How to structure a deal with a contractor friend

[Timothy Allen]

Hey everybody I'm a new investor as in I haven't bought my first investment property yet but am planning on it. I'm in the process of waiting for my appraisal next week to get a HELOC on my primary.

My question is I have a good friend who's a contractor and he's mentioned to me he's thought about getting into investing for quite some time now but had been too nervous until he heard me talking about it with him. I'd like to get into something that I can build equity enough to re-finance and pay my heloc off. What are some ways I could possibly structure a deal with my friend where I finance the purchase and he does the work to rehab it?

One way I think of it is he quotes out his work and what every percentage gain we make off the purchase price we'd add to his quote? Just a thought. I've done some searching on here but haven't been able to find a similar example so if you know the links to other threads I'd appreciate it or if anyone else had done something similar. thanks