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? 

I want to use a waterfall structure to distribute profits based on a preferred return and structure the entity in a way that allows for a series of independent investments or funds.

- conclusion (my opinion only), a pretty generic deal with a young sponsor and middling to less than average financials (fees and waterfall)I think you could find better deals on Crowdstreet or Realcrowd.   

They would be entitled to 3/5 of the cash flow, and the developer would likely have their fee and also promote waterfall structure where upon hitting certain returns, their % of return in increases.

Typically the sponsor (you) still pay a preferred return to the investor and then if property makes more it evens out (called waterfall).

Waterfall structures, with hurdles to be met by the Sponsor, are nice to see for more investor/Sponsor alignment.

So if the investor waterfall is an 8% pref, for example, you get 100% of the cash flow until you’ve been distributed an 8% cumulative return.

For example if you want to provide an investor an 18% IRR over 5 years then back into that number with a preferred return and equity waterfall.