How do they split the prophets?

[Gary Thompson]

Hello All, got a quick question for anyone out there. I have a client who is putting together a spec home, the market in Utah is very good, and new construction is in high demand.

This friend is getting a lot loan from his father-in-law in the amount of $70 in cash (total for the lot) Then he is getting a new construction loan in the amount of $230,000. (all his risk) He is paying the builder (another brother) just like anyone pays a GC.

When it's all said and done, they think they can sell the home for a profit, but they are not sure how to split up the profits, should the ratio be based on the percentages for example 23% to the father-in-law, and then 77% to him? or just pay off the 70K at a certain interest rate? 

haha, I'm sure there is a better way - so just looking for some additional perspective - thanks!  Gary