Imagine driving down the highway with delicate cargo. If you could know exactly where the potholes are located, wouldn’t that be great? Of course! Yes, that would be invaluable knowledge.
Now you’re here today because you’re a mobile home investor. Or you’re hoping to become one.
What if you knew what the metaphorical potholes of investing were?
To help you succeed in mobile home investing, we have a list for you. We’re outlining the top mobile home investing pitfalls you’ll want to avoid. Through this article, you’ll learn what pitfalls to watch out for and ways to avoid them or (if they’re difficult to avoid) to mitigate their impact.
Top mobile home investing pitfalls
So to continue our earlier analogy, let’s drive down the road together and see if we can point out these “potholes” — or in our case, these mobile home investing pitfalls. With the right arsenal of knowledge, you’ll find yourself winning.
Neglecting to get an inspection
Don’t rush through the buying process. At the end of the day, not having an inspection can hit you hard — especially if you’re an inexperienced mobile home investor. An inspector will walk through the mobile home with you and point out problems with the home.
Calculating the cost of these repairs will help you gauge what sort of offer to make on the mobile home.
Failure to research the market
Additionally, you want to avoid the pitfall of thinking you already know your market — if you haven’t actually done your own market research. By knowing your market, you’ll know when to press forward with a purchase. And you’ll know where to sell your investment. This is called selling intentionally.
Also note that your target demographic may affect how you choose to go about fixing up your mobile home to sell.
Being a loner
Now don’t be a loner. One of the worst things you can do in business is carry an “us versus them” mentality. We’re all in this together. The seller, the mobile home park, the mobile home moving company, the renter — and others — they’re all partners in your business. Not enemies. By keeping a friendly outlook and an open mind, you’ll learn much in the mobile home investing business.
On that note, we suggest connecting with mobile home parks if you do not own one yourself. Mobile home park managers may be able to tip you to a mobile home going up for sale. That will give you an advantage over those who only have “for sale” signs to go by.
Falling for too-good-to-be-true deals
As a mobile home investor, you have to have your wits about you. That way you won’t fall for the too-good-to-be-true deals. Instead, you’ll take your time and check out a mobile home before you buy it.
Now we’re not saying such deals are always illegitimate. But it’s certainly better to be safe than sorry. Thus, it’s best to investigate the home and its situation prior to parting with your hard-earned cash.
Not connecting with park management
Another big pitfall you’ll want to avoid is failure to connect with park management. Whether you’re buying a mobile home from a park or intending to move a mobile home into a park, you’ll want to connect with management. Communication is key.
The last thing you want to do is acquire a mobile home and the tenant’s delinquent debts to other stakeholders. Ask the mobile home park if there are any specific arrangements or communications to be made as you wade through the purchase and removal process.
If you don’t have a plan, you can plan on failing. What steps do you plan on taking after you’ve secured a deal on a mobile home? What’s your plan to turn a profit? Mobile home investing is a calculated process that doesn’t stop with buying. Are you gearing up to rent out your investment or to sell it? Who’s handling the repairs? You? Or do you have contractors lined up?
Get on the road to success
So far you’ve learned about the top mobile home investing pitfalls you’ll want to avoid. Now you’re ready to get on the road to success.
Remember to keep an open and curious mind as you wade through the world of mobile home investing. Success isn’t too far away for those who are determined and willing to learn from others.
Are you unsure about mobile home investing in general? Wonder what’s the big deal about mobile home investing? Let us show you some winning reasons to get into the business.