My partner and I recently put a 53 space mobile home park under contract in SC and are currently doing our DD. The structure of our park is as follows:
- There will be lot renters where money is paid each month to rent the land; most likely collected by a management company
- We will add homes to our park and lease option them incorporated with a net lease to buyers with stated terms. The monies collected will also more than likely be the responsibility of the management company.
I have spoken with an attorney and CPA and their advice is:
- Form 2 LLC with one that owns the dirt and the other is where the monies are collected and dispersed.
- Just have 1 LLC and then adequate liability insurance for the park along with personal umbrella policies.
Our main concern is asset protection, but any advice on the structure is welcome. Does anyone have experience in this and do you feel any of these options are the better route? Would you suggest something different? Lastly, would you use an attorney to set everything up or is this something we could very easily do on our own and save the attorney fees. Our agreement will be 50/50 with standard terms (as it applies to LLC).
Any advice is much appreciated.