They say true character shows up in hard times not in good times.
I recently contacted a person who I met through the MHU group to ask him about the sale of his mobile home park. His response back to me was his park was not for sale. I told him he should go on the MHPS website and also LoopNet, because his property was listed for sale on both sites.
Here is a long story made short.
Not only was his park listed for sale, but his company bank accounts had been closed and the revenue from the park was now being placed in a new bank account that he has no access to. Who did this? His partner.
I have heard of things like this happening before. It’s shocking, isn’t it? It probably happens more often than we know.
An operating agreement is just a meaningless piece of paper if the individuals who sign it have no integrity.
There’s little recourse available to the wronged partner, and the best they can hope for is to force a sale before things get really bad.
Everybody talks about the necessity of repair reserves for their properties, but I’ve never heard anyone mention legal reserves. In my opinion they’re absolutely necessary for anyone involved in partnerships. Plan on needing about $40,000 (kept separate from the partnership, of course) to force a sale if a partnership goes bad. I’ve been told that’s the only way to really set things straight.
Lin