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Updated about 6 years ago on . Most recent reply

User Stats

8
Posts
1
Votes
Christopher Sharp
  • Rental Property Investor
  • Tennessee
1
Votes |
8
Posts

HELP!!How to handle this Partnership situation.

Christopher Sharp
  • Rental Property Investor
  • Tennessee
Posted

Hello Bigger-Pockets, I'm in some need of advice. I recently partnered with my father-n-law on a project. He owns a building with a store front and office on the bottom level. Above that there was structure that needed to be fully gutted in order to remodel and build two apartments. His loan at the time was $115,000 and he estimated it was worth $180,000 at the time. The apartment remodel cost was $180,000. I got a loan through the bank at $130,000 and a private loan for $50,000. After the year was up on the construction loan we tried to refinance both the construction loan and my father n laws loan, but the bank would only loan us $295,000. That leaves me with the $50,000 private loan. My father-n-law is saying that the $50,000 that I put into the building is my investment into the building and I need to pay that from my personal account. The partnership is suppose to be 50/50 however that doesn't seem like 50/50 to me. We would like to have the opinion of a third party. Thanks in advance!

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