EP296 What is a Commercial Real Estate Waterfall and what are the Key Terms you need to Know to Structure your Deals, with Paul Moore

EP296 What is a Commercial Real Estate Waterfall and what are the Key Terms you need to Know to Structure your Deals, with Paul Moore

In order to understand how to structure an investment opportunity for your potential investors, you need to be clear on how the cash flow and profit will be distributed. This is called a Waterfall, and there always seems to be quite a bit of confusion as to what that actually means and how to convey it.

My friend Paul Moore recently wrote an in-depth article on Commercial Real Estate Waterfalls and I immediately contacted him to see if he'd share this valuable information with our listeners.

You may have heard Paul previously on this show talking about both apartment investing and self-storage. He is the Founder and Managing Partner of Wellings Capital and has completed over 85 real estate investments and exits.

Today Paul discusses the meaning of Preferred Return, Cash-On-Cash Return, Cumulative Return, and Internal Rate of Return v.s. Annualized Return. We discuss different deal structures and whether or not the sponsor/General Partner should receive a 'Catch-up'. These are all terms you need to understand and carefully consider when structuring your deals, and they can make a big difference in the profit you and your investors receive.

Paul shares a lot of wisdom in this episode and you'll definitely benefit from understanding these terms no matter what type of investor you happen to be. You can find out more about Paul and access his report on waterfalls through his website: https://www.wellingscapital.com

Today's episode is brought to you by Green Property Management, managing everything from single family homes to apartment complexes in the West Michigan area.

https://www.livegreenlocal.com

And RCB & Associates, helping Michigan-based real estate investors and small business owners navigate the complex world of health insurance and medicare benefits.

https://www.rcbassociatesllc.com

Jaksot(589)

EP037 Building and Improving your Real Estate Business Credit and Alternative ways to Fund your Growth with Ty Crandall

EP037 Building and Improving your Real Estate Business Credit and Alternative ways to Fund your Growth with Ty Crandall

Whether you're a Buy & Hold Investor, Wholesaler, Landlord, Property Manager or you do Fix & Flips, you most likely have some form of real estate business.  Whether you realize it or not, your busines...

26 Syys 201642min

EP036 Building a Full Service Property Management Company, Tips on Leasing and Managing, Mistakes landlords make and the importance of the RPOA in protecting landlords with Mark Troy

EP036 Building a Full Service Property Management Company, Tips on Leasing and Managing, Mistakes landlords make and the importance of the RPOA in protecting landlords with Mark Troy

Mark Troy is the owner and founder of Compass Property Services, a full-service property management company that also does remodeling and helps investors and home owners buy and sell properties. Today...

19 Syys 201655min

EP035 Learn from the Commercial Multi-Family and Apartment Brokers: How to be taken seriously as an investor, factors and expenses to consider, and an overview of the Michigan Real Estate Market with Craig Black and Scott Nurski from NAI Wisinski

EP035 Learn from the Commercial Multi-Family and Apartment Brokers: How to be taken seriously as an investor, factors and expenses to consider, and an overview of the Michigan Real Estate Market with Craig Black and Scott Nurski from NAI Wisinski

If you're an active investor in commercial multi-family and apartments, or you're interested in getting into this space, I know you're going to get a lot out of today's conversation. I'm excited to si...

12 Syys 20161h 17min

EP034 Infinite Returns through Multi Family Investing, Starting your own Management Company and Turning Around a 24 Unit with 42% Occupancy with Josh Sterling

EP034 Infinite Returns through Multi Family Investing, Starting your own Management Company and Turning Around a 24 Unit with 42% Occupancy with Josh Sterling

Last week I spoke with Josh Sterling about his Single Family Rental Investments and the plateaus he's overcome while building his portfolio from 1 to 160 units. This week, in part two of our conversat...

5 Syys 20161h 17min

EP033 Building a Buy and Hold Portfolio, Learning to Landlord, and Finding Your Real Estate Momentum with Josh Sterling

EP033 Building a Buy and Hold Portfolio, Learning to Landlord, and Finding Your Real Estate Momentum with Josh Sterling

Josh Sterling is a Buy & Hold Real Estate Investor from South-East Michigan.  He began buying Single Families in 2009, and since then has grown his SFH, Multi-Family and Apartment portfolio from 1 to ...

29 Elo 201658min

EP032 Tools of the Trade - CoStar, LoopNet and Apartments.com with Grant Webster from CoStar Group

EP032 Tools of the Trade - CoStar, LoopNet and Apartments.com with Grant Webster from CoStar Group

One of the tools that I use as an investor in multi-family and commercial apartment real estate is my subscription to CoStar.  This is an online tool that allows me access to information about propert...

22 Elo 201627min

EP031 Creating Wealth For Yourself - How to use a little known loan to purchase and rehab your first House Hack with Kevin Murphy

EP031 Creating Wealth For Yourself - How to use a little known loan to purchase and rehab your first House Hack with Kevin Murphy

I firmly believe that one of the best ways to get into real estate investing in order to create your own financial freedom is to purchase a multi-family property and live in one of the units.  This is...

15 Elo 201648min

EP030 House Hacking - How to begin your Real Estate Investing Career and ensure Long Term Wealth with Courtney Sorrell

EP030 House Hacking - How to begin your Real Estate Investing Career and ensure Long Term Wealth with Courtney Sorrell

Whether you're just beginning your Real Estate Investing Career, or you've been doing it for a while, I know you'll enjoy my interview today with Courtney Sorrell.  Courtney and her husband became Rel...

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