How do I structure this partnership?

[Bret Burkett]

Hey BP! I have been trolling this site for a little while now, learning and saving money. I now have an opportunity to start doing some deals with a partner. We are looking to do a few flips at least in the beginning to build up some money. I would act as the GC, do the work and would bring the money to do the rehab. They would buy the house with cash most likely. Possibly a loan. We are looking to buy a house for ~$60k that would resell for ~$100k. (Just rough numbers to give yall the idea.)

So, how do we structure this? Our initial thoughts were to get estimates from several GC's to see what they think the whole rehab would cost and assign that value to me as the percentage of the deal?

EX:

- $60k purchase price, holding costs, etc. (Partner)

- $20k in material and labor (Me)

- Total investment: $80k 

- $20k/$80k = .25 or 25%

So I would be cut in for 25% of the potential profit.

What do yall think? Have you used any other structures? Does the above seem fair for both sides?

Thanks so much in advance.