40% Net Reasonable If I Am PM on a Flip?

[Paul Jamgotch]

H All,

If I fund the purchase, close, & carry of a property ($40K-80K) is it reasonable to expect 40% of net proceeds? I want to be mostly hands off other than approving the project and am easy to work with. I am assuming the rehabber's time and material costs are coming off the top-line.

Example:

$60K purchase, $4K carry and closings, $20K rehab time and material, $99K sale... I would expect 25% of net, or $6,000. The rehabber would fund material costs and delay moderate fees for labor.

I hope to understand if I am high or low with my 40%. What have others done? Is there a thread someone can't point me to that better lays out what I am hoping to achieve by becoming a PML? I understand the experience of the rehabber will have a lot to do with the percentage split.

Thanks for reading