Structuring a Fix and Flip Deal between GC and Investor

[Ashley Russell]

My husband is considering partnering with a local investor on fix and flips where this investor would put up 100% of the purchase price and renovation costs. My husband would act as GC and do all the work, manage subs, budget etc. They would then split the profit 50/50. Should my husband also negotiate being paid for his time or for a draw that would be taken out of the profits? He would be foregoing a salaried position with an established builder. We understand that the investor is taking on the risk by putting up all the money. But if for any reason the flip doesn’t make money, my husband would be essentially working for nothing. What has worked for you all? And what would be fair and win/win for both parties?