Structuring mobile home parks in different types of entities

[Gulliver R.]

Hi all, I have heard two good ways to structure mobile home park ownership: 1. The Owner owns one Primary LLC > which then owns several Land Trusts (for anonymity) > then each Land Trust each hold title to one MHP (there would also be a separate LLC for the management company that manages each park). 2. The Owner owns one Primary LLC > which then owns several smaller LLCs > then each of these smaller LLCs each hold title to one MHP (again, there would also be a separate LLC for the management company that manages each park). **Good insurance of course for first line of defense for litigation. I wanted to know what some MHP owner's thoughts are about this and how do you all structure your MHP business? Thank you!

[Ken Rishel]

The only company that held any real unencumbered assets with my name on it was a company based in Monaco that owned a company based out of Delaware that owned all or part of separate LLCs for:

Each community with investment partners;

Each retail dealership that sold the homes in each state;

Each captive finance company (One for each state of licensure.).

The idea of a separate management company is not one I ever considered but should have.

Unlike some operators, I never saw the value of having my name associated with the ownership of the communities and many disadvantages. I also am very aware that the smaller the asset base of the operation the less regulatory attention, and the smaller the fines and penalties. Just as important, smaller entities are less attractive targets for lawsuits.