I'm planning to start looking at fix-and-flip opportunities in the Bay Area and will be working with an architect I know who has a contractor's license and who had done a lot of construction management. (I have very little construction experience but own two rental properties in CO and ran a successful fix and and flip in IN.)
I'd like to have this architect's pay tied to how the deal goes. He would get a bare minimum of pay for completing the project and no money on top of that if the project results in a net loss or a very small profit. Once I hit a certain level of profit, I'd like to come up with a way to reward him for having hopefully contributed to a successful flip (bargaining with subs, looking for ways to cut costs, etc.), so my plan was to give him an increasing cut of the profit as it grows (and have it cap out at a certain point.)
Anyone have any experience with this or advice?
Thank you
