Share of equity for managing the deal

[Adam Vadnais]

I am buying a house to fix and flip and I am taking on some partners to fund the deal. Most partners are happy with getting a set rate of return but one wants to have equity in the house instead as he believes it will be more profitable when we sell. His part is totally passive, he just provides some of the money.

To compensate myself for the work of finding the deal, managing the contractors etc I was thinking that I would set aside a share of the equity and then divide the rest based on our respective investment.

For example: if the equity set aside is 'X' and he is funding 25% of the deal, then:

(100%-X%)25% = his share of equity

Does this make sense?

And what is a reasonable mount of equity to set aside for managing the deal?

I was thinking 10%

Thanks everyone