[Download] The Waterfall In Real Estate Syndications - White Paper
By Adam Gower Ph.D.
Real estate syndications use ‘waterfalls’ to make payments from a project to the developer and their investors in a pre-arranged hierarchical fashion, by structuring the way cash available for distribution from operations and sale or refinance cascades through a series of calculations.
Using data never before seen in the real estate industry, this white paper describes how waterfalls are used industry wide.
The research includes information gleaned from a range of independent sponsor transactions combined with consolidated data from Investor Management Services (IMS), the leader in the investor management software space, to examine the most common, the rarest and the most complex waterfalls, and to assess how different waterfalls can help refine our concept of the ‘alignment of interest’ between sponsor and investor.
This paper provides sponsors with a range of brand-new discussion points based on primary data they can weave into their value proposition when raising capital online.
Real Estate Waterfalls – The Simpler the Better By Adam Gower Ph.D. Real estate syndications use what are called ‘waterfalls’ to structure and compensate principals and investors, and these are seldom altered once a developer creates a structure that works for them. There are, however, a vast array of ways in which waterfalls are designed…READ MORE >
The Impact of Crowdfunding on Real Estate Waterfall Structures By Adam Gower Ph.D. Waterfall calculations are used by real estate developers to calculate distributions to investors during the life cycle of a project and there have been some notable shifts in how they are structured since the emergence of real estate crowdfunding – with significant…READ MORE >
The Outliers of the Real Estate Waterfall World By Adam Gower Ph.D. When investing in a real estate project as a passive partner, cash distributions are calculated and made using what is called a ‘waterfall,’ most of which are structured according to reasonably uniform standards, and some of which are more creative. According to…READ MORE >
ADAM GOWER PH.D.
Adam Gower is a 30+ year veteran real estate investment and finance professional. He expands investor networks for real estate developers by implementing best-of-class digital marketing programs.
Dr. Gower is the creator of The Investor Acquisition System, a best practices digital marketing program developed exclusively for real estate sponsors to raise capital online.
Serving real estate investment firms, Investor Management Services (IMS) is the leader in the investment management software space providing the only all-in-one platform. We enable our customers to better serve their investors while improving the efficiency of their firm. The IMS Platform includes an Investor Dashboard, Document Management and Sharing, Customer Relationship Management (CRM), and Waterfall Distribution Processing. For more information, please visit www.imscre.com.
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