How do you compensate your "team on the ground?"

[James Ohliger]

I'm looking to begin real estate investing as an out of state investor.  I have family in the city where I'm looking to acquire real estate and a family member is willing to help be my "boots on the ground" support as I look to acquire deals.  He will check out places that I'm looking to buy in person, provide recommendations on potential improvements required, and coordinate inspectors, general contractors and any other person that we would need at the property.  I see him being a very active resource during the acquisition and rehab phase, and then I would transition full time management to a property management company when the place is ready to be rented.  This would not be his full time job (at least not yet as I'm just starting out).  I was curious how people compensated their team members who may have similar roles?  Perhaps just pay him by the hour for the specific time he's actively working on the property?  Paying him a percentage of rent (like a property management company) doesn't seem to make sense since he'd be involved prior to the rental portion.  If by the hour, what's a fair wage for that type of work?  I also assume I would want to pay him as an independent contractor and not an employee of my company as I assume having an employee adds a lot of extra complexity that I probably don't need starting out.  Thanks for any advice.