Rehab partnership Question

[Jeff Hartung]

A colleague and I met here on bigger pockets and we have been talking about structuring a partnership. I will be contributing more cash than my colleague. One example we talked about is as follows:

With a purchase of $400k, where I put in $300k cash & other investor puts in $100k. We draft a contract between us where other investor essentially is taking a loan from me of  $100k and will pay a percentage of interest on that loan until repaid. If it’s a buy and hold, we would look at having the $100k paid off within 5-7 years. 

Does anyone have any thoughts on if this will work?