Best way to structure a deal (rehab, buy and hold)

[John W.]

Hi Guys,
I'm looking to go in on a deal with another local real estate investor. He has a promising deal under contract:
Purchase 30K
Rehab: about 70K
ARV 150-170k
He is a buy and hold investor and intends to keep the property as a rental after rehab. He needs about 70k for the rehab. How could we structure this deal? Interest and points seems like the simplest way, but honestly even 12%/4 points isn't a huge return if it were to take 6months till he could refinance. Maybe we could partner and then he could buy me out after rehab but I'm not sure how the mechanics of that would work. 
Any ideas would be helpful. 

-John