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Splitting flip proceeds with General Contractor...percentages?
Hi, I'm the investor, my brother-in-law is the general contractor. He's been in the business for over 25 years, and has done many new builds and high-value home updates, but it's both of our first house flip. I've been paying his sub-contractors a set amount per hour, but he has been working 20-30 hours a week along with the subs to do the flip outside his day job. I have not paid him directly yet. We're ready to put it on the market, and I realize, I SHOULD have gotten this figured out back in March when I bought the place. Has anyone run a flip like this? Obviously you would not want to do this with a new or unknown contractor, and I know that. Good thing he's been my brother-in-law for 18 years. I'm thinking a % of the proceeds, or is there some other way to estimate his cut? Any ideas or advice would be great. We've had a great time flipping this house, and want to do it again soon.