How to Structure Returns for my Cash Provider

[Tristan Beavers]

     I have a cash provider partnering with me in flipping houses this year. I've been doing my homework and developing a business plan for us to abide by throughout the process. However, I'm not sure which way I should bring value to my investor. He has $330,000 in cash to invest in a flip after selling his primary residence, and after talking about real estate investing, he told me, "You be the brains, and I'll be the bank. As long as you can get me a higher return than CD's, stocks, and mutual funds I'm all over it." After hearing that, I knew I've struck gold, I know for a fact that he can beat the market investing his cash in a few successful flips with me this year. The only problem is, I'm not sure in what form I'm planning on getting him that return. Should I borrow his capital at an interest rate, and keep the profits from the flip myself? Should I give him both interest and equity in the flip? Should we split profits 50/50? After thinking it out, I figured the safest and most profitable bet might be to split profits 50/50, but what if his 50% doesn't equate to a high enough CoCROI per flip? It's quite possible I'm totally over thinking this. If anybody knows what I should do from past experience, I'd greatly appreciate it!