Syndication Payout Structure?

[Matt Nettles]

Ordinarily a syndication is heavy ownership % on the LP side .. for example 80% LP 20% GP with or without preferred return.

My question is and I ask because I heard Podcast where Tim Bratz structures all of his deals this way:

He offers 8-12% pref with a 100% LP 0% GP split until refinance and then ownership flips.. LP 10-20% and GP 80-90%

Just want to get opinions or feedback on if you think this deal structure is more effective or does it just depend on the particular deal.

His whole belief is he does not get paid until all value has been added and he refi’s and returns 100% of investor capital back to LP’s