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 mikebarber@pga.com. Good luck
