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)

EP029 Surprises When You Sell - Exit Planning, Tax Strategies and Leaving a Legacy with Mark Andresky

EP029 Surprises When You Sell - Exit Planning, Tax Strategies and Leaving a Legacy with Mark Andresky

Today's episode is going to expand your financial IQ in ways that will help you make more money from your real estate investing. Many of us get so caught up in finding, buying and managing our propert...

1 Elo 201641min

EP028 Seller Financing, Land Contracts & Finding Off-Market Multi-Family Investments with Kim Post

EP028 Seller Financing, Land Contracts & Finding Off-Market Multi-Family Investments with Kim Post

Today I talk with Kim Post from Post & Associates Appraisals and Next Door Properties, LLC.  Kim shares stories from her 30 + years of investing in rental property. We talk about her transition from b...

25 Heinä 20161h 13min

EP027 Creating Your Lifestyle Through Rental Real Estate with David Kirchgessner - Investor, Realtor & Lead Singer of Popular Ska Punk Band Mustard Plug

EP027 Creating Your Lifestyle Through Rental Real Estate with David Kirchgessner - Investor, Realtor & Lead Singer of Popular Ska Punk Band Mustard Plug

I know you're going to enjoy my interview today with David Kirchgessner.  Dave is a successful investor and realtor, who also happens to be the lead singer of the popular ska punk band Mustard Plug.  ...

18 Heinä 20161h 12min

EP026 Fix and Flip Success Strategies, Wholesaling and Learning from your mistakes with Brandon Krieg

EP026 Fix and Flip Success Strategies, Wholesaling and Learning from your mistakes with Brandon Krieg

Two episodes ago Brandon Krieg from Honeybee Homes shared his tips and techniques on Wholesaling for huge profits.  If you haven't heard that episode yet, I highly recommend you give it a listen. This...

11 Heinä 201638min

EP025 The Simple Way to Understand Cap Rates

EP025 The Simple Way to Understand Cap Rates

Instead of posting an interview on this Holiday Monday, I thought I'd take this opportunity to talk about a key financial ratio that you'll hear a lot from brokers and investors, but may not completel...

4 Heinä 201612min

EP024 Wholesaling Success Stories and Strategies, Fix & Flips with Brandon Krieg

EP024 Wholesaling Success Stories and Strategies, Fix & Flips with Brandon Krieg

Today I'm excited to sit down and talk with Brandon Krieg, an experienced wholesaler who also does fix & flips.  Brandon is the owner of Honeybee Homes, and has a lot of great knowledge and experience...

27 Kesä 20161h 4min

EP023 Building Lifetime Cash Flow Through Real Estate Investing, Why Multi Family and Apartment Investing is preferable to Single Families with Rod Khleif

EP023 Building Lifetime Cash Flow Through Real Estate Investing, Why Multi Family and Apartment Investing is preferable to Single Families with Rod Khleif

Today I'm thrilled to be talking with Rod Khleif, the host of the "Lifetime Cash Flow through Real Estate" Podcast. As one of America's top real estate professionals, Rod has personally owned more tha...

20 Kesä 201645min

EP022 Buying with the Right Fundamentals & Property and Asset Management with Tina & Wes Emert

EP022 Buying with the Right Fundamentals & Property and Asset Management with Tina & Wes Emert

If you are a new investor who is looking to buy rental property, or you're a current owner looking for ways to improve your methods, I believe you'll get a lot out of my conversation today with Tina &...

13 Kesä 20161h 25min

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