[aaronrc]

Rails devs are a dime a dozen so unless you are attempting to entice one to join your company you shouldn't pay a high rate. There's no reason you couldn't find a good dev on elance etc. It might take you longer and you might have to start with offering smaller tasks until you find that right dev but it could end up being a quarter the cost.

If I was you AND I was in a rush AND I thought this particular dev may end up being interested in joining forces as a co-founder I'd consider paying him the high rate. Otherwise I'd offshore it.