Investor wants 10% cash flow, no equity, how to do contract?

[Seth Razor]

I have an investor willing to provide significant capital towards my real estate business. He is willing to provide the cash and only wants a 10% cash on cash return, no equity or involvement in the property or business itself. I plan to use the capital (as well as my own) to buy properties cash, then finance them after 6 months and use the 80% from each to buy more properties. The more properties I have the less significant his cash on cash return is on business bottom line.

I initally want to set up the investment for 3 years. With the option for him to reinvest his earnings and if the business is doing we we will reevaluate and I could provide him with a more significant return.

My question is: How do I set up the contract? He is technically a limited partner but I have no LLC (I can set one up though) and he doesnt want equity in the business itself. Would it be easier to write a specific contract for each sum he transfers to me and have 5 or 6 individual notes with descriptive verbage on the terms?

Note: I have a great job and will be investing capital of my own, I’m looking at the long term equity gains of using someones capital to grow quickly, I can also pay his cash flow out of pocket if I get in a bind, so I’m not worried about falling through on my contract to give 10%, which really is very achievable.