Investor/contractor partnership terms

[Kate R.]

So I am a landscape designer and have a very good working relationship with a contractor who builds most of my projects.  He is looking for more construction work in the winter and I am looking to invest in a house flip project.  I have searched these forums but can't find many clear discussions of the terms that would be fair for us to partner on a house deal.

As we have it, I have formed my own LLC and would buy the property and put in all the money for the renovation and carrying costs. He would provide his time and considerable contacts in the area among builders/plumbers etc. He would GC the project, and I would help on design, fixtures, and management/administrative items.

Another forum post suggested the investor care 6% interest on the money and then split the profit 50/50.  Is this fair?  

Houses in our area are very expensive, with fixer-uppers in the $300-$500 range and looking to spend another $100k or so renovating.  I feel it is a lot of financial risk and what to be covered for that, but also want to be very fair to a respected a trusted partner.

What do others do?