Investors, are you interested in golf course investments?
These are tough times for golf courses, both public and private operations. As rounds and revenues decrease, golf is facing significant financial challenges of aging memberships, declining play, reduced marketing, lack of capital, etc. Golf courses need to stand on their own and not be treated as an amenity for other purposes. Those courses that are able to hold on will be more successful as additional courses close. The golf industry has gone through a difficult period, but sometimes silver linings appear in dark clouds. Although any investment has risk (golf courses more so), risk can be reduced with structured opportunities.
Is an investment in golf courses a high risk? Yes, the majority of golf course investments have been high risk since 2008. Primarily due to ineffective management, inadequate marketing and improper market positioning.
Are there exceptions? Yes, but they are far and few between. So, if investing in golf courses is very risky – why are people still investing? When golf and the economy are in a downturn, there will be opportunities. These opportunities vary in amount of investment from $250,000 to over a $1,000,000. However, these opportunities must be realistic, reasonable and attainable. Good market research needs to support investments with lower and/or acceptable risks. Investors want investments that are based on relative data, informed judgment, and common sense.
How does one find these investment opportunities? Spear Consultants assist clients in determining what is an acceptable opportunity for investments. Spear Consultants has Investors, but wants additional investors interested in the upside potential. If there ever is a time to invest – invest in good projects in a down market. All investors are asked to sign a Confidentially Agreement and call for additional information without obligation.
Doug Spear, President
Spear Consultants, Ltd
Office 919 787 7337