I have an opportunity to partner with someone I trust, who is dependable, does really good work, and has all the skills that I do not. He's been a contractor / superintendent for 15 years and has the skill set to do probably 90+% of the type of work you'd see on a typical flip. I can do a small percentage, but he is definitely the more skilled person. Plus he owns all the tools, truck, trailer, etc.
I'm able to provide financing, business acumen, and other non-hammer swinging activities. Together I'd say we are a good pair. He and I have discussed some payment structures such as his hourly rate or a cost-plus structure. But, I thought about making him an equity partner on every deal. I think this would provide us with an equal sense of urgency to complete a project and get a SFH back on the market quicker.
Any thoughts on a split percentage? 90-10? 80-20?
Thank in advance on any advice out there.
Mike
