Posted on March 23, 2021 by fordadmin -
LA County MHP Investors
Description – The LA County MHP property was a 500+ space mobile home park. The asset was owned by 11 partners with a variety of goals and interests. Out of the 11 partners, 9 wanted to sell their interests and 2 partners wanted to retain ownership in the asset. Those 2 partners wanted to purchase additional interests from the selling partners as well.
The Remaining Partner’s goals:
- Replace selling partners with a new partner with the same business philosophies and management style
- Establish new long-term debt for the property
- Improve management at the park
- Find a partner to collaborate and invest together with into the future for new assets
- Create durable income, cash flow plan
There were several steps to this fractional interest purchase:
- Step 1: Rutherford and the remaining partner worked on a voting structure that was sustainable for collaborative future decision-making
- Step 2: Rutherford purchased < 50% fractional interest of the property from the selling partners
- Step 3: Rutherford and the remaining partner placed new, long-term debt on the property
- FStep 4: The selling partner is responsible for property management of the property and Rutherford is involved in asset management/li>
|
BEFORE |
AFTER |
| Number of Partners: |
11 |
2 (One original Partner, one new Partner) |
| Ownership Structure: |
Partnership |
Partnership |
| Purchase (100% or Fractional) |
1 Partner wanted to hold interest long-term; 10 Partners wanted to sell |
Purchased Fractional Interest < 50% from selling partners; Remaining Partner purchased the balance of selling partner interests |
| Management |
3rd Party Management |
In-house management |
| Operating Efficiency: |
$200,000 delinquencies |
Management eliminated on-going delinquency |
| Issues |
Different goals between the partners |
Business philosophies and ownership horizon align between partners |
Posted on March 23, 2021 by fordadmin -
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Lorem Ipsum is simply dummy text of the printing
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
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