Since mobile home park investing school isn’t a thing, the majority of us investors end up learning as we go and relying on the knowledge of established, experienced investors willing to share and educate the incoming generation. This group is typically older, has accumulated significant assets, and likes to adhere to a series of “rules” guiding their investment philosophies.
These “old-school” rules are valuable, especially in helping avoid the numerous pitfalls of investing that can be costly and demoralizing to any new operator. Traditional advice also often allows us to soak up industry knowledge quickly while at the same time gaining the valuable, relevant experience that comes with owning and operating a mobile home park.
There are times, however, when outdated knowledge shared by longtime investors can be detrimental, particularly in an area like the Pacific Northwest where so much demographic growth change has happened over the past several decades. If you only listen to “what has worked in the past,” you may not only miss opportunities, but also find yourself in unpredicted, difficult situations.
The increase in government regulation alone can create a series of new pitfalls and hurdles that didn’t previously exist. Take the recent advent of statewide rent control in the state of Oregon, for example. While it doesn’t mean the entire state is off limits for investment, the new law does create a very real challenge to any new acquisition that only several years ago was not an issue of concern.
Another important consideration is geography. Virtually all the eastern regions of the Pacific Northwest used to be sparsely populated, low-growth areas with almost no intriguing investment opportunities. Fast forward to today, and most of the highest growth and exciting expansion in the Pacific Northwest is happening in that area.
In the end, taking advice is a give and take. It’s important to listen to the traditional wisdom and advice of those who have been in the industry for decades, but it is equally important to apply this knowledge in the appropriate context and ensure that it is being used judiciously and appropriately.