Profit Sharing with a Contractor... what's fair? %$%$

[Dane Peterson]

This is going to be a very broad question and I'd love to get some feedback from people who have direct experience with this.

Tomorrow I'll be sitting down with a friend and his brother to discuss a potential partnership for rehabbing.  We have both been starting to  look for rehabs and with this market, I think we'd be better served to join forces. 

1st Scenario)  I purchase the property, they put up the rehab money, and handle the rehab?  

With this scenario, I feel 50/50 is the fair and smart route.  Cost of money, holding costs deducted before profits split. 

2nd Scenario) I purchase property, they put up the rehab money, and get a flat weekly pay for work

This scenario, I'd say 50/50 less the total pay for the work?

3rd Scenario) I purchase property AND put up the rehab money, they don't take any pay for the work.

70/30?

Just throwing out some random ideas.

What have you guys done or had success with in the past or present?