Paying off your loans is a guaranteed interest rate albeit elimination of a percentage rate that is working against you. 

They get a percentage of proceeds as you would, but you get an additional percent to manage.

I put capex and repairs a lower percentage since I would have just rehabbed it.

What percentage are you looking for from the mezz funding?

I think it's funny that people are arguing over percentages (including me :).

Yes, I would ask for tax returns, k-1's etc.I would run a credit check and bacground check on each individual.I would analyze the competition in the sub market.Assuming all come back with credit scores of 700, historical sales of each are stable, and there is not another similar use within a 1 mile radius, I'd go with:A true "retail" use, because I might be able to negotiate a percentage rent provision.

You say you have a "partner", so your partnership arrangement should cover who profits at what percentage, as well who takes losses and who supplies capital (funding) and labor; everything should be given some value.If you need funding from hard money or private lenders, thenn you will need to use a financing contingency.

If you are really good at influencing the BPO, obviously, the values percentages change....Before you offer on the deal, you need to come up with your maximum allowable offer.

Keep in mind these mortgages are much higher balances, have a higher percentage of non owner occupied AND reset MUCH harder than for example a 2/28 ARM.

But even here, if I only can finance up to a percentage of the properties value, that means I have the remaining percentage (with a significantly higher interest rate!)