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Concepts

February 1, 2022

5 min read

Advanced Waterfall Structures in Real Estate Partnerships

The concept of "waterfalls" plays an essential role in determining how...

Waterfall structures refer to the tiered system through which real estate profits are distributed among partners. The higher tiers (closer to the source of the waterfall) are usually prioritized and must be fulfilled before proceeds trickle down to the lower tiers.

Two common structures are:

  1. European Waterfall (Single Waterfall): In this structure, the return of the initial investment (i.e., return of capital) occurs before any profits are split among partners. It's a more conservative structure and typically favors the limited partners or passive investors.
  2. American Waterfall (Double Waterfall): This structure splits profits before the complete return of the initial investment. It introduces an additional distribution tier, typically favoring the general partner or active investor, as they start receiving profits earlier in the project.

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February 6, 2024

7 min read

Financial Analysis in Multifamily Syndication

In multifamily syndication, where investors pool their resources to invest in...

In multifamily syndication, where investors pool their resources to invest in apartment complexes or similar properties, mastering financial analysis is not just a skill but a necessity. This analysis forms the backbone of informed decision-making, guiding investors through the complexities of profitability, stability, and investment viability. Let's delve into the intricacies of financial analysis in real estate, exploring its purpose, key components, and crucial role in strategic decision-making.

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