Also, you are right about wanting to have a deposit from the tenant, so they have some skin in the game to take better care of your property.

It should also make potential LP's more comfortable knowing you have considerable skin in the game plus the fact you are profiting from the merits of the actual deal at time of sale rather than collecting fees.

Some want to see skin in the game. 

Im looking at 7% however I think a better safe guard for me to have enough skin in the game is to move the sales price higher just in case he decides to pay off the loan earlier.

I rather have little skin in the game, then nothing at all.

So it's pretty risky to put loans out solely on relationship with no skin in the game.

They also use conservative leverage, and put huge skin in the game in every deal (10% or more).

A private lender would be very pleased with that degree of "skin" in the game.  

Even the new drug that they invented like Semaglutide, is working also towards lowering blood sugar.All these from "fasting" to "semaglutide", is just methodology, to lower the blood sugar as main objective.If one is curious on the real impact of it you could  use the device that attach to your skin, to monitor your blood sugar in real time. 

It sounds like if you just structured it giving him commissions it would not really work out considering he clearly wants more involvement/skin in the game on the project.Maybe just split it LLC 50/50 and the commission savings is a preferred return over his split on the exit?