But, still have a waterfall where the payouts would be completely different than the ownership.

Another way sponsors achieve similar results is to have a tiered waterfall, so say LPs get a 80/20 split to a 13% IRR then 60/40 to 17%IRR then 50/50 etc.We have done tiered waterfalls in the past but like to keep things simple.Our Multifamily fund II waterfall for LPs is a 8% pref and 70/30 split all the way.

Something I haven't personally done, but have had my other clients do is setup a waterfall structure. 

Ive heard of horror stories where foreclosure homes were not winterized and a realtor goes to show it with broken water lines in the kitchen leading to a frozen waterfall effect and all the mold and destruction that ensued. 

Every waterfall model I've ever done has used IRR targets as hurdle rates. 

The expansive kitchen features fine cabinetry, Thermador appliances, pot filler, and quartz, and is flanked by an oversize waterfall island.

The expansive kitchen features fine cabinetry, Thermador appliances, pot filler, and quartz, and is flanked by an oversize waterfall island.

I will need to take steps to mitigate the temptation to steal.If I wasn't going to Costa Rica, I'd consider setting up in San Pancho, Mexico, a bit north of Puerto Vallarta, a similar vibe, or Koh Samui in Thailand-just beautiful with elephants and waterfalls, or some of the beautiful smaller islands off Bali where one can surf, and live fairly remotely. 

I'd recommend researching equity waterfalls and LP/GP relationships to get more insight into this.

You can always ask a broker to find a deal for you, ask the broker to invest with you, and then work out a waterfall to split the cash flow.