I own 16 mobile homes but not a park. I am trying to buy a park but have a question in regards to the best way to pay a silent partner. If I have someone funding my down payment and I am giving him a 25% ownership in the park and splitting cash flow 75-25 when is the best time to pay? I have read that I should be paying me the mgmt. fee and that comes out of expenses. So lets say after all expenses (and paying myself a mgmt. fee) I am netting $2000. Am I then paying him $500 of that and the remaining $1500 goes to bank account? reserves? my pocket?
I hope this isn’t a stupid question but trying to make sure I know exactly how to structure this.
Thanks in advance for the help and clarity.