Partnership Question Regarding Real Estate

[Chris Sharp]

Hello everyone,

I am trying to partner with my father -n- law on a real estate investment but its kinda of a mess. Currently my father n law owns the building and has $125,000 worth of debt remaining on his loan. We remodeled two apartments onto the building and my loan is $197,000. The building appraised at $350,000 but we can only get $262,500 from the bank. We both would be on the loan as a joint loan.   Here it is below.

Loan

$262,500

- $85,000   - My 85,000 would be put into this loan 

- $113,000 - Father 113,000 would be put into this loan 

- $12,000   - Father 12,000 would be put into this loan 

-$26,000    - Father wants to put additional money into this loan from his equity

-$26,500    - My 45,000 dollars worth of credit cards would get reduced my $26,500

_________________________

=$262,500

 I will have $18,000 dollars in credit card debt.

 I will have $50,000 dollars loan from uncle left.

 I will have $17,000 dollars worth of loan equity left.

Total of $85,000 dollars worth.

My father in law with have 41,000 dollars of equity left.

How can a partnership work with this being said?

______________BELOW IS THE BREAK DOWN OF VALUE______________________________________

Father 

113,000 - Building Loan

12,000 - Credit Cards from building

67000 - Equity

______________________

$192,000

Me 

45,000 - Credit Cards From Building

85,000 - Building loan from a bank

50,000 - Loan from Uncle

17,000 - Work Equity

_________________________

$197,000