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

Avsnitt(590)

Is it Time to Turn Your Rental into a Note? With Eddie Speed — Episode 482

Is it Time to Turn Your Rental into a Note? With Eddie Speed — Episode 482

Owning rental property has only become more difficult in the past several years, with inflation and rising insurance costs eating away at your profits. Maybe it's time to take a serious look at your r...

31 Mars 202530min

2025 Economic Forecast with Dr. Paul Isely: Midwest Real Estate Investor Conference Speaker Spotlight

2025 Economic Forecast with Dr. Paul Isely: Midwest Real Estate Investor Conference Speaker Spotlight

The Midwest Real Estate Investor Conference is bringing together top investors and industry experts for two days of actionable insights and powerful networking. If you're serious about scaling your re...

27 Mars 20253min

Strategic Real Estate Development with Katie Kim — Episode 481

Strategic Real Estate Development with Katie Kim — Episode 481

Transforming underutilized urban spaces into thriving, income-generating assets requires vision, strategy, and creative deal-making. Katie Kim is a leader in adaptive reuse and strategic real estate ...

24 Mars 202532min

Jason Schemmel on Smarter Investing with AI: Midwest Real Estate Investor Conference Speaker Spotlight

Jason Schemmel on Smarter Investing with AI: Midwest Real Estate Investor Conference Speaker Spotlight

The Midwest Real Estate Investor Conference is bringing together top investors and industry experts for two days of actionable insights and powerful networking. If you're serious about scaling your re...

20 Mars 20256min

David Greene on Finding Success in an Uncertain Real Estate Market: Midwest Real Estate Investor Conference Speaker Spotlight

David Greene on Finding Success in an Uncertain Real Estate Market: Midwest Real Estate Investor Conference Speaker Spotlight

The 2025 Midwest Real Estate Investor Conference is fast approaching, and now is the time to secure your spot. Register today to join us on April 24-25 at DeVos Place in Grand Rapids, Michigan for two...

17 Mars 202525min

Finding Hidden Real Estate Deals with Tony Youngs: Midwest Real Estate Investor Conference Speaker Spotlight

Finding Hidden Real Estate Deals with Tony Youngs: Midwest Real Estate Investor Conference Speaker Spotlight

The 2025 Midwest Real Estate Investor Conference is fast approaching, and now is the time to secure your spot. Register today to join us on April 24-25 at DeVos Place in Grand Rapids, Michigan for two...

13 Mars 20254min

Navigating Restrictive Rental Policies and Wildfires In California with Zihao Wang — Episode 480

Navigating Restrictive Rental Policies and Wildfires In California with Zihao Wang — Episode 480

Navigating multifamily real estate in today's market is challenging, but operating in one of the most restrictive state in the country—California—takes it to another level. My guest, Zihao Wang, has b...

10 Mars 202528min

Land Investing with Seth Williams: Midwest Real Estate Investor Conference Speaker Spotlight

Land Investing with Seth Williams: Midwest Real Estate Investor Conference Speaker Spotlight

The 2025 Midwest Real Estate Investor Conference is fast approaching, and now is the time to secure your spot. Register today to join us on April 24-25 at DeVos Place in Grand Rapids, Michigan for two...

6 Mars 20256min

Populärt inom Business & ekonomi

framgangspodden
varvet
rss-jossan-nina
svd-tech-brief
rss-svart-marknad
rss-borsens-finest
badfluence
uppgang-och-fall
avanzapodden
fill-or-kill
bathina-en-podcast
rss-inga-dumma-fragor-om-pengar
rss-dagen-med-di
rikatillsammans-om-privatekonomi-rikedom-i-livet
lastbilspodden
borsmorgon
tabberaset
rss-kort-lang-analyspodden-fran-di
24fragor
bilar-med-sladd