Diversifying Your Business

I’m not here to convince you that diversification is important because we have enough people yelling this. (I believe they do it to help convince us to buy into their ideology) Today I want to share with you how I diversify.  Many think all I invest in is single-unit mobile homes with the land.  This is because this is all I talk about.  Talking about my primary niche is on purpose for marketing; I want you to think of me when it comes to this topic.

Before I share my strategy, I want to share my views on what qualifies as diversification.

Here are my big buckets I look at for diversification:

• Who is managing
• Weather threats
• Government regulation
• Type of housing
• Type of business
• Risk level

A few examples:

• Self-management versus hiring a management team
• Hurricane threat versus non-hurricane threat
• Florida’s government versus another state.

Okay, you get the point, so here’s my strategy…

I buy and rent my single-unit mobile homes with the land which makes me a lot of money.  I take some of the income and invest it in other deals.  Most of these deals are in other states and other asset classes.  We have some money passively in some self-storage facilities and mobile home parks. 

Since my unofficial move to Colorado, I’m commonly asked if I am going to start my business in Colorado.  My answer is no, I have a very good thing going in central FL.  But we know I’m going to find a good deal in CO, so what will I do?  Part of my diligence will be running the property by a friend who already has a great thing going, then master leasing the property to him/her.  I will most likely do a performance-based master lease or partner with an individual who brings management (value to me). 

How do you diversify your portfolio?