Handyman/contractor as partner, what's fair split??

[Mike Lightcap]

Hey guys I'm looking to buy my second property and would like to get a fixer upper so I can either 1) put some equity into it by fixing it up and then renting it out and refinancing to get another property or 2) flipping it. My situation is that my brother in law is looking to get into investing in real estate but he doesn't have any cash to get started. However he is handy, in fact he used to work for an investor and he was the sole guy doing the carpenters work (he's not too savvy with plumbing). So the question I pose is: since I can handle the financial side as far as down payment and acquiring the loan and he can supply the sweat equity as I will to buy more as a helper and demo guy... what would be a decent and fair split if we did a flip and if I use him but only decide to rent it, what kind of payment should I give him or equity share. Thanks in advance, Mike

[J Scott]

Why not just pay him a fixed price to do the work or hourly (if you trust him)?  The problem with making him an equity partner comes in if he doesn't get the work done in a timely and/or quality fashion, and if you need to hire someone else to finish.  If he's an equity partner, it's difficult and expensive to fire him as the contractor if you need to.