Best practices and issues for partnering with a contractor ?

[Kenneth Moerschel]

I was recently approached by a contractor who wants to partner basically I would have to put in either all or some of the money to acquire and to fix a real property how would you say we divide the money that we earned?

What are the benefits? and pros and cons of partnering with a contractor?

[George W.]

if You're going to partner with a contractor make sure you really pick the right one. If they aren't contributing any cash why not just hire them? It would be better for both parties. The question should really be to your contractor, why do you have no cash to contribute? You'd need to figure out terms and have a good contract written to protect both parties. 

Cons could be that the contractor would use it as a fill in job most likely if their margins are low. The contractor might feel shorted if they put out all labor and material for a small % of profits in return. Other con could be if they devote a lot of time to project they will have to walk away from other jobs with higher profit margins. Most contractors aren't financially stable and live from job to job because they dont know how to operate as a business and make poor decisions.

Also alot of contractors with no money saved dont know how to estimate jobs accurately, if he was financially stable why would he need you?