How to split profits or money on house flipping?

[Brian Douglas]

Hello all me and my uncle are wanting to flip a house. He said he would buy the house and materials well be the "investor" and I would be the contractor. After fixing up the house and the house sells what is the general percentage split in a partnership like this? His proposal was that here is an example... he puts up $25k that's house and material to fix house and I do the work. Then we sell the house for $50k he said he would get his original $25k back and then we would split the other $25k 50/50. I dont quite think that's fair but I'm not sure what flippers normally do? I know he is putting up all the money but I'm doing all the hands on labor. Any helpful advice is appropriated. Thanks

[Teri Feeney Styers]

@Brian Douglas do it once to get the experience and profit as @Mike Dorneman suggested. In theory you would then have one half of $25K to invest next time. But keep very close track of your hours - would you have been better off just taking a salary instead of a "share"? Next time - invest together - maybe you have 25% and he has 75%. Pay yourself and other contractors a fair wage, sell the property and then split any profits. This is more equitable. You are being paid for your time and earning "interest" on your money. He is earning interest on his money. If salaries for you and other workers eat up all the profits then you aren't buying the right deals...