Any idea on how I can do a waterfall projection?

Partnership operating agreements are very flexible.You could do a waterfall schedule for both allocation of income and capital distributions.e.g.1) You're allocated a cumulative fixed annual return on your unrecovered capital contribution (6%, 8%, 10%, you name it)2) Profit in excess of the fixed annual percentage return is split 50/50.Capital distributions could be something like: first distributions are to recover your capital contribution(s), then preferred return accrued to you, and finally the 50/50 profits.Food for thought. 

Its harder for the vertical portion to crack because the waste/water falls straight down.

It's a remote location, 1/2 hour from 'downtown', with terrible internet and cell service.But, it's got waterfall views and an acre of forest, so it's a great vacation rental. 

Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

If you are worried about a boiling pot of water falling off the right side and burning someone then you should definitely add something to prevent this. 

The asset management fee is paid before cash flows to the waterfall.#1 is more difficult to answer because the dirty secret in the syndication business is that asset management fees are almost always described as “1%” but the similarities stop there. 

We submitted a short sale package to his lender and they approved him for a FHA Waterfall modification with a 3 month trial period. 

Can you explain what BREIT's "promote fee via up preferred return and waterfall" means?