Frequently Asked Questions (FAQs) - The following FAQs answer many of the
most common questions about how we engage with partners and operate our
business:

  • What is a managing partner?
  • The managing partner is responsible for routine business transactions and all
    day to day operating decisions; a full list of duties and responsibilities for all
    partners is included in the operating agreement for the LLC.
  • Is the managing partner a licensed real estate broker?
  • No and we do not receive commission or compensation on the purchase or sale
    of any property; we work with brokers when appropriate and often work directly
    with sellers and banks or private parties for financing.
  • Is the managing partner soliciting funds?
  • No, we act on behalf of the partners as a managing partner to find, buy, manage
    and eventually sell or refinance a MHP.  We are not soliciting investors; we do not
    borrow funds and pay targeted or fixed rates of return.
  • Will the managing partner explain the pros and cons of investing in
    MHPs?
  • We only engage with prospects who have evaluated the alternatives and decided
    they want to purchase a MHP; we do not offer investment advice.  
  • What ROI can a partner expect to earn?
  • ROIs vary based on the specific property; expected ROIs for all partners are fully
    defined in the financial due diligence completed for each property.
  • How is the managing partner compensated?
  • The managing partner receives a share of the equity in the partnership; this
    provides the managing partner a split of the net proceeds (at the time of sale or
    refinance,) operating profits and tax benefits; net proceeds is the balance of
    funds remaining after partner contributions are returned and the loan and
    transactions costs are paid.
  • How is the managing partner's share of the equity determined?
  • The equity share varies based on several factors including the expected ROI for
    the partners (which must be compelling!) and the improvement plan for the
    property.  The equity share ranges from 20 - 40% and is detailed in the financial
    due diligence and the operating agreement of the LLC.
  • How much does the managing partner contribute with each MHP
    purchased?
  • The managing partner makes a substantial investment of  time and effort to find,
    evaluate, finance, buy, improve and eventually sell or refinance the property;  the
    managing partner typically does not make a direct cash investment.
  • Who manages the property and what are the fees?
  • A management company owned and operated by the managing partner and fees
    are set at a level to recover the cost of delivering services for each property.
  • What is an operating agreement for the LLC?
  • The LLC operating agreement defines the partners, their share of equity in the
    LLC and their duties and responsibilities.
  • Are the partners named on the deed for the property?
  • A limited liability company (LLC) is created for each property and is named on the
    deed as the owner; the equity share of each partner of the LLC is detailed in the
    operating agreement.
  • Does the managing partner "mark-up" the property or charge the
    partners a "finders fee?"
  • No, the contract purchase price and the price paid by the partners is the same;
    we do not receive any compensation or finders fees from  the buyer, seller or
    brokers at the time of purchase or sale/refinance.
  • What if are partner does not move forward on a deal, what happens?
  • The partner's deposit may be in jeopardy depending on the timing, the terms of
    the purchase agreement, etc...  We attempt to have back-up partners on every
    deal to ensure we close all transactions.  Partners will be removed from the
    distribution list for new deals if/when appropriate.
  • What is "100% transparency?"
  • It means our partners have complete access to all data, information, ROIs, tools
    and/or resources that are available to us.  Our partners can expect honest and
    straight-forward answers to any and all questions about our business.
  • What is the managing partner's geographic area of focus?
  • Western US
  • What is a prospective partner?
  • Someone who has indicated they'd like to work with us, is aligned with our
    operating principles and objectives and has signed a mutual non-disclosure
    agreement (NDA.)
  • What's the process and commitment to become a prospective
    partner?
  • Please contact us so we can lean more about your investment experience and
    objectives and review our operating principles.  If both parties agree to move
    forward, we'll sign a mutual NDA and you'll become a prospective partner!
  • What are the managing partner's growth plans?
  • To add 2-3 partners and 100+ spaces a year for the next 10 years.
  • What's the minimum contribution for a partner?
  • $100K and a prospective partner should have a net worth of $1M+.
  • How many partners might be included in the purchase of a MHP?
  • There is no set limit; we might have a single partner on a smaller park or 5+ on a
    $3M+ property.
  • What are the managing partner's current purchase criteria?
  • Western US,  compelling expected ROI for all partners, 2-3 "star," "B" location,  
    near a good base of employment, 70+% occupied, on-site management and
    historically under-managed.
  • How does the managing partner ensure the partnership stays in
    compliance with the law from an accounting and legal perspective?
  • We employ one of the most experienced  tax and legal firms in the industry to
    manage all tax and legal issues.
  • Why is knowledge transfer so important to the partners?
  • We will accelerate our collective success as the partners learn more about the
    MHP business; owning and managing MHPs is an excellent source of income for
    the partners and their families into retirement.
  • Can a partner sell or transfer their share in a MHP?
  • No, our operating agreement does not include a provision  to sell a share "for
    convenience"; we will attempt to accommodate a hardship case for a partner who
    needs to sell or transfer.
  • How long does a partnership typically hold a property before selling
    or refinancing?
  • 5-7 years; for a specific property, the expected hold time, target sale or refinance
    price and any other conditions are detailed in the exit plan.
  • What if the managing partner or property management company is
    not performing its duties?
  • Each operating agreement contains terms and conditions for the partners to
    remove and replace both the managing partner and property manager for
    reasons non-performance, etc...
  • What reporting is provided the partners?
  • Standard reporting includes quarterly and annual operating and other financial
    statements;  the partners have  access to a complete set of current and historical
    financial reports and all legal document via the property management website.
  • Will the managing partner provide more information about the
    performance of their current MHPs?
  • Yes, this information is available to all prospective and current partners upon
    request.
  • Can a partner 1031 Exchange in and out of MHPs purchased by the
    managing partner?
  • Yes, the managing partner can provide the partners with tax and legal support to
    ensure the exchange is done effectively and within the required time limits.
  • Can a partner use IRA or 401K funds?
  • No, not at this time.
  • Does the managing partner "cherry pick" the best properties for
    another company or individual?
  • No, Your1stMHP is our one and only mobile home park venture; all properties we
    find will be offered to the partners.
  • Is the methodology used by the managing partner available for
    purchase?
  • We provide the partners all the tools needed to manage a MHP as part of the
    "knowledge transfer" process;  Mobile Home Park Store is an excellent resource
    of  learning materials about the business of operating and investing in MHPs.