Flip Partnership with a Broker/Project Manager Suggestions?

[Trip Colden]

I am partnering with a new partner on a flip for the first time.  She is a licensed RE broker and located a great off market deal with the ability to flip it and came directly to me about the deal.  She has structured her firm as a brokerage/interior design/project management firm and would like to participate in the project as an equity partner in order to profit while building out her portfolio for each of these services.

We are taking title in the name of our LLC (myself and one partner) and I will be loaning 100% of the money to our LLC as the lender. We are currently looking at splitting profits 80/20 between the LLC and our broker/PM partner. The split is driven partially off of thje size of the project - this deal precludes any of us from doing another deal until this one is complete. This 20% equity stake wouldn't require an investment and is essentially entirely sweat equity. We will provide her a 1099 for the profits on the project - calculated after rehab costs, interest, transaction fees and buyers agent fees.

I'm also looking at increasing the split should we exceed the initial profit estimates - 35% for a certain amount, 50/50 thereafter.

Does this make sense?  Does it sound fair to those who have done these sweat equity projects?  This will be a $300k rehab project and while we have a trusted general contractor my partner will be doing work that will take time away from the brokerage so I want to ensure this make sense.

I appreciate any suggestions on structure or considerations I'm missing.