Profit sharing with my father - help me decide on %

[Keith Macpherson]

Hey BP,

I'd like to get your feedback on how my father should be paid from my flips. First off, we have a great relationship that I wouldn't want to jeopardize over business so I'd like to present him with the fairest offer that I can. My dad would be responsible for being on site, answering to trades, ensuring material is on site, maintaining a clean/safe site, acquiring trades when necessary, meet city/building officials (if necessary), etc. My role other than creating and driving this idea will be responsible for obtaining design, permits/engineering (if required), creating the scope of work, the budget, schedule and coordinating the majority of contractors. My plan is to pay him a % from the net profit in cash once the property is sold - as a "gift", of course.

What's a reasonable % for him based on his role?

Thanks in advance,

Keith

[Jason Hirko]

@Keith Macpherson Here's what I would do.... lay out responsibilities of each party, and then say if we both put in 50% of the funds, we split the profit 50/50. If he doesn't want to contribute, then you ask him what is a fair split. Then at that point, you do whatever he says since he's your dad and you don't want to make stuff weird over a couple thousand dollars.