Deals with friends-are we unreasonable?

[Jeanette Czachur]

Long time friend  (40+ yrs) approached us and offered to finance RE ventures 100% up to $300k. Reluctant to do business with friends but he persists.  So I tell hubby to pin down the terms...first friend says keep track of hours and will pay him based on agreed upon rate per hour.  We say not interested and recommend profit split, interest or combo.  Friend doesn't commit but tells us to find property.  So we do spending time looking for deals, analyzing etc.   Find one with approx $200-210k all in investment after rehab etc. We propose what we thought was fair split 50/50 his funds and our work or alternatively 10% interest.  Investor friend comes back with will put in $150k expect us to front the rest and still split 50/50.  Not interested in 10% says he can get in stock market.  Okay, then do it we tell him.  Know that HDL would be much worse terms but thought we were being fair for private deal.  Hubby says friend doesnt place any value on his time , understand the amount of time it takes to do flips and not  realistic about expected profits  apparently fooled by HGTV shows so told friend thanks but no thanks. Were we unreasonable?  Think investing with this friend has disaster all over it with lots of second guessing and thinking we are making a windfall in the deal. Thoughts?