. Some marinas garner additional revenue with seasonal boat storage and even parking charges.
Marinas are limited in location to a body of water, of which there are three variety: oceans, lakes and rivers. Because of this, they can be found throughout America, and not just on the coasts. With 10,000 Americans retiring per day thanks to the aging of the Baby Boomer generation, and the fact that there are only a limited number of potential future marina locations, the ratio of supply and demand is favorable for this asset type.
Rent Land
Marketing
Re-Investment
Pros
Steady demand as boat owners must have some place to keep them
Limited supply in many markets
Often buying from moms and pops at lower prices and with seller financing
Ability to push rents in certain instances
“Happy” business model that focuses on wealthy people and their hobby
Opportunity for add-on services such as winterizing and food sales
Cons
Vacancy risk in recessions
Can be management intensive
Exposure to weather issues: both flooding and drought
Sometimes hard to get financing
Market Research
Articles & Reports
THE TOP FIVE WAYS TO ADVERTISE YOUR BOAT MARINA
It’s one thing to buy a marina and another to fill up all the slips. However, the keys to creating demand for your property are relatively simple and straightforward, and there’s no reason you can’t conquer this skill if you follow the established paths. So what are...
THOUGHTS ON SETTING YOUR SLIP RENTAL RATES
How do you properly set the rates at a marina? It’s not just guesswork. Instead, there’s a methodology that yields the correct rent based on market levels. So how do you do it? What’s the market rent? Before you can even start deciding on what your rent should be, you...
OWNING A MARINA CAN BE A LOT OF WORK BUT A LOT OF REWARD
To many investors – particularly those who enjoy boating – there can be no more exciting idea than owning a marina on a lake or ocean. But the fantasy does not always meet the reality, and there are some things that every potential marina owner should know before they...
updates
Forums & Deals
Learning about and committing to investing in marinas is only half the battle. The real challenge is finding the right deal to invest in. These resources will help you find the right deal to give a diligence focus and potentially buy. Remember that finding the right marina is all about volume, so the more potential deals you look at the better your odds of finding the right one. Don’t just look at a few options, look at as many as you can find. Success in marina investment revolves around making as many offers as possible.
Providers
Brokers & Lenders
No buyer can succeed without assistance from those who can source deals, as well as finance them.
Brokers are an important part of finding properties to buy. This is their specialty, and they typically have listings that are both “public” as well as “private” (those that they are not allowed to reveal to the public due to restrictions from the seller). Successful buyers contact all of the brokers in their niche to see what listings they may have, as well as to get set up in their email database for announcements of new listings. For a complete list of these brokers, click the Learn More button below.
Lenders are the key to successful real estate investing, as it is through the sensible use of leverage that rates of return are maximized. Banks generally all follow the same basic lending principles, but there are certain facts regarding each niche that have to be explored. In many cases – on deals of $1 million or more – you should explore using a loan broker (also known as “capital consultant”) to obtain a loan for you for a fee. This is extremely important on CMBS “conduit” debt and Fannie Mae/Freddie Mac “agency” debt. On deals under $1 million, you should focus on seller financing as well as local banks that know the market and are aggressive in lending to their base. For a complete list of lenders in this niche click the Learn More button below.
Education
Books & Courses
Before you risk any capital, your first step is to learn everything you can about how to profitably invest in this niche. To accomplish that, there are both free resources as well as books and courses to aid in your quest for mastery of this real estate sector. We recommend that you take advantage of every opportunity to learn as much as possible before you invest your time and money. The most important trait of a successful investor is being able to quickly separate deals into a “might be an opportunity” stack versus a “not an opportunity”, as well as know the steps to conducting superior due diligence. In niche investing, knowledge is power – so get as much of it as you can.
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