Looking to set up our first co-owned park. How do you decide how much of the pie to give to each partner? We will be living on property and running the park until we get it running properly, then turn it over to a person living in the park as the manager but will still be overseeing the operations. For instance $1.5M purchase price, $375K down payment, if someone puts in $100K and we put in $275K, how would you expect it to be split? Would you set it up as a Partnership or LLC with the parties owning their % of the entity?
@pot, I would recommend an LLC w/ ownership stakes split pro rata according to capital commitment. Then operating partner(s) gets an agreed upon % of NOI (or whatever metric you’d like) as compensation for “sweat equity”. Just one suggestion, but in the end you want something that leaves all partners satisfied, otherwise the partnership might not last that long.