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
