Thoughts on partnering with a contractor on deals

[Caron Bracy]

Looking for thoughts…I was approached by a contractor to partner up on deals. He is looking to source deals for me. However, he wants me to still pay him the rehab cost for the project and then split the profit with him 50/50. Am I crazy or does this make sense to do? He claims that he has 2 other private investors that are doing this with him. I’ve worked with the contractor for about 4 years. This is some trust there. However, I don’t see how it makes sense for me to split the profit with him, pay him as I would regularly for rehab, and split the the profit 50/50. He has no risk/skin in the game. In this market that seems completely insane.

Thoughts???