How to set up profit-share between investor and contractor?

[Chris Calabrese]

I'm trying to get a REO under contract, cash purchase. I have a good contractor that will do all the rehab, and in return I will split the profit with him (not sure on the % yet). What's the best way to set this up from a legal/tax perspective? I just want to make sure that I don't end up with the entire tax burden. Could we hold joint title? I'll obviously consult a lawyer, but I figured I'd check the wealth of info here first.

Thanks,

Chris

[Cheryl C.]

I'm not understanding why you would want to do this Chris. The real work is finding the deal and coming up with the cash, not hiring a contractor. I wouldn't be inclined to give the contractor a piece of the deal. He's a worker bee not a deal procurer. Why should he get more than the fair cost of his work? Now, if he brings you the deal...there may be something to talk about.