Passive Investor Structure

[Nathaniel Swanson]

I have a friend who is interested in investing a great deal of capital into my real estate endeavors (Flipping, Rental, and Multi-family properties).  I am considering the partnership and looking for ideas to structure the deals so that he is appropriately compensated for the use of the capital.  He wishes only to be a passive investor so I will be finding, evaluating, rehabbing, and managing the properties.  

I've always been a bit stubborn and set on doing this with only my own capital, but I can see how much faster I can grow my portfolio with access to the additional capital.  What is the best way to structure the partnership to protect both my efforts as well as his investment?