He may have priced high to keep from getting the job or to cover unforeseen problems within the walls.  

A GC can give you some idea of costs but that too has its limits and you should always factor in additional costs for the unforeseen things that invariably arise.  

You are right I dont think I would ever agree to a %25 profit split as a rehabber unless the potential profit was very large considering that your profit on a smaller deal could easily be eaten up by unforeseen surprise fixes.

I agree with using a GC on your first couple of flips and remember to add 10 - 15 % to the estimate for unforeseen things that will pop up.

•A period of temporary absence of up to two years for reasons of health, employment, and unforeseen circumstances.

If there are unforeseen major repairs then you can renegotiate the purchase price at that time or cancel escrow and get your EMD (Earnest Money Deposit) fully refunded.

If the property is in a good condition and there won't be any unforeseen repairs or additional costs down the line, it won't loose you money.

My knowledge and experience should provide ample protection against unforeseen problems and I will warn my customers of these potential issues prior to contract.You will know if your contractor has the ability to manage your expectations.

In other words, if for some unforeseen reason the financing fell apart, I'd still close with cash.

You can have your saved up funds for your renovations/upgrades and unforeseen costs that you will most likely run into.