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Updated 11 months ago on . Most recent reply

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87
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Susan Thelen
  • Real Estate Agent
  • Mesa, AZ
39
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87
Posts

hat percentage of the proceeds would be fair to pay the contractor.

Susan Thelen
  • Real Estate Agent
  • Mesa, AZ
Posted

I have a client looking to partner with a contractor to build 6 SFH's. He expects to put about $4.5M into the project and the homes would sell for around $1.2M. He is wondering what percentage of the proceeds would be fair to pay the contractor? He would not be paying the contractor any salary and would pay him each time a home is sold.

Most Popular Reply

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Bruce Woodruff
Pro Member
#1 Contractors Contributor
  • Contractor/Investor/Consultant
  • West Valley Phoenix
13,638
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Bruce Woodruff
Pro Member
#1 Contractors Contributor
  • Contractor/Investor/Consultant
  • West Valley Phoenix
Replied

I agree with @Russell Brazil. But if they insist on paying a percentage, then it depends on if the GC is paying for everything? Materials/Subs/his own Crew?

If so, I used to use 50% as the number....

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