There are a surprising number of people who are rich in land that they don’t know what to do with. If you’re one of them, we have a unique development idea for you: build a golf course. It’s a green business, and you don’t even need to know much about running a golf course. You can find a list of golf course management companies online. That will leave you time to enjoy the perks of ownership while someone else takes care of operation oversight.
Why Build a Golf Course?
There a several valid reasons, not the least of which is the potential ROI. There’s a lot of flexibility, also. You can expand the business to create a resort or hotel complex. It’s also an attractive residential development plan if you want to build high-end housing with the golf course as a centerpiece. The tranquil nature of the sport also means low risk liability for insurance purposes.
It’s All in the Planning
Before you go out and hire a contractor, you need to put your objectives down on paper. What type of golf course are you considering? Will it be a full 18-hole course or a holes. That will depend in part on your space. An 18-hole courses with no other development need up to 180 acres, 9 holes can do with half that amount of space. If you have less than 40 cares, you can build a Cayman-style course, a par 3 course or even put up a putt putt golf course.
Then there’s the business side of things. Will it be a private course, which are more profitable, or a public course? Do you want to add hospitality or residential units? The answer to these questions will also determine what type of permits and insurance you’ll need as well as budgeting considerations.
Other Considerations Before You Tee Off
Golf may be a popular sport, but a golf course is essentially a real estate development. Like most properties, part of the success is in the location. The rest is in layout, design and amenities. The more you have to offer clientele, the more appealing the club. You can also charge higher membership fees.
If you already own the land, you’re at an advantage financially right off the bat. In an overhead versus profit ratio, it makes sense to outsourcing management to a professional company with a history of success. It’s not your everyday investment, but the rewards can be great.