Mark and Karla sold everything to purchase a $1.6 Million campground.

In 2016, Mark and Karla Lemoines bought a campground of America site in western Michigan for $1.6 million. Now, it’s worth $6 million and still growing.

Mark made $200,000 per year working for the Michigan state government, and Karla was stay at home mom Two of their four children were in college. Both were lifelong campers, but they’d never owned a business. 

Swayed by the promise of adventure, Karla agreed. Within six months, they found a franchised campgrounds of America site for sale in Benton Harbor, Michigan, a rural lake town nestled between Grand Rapids and Chicago.

The Lemoines sold their house on the market took out all their savings and sold everything they had to buy the campground, says Mark. 

That wasn’t their only expense Mark and Karla

Since buying the campground, they’ve spent another $1.5 million on renovations and annual upkeep costs up to $700,000 a year. Mark and Karla Lemoines sold their home, car and everything to buy a campground in Benton, Harbor, Michigan.

According to a recent estimate by campgrounds of America, the campground is now valued at $6 million. Last year it brought in $1.2 million in revenue, enough for the Lemoines to earn a combined salary of $150,000. They’re gathered $50,000 timid of their outdated annual household earnings, nonetheless convey they notion to protect operating the campground for a simple reason.

We saw the wear and tear of working for corporate America on Mark and on our family dynamics Karla says. Now, owning our business we’re the bosses. We create and manage stress. For us, it’s a healthier lifestyle.

Using all their resources

When Mark and Karla first decided to purchase the campground – officially called the Coloma/St. JOSEPH KOA HOLIDAY SITE – They were five years away from paying off their house in Rockford, Michigan. That means they’ll have to get creative to find their $1.6 million.

They sold their car, and made $1,500 selling their things in a garage sale. They took $20,000 out of their personal savings and Roth IRAs, and $200,000 from their 401(k)s.

They sold their house for another $180,000, and covered the remainder with a bank loan, they say. The Lemoines needed to bag creative to pay for their dream $1.6 million campground.

CNBC Make It

After selling their house, the Lemoines moved with two of their children into a four-bedroom apartment above the campground’s general store. It took time for their kids to adjust Karla says, but the couple knew the decision would eventually lessen the strain on their family.

Folks specialize in a in vogue job a in vogue paycheque and a correct employer is security, Karla says. Set aside had been thru a number of downsizings in his occupation, and I specialise in we magnificent realised you can’t continuously depend upon.

Adding non-traditional revenue streams

When the Lemoines bought the campground, it had been around for 42 years. It came equipped with cabins and designated zones for tents and RV parking, but nearly everything needed updating. He immediately renovated the bathrooms and completely redesigned the general store.

They built a “robust cafe,” says Mark, adding another source of revenue that doubles as a place for campers to grab a snack or coffee. The payoff wasn’t immediate.

In their first camping season — April to October — the park brought in $390,000. They put almost every penny back into the campground. The Lemoines added several upgrades to the campground, including glamping tents to build revenue.

The strategy worked: The campground’s annual revenue grew. So in 2021, they tried it again taking out a $300,000 mortgage to add five deluxe cabins.

The renovations drove more business to the campground, along with a pandemic-era push to get people outside that summer, Mark says. The site brought in nearly $1 million in 2021 revenue, roughly $150,000 more than it did 2020.

Mark and Karla Shifting how they think about money

In 2021, after all four Lemoine children officially moved out, Mark and Karla bought and moved into an 34-foot RV. They spend each offseason, from November to March traveling the country. The income from the campsite hasn’t exactly made them rich.

They consider the property their retirement savings since they paid off their 401(k)s for the purchase in the first place.

But one day they plan to sell the site – and even at today’s valuation, $6 million would represent a significant return on their investment. It’s not like we just took a big vacation or bought a house that we can’t really afford, says Mark. “We’ve bought something that will bring income, so the debt isn’t that much of a deterrent.”

For now, the Lemoines say they’ll keep operating and growing the campground, and traveling whenever they can.

Even without factoring in a potential sale, the lifestyle shift has been worth every penny, they say. “We describe it as a midlife reset where we just punch the button and did everything very different,” Mark says. “And when everything you own is literally underneath your feet, you got to figure out how to make it work.

We describe it as a midlife reset where we just pushed a button and changed everything, according to Mark. And you have to figure out how to make it work when everything you own is practically under your feet. 

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