I ran into a contractor who has the capital to complete the rehab.

If you purchase properties that don't cash flow with the hope of making money based on capital appreciation, you put yourself in a position of needing to sell regardless of market conditions.

I have concerns when a potential wholesaler indicates they have minimal capital.  

I have access to some capital but probably not enough to invest locally.I want to build an empire. 

Not a big national bank such as Chase, B of A, Wells Fargo, etc.Using a HELOC to fund the down payment may mess up your debt to income.

I was hoping the community could provide some guidance on what the process typically entails when contributing capital and any steps they've taken to protect their investment.

Doesn’t seem like a huge source of capital but sure you could do this.

However, unless you are sitting on a ton of capital, I would use flipping to fund your long-term hold acquisitions. 

@Grace BarrSounds like a good plan.I have a second home that’s free and clear.I am considering a similar offer.I think it will also allow me to get a higher price and offset my capital gain over time.I may try to push the down payment a little higher to pay off another rental property to improve cash flow on 2 sides

There are some niche sub-markerts in Oklahoma and what we lack for in huge spreads we make up for in steady appreciation that is virtually “certain” given the state is far behind national averages.