How to Overcome 4 Common Newbie Errors When Mobile Home Investing

by | BiggerPockets.com

When beginning any new business, skill, or hobby, you will almost always go through cycles of growth, failure, learning, and growth. Rarely are our paths to success a continuous straight line upward. In reality, our journey from beginner to success bounces back and forth from failure to success. As prudent mobile home investors, we aim for our inevitable failures to be very minimal and with little to no risk and for our successes to be safe, predictable, and substantial.

4 Common Newbie Errors When Mobile Home Investing

1. Jumping in Despite Being Confused

Being confused is not the error. In fact, this is natural. The error happens when you begin to take action risking your valuable time, credit and/or capital before fully understanding what you are getting involved with. Before jumping 100 percent into any real estate niche, be confident that you understand the supply and demand in your area and how realistic this business will be for you. Understand how your specific goals, time, capital, and personality fit into your desired real estate investing niche locally.

Pro Tip: Always perform proper due diligence before, during, and after purchasing any and all used mobile home properties. Ask others for help or role model others already more successful than yourself in your desired niche. In today’s high-tech world, there is little excuse to invest without experienced mobile home help on your side. This website is a great networking resource.



Related: 5 Ways to Add Value to Mobile Homes Without Swinging a Hammer

2. Acting Too Quickly

Excitement can be useful. However, when trying to make logical and rational decisions, your emotions may sometimes lead you astray from your best judgement. If you continue investing in real estate, then “acting too quickly” is something that will definitely happen to you in your real estate investing business. It is inevitable that you will overlook something or simply assume you know the answer to a question that turns out to be incorrect.

Pro Tip: Do not beat yourself up when you act too quickly. Learn from your mistakes and promise yourself this will never be made again. When this situation arises again, you will be much more prepared for how to handle the challenge and perform proper due diligence. Consult a seasoned investor for help when needed.

3. Acting Too Slowly

Being analytical and patient can absolutely be useful. As real estate investors, we oftentimes need to quickly analyze sellers, buyers, repairs, etc. However, acting too slowly may cause you to lose opportunities or end up in “analysis paralysis.”

Pro Tip: If you are apprehensive to pull the trigger, you may simply not have enough information or experience to make an informed and rational purchase decision. It is for this reason that it is recommended to have an experienced investor willing and able to look over your shoulders to review deals with you while getting started.

4. Not Learning From Mistakes

After closing every deal, it may be wise to write out a list of all the positive and negative experiences you had been purchasing, rehabbing, and selling each specific investment property. If something did not go your way, aim to really discover the specific action or underlying mindset that was the exact problem. Aim to be as specific as possible in what and how you will change your actions and procedures moving forward.

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Related: 5 Strategies to Add Mobile Homes to Existing Mobile Home Parks

Pro Tip: Keep both eyes very open. Always be asking yourself, “What can I do better in this situation?” Realize that the word “better” may have many different meanings to different investors. Again, a knowledgeable investor will be able to help bring clarity to any issues you may be experiencing.

While diligent real estate investing may require a tremendous amount of steps, this is not brain surgery. With daily action and daily help, there is no reason you will not be able to reach out to help local buyers and sellers in your marketplace. Please check out the articles and forums on this website to network with local and nationwide investors able to help answer questions and provide you more clarity.

Investors: What would you add to this list?

Be sure to leave a comment below!

About Author

John Fedro

Investing since 2002, John started in real estate accidentally with a 4-bedroom mobile home inside of a pre-existing mobile home park. Over the next 11 months, John added 10 more mobile homes to his cash-flowing portfolio. Since these early years, John has gone on to help 150+ sellers and buyers sell their unwanted mobile homes and obtain a safe and affordable manufactured home of their own. Years later, John keeps to what has been successful—buying, fixing, renting, and reselling affordable housing known as mobile homes. John shares his stories, experiences, lessons, and some of the stories of other successful mobile home investors he helps on his blog and YouTube channeland has written over 300 articles concerning mobile homes and mobile home investing for the BiggerPockets Blog. He has also been a featured podcast guest here and on other prominent real estate podcasts, authored a highly-rated book aimed at increasing the happiness/satisfaction of average real estate investors, and spoken to national and international audiences concerning the opportunities and practicality of successfully investing in mobile homes.

3 Comments

  1. We’ve been looking at some mobile home supplies for a couple of days while thinking about some investment opportunities. I like how you talked about not taking too long to act, but we just want to make sure that we are making the right choice, and that we can get the right mobile home supplies before we invest. I’ll have to see of we can find the right information and mobile home supplies, and then get the courage to pull the trigger like you said!

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