An investor for an investor

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My stepfather and I were recently talking about how well we've both done in real estate over the last couple years and how we'd like to get involved in a rehab or two. It seems like a match made in heaven, because he has an endless supply of money and I have the ambition and determination to find, develop, and profit from potential deals.

He's coming down next weekend for a visit and I'm trying to think of the best way to approach him about using his money to finance one rehab so we can test the waters. Being family, his terms are obviously going to be second to none, but I still want to make this little venture lucrative for the both of us.

How exactly would you approach this situation? What kind of payment, rate and terms would you consider fair? I'm thinking we should stay in the sub-$100k market (this would include the house and the repair costs) for now until we get our bearings.

I hope to have a proposal for him within the next week or so and I'm most definitely going to take all your advice to heart. Thanks so much.