As you mentioned, it depends on numerous factors, with pay history being a big one.

Rud, Syndication deals (and crowdfunding deals which are essentially syndications that are allowed to market over the Internet) can be set up in numerous different ways.So there isn't going to be one single answer for this.To answer your question, I am not an accountant and you should always consult with your own tax accountant before making any investment decision.

In a waterfall, the GP is incentivized to stay the course, gambling the LPs equity, because the GP only makes money above 7%. 

Because they are gambling.11. 

Quote from @V.G Jason: Quote from @Jay Hinrichs: The mindset of cash flow is everything and appreciation is just luck or gambling or whatever these folks say is one of the worst mindsets I see on BP.

There are just numerous variables and calculations you must analyze to check. 

Simple appreciation is a gamble because you have no control over it, so don't consider it.

People have failed twice now with the housing bubble and the recent meteoric increase in rates because they were gambling with the rates to save a percentage point.  

And Alienation of title is a Event of default. there are numerous events of default..

I’ve got numerous other examples.