Turning your property into a glampground is thrilling, and while financing can seem daunting, it’s manageable with some creativity and knowledge. At Ferncrest, we weren’t flush with cash or big loans, but we made it work and want to share our strategies with you.
Whether you’re considering self-funding, loans, or investors, we’ve got insights to help you navigate your options and start your journey.
Financing Your Dream
Financing is a crucial step in your glampground journey. Whether you prefer the control of self-financing, the potential of loans, or the support of investors, there are a multitude of ways to get the job done. And chances are you will use a combination of different forms of financing in the end.
We financed Ferncrest using a mix of personal funds from our small hotel and credit cards, proving that a significant bank loan isn’t mandatory.
Start Small, Dream Big
Diving into the glampground business doesn’t require a massive initial investment. Starting small allows you to create a personalized and unique experience, test the market, and expand gradually.
A premium glampsite (as in 1 rentable unit) can be established for $10-15k, not including land and infrastructure, offering a strong and quick return on investment.
Smart Financing: Credit Cards and Bank Loans
Credit cards can be a strategic financing option, especially with cards offering extended interest-free periods (such as the Amex Plum card). We utilized them for over $100k of Ferncrest’s initial costs. Additionally, with a strong credit score and stable income, unsecured personal loans up to $350k can provide substantial funding without risking assets.
While SBA loans offer favorable terms, their lengthy approval process might not suit everyone. If you are willing to start with a mini-glampground, we recommend you avoid the SBA.
Insider Tip: Secure Early Bookings
The hospitality industry offers the unique advantage of generating income even before full operation. By creating a compelling online presence and utilizing advance payments, you can start generating cash from your glampground to help finance the final stages of your launch.
We did this at Ferncrest and collected nearly $75k before we opened. This cash flow allowed for us to pay off credit cards and make payments to our contractors who were still performing work.
Setup your Property Management System and website at least 2 months before opening to take advantage of this.
Ferncrest’s journey to opening cost us $350k, financed through savings, credit cards, and pre-booking revenue. By wisely budgeting and starting small, you too can embark on your glamping adventure.
Happy Glamping!
Brian & Joanna Linton
