Business model ideas for remote invester / local flipper

[Eric DeVoe]

I've had some success purchasing turnkey properties remotely and leveraging the local real estate agent / property management firm to get the properties freshened up and renting. 

Recently, I stumbled upon a local general contractor (GC) in my remote market that has been buying a flipping multi-family.  I am limitted in the supply of turnkey properties, and the GC is limited in the cash required to purchase a property and float the rehab cost.  Any advice on what works and/or doesn't in a business partnership like the following:

1) Investor (me) purchases a distressed property: $100K

2) Investor (me) or GC (partner) pays for rehab cost of property: $20K

3) GC (my partner) does the rehab of the property

4) Property is reappraised and refinanced: $150K

I want to give the GC incentive to perform the rehab quickly but also take pride in the workmanship.  I think I can do this by splitting the profit ($30K) equally between final appraisal and purchase + rehab cost.  Is this too generous to the GC?  Would you have the GC pay for the rehab and then split the profit? 

Thoughts?

Eric