We'd like to set a certain standard for our rehabs.

Every time you make a mortgage payment, the equity paydown you get increases each month.

It is the standard in my community2.

If a home sells or increases in market values.

I am not a lawyer, but in section 17.A 9 of the standard texas lease."

Is there a standard template you use for private money loans?

I've put a fair amount into deciding what I want to purchase over the last couple of years and have just recently gotten myself into a position to pull the trigger so by normal standards the offer would be insane, but feeling so aside the numbers have to make since. 

@Ivan Barratt - what is your plan to increase the cash-on-cash returns?

If you have before and after photos, and some general standard of maintaining the property, again you should be ok.

Rich Dad's Increase Your Fiancial IQ by @Robert T.