How should I get paid as the agent and rehab manager?

[David Lopez]

Hi All,

This is my first post and need your help please.

I'm a fairly new licensed agent and will be flipping properties with a friend. I will be finding the deal, managing the rehab, and listing it. The funding will be provided by him(all cash). He will not be in the state to help with anything. 

How do you recommend I get compensated for finding the deal, managing rehab, and listing the property. 

Thank you,

David

[J Scott]

Why not borrow the money from your friend and pay a fixed interest rate instead?  This way his money is secured and his risk reduced, so he should be happy.  And you will have full control over the deal and won't have to answer to an out-of-state equity partner, so you'll be better situated to be successful.

If you a dead-set on an equity partnership, why not 50/50?  He gets half for providing all the money and you get half for doing all the work...