Ok, have a private investor, how do I structure deal?

[Jason Clark]

I was recently approached by an acquaintance that is selling his out of state commercial property (in escrow now) and looking to lend some proceeds at 10-12% to someone like me looking to reposition either SFR or redevelop a SFR on high density zoning to MF property, rent out and sell as asset. My million dollar question: how do I structure a deal that gives the investor security (and his 10-12%) but allows me to capture net proceeds on the final sale? Assumptions: $600000 purchase price $150,000 Rehap cost $940,000 Projected ARV