Mobile home park investors should know the potential for the market they are investing in, the real value of the property, the real rents, real repair needs and costs, and how to protect themselves throughout the process.
HOW TO AVOID SELF-
PARALYSIS” WHEN INVESTING
IN MOBILE HOME PARKS
By Mobile Home Investors
One of the greatest stumbling blocks for
aspiring investors is over analysis. It
literally causes financial paralysis, with dire
consequences. How can more hopeful
investors overcome this counterproductive
hurdle in order to realize more of the
results they really crave?
The Importance of Due Diligence
Thorough due diligence is necessary. By no means
does the following suggest that an investor should not
be thorough in their research, learning, and vetting of
potential investments. Mobile home park investors
should know the potential for the market they are
investing in, the real value of the property, the real
rents, real repair needs and costs, and how to protect
themselves throughout the process. However, over
analysis can absolutely be self-sabotaging as well.
7 Paralyzing forms of Analytics
#1. Analyzing too Many Asset Classes
Diversification is wise. Yet deep analysis of too
many asset classes can definitely be
counterproductive, confusing, and draining. Not
even the most successful are masters of every type
of investment. If you feel stocks should be in your
mix then grab a broad mutual or index fund and let
it roll. If you’ve got to have gold in your portfolio,
just grab some and get it done. If you think single
family homes are a sound investment then buy
yourself a home. Then move forward focusing on
investing in mobile home parks.
#2. Analyzing Too Many Markets
Even within a domain such as mobile home parks
there can be many diverse geographic locations to
cover. There are mobile home parks all over the
USA, and even abroad. Trying to evaluate the ins
and outs and quirks of these varied markets all at
the same time can be a massive burden. Instead
hone in on a few key areas, start investing, and
then move on while you already have money
working for you.
#3. Becoming a Pro-Forma Junkie
If numbers and spreadsheets are your thing it can
be easy to be caught in the modeling trap. What if
X happens? Or what will happen to Y if I do ABC?
You can do a lot of this after making an acquisition.
If you spend too much time in this trap upfront
you’ll miss out on deal after deal.
#4. Learning vs. Doing
Boosting your investment and real estate education
is great. Sadly some use learning as a way to fuel
their pension for procrastination. Some will spend
years learning as the opportunities slip away and
their peers gain both knowledge and financial
rewards. Knowledge is not power until it is turned
#5. Demanding too much from an
Another way to permanently sit on the bench is to
demand too much from investments. You can invest
in good deals and expect great results, or sit on the
sidelines demanding unlikely scenarios and worry
about what could happen. This sometimes happens
to those learning from out of date materials which
offer strategies and calculations that no longer
apply or work in the current market.
#6. Timing the Market
There can be benefits of buying and selling during
different phases of the market, and depending on
various outside factors. But in any asset class the
gains normally go to those that simply consistently
invest. Those that try to wait to find the perfect day
and hour, normally only notice it after it is gone.
#7. Analytics as an Excuse for Fear
The most successful don’t pride themselves on
being the best analysts. Instead they are the bold
actors that take action when others are fearful and
timid. Even the best investment gurus admit they
know they will absolutely get it wrong sometimes.
But they can’t win unless they take shots.
Kicking Analysis Paralysis to the Curb
Action is the antidote for analysis paralysis. So
If there are specific
facts you need to
know list and learn
them this week
Get an accountability
Get started with small
wins and milestones
Set your goals
Reward yourself with every
positive action you make
Set a hard timeline
For more information and inquiries!