My friend went on to say that he was there to view the unit that he lived in and the guy calmed down.

If you want calm sellers, be willing to pay market rates or above.

Sure hope the middle east tensions calm.  

And that is when the market is calm.  

Some use a simple model of X%-Y% split, some offer preferred returns, some offer a waterfall structure, some only take debt partners, etc.You need to sit with an excel file and decide what you need to make out of the deal and what your investors expect to get from the deal.In your example, $10K represents a 8% return of the 125K capital your investors provided.If the investors expect 6% you have 2% to decide how they split between you and your investors.

I talk FAST, so it is a lot of effort for me to slow down, and try to calm my accent a bit.

Open for any advice to help calm my nerves.

You can do a 70/30 split and collect a 2% acquisition fee and 2% management fee like a lot of companies do, you could add a water fall to that as well or you could try a 50/50 with no fees. 

Just remember to always remain calm, stick to what the lease and your rules state.

It has a really calming effect and makes them trust you right away.By the way, I also usually mention to sellers that if they have the time and money to fix up the property and they have time to list it with a realtor, that will always be their best option, as they will get more for the house than I can offer.