Overview
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Partnering with other investors? Learn how to use the waterfall framework to track and share the profits from real estate deals involving multiple investors.
Syllabus
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Introduction
- Course overview
- Why invest with others?
- Risks of investing with others
- Intro to the waterfall framework
- Waterfall examples overview
- No waterfall
- Two-tier waterfall
- Three-tier waterfall
- Four-tier waterfall
- Waterfall example summary
- Which waterfall to use
- What happens if the investment loses money?
- Waterfall example: Money-losing investment
- Rental income with waterfall
- Fix and flip with waterfall
- Restaurant startup example
- Parking garage example
- Other situations ideal for waterfall
- Closing thoughts on investing with others
- Waterfall modeling deep dive overview
- Modeling out the preferred return
- Modeling an IRR hurdle and cash multiple hurdle
- Modeling out the catch-up
- Wrapping up the waterfall model
