First time partnership

[Michael Colebank]

Hi Everyone, I'm buying a mobile home park with a friend of mine. We both have multifamily experience. Neither of us are lazy,and we're very enthusiastic about the deal. Huge potential. I'm taking care of government officials and marketing/ big picture, along with filling the park. He's got a contractors license and does excavation work. So he's taking care of infrastructure, dealing with utilities, surveyors, and the moving in of new homes. Profit split is 50/50 . But we'd like to have good verbiage to protect our friendship and the partnership in the future. What should we be including in the partnership agreement to protect us down the road?

[Jana Cain]

You'll for sure want language that details want happens when you are no longer partners - death, someone wants out, etc. Your agreement should also make it clear how the capital works - are you both putting money as well as expertise into this venture? Is that 50/50 also? You want for both of you to understand what you each have at stake.

I'm sure others on here who are more experienced with creating partnerships will have more specific details to suggest.