I’ve been doing high level due diligence on parks in certain metro areas (number of lots, owners, last sold/price, distance to Walmart, home prices, apartment prices etc). I’m finding parks that fit all these criteria, but they are also very close to other similar parks, sometimes multiple ones right next to each other. Has anyone experienced this with their park? What is the dynamic of having a competing park right across the street from yours? Should I take these other parks into consideration when looking into purchasing a park?
Yes …it’s part of the due diligence. Who is your competition (including apartments), what are they charging and what point of differentiation/competitive advantage will you and your park bring to the table? I wouldn’t fear competition, but i would make sure i have a crystal clear understanding of what the competition is doing and make sure i can deal with and/or beat the competition, whether based on price, location, quality, etc.
We have two parks, and there is significant competition in both cases. But we also knew going in that the price we were buying at allowed us to – if necessary – significantly underprice the competition.
There’s no reason to fear competition as long as you fully understand your and their points of strengths and weaknesses.
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Very good point! Trying to keep perspective while looking.