Why don't you try investor funds 100% of the purchase & rehab, you find the deal, hire all the subs, and supervise it.

We covered half the rehab and he let us rehab the property under his supervision for a portion of the profits.

The more you buy/sell, the higher % you keep, depending on your contract with your broker.You're probably best off at a small local firm where you can pay minimal fees, get access to MLS and basic supervision, and aren't required to pay $600/year to local/state/national association of realtors (NAR).

I worked nights and spent most of my days at the house supervising the contractors and helping with any work I could so I could try and cut down on costs.

The rule also provides that the unlicensed individual performing the permitted activities listed in this rule must work under the supervision of a broker and his/her compensation must be primarily on a salaried or hourly basis.Under this rule, the duties an unlicensed employee can perform when working with residential rental property are the following: maintenanceclerical or administrative supportcollect or accept rents and/or security deposits which are made payable to the owner or real estate brokerageexhibit or show residential rental units to prospective tenantsfurnish published information regarding the propertysupply applications and leasesreceive applications and leases for submission to the owner or broker for approvalThe rule provides that an unlicensed employee may not perform the following duties: negotiate contracts or leasesdeviate from the rental price and/or other terms and conditions previously established by the owner or broker when providing information to prospective tenantsapprove rental applications or leasessettle or arrange the terms and conditions of a lease on behalf of the owner or brokeroffer inducements to prospective tenants unless they are previously advertised or arranged with the owner or brokerinterpret or provide their opinion concerning the terms or conditions of a leaseindicate to the public that he is in a position of authority which has the ultimate managerial responsibility of the rental propertyIt’s clear that a brokerage employee can perform many clerical and administrative functions without holding a real estate license.

Whatever you do, you have to come to town and supervise.  

Why not pay him for a GC/supervision flat fee to manage the subs instead of going thru the legal paperwork and potential profit sharing which could result in an ugly lawsuit or cause you to open your llc books?

They have outfits that only facilitate 1031's with a supervising attorney/CPA.

It is free and the students are working under the supervision of licensed, and often extremely knowledgeable attorneys.

I would think it would be difficult to supervise contractors without some basic knowledge of how a job should be done.Feel free to contact me to discuss further.