I’d appreciate some input from those who have experience developing and infilling manufactured home communities.

I currently have a new mobile home park that is fully entitled and ready to build. The construction loan has been approved, and we are ready to move forward with the buildout. I also have a line of credit in place with a chattel lender to purchase and stage homes as the community is developed.

I’m comfortable with everything up to the point of placing and selling the homes. Where I lack experience is the actual infill process—selecting and ordering homes, coordinating delivery and setup, managing completion, marketing and sales, buyer financing, and getting the community to stabilization.

I’m currently negotiating with experienced people who could take responsibility for that portion of the project, and I’m considering bringing the right person in as an equity partner rather than simply paying them a fee.

My question is: What percentage of the project would you consider fair equity for an experienced partner who brings the knowledge, relationships, and execution necessary to manage the infill through stabilization?

Assume that I am bringing the entitled project, the development, the construction financing, and the credit facility/capital necessary to purchase the homes. The incoming partner would primarily be bringing their experience and taking responsibility for executing the infill strategy.

Would you consider 5%, 10%, 15%, 20%, 25%+ of the project reasonable? At what point would you feel that you are giving away too much equity for this role?

For those who have structured a partnership like this, I’d especially like to know what percentage you gave up, exactly what responsibilities the partner assumed, and whether you felt the arrangement was worth it after the project was stabilized.