Hey guys, hoping you can help me out here.
I’m purchasing a turn around MHP, and am bringing in 2 money partners to help with the down payment. Down payment will be approx. $150k. I’m asking each partner to bring in $60k, and then I’ll come up with the difference, $30k or so.
In your mind, what would be a fair cash-flow/equity position on this deal? It’s an out of state park, management is already in place, yet I’ll be doing all the work, communicating with manager, traveling out to the park on a regular basis, coordinating bringing in new MH’s, I’ve located the deal, done the due diligence, negotiated it, structured the financing, pretty much everything. My partners are going to sit back and pick up their monthly checks and an equity position at the end of the day. I’m thinking of a 50/25/25 split, or even a 60/20/20 split, but wanted to get some expert’s opinion on this and perhaps get an idea of what industry standard is? I don’t want to seem greedy, but also don’t want to short-change myself.