Several of you have already helped me considerably and I thank you so much! I own a 25 lot MHP in Wetumpka, AL…currently have it full so I am now going out into other parks doing Lonnie Deals. I would like to be able to do more deals but naturally, after a while, my money is used up. I have a couple people interested in partnering 50/50 so I am trying to come up with a good Partnership Agreement so we are clear on issues that will come up. Please read over what I have and give any advice on issues that I could be overlooking. There is not a buyout for either one of us in it yet, so if anyone has any thoughts out how to structure that, it would be greatly appreciated. In the agreement below, "Joe Properties is the “money man” and “Boyd Homes LLC” will be me (the one doing the leg work). Thank You for all your help!
Partnership Agreement for Mobile Home
Joe Properties will provide the cost of the mobile home and all expenses associated with it. Expenses include, but are not limited to, lot rent, utility bills, fix-up costs, marketing costs, etc.
Boyd Homes, LLC agrees to do the work involved with the mobile home. This includes but is not limited to, facilitate purchasing it, repair it to a sellable/rentable condition, market the home, sign paperwork with purchaser/renter, and collect monthly payments.
Once the home is Financed/Rented to the next Purchaser/Renter the PAYMENTS will be split 50/50 with Joe Properties and Boyd Homes, LLC. For example, if the home is sold for 10,000 with $1,000 down and $300 a month for 3 years, Joe Properties will receive $500 of the down payment and Boyd Homes, LLC will receive $500 of the down payment. Furthermore, both Joe Properties and Boyd Homes LLC will receive half of the monthly payments made on the home ($150/ month each in this scenario).
It is understood that Boyd Homes LLC may add lot rent charged from the owner of the Mobile Home Park as well as a small amount for insurance on the home which will be paid by the Purchaser/Renter to Boyd Homes LLC. This money will not be split with Joe Properties since these are expenses.
If payment from the purchaser/renter is late, Boyd Homes LLC will not be required to send the money due to Joe Properties until it is received from the purchaser/renter. Money due to Joe Properties will be forwarded within 10 days of Boyd Homes LLC receiving the money.
In the event that the home must be repossessed, neither company will resume getting paid until the home is sold/rented again. If the home requires carrying costs or repairs, Joe Properties will provide the needed money to make the repairs. Boyd Homes LLC will first try to discount the price and sell the home as is to keep Joe Properties from incurring repair costs.