Partnership Agreement

I’m considering a partnership with a limited partner at a 50 / 50 split and a 12 % preferred ROIC to the limited partner. Net profit also split 50/50. Does this sound reasonable to those who are experienced with capital partner type agreements to buy more parks. I own three currently. I appreciate the response.

Simplify, simplify, simplify.

You were not specific enough, but here is a suggestion:

If your partner is just putting up the funds, you might take title and have them as a lender only with the profits splits agreed upon in the note.

This keeps them out of management (which many investors/lenders prefer) and keeps you in control.

Keep us posted,

Mike Weiss

Another resource for you to consider is going to some of the bigger operators’ websites and downloading their prospectus. Some are pretty straightforward, while others are needlessly complicated. I recommend reading both kinds for the learning factor. You will also pick up on other legalistic items as you read through them as well.