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
mweiss1031@gmail.com
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.