Private Investor Wants 20% Ownership in deal

[Brandon Eleazer]

I recently purchased a buy and hold investment property. Now a friend would like to invest $15k to cover rehab costs(and split any expenses moving forward). I offered to pay 10-12% interest to him on the money if he loans it to me, but he's more interested in the tax advantages of ownership in the property (and long term equity stake) and less concerned about cash flow or initial return on his investment.

Is there any way to structure this partnership deal so he gets the tax advantages he is looking for but without giving up a portion of ownership to him?