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)

EP013 Rehab, Buy & Hold, Flipping and Private Money with Patrick Spitzley

EP013 Rehab, Buy & Hold, Flipping and Private Money with Patrick Spitzley

Patrick Spitzley Interview: We've all seen those shows on HGTV where investors buy a house out of foreclosure or auction, fix it up, flip it, and make a killing.  It all looks so sexy glamorous and fu...

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EP012 Legal Strategies on Buying Foreclosures, Evictions, Leases, LLCs, Asset Protection and Estate Planning with David Hill

EP012 Legal Strategies on Buying Foreclosures, Evictions, Leases, LLCs, Asset Protection and Estate Planning with David Hill

EP012 with David Hill, Attorney at Kreis Enderle:   For every rental property owner and investor there comes a time when expert legal advice is necessary. Whether you're putting together a contract or...

4 Huhti 201655min

EP011 Choosing the Best Insurance Policy and Agent for your Rental Property with Mike Murphy

EP011 Choosing the Best Insurance Policy and Agent for your Rental Property with Mike Murphy

If you own, or are about to invest in rental property, then you need to have a good insurance agent on your team.  Today I sit down to talk with Mike Murphy from J.B. Harrison Insurance Agency (http:/...

28 Maalis 201643min

EP010 Building a Portfolio during the Recession, Housing Codes, Rental Inspections and Property Maintenance with James Loftus

EP010 Building a Portfolio during the Recession, Housing Codes, Rental Inspections and Property Maintenance with James Loftus

James Loftus is a buy & hold investor who has been around long enough to have experienced the ups and downs of real estate investing.  he not only weathered the great recession, he came out stronger a...

21 Maalis 201640min

EP009 Buy & Hold Investing, Managing your own Property, and Starting Your Portfolio with Rob Minch

EP009 Buy & Hold Investing, Managing your own Property, and Starting Your Portfolio with Rob Minch

Whether you're a new investor who is wondering how to start your buy and hold portfolio, or a seasoned pro looking for tips on how to manage your property and get higher rents, you're going to enjoy m...

14 Maalis 201648min

EP008 Historic Districts and the Pros & Cons of investing in them with Suzanne Schulz

EP008 Historic Districts and the Pros & Cons of investing in them with Suzanne Schulz

Historic Districts seem to be a hot button issue lately across the country.  There are several states where legislation is being proposed that would effectively weaken or eliminate historic districts....

7 Maalis 201638min

EP007 Commercial Real Estate, Private Money, Buy & Hold, Flipping with Kathy Denison Adrianse

EP007 Commercial Real Estate, Private Money, Buy & Hold, Flipping with Kathy Denison Adrianse

Kathy Dennison Adrianse Interview:  Kathy is the owner & broker of Lighthouse Property Management, a West Michigan startup company that has been in business for thirteen years.  Kathy has a passion fo...

29 Helmi 201647min

EP006 How the Rental Property Owners Association can benefit you, with Clay Powell

EP006 How the Rental Property Owners Association can benefit you, with Clay Powell

Clay Powell Interview:  If you've been listening to this podcast then you know that there is a lot of experience and expertise in the RPOA community.  What you may not know though, is what the RPOA is...

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