[White Paper] The Waterfall In Real Estate Syndications
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.
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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About Dr. Adam Gower
Dr. Adam Gower is the founder of GowerCrowd and a leading authority on real estate syndication and crowdfunding. With 30+ years in real estate and $1.5B in transactions, he helps sponsors build marketing systems that attract high-net-worth investors.
30+ Years Experience | $1.5B In Transactions | 30,000+ CRE Professional Community