Equity partner - what is a good cut?

Question

I have an equity partner who basically wants to be the bank on my flips.  I use all their cash, and they want a % of the profit.  I find the houses, I'm the GC on all the work, I get the properties sold, my partner is just the playing the bank for all funds needed.  What would be a fair % to give them of the profit made?
Tks for you input in advance!

Lynn Z · Answer

I've partnered up where I got the mortgage and the other person had the cash to do the rehab and the know how.   We've always gone 50:50 and each side pulls together for the long haul.

I have great respect for the money man.  He risks your running off with an incomplete job and his banking relationship if it doesn't work out or sell.  He's carrying the greater risk.  Also the work might not be up to stuff either.
I recall my partner's banker looking through the new kitchen and stating that the cabinets (granite, stick built) were too high.  And they were.  Didn't kill the deal but he's no dummy.  It would be worth it to me to go 1/2's actually because he has the risk, you don't.  If the deal is successful perhaps you could carry more of the profit.

I always sell my own houses and take some money for the sale, signs, open house, contract time and energy.  You should be compensated several thousand for that if you're saving 6%, don't you think?