https://tradingeconomics.com/united-states/housing...you know everything being equal I get that.. but this time around its not equal.. there is a big gaping hole in construction financing for new builds.. that is keeping starts down for sure.. and then land to build on.. lead times in many jurisdictions are measured in years. but I believe the prices are stabilizing.. and one thing for new construction that slows it as well is the material costs sky rocketed and there fore unless prices rise margins are too thin to build.. something has to give.. if demand for lumber calms down maybe we will see lumber come back to historic norms.. 

Have you considered a tiered waterfall structure?

I chose and chose a quiet and calm person who would sit quietly and quietly on his hand.

And have "skin in the game" and not take large upfront fees and large carried interest/waterfalls/etc...and not just close it successfully (which many people can do) but actually meet or exceed their projected returns and feel confident that they can do it???  

I am a member of an HOA and  part of having an HOA is to keep  calm n know your Neighbors.

I will definitely be going to many meetups as soon as all of this Covid 19 stuff calms down.

Anyway, I calmed my nerves, got my call script out and called him.

Complex formulas (e.g. waterfalls) create misaligned incentives between general partners and limited partners - Limited partners should share in outsized gains.   

Hi, guys…trying to stay calm over here :)  My flip has now been on the market for a month in a seller's market in Atlanta and showings have slowed waaay down. 

In your example above, that would mean you skip the preferred return and go straight into the 70/30, 60/40, 50/50, etc. waterfall with the investors' portion of the split determined based on their ownership percentage.