Getting paid a month stipend in a 50/50 flip partnership

[David Stone]

I am about to begin a partnership with an investor on a flip here in Oregon. The property will be bought for about 400k and needs about 100k in Reno. After repairs it should sell for anywhere between 700k - 800k.

I am partnering with an investor my realtor has linked me up with. He works full time and doesn’t have the time to manage a flip. (But has done many in the past)  He is willing to put up the money to do the deal. In exchange I would be managing the deal from acquisition to the sale. Dealing with the contractor, architect, and other aspects  full time.

I was planning on offering a 50/50 split of profits. Due to working this full time I was wondering if there was a reasonable way to get paid a monthly stipend till the project is completed. Possibly taking it out of the money I would make at the sale? (Was thinking $4,000/month)

Curious if anyone else has had experience experience dealing with this. Also if my expectations are outside of the norm and what you would suggest.

Thanks!

David Stone

[Dutch Langley]

We pay a project manager who has his own company but works with us on a lot of renovation projects (we are a GC) based on a split in the profits.  Of course, some of our projects might be pretty high end and last 6 months, so he needs to get something along the way.  I'm pretty good at estimating what it will be, so if I think his total take in the profit at the end of the job is going to be 50K and last 5 months, I might figure out that it is safe to budget 6k to pay him as we go along.  I of course am always monitoring the income and expenses of the job to see if our profit percentage is going to still stay true.