Profit splits

Just looking to get people opinions of deals that people have done before on property.

What is the normal for profit splits on point joint ventures?

My situation is that:

What i do:

I do the 100% financial backing with a carpenter on a property deal. I pay for everything on the deal (buy the house, organise a loan, pay their worker/s, account payments and all other costings on the house)

What they do:

Find the property, come up with the price for the property and organise the work to be done on the house and they physically work on the property (how many actually hours they physically work on the house i don't know)

What would be the normal profit split on a venture like this? What have people here done? It would be great to hear from people.

 

There is no 'normal'.

It is up to the parties to negotiate and for many other things to be considered as well

 

So your "carpenter" finds a place for you to buy (like a buyers agent), that suits him to reno.........
Do you pay the workers directly, or him ?
Does he count all hours worked, including his to the account ?
Too many variables, sorry.
Basically imho you have a good "working" relationship with this individual, he doesnt have to chase much other work or spend hours quoting jobs he may never actually win, maybe he treats your projects as the fall back/fill in for when he doesnt have enough of his own work for his employee's

So, is it a good working relationship ?
Do you both benefit from the venture ?
Does working with him really benefit you ? (V's paying anyone else)
Is the relationship worth you paying a premium ????

Yes, I'd expect that fo the mutual benefit of you both that your carpenter is renumerated/compensated IF the deal makes a good sum
But as you have all the financial risk, it would have to make a good profit

 

I have a profit share with the Tax department. ..they said it is normal ! lol

 

I have spent years behind the eight ball, trying to build up enough capital to do exactly what the two of you are doing
IE, to buy a place near where i live, to renovate and improve/ extend up to a modern practical property to then on sell at a profit
Seems the closer i get to this he more property values increase, and i feel like i am chasing my tail (or a first home buyer situation)
Seems you both are on a good thing
As if it was me doing these works, my time and cost would be added to the workers hours BILL !
So if he is pushing for more, then ask "what" he wants and negotiate
Do due dillegence, ask for detailed hours and actual costs

Remember, there are plenty of other qualified people out there that would like the opportunity to work/profit/benefit from your capital expenditure