Returns for passive investing in MFH syndication

[James Thiel]

HI All,

I am considering investing in a MFH syndication with a proven operator doing a value-add project. My initial thought is whether I like the way they structure investor returns.  They have an 8% preferred return with a 4% accumulation/annualized appreciation.  I normally see similar preferred coc returns, but tend to see a split (60/40, 70/30, etc. in favor of investor) of any cash flow overages. Has anyone seen this structure before? Obviously, it will depend on project performance but how might it impact returns compared to the typical % of overage structure? Maybe better, maybe worse? Depends I know, but hoping some folks can share experience/insights on this.

Thanks!