70/30 split in MF Syndication

[Mike Iger]

I was looking at investing in a multi family syndication with a large reputable company.

They are offering investors the following:

min 100k

8% preferred return on all unreturned capital

70% of all CF after paying investors their preferred returns, BUT THAT COUNTS AS A CAPITAL PAYDOWN.

70% of all CF after that.

They were also taking an acquisition fee, a management fee and a fee when they refi or sell btw.

So my question is:

If the CF investors receive after their pref returns is counted as a capital paydown, the investors aren't really gaining. While they are getting their money back sooner, they aren't profiting when the building makes more than 8%.

Is this standard?