Net worth at 22

[m4carbine]

Hello everybody first post new to this forum. My family is opening a dry clean business and their are 4 partners. My brother and I have a 15 percent share each. The dryclean we are in the process of buying has one plant and 5 drop stores with the plant also being a drop store. Company is fairly new around 5years since my family is doing financing( finance for a living) I will be getting a loan of around $105 000 and thats my share same with my bro. Business is around $700 000, my family said that the as soon as you pay off the loan we will slowly back out and we will get more shares. Since it is a loan does that make me a $105 000 man? net worth wise.

[noob]

Net worth is your overall asset (equity, cash, etc..) minus your outstanding debt (credit cards, all loans- business and student, etc..) If the business is worth X, and you have 15% of it, that's X times .15. Now take what the business is worth (in this case the $700k) and minus all outstanding business debt (loans, etc..). Once you have that figured out, multiply that by the .15 to get your share and then minus your personal debts, etc.. You'll have your net worth base on what is remaining (could be positive or negative).

[amccloud]

No you're a -$45,000 man.

Business is worth $700,000
$150,000 (debt) for 15%
15% of $700,000 = $105,000 (asset)
$105,000 - $150,000 = -$45,000

[Tzarkov]

amccloud is right.