Partnering with GC who will cover renovation on 1.3MM house.

[Sendhil Krishnan]

I know a local builder who brought up an interesting flip proposal. A SFR here locally is going for 1.3K and requires approx 250K in renovations. The ARV is approx 1.7MM. He has already put in an offer for 1.15 at this time.
He is requesting that i obtain financing for the property, and he will cover all renovations up to 250K (and more if it goes over) and we split 50/50 all profits. He estimates renovation time to be about 3 months.

Few questions that I had:

1. what sort of pitfalls should i be looking out for?
2. I imagine both of us need to get our principal back (me with down payment and carrying costs, and him with building and labor costs) before we split profits
3. What would recourse be if the house did not sell at the expected appraisal value and we end up losing money?
4. Should house be held in my name solely or in an LLC (that we co-own) during the renovation period?

I know others have said why use a GC when you can hire your own, but I know the guy, his work, and plus he found the deal and had already offered on it (with plans to get one of his investor friends to cover the cost of purchase.)

Thanks!