How do these returns for syndication look?

[Jack B.]

Someone I'm considering working with and has his own company. 

"First all cash flows go to the investors until they recoup their initial investment

Second a 7% preferred return accrues until the properties are stabilized (for the current deals, that is considered 80% occupancy). The cash flows then pay off the accrued 7% preferred return.

Third in perpetuity the cash flows are split 60/40 between the investors and my company."