How to Partnership with a general contractor?

[Joe Clonan]

How do I structure a partnership with a investor as the contractor? I have been remodeling houses for investors since 2009. I have many years of experience in this field but I have only bought and sold one property in for myself. Recently I have been working with my brother in-law flipping houses. He finds the deal and gets the hard money loans and helps design. I handle everything construction and front construction cost until the final draw and then i wait untIl the house sells to get my remaInIng money. We have done 3 deals thIs year lIke thIs. WE ARE NOW TALKING ABOUT PARTNERING ON THIS NEXT PROJECT. THIS ONE IS A RENTAL. HOW DO I STRUCTURE THIS PARTNERSHIP THAT IS FAIR TO BOTH OF US? DO I CHARGE NORMAL CONTRACTOR PRICING AND GET PAID AS TBE BUILDER AND AS A INVESTOR? DO I WORK FOR FREE AND THEN SPLIT THE FINAL PRICE? IM SURE I WILL HAVE MORE HOURS THEN HIM SINCE I WILL BE THE GC. IS THIS FAIR TO ME? I SAW A RECENT POST OF A GC THAT CHARGE 275K FOR A REHAB AND THEN HIS 2 PARTNERS ARE SUEING HIM BECAUSE HIS COMPANY MADE MONEY AND HE STILL GOT 1/3 OF THE PROFITS. I don’t want this to happen. ANY ADVICE? -JOE CLONAN