Relationship with out of state contractor/PM

[Dori Arazi]

I'm  from California looking to invest out of state and have found a potential partner in Texas. 

This person is well connected with off market wholesalers, is a licensed contractor and is now getting certifications as a PM. 

He is pretty new to this industry (a couple of years) and has already closed 21 deals with external investors. He was referred by a friend, and after meeting a few times he seems to have (at least) his heart in the right place and his remodels look good. His remodel estimates currently fall within +-5-7% of actual cost. 

Our model is going to pretty much be a take on BRRRR:

He finds a property we both agree on - I pay him a finders fee

He renos the property - I pay him 25% contractor fees

(I refinance) 

He then manages the property for me for an additional 9%

Final payments are not made until the property is rehabbed and rented to make sure interests are aligned. 

1. I know bird dog deals that are executed on usually go for $1000, what should I be paying him for finders fee?

2. Beyond being outright scammed, are there any pitfalls I should be looking for here?

Thanks!