MHP Partnership Structure

[Avery Robertson]

I am looking at an opportunity to invest in my first MHP with an experienced investor. The park is out state and my partner owns two other parks in the state. We are considering doing a 50/50 partnership where he will provide the management/operations and I would provide the down payment. I would also provide a small line of credit to the partnership which I would charge for of course. 

Being new to a partnership like this, I would love to hear everyone's thoughts on a fair way to structure the partnership? 

[Roger D Jones]

Quote from @Dave Rav:

@Avery Robertson great post.  I too will be in the same boat here soon.  The only difference is goal of my prospective park is for it to be in my home state.   I just feel much more comfortable with it being proximal enough to make a quick trip, say once a quarter as needed.

Caution with the statement: "acquiring a park is hard, management is easy." 

The only way management is burden is eased is in scenario of all-TOH parks.  Generally speaking though, this asset class can be argued to be one other most management-intensive. 

At any rate, Avery I'm curious to see what you come up with and the forum's input.  Feel free to send me a private message as well.

Dave,

I was not trying to be flippant regarding the 'management is easy'... just didn't want to get all wordy in my response.  I have a 70% POH/30% TOH park that after 20 years experience have learned to 'rig it' to run right.  I spend maybe 15 min a day engaged in the operation but it has not always been that way.  Learned a lot over the years on managing this park...