[White Paper] The Waterfall In Real Estate Syndications

By Adam Gower Ph.D.

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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.


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Adam Gower is a 30+ year veteran real estate investment and finance professional.  He builds leading edge digital marketing platforms for sponsors who want to raise money online by finding prospects and nurturing them so they are predisposed to invest.

Watch the whiteboard workshop where Dr. Gower walks you through the exact system he builds for private clients in enough detail that you can build one yourself.  Access the workshop here.

The Waterfall White Paper Was Produced In Cooperation With Investor Management Services


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.