How should I structure the deal

[Shane Ryan]

I had previously posted about approaching a land owner/investment company. This is the 2nd scenario I'm working thru. 

I was talking to a friend tonight about using my excavation company to get my foot in the door to investing in real-estate. Explaining how I felt I could be an equitable partner. Hoping that he had some feedback or even possibly was interested in investing some himself. He brought it to my attention that he had a virgin tract of land in a gated community. Land that needed a significant amount of work to be usable or built on. (He purchased it for access to the gated communities amenities) He paid $10 for the property. It needs another 10-15k worth of excavation to be able to build on. Simular lots are going for a few thousand more than what he paid. (Needing different but close to the same amount of work to be ready to build on). He was talking about selling and trying to get property closer to the lake than his but he would ultimately just be getting his money back if he went that route. Other properties already leveled in the same area of the community are selling for around 40k. Houses in the community range from 250-400k (last time I checked)

We discussed having me go in and level property. Since it's just excavation and no material needed, I'd only be out time, fuel and payroll. (Miniumal expenses.) There would be no upfront cost to him. I could wait until the property sold for payment. At the time of sale I'd get paid for the work I performed and get paid some of the profit. He should ultimately double his investment. I'd get paid extremely well for the work I performed. Should be a win win for both of us. 

How would I go about structuring that deal? He is a good friend and I don't forsee anything going wrong but I also know it's business. Friends and business have to have distinct lines. It keeps the business business and friendships a friendship. 

Should I (using some wholesaler tricks) somehow put money in escrow to make myself have equitable interest in the property. Have my name added to the deed? Form a llc with him as a partnership. (We will probably be doing deals together in the future so that may factor into the structure) or just do a sale contract.

Side note. The property is paid for. No loan. I explained to him there might be an opportunity to get a loan from his bank on the property and use the loan to purchase other investment properties instead of selling the land outright. 

I haven't done a lot of research on cash out refinances and don't even know if this would be an option. But would like to explore that avenue as well. So any insite there would be appreciated. 

Any advice or criticism is much appreciated.