Buying a golf course
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I know this because the golf course I live at (I'm a member at a different club) was up for auction through this site recently, but was pulled off before it came up to bid. It's a good place to dig around a bit, but certainly doesn't have all the details you are looking for.
I wouldn't consider buying one unless I had several million dollars laying around and wanted a course I could play as my own and could make private and limit it to people in my circle of friends to play on.
If you are considering buying one to make money at there are many other more enticing opportunities out there that have less risk, and cost less to get involved in.
Either way you slice it (no pun intended), a golf course should not be expected to make money, or become profitable unless you've got a 10 year window in which to invest in it. And throw in the uncertainties of weather, climate, and playability and you have to overcome a TON of obstacles just to be successfull.
Nowadays you're seeing a big trend towards course ownership in courses designed by big named tour pros, such as Jack Nicklaus, Fred Couples, Gary Player, etc. I guess people figure that if you put big Jack's name on their course then all of a sudden their grass is just a bit greener then the local muni down the street, therefore allowing them to charge $125 just to play the place on a weekday.
Just my two worthless cents. Take it for what it's worth.
Golf business idea
Figured I'd need about $500K to start it up.
Any sponsors out there ?
been thinking the sameI don't know if this has been done or is being done right now but to build a par 3, 9 or 18 hole course in Arizona and put lights up for night golf. Maybe only keep it open for thursday-friday-saturday pay in the summer and run it from 4pm-10pm. Keep it open from 12pm till 8pm in the winter.
AZ might be a better place cause the bugs will eat you alive down here. There is a bit of a learning curve to playing at night too. The ball has shadows, distances are harder to judge, and greens are very hard to read.
If I could afford a golf course I wouldn't be bothered about profits id do it for the love of the game and the enjoyment I would get out of it, If you are buying one your obviously a millionaire anyway, why do you need profits and if you are buying it just for that, I would say it would not be a brilliant investment as it would take years to get your money back
Ahhh, just the type of stuff I dream about. Here in Wisconsin we have a neat little place with a heated stall driving range and a lighted par-3 course. You can buy luminescent balls there for extra visibility at night under the lights. I find the main problem with the par-3 is with the tees: your options are to hit off a mat or use the rubber tee that is inexplicably set at the proper height for a deep-faced fairway wood (aaargh!).
I would love to build, or find, a nice 3-hole golf course. Par 4, Par 5, and a Par 3 finish, maybe 1100 yds. No heavy foliage to hide lost balls, just water. I would pay 50% of a standard 9 hole green fee just for the convenience of getting my fix in a half-hour or so. With some cleverness you could arrange extra tees to create a Par 4/5 and a Par 3/4 and wind up with a Par 36 9-hole layout on just 3 or 4 acres.
I've heard about the driving ranges of legend in Japan, but never seen it in full detail. I'm imagining a heated stall range with the auto-tee feature (tee pops up out of the ground with a new ball after every drive), and then why not an integral launch monitor? Better yet would be some technology that actually gives you yardage on each shot, as we all know at the range anything out past 250 yds is a total guess as to carry and roll no matter how many markers are out there. Heck I can't even tell how far my short irons are going to within better than 15 yds.
The expected profits are determined by a couple major factors. The first is, can the course generate the rounds and revenues needed to cover not just the daily operating cost, but cover your courses fixed debt. The second factor relates to the first, is your course going have good playing conditions. Your course must have these condition if you expect returning customers. If you own a property that is making a profit, you have to reinvest in the course. This will take away from your personal gains in the short term, but help insure the long term success of your business. I am a15 year PGA member, 13 of those working for large golf management companies, an have spent the last two years working with banks and owners of distressed golf courses, all these properties have three things in common. Poor facility management, lack of reinvestment in there courses and high water cost. Where should you look to buy a course?....since the down turn in the economy, private equity groups and large management companies have been looking for properties with documented 3 million in yearly revenues and 1 million in population within 30 minutes of the course. Basically courses that mainly failed due to poor course management . I believe and know of properties that don't fit that model that can be purchased at unbelievable prices and be a profitable and valuable addition to some ones real estate portfolio. Look South, (not Florida) year around revenue without crushing water costs. If you would like to know where to find the best value still on the market email me at firstname.lastname@example.org. Good luck
Just though I'd let you know that this thread is closing in on a decade since it's last post previous to yours. Nothing wrong with bumping old threads, in fact the mods prefer that to multiple threads about the same thing, but you're probably wasting your time by addressing the OP.
Welcome to TST.
Our Arcadia golf course (18 holes of par 3, mats on every hole), driving range with full distance range balls makes money hand over fist. It's lit for evening/night golf. They charge a lot more than the local 9 hole courses.
I don't understand it. The two 9 hole courses in the next town town are amazing. Great views, long holes (one even has a 508 yard par 5).
Mediaguru is absolutely correct, and I don't understand why.