Posted by Dirk Roach on February 16, 2000 at 24:01:57:
in your post you state that the NADA book is an excellent way to deuterium used Mobile Home Value.
When we all know that Value is Subjective! It can be totally different from individual to individual and from situation to situation.
Basic economics show us that markets are volatile, they are not constant.
Every deal will be different.
I do agree that “field research” is vital to any type of deal. It is paramount to know what is what.
The best way to do that is to get out and personally check out the situation.
That is good advice for mobile home investors at every level, but especially for investors just getting started who are fresh out of the gate.
Not only will it put them at ground zero of the deal, it will force them to establish necessary relationships with park management, it will also force them to learn their market, and their target market.
The NADA book is dangerous to newbies in that it provides a warped sense of value on both the buy side and the sell side.
Of course we all love short cuts, but so often they lead to long cuts.
Reality is though, the street is the best teacher. When you know what you can sell something for you then know what to buy it for.
NADA does not tell you accurately what you can sell used mobile homes for to receive maximum return on investment, and that is what we as investors what in the first place. Maximum return on our money that we put to work.
Even on Note side (acquiring notes etc.) I feel that Track record (payment history), seasoning (current position in the note) and Location, are a much better place to start when doing due diligence, pre note buy.
The Nada Book reminds me of a friend of mine who plays the market very successfully. He is continually being solicited by folks with all these stock charts.
I love it when he says “You know what you find at the bottom of every sunken ship?”
“A chart room”.