Partnership

[Kathy Crosby]

We have a hard money loan that we are refinancing with our husbands - the property has been rehabbed, its just not selling.  It is a unique property in Galveston and will take some time to find the right buyer.  Hindsight, we shouldnt have done the deal, but here we are.

For the refi:

One will get the loan in their name

The other will put up the cash for closing.  (Debt to income is too high to be on the loan)

When the property sells, how are the proceeds split?  Each will get 50/50, but does the person that put up the cash, get the original cash back plus the 50% OR the cash downpayment taken out of the 50%?  

What is "normal?"

Thanks!