What's a fair split for a fix&flip JV
I have a couple investment properties but I'm still fairly new to the game. I just got into a JV with an experienced contractor on a fix & flip and was wondering what kind of terms are common. It's a done deal now, just wondering if you think the deal is fair/in-line with market for both parties.
Property is a rural SFR that became bank-owned, squatters moved in, and trashed the place completely. It was a complete gut/rehab. Someone bought it from the bank for $65k, put on a new roof, new siding, gutted everything inside to the studs, new plumbing and electric. We bought it for $110k, and figure we'll throw $70k at the thing for a nice finish. ARV is $260-$280. It would rent for $1600 if it came to that.
Here are the terms of the deal: I put up all the money except $5k. Partner puts up $5k initially and gets a $1k/week draw against his profit share. He does all the work. (We figure 12 weeks for rehab.) Profit split is 50/50. He gets one helper at $20/hr which will be a cost to the JV.
What do you think of the deal? Fair for everyone?