GC profit for a flip

[Joe Richardson]

I have a very experienced GC that I would like to partner up with to flip.  He's done work on my own home so I've seen first hand how he works and the skills he brings to the table.  I will likely be purshasing the home(s) and paying for the rehab.  He will be running the contractors and putting together estimates for necessary repairs during walk throughs in an effort to determine when buying a property is worth it or not for me.  We've only had one discussion so far but both of us agreed to circle back in a couple of weeks after doing some research so that we could have more serious talks so I'm trying to prepare for that talk.  Are the followoing profit splits reasonable in the scenerios below:

1. I pay for everyting and he gets no GC fee to get the work done. 

I take 70% of the profits and offer him 30%

2. I pay for the purchase and he covers the rehab costs.

I take 60% of of the profits and offer him 40% (or is this a better 50/50 scenerio)

Flipping is something I've been interested in doing for a few years but have never been able to find a GC I trust more then the gentlemen I'm speaking about.  He is extremely conservative which is lucky for me because if he wanted to take on all the finincacial risk himself (and he could) he wouldn't need me.

[Manolo D.]

1. That is a so-so or ok deal.
2. Start with 60/40 then max you would go is 50/50.
Questions:
1. How would you know if his sub charges you $100 and he gets $20 on the back end?
2. Why not pay him for a GC/supervision flat fee to manage the subs instead of going thru the legal paperwork and potential profit sharing which could result in an ugly lawsuit or cause you to open your llc books? Most rehabs don't last more than 2 weeks, and I would charge $3000 for it.
3. Why not hire him as a simple contractor if you don't need the financial assistance for it?