GC profit for a flip
I have a very experienced GC that I would like to partner up with to flip. He's done work on my own home so I've seen first hand how he works and the skills he brings to the table. I will likely be purshasing the home(s) and paying for the rehab. He will be running the contractors and putting together estimates for necessary repairs during walk throughs in an effort to determine when buying a property is worth it or not for me. We've only had one discussion so far but both of us agreed to circle back in a couple of weeks after doing some research so that we could have more serious talks so I'm trying to prepare for that talk. Are the followoing profit splits reasonable in the scenerios below:
1. I pay for everyting and he gets no GC fee to get the work done.
I take 70% of the profits and offer him 30%
2. I pay for the purchase and he covers the rehab costs.
I take 60% of of the profits and offer him 40% (or is this a better 50/50 scenerio)
Flipping is something I've been interested in doing for a few years but have never been able to find a GC I trust more then the gentlemen I'm speaking about. He is extremely conservative which is lucky for me because if he wanted to take on all the finincacial risk himself (and he could) he wouldn't need me.