What questions should I ask when I'm thinking about the purchuse of a older goulf course?

Question

I'm looking into a established golf course and it has been neglected a little but still playable.. what kind of things do I need to know b4 I go into a meeting with the seller

Answer 1

All good info so far.  But the ONE thing to look at first and foremost is the NUMBER OF ROUNDS PLAYED at this and the other local courses.  Are they flat, up or down?  The overall market will determine if even in the best shape, can this course survive.  Look at the SC market.  Over saturated with really good courses.  If the course has anything less than 35K rounds a year, its probably terminal.  More than 50K, and is inexpensive, you might have a deal.  BUT you also have to consider all the improvements (noted above) that might be involved.

Answer 2

Who designed and constructed it?

Are the plans still available?

Are the drainage and irrigation systems in good condition?

What is the yearly maintenance budget?

Clubhouse:

When was the roof last replaced / repaired?

HVAC system in good working order?

Kitchen in good order?

Plumbing in good working condition?

Check the financials and determine WHY the club was not kept up. Chances are the income couldn't support the maintenance, so you will have to make a new business plan which provides for decent maintenance and a good ROI (return on Investment).

The BEST thing you can do right now is to contact a local golf professional who knows the course and the area. he can tell you a lot of things about it. Same for local Superintendents. They know the competition well.

Answer 3

You should be, or you should have someone with you, that is proficient in agronomy. You need to understand the grasses, the soil and the availability of water for the course. Without the knowledge of these items you won't have a golf course.



After that you should be concerned with condition of the equipment used to maintain the course. These items aren't cheap and could be the reason that the course has been neglected.

Then would come the carts. Electric? Gas? Leased? Owned?

Then would come the clubhouse. It's probably in disrepair. How badly is it in disrepair?

Is there a large pro shop? How much inventory would you need to maintain a decent pro shop for your clientele?

Is a bar and restaurant included. Would you keep the staff that's there? What condition is the bar and restaurant? How much inventory(bar supplies, stoves, refrigerators, tableware, furniture,etc) comes with the purchase.

These are some of the essential items I would be concerned with.

Answer 4

If you're thinking of buying it to turn a profit, look at the location, and the number of rounds per year of the past 5 years.  If that number is declining drastically, then you may want to reconsider purchasing this golf course.  As everyone else said, also look into the soils and water availability of the course. Without good soil and availability to water, it will be almost impossible to keep the course up and running.  Basically, have someone experienced who knows what they're doing look at the entire operation.  This includes everything from the course itself to the yearly budget.  If you currently belong to a club, have the superintendent look over the numbers if he is experienced.  He will probably be the most certified person to help you out because he would know everything necessary to keep the course running smoothly.  I hope this helps.

Answer 5

Something tells me you might want to look at the books...and see about where the money comes from and where the money goes...

Of course, you should look at all possible revenue streams...and all possible money pits...

Good luck...

Answer 6

If you are thinking of purchasing an investment the size of a golf course, in any condition, and you are asking this sort of question on this sort of forum I would seriously suggest you stop at this point.  If you have money to burn give it to a decent charity.

Answer 7

If you are thinking of purchasing, make sure all the environmental issues have been  cleared, that there are alternative uses  available in the event the course doesn't prove profitable, that adequate water supplies exist on the premises and that the upgrade will be a work in progress. You should have a solid membership base to generate revenue for improvements.