How to structure the partnership?

[Rocky Li]

I am a real estate broker, and I am partnering with a contractor in flipping a property. We put 50/50 cash to cover the purchase and rehab cost. I am responsible in finding the property and take care of buy/cell. He is responsible for the rehab. Should we:

1. pay me commission and pay him the renovation labor and the split the profit;

or

2. don't pay me commission and don't pay him the labor, and don't count these as cost. Just split the profit.

Any suggestions are welcome and appreciated.