Is this a good deal?

[John Gillick]

In a work/money fix&flip partnership:

The silent partner provides $1M.

The working partner does all the work, including securing an additional $1.4M in financing for the LLC.

The working partner keeps 2% of the capital immediately ($20k).

After all rehab, fees, and finance expenses are deducted/repaid, the working partner takes 45% of net profit and silent partner takes 55%.

You can assume the working partner has experience and it's not a take the 2% and run scam. I do not know if any of the closing costs or construction expenses make their way to the working partner (e.g., if they're the selling agent or own the construction company, etc.)

If all estimates go to plan, then the 55% net profit should provide an 18% annualized ROI for the $1M, but likely lower.

Is that a fair deal?