Rehabs And Contractor Splits
I am thinking of doing rehabs. I have a friend who is a developer/contractor who will do the work and then I can flip or sell the property outright. My question is how much do I split with my friend the contractor if he does all the rehab work but I finance the deal? Any advice would be most welcome!!! Thanks in advance 
Either 50/50 net profits if he doesn't draw a salary for his work(materials count as an expense).
Hi Sharp,
How valuable is the friendship?
I advise people to be very cautious when dealing with family and friends.
I value my personal friendships and family relations over business, which is why I seldom do work for either.
I have worn both shoes...the investing as well as the labor / knowledge side.
It's easy for one side to feel more important than the other hence a difference in the split.
I personally feel that knowledge has more leverage to it than the money side.
Money can do nothing on it owns, it take a great deal of knowledge to know how to use it (invest it) wisely.
If you give 100 people a million dollars....I would suspect that within a few years....only about 5 people would have been able to increase their wealth, the rest would have squandered it away of friviolous things.............Knowledge is the key.
Good luck
I do the same...
My agreement is he gets all my rehab work as a exclusive contractor for me...
Cash paid on completion
or
Paid when property sells and I pay 12% against the amount.... 1% a month....
depends on amount of work being done...
Thanks everybody for your guidance and advice. I wanna be cautious since I am just starting out. I guess experience is the best teacher and like Nike says, "Just Do It!" Thanks again.