Strategies to Partner with My Contractor

[Andrew Yu]

So I'm becoming a very good friend with this contractor of mine. I'm trying to think of ways for us partner together on deals. He's open to the idea. So I proposed that I find the deal, we split the purchase cost, and he provide labor, I provide material. When the house is sold, we will then split the profit less original purchase cost and material cost. But he seems not liking the idea. I guess the labor cost could go up really high. Also he's not very comfortable with tying up lots of capital on one house since usually the houses he buys are very cheap, around 10K or 20K, fix it up very well then keep as rental or sell quickly. But he knows everything about residential type houses though. So what are the ways that him and I can partner together on deals that's a win-win situation?