My partner and I have a mobile home park under contract and we are wondering if anyone out there can give us some examples of some basic partnership aggreements we should have between one another. this partnership is a 50/50 split along with expenses. but what about the death, divorce of a parnter. What if one partner wants out and the other doesnt want to sell?? Can someone give us some advice or point us in the direction of a good book on forming partnerships.
thanks guys
Corey W
call an attorney.
nobody likes spending $ but nobody likes headaches in 10 years either.
50/50 is nice kind of but you need in the agreement that the tiebreaker is in place. Maybe a coin toss or a person or a contest on the best burger. You need to have some way for what you know to be the best move being opposite of your partners thought to be the best move gets resolved in an agreed upon way. Then there is that pesky death, divorce, quitting issue.
Everything needs to be agreed to in detail in advance, all the points you have covered and many more. You need to sit down with a qualified lawyer and have them advise and draw it up. This is not something that should be done on a piece of paper between friends.
You should go into this partnership from the perspective that you are total strangers and do not trust each other.
That is where a lawyer is essential, No friendship no trust and no emotion, Detailed legal partnership.
Don’t form partnerships.
Too messy for all the reasons you mention – and more.
Instead, have one party put up the $$, and the other is the title holder/operator.
Money party is the lender/note holder.
Profit splits are detailed in the note.
Only one party on title. The other is the lender.
The lender is relieved of management.
No partnership agreements to file.
Fewer legal issues.
Keep us posted,
Mike Weiss
mweiss1031@gmail.com