Tom Reid just my 2¢ after struggling with this from both your perspective and your friends perspective in my own RE dealings.
Your offer isn't generous enough to attract capitol in large enough amounts for RE investing unless someone is doing you a favor - and family is about the only group that might do that.
His offer swings the pendulum too far the other way since you have an established friendship and he doesn't want any involvement.
I propose taking his offer and making the following changes:
• 90/10 investment (he pays 90, you pay 10) -so you have some skin in the game.
• Refi out mortgage in your name and guarantee a 25% return on his initial investment - take care of your investor.
• Provide him 10% of gross rents for 3-5 years at which point the property becomes 100% yours.
• Allow him NO management or ongoing responsibilities.
• IE - I do property vetting, mgt of rehab, mgt property, mgt finances, mgt llc, etc.
Make it clear that you want to do this long term with him and that this is just the beginning and that future deals would be more equal as you built up your own capitol from your share of each deal. But, find other sources of funding so that you can show him that you have options and are looking around, but that you would prefer to partner with him because it would be good for both of you.
In short, sell him on your plan and make it worth his time to take the initial risks while you don't have experience managing rehabs, etc. once you have experience you are in a better position to make the case for more favorable terms for yourself.
This is a lengthy response, but you asked for specifics and you have an existing friendship and are looking for a partnership where you each bring very different strengths to the table...
