HOW SHOULD I STRUCTURE A NEW DEAL WITH 3 PEOPLE?

[Cleo Vauban]

I am looking to purchase a duplex for $500,000 with 20% down that will include three partners. Two will put $50,000 each for the down payment and the third partner is holding the mortgage in his name and doing construction work but putting no initial cash into the property. The property also needs about $100,000 in work costs which we will all split. Once the property is renovated it will be rented out. 

What is the smartest and fairest way to structure this deal? Who gets paid first? What does equity in the house look like? 

Please help!