The main thing to know is that there can't be any features that resemble a partnership or different classes of investors in order for the IRS to bless it as 1031 eligible, so no promotes or waterfalls allowed.

Assume a project cost in the 10-50mm range in gateway / primary markets 90/10 dealI currently use the following UW Assumptions: cap rate expansion: 5-10 bps per yearrent growth: 2-2.5% annualProduct type:                      mid rise affordable MF spec developmentTerm:                                 3 yrs holdYOC:                                   6-7%Trended ROC/spread:          150 bps > exit capLIRR:                                   16-17% EM:                                      2xLTC:                                    65%LPs pref:                              9%Waterfall:                            80/20 to 13%                                           70/30 to 18%                                           65/35 thereafterLook forward to what others have to say

Come on views of an amazing waterfall from your kitchen window!!

Most investment models include a host of ongoing fees, splits, inversions, waterfalls, lockups, tails, etc. which can be complicated and confusing for investors.

I have seen one that essentially has a 20% pref (if you invest enough), but no upside in the deal.I would search around for syndication structures, waterfalls, syndication fees, etc.  

The split can be a fixed ratio, say 60/40 or it can have a waterfall structure where the ratio changes more in favor of the GP the higher the returns are.

I suggest creating a few models (including waterfall) and running it by a few experienced deal sponsors to get a feel for which direction to go to.Best!

We don't charge any additional development fees or give any preferred returns or waterfalls.

Looking at the base cabs and waterfall island countertop, did you spend some time on GW?

There is enough depth in at least one section to more than cover a submersible pump, which can be used to feed a waterfall, or can simply bubble, to keep water movement.