Debt - The Club's Biggest Hurdle
It's no secret that debt can be problematic.  Whether it be individual consumer debt, home mortgage debt, corporate debt or the national government debt, the requirement to pay debt service is one that often makes financial success for clubs unreachable.  Yes, there are instances where debt is advisable, but with private clubs, it represents a real challenge.
 At many private clubs, the recent great recession has impacted membership, revenues and budgets, often to the point where services and amenities are reduced, member satisfaction is compromised and sometimes most importantly, upgrades and enhancements (let alone normal maintenance) are passed over in favor of balancing (albeit artificially) club budgets to avoid unpopular assessments.  This problem is exacerbated a few years down the road when not only has the club not kept up with the competition and requires capital improvements, but also when membership has likely declined and those that remain are often cool to the idea of further investment in a "sinking ship".
This situation often brings about the idea that the problems can be rectified through borrowing.  By the time many boards realize they need to reinvest in the club, it's too late and there's no money to use.
To read the rest of the article, check out my BLOG.
GOLF PROPERTY OPPORTUNITIES
HARBOR PINES GOLF CLUB (NJ) - For Sale
HOPEWELL VALLEY GOLF CLUB (NJ) - For Sale
STONE HARBOR GOLF CLUB (NJ) - For Sale
GPA SEEKING GOLF PROPERTY LISTINGS
Long a leader in the valuation and analysis of golf course and club properties, Golf Property Analysts is expanding our brokerage practice, focusing on the Mid-Atlantic Region (NY, PA, NJ, DE, VA, MD) and Florida. If you're seeking to market for sale a golf course property, call or e-mail Larry Hirsh at 610-397-1818. All such inquiries will be maintained with strict confidence.
PREPARING TO SELL YOUR GOLF COURSE?  Check out this BLOG post.
GOLF PROPERTY VALUATION FOR TAX ASSESSMENT
THE MARKET RENT APPROACH
The valuation of golf course properties for ad-valorem tax assessment cases is an interesting exercise.  In recent years, the "Market Rent" approach to valuation has been used by some appraisers, with some success, particularly in New York State, where through case law the use of this method has become primary in "Tax -Certiorari" (as they are called in New York) cases.
While, in theory the method attempts to isolate real property value in a property that is almost always traded as a going concern, the first flaw in the process is just that, that the method is not reflective of market conditions because it fails to first evaluate the golf property (going concern) in question in a manner similar to market participants.  This is only one element of concern I observe in using the market rent method to achieve fair real estate tax assessments for golf course properties.
To read the rest of the commentary, check out my BLOG
Additional articles on golf property tax assessments can be found by clicking on the articles below:
JUST ONE RIGHT WAY
MEMBERSHIPS - REAL PROPERTY OR PERSONAL PROPERTY?
HIRSH TO DO WEBINAR FOR NGCOA MID-ATLANTIC & PA GOLF COURSE OWNERS
GPA President Larry Hirsh will be presenting a freewebinar sponsored by the NGCOA Mid-Atlantic and PGO on March 31, 2015.  Details for participation are:
o    Date and Time: Mar 31 2015 02:00 PM - (US/Eastern)
o    Meeting Wall: https://www.startmeeting.com/wall/810-746-817 
o    US Toll Number: (518) 530-1840
o    MeetingID: 810-746-817
www.golfprop.com  • Larry@golfprop.com  •  610-397-1818
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