Private Lending: Joint Venture on a buy and hold

[Steve Hiltabiddle]

As a lender, I'm seeking thoughts on structuring a joint venture with a borrower who intends to hold the property as a rental after rehabbing.  

Scenario: Borrower purchases property and I lend at 50% ARV. Borrower intends to refinance my loan out when available. I'd like to propose an equity stake in the deal to allow me to accumulate hours against my status as a real estate professional.

Say purchase is $35k, rehab is $40k and ARV is $150k (rehab will convert SFH to duplex thus increasing ARV). Cash out refi could range from $75k (min to cash me out) to $113k (approx 75% of ARV).

If equity is a %, Borrower could do refi at low end of range and I get $0.  Is it reasonable to require borrower to do the refi at the highest % so my equity is worth something?

Or are there other options in this situation? Final point, Borrower does not want to hold the property as a JV once refinanced.

Thanks in advance for you reply,