When it comes to the profit structure for a syndication consisting of a sponsor, general partner, and limited partners, typical splits are 30/70 SP/LP and then increasing the sponsor's split under a waterfall. 

Waterfall schedules might be appropriate and agreeable.Best to consult your tax CPA/EA and attorney.

As well, have you ever heard of situations where the GP takes a 50% cut on the appreciation of the asset upon sale, instead of just sticking to the normal waterfall/promote structure?

. $50/month is the difference of another 3-4% annual ROI, so it might become enough in this case to make it more worthwhile if I can get the loan down (especially since my waterfall calculations are at worst way too conservative, so things are possibly better than I project but unlikely to be worse). 

In other words, everyone agrees that access to running how water falls under the implied warranty.

Acquisition Fee - 1% Debt Arranger Fee - 1%Loan Guarantee Fee - $25k per guarantor Waterfall - 10% pref. and 80/20 above 10%Asset Management Fee - 2% of Gross RevProperty Management Fee - 4% of Gross RevConstruction Supervision Fee - 5% of construction spendExpense Reimbursement - Expenses billed to the property

In addition, there are a few main components of the structure to consider: exemption status (506b vs 506c), equity split, preferred return, fees and waterfall hurdles.

In my experience, for a ground up, high risk deal like this it would be a waterfall like the following;-  8% preferred return for investor- return of investor capital- catch up contribution to sponsor to equal 8% of their investment- something like 30-70 split till 15% IRR- 50-50 after thatThere would be some 2-5% sponsor fees off the top.That is what you can get from an experienced sponsor with decades of success and billions in management   If you want some examples check out the PPM on CrowdStreet or RealCrowd to see real life examples.

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.

@Vlad Denisov if this is a live deal you have to follow the waterfall sequence as written in your operating agreement.