Partnering with my Contractor

[Tom Keith]

Hello BP. I have a question that I have not been able to find information on as of yet

My Friend and Contractor is now my partner in a rehab. Just got funded and I am trying to figure how our 50/50 split is going to work for him while he is doing the work. I am unable to work just found the deal. Handling all the issues and he is going to work on it. How does he split his pay as contractor also. He will need to be paid so he can pay bills. Thanks so much. PS. This is our first deal.

Tom.

[J Scott]

There's not enough detail here to answer your question. What are each of your roles in the deal? Who brought the money/credit?

If the contractor is just doing the work (i.e., didn't find the deal and isn't providing any money/credit), I wouldn't give him a percentage -- I'd instead just pay him as a contractor.

Btw, the reason I tremendously dislike the idea of partnering with a contractor is, what happens if/when the contractor doesn't do a good job? You can't just fire him, as he's your partner. But, it's probably the best thing for the project. Catch-22 when the contractor has equity...