Hard money or JV on a Lease Option

[Mark L.]

I had an interesting possible deal come through the other day and would like some advice on how to approach.  

Person signed a lease option to buy a large SFR in a hot market back in 2014 for $255k. Small downpmt (LO fee) paid, monthly pmts for a 5 year term. Deal worked out for that person as the property is now worth close to 400K. Person has contacted me as a hard money lender to exercise the LO and purchase it outright. Long short, person has no real assets or credit, I won't loan in 2nd and the title is still in previous owners name. How can I protect my principal in this deal? Should I go the JV route as we both want to sell the property and cash out? Anyone ever structure a deal like this?