What return should I offer an investor?

[Enrique Hernandez]

Hello investors and real estate pros!

I was hoping to get some advice on how much return on investment to offer my new investor. 

The deal is a single family ground up development on a vacant land that I found. The whole project will cost roughly $740k after all costs have been considered. My plan is to borrow ~$230,000 from my investor and use that as a down payment towards a loan for the rest of the amount. The basic numbers are as follows:

Land purchase: $260,000

Construction cost(all included): $360K - $380K

Loan & Holding costs: ~ $72,000

Sales price: $980,000

There are a few expenses that are not mentioned such as sales commission and such but after all is said and done, gross profit would be around $180k. This is, of course, before paying the investor. I have done many ground up developments using private money loans, but I have never brought in an investor. I was thinking of offering him 25% plus his $230,000 investment for a 12 month loan. That would be $57,500 which seems fair to me. Does this seem like a fair deal for both parties? Just for reference, he knows nothing about real estate, so I would be pulling the second larger loan myself and doing all of the work to make the deal happen. He would basically just be a passive investor. 

For anyone reading I appreciate your time and your helpful responses!