Sharing Equity With Contractor?

[Trevor Deeter]

Hello BP!

If I want to use a friend who is a contractor, and rather than pay him offer him an equity stake in our flip... what is a typical fair share for him for his work? This is based also on the notion that I will be paying for materials. It's just his handy-work and use of subs that we be footed on his end. Is there language in the contract that addresses penalties for not meeting deadlines? How should we word that and what is fair per the industry standard?

What if we want to have a friend give us money to contribute for a flip, and instead of paying him like a lender, we give him an equity stake; Assuming we each put in the same start-up capital, but I manage and oversee the entire flip start to finish... what would be a fair split? 

What if we put in 0 money, friend puts in all the money, and we do 100% of the work. What's fair then?

Thanks!