How To Structure A JV Agreement

[Leslie Beia]

I am planning to offer an equity position to a friend in a property I am currently in the process of refinancing. I was planning to do cash-out, but there are several factors coming together that is making that a less attractive option (higher interest rate, longer seasoning). However, I really do need some cash after a few unexpected life twists, and this property has a bunch of cash tied up in it. It would be worth it to me to offer an equity stake in exchange for cash, I'm just not sure how to fairly structure this for both parties. 

The house has appraised for $335k, my hard money note is for $242k, and I'm looking at only about $15k out once closing costs, taxes, and insurance are accounted for. Cash out would take me from a 7.25% rate to 8%, which is a few hundred dollars per month, and they will likely make me wait all through March to do the cash out to meet seasoning which is another $2400 interest payment I could avoid if we could refi by the end of this month. I'd like to get $30k, I'm just not sure how to calculate the percentage of ownership that would amount to. The property is in a solid area where Neighborhood Scout puts it at the highest rating for appreciation, predicting 40% appreciation over the next 3 years, and we'd look to refi or do a HELOC in 3-5 years to realize that gain, and I'd probably buy them out with my portion at that time. Any thoughts on how to figure out the JV?