Equity share- Revenue Share- Partnership w Contractor on Sixplex

[Joseph Lyons]

My partner and I are a few days from closing on our sixplex in Des Moines, IA. (Purchase was 194.9k) Each of the six units need various levels of rehab. One just needs a coat of paint. While another needs walls and ceilings entirely replaced. We have ~30K for the interior reno (materials and labor). Think paint, floors, and fixtures.

Most of the contractors have submitted standard bids. But one rather plucky contractor has offered to act as general contractor for all 6 of the units. Additionally, he'd serve as the maintenance man as things come up. 

In lieu of traditional payment, he has offered the possibility of becoming a partner or getting an equity or revenue share. 

This is our first time considering an arrangement like this. We can afford to hire it out. But we're looking to buy back some time. And keeping more cash in our pockets now is appealing.

I know there are many factors to consider before offering someone any type of partnership. His references are solid.

1. What are the main considerations you have used to qualify/disqualify a contractor for a partnership or revenue share? (If you haven't done this exactly; what would your considerations be?)
2. What questions do you ask the contractor?
3. How can you ensure that they follow through with the plan/work?
4. How much would you offer for overseeing a lipstick rehab on a sixplex?
5. What questions am I forgetting?

Before we make any final offers of equity or revenue sharing, we'll consult with an attorney first.