The enclosed trailer, and “membership in a flipping group” mean little.
Experience factor is somewhat equal.
Who finds the add’l lender is somewhat irrelevant, it reduces A’s investment.
Both cases, somewhere around 2/3 to A and 1/3 to B......maybe 50/50 if B takes on more responsibility. Much depends on the friendship dynamic, no real hard equation for it, whatever makes both comfortable.
I don't find that the trailer and membership are irrelevant, but they are minuscule. The trailer may seem like it cost $7k, but it is still worth $5k on a bad day, so it is only investing a couple grand. The experience I do not think is even. 3 years in construction isn't anything. They could mean they're still a good laborer/cut man with a tiny bit of knowledge or if they're ambitious they could have a good amount of knowledge for an apprentice, but I wouldn't let someone loose on a remodel with only 3 years experience by themselves. So it isn't like they're the take charge leader pulling the blind investor along through the rehab who is only good for being a laborer. There are two ways you could go with this IMO
#1. Treat the money like a loan paid back on rates that reflect the experience of the flippers and then split the profits after that, which to me would be 60% A / 40% B
#2. 75% A / 25% B (50% goes to the money and the rest gets split even for the labor)
My question is, is this a real scenario that already happened without a business plan and contracts signed before the flip happened or are you working this out before the deal to see what is fair? Before anything happens with these kinds of deals, everything needs to be on paper so there are no questions where anything goes when money comes in. I am sure if this is real, you know that now.