Parks that never seemed attractive are fetching high valuations. Properties in small MSAs are being gobbled up. People are stretching their criteria to make deals happen. One risk is when optimism fades away. Banks get choosy and investors flee to quality. People get caught in the changing of tides. Investors can forget about the liquidity premium needed for small real estate transactions.

A few things I try to keep in mind as I value property:

- What is my price per pad? Does my overall basis feel right?

- How quickly can I push to mid teens unlevered returns? Do I get compensated for the lack of liquidity in real estate versus investing in a REIT?

- Would someone a few states away know the location or MSA I am investing in? How large is my buyer pool?

- What is the downside base case? Can I still service the debt if things don’t go according to plan?