Good Luck - Stay Calm & Be Flexible. 

You never cease to offer informative advice, calming words, and helpful solutions with every post I make.

I’ve spoken to tenants about it like you mentioned; explained calmly and as kindly as possible that a judge will evict them and a sheriff will come remove them if they don’t pay, that it’s hard living with an eviction on your record, that I have my own payments I have to make to the bank and the bank doesn’t have a heart either, that they’ll lose their security deposit because I’ll keep that for unpaid rent and go after them for additional monies if they cause damage, etc.

Calm down woman. 

In exchange, Class B does participate in the upside including a promote waterfall even before a sale when income exceeds the preferred rates, plus a split of the sale proceeds.

People typically get really scared after seeing that notice, then we have to calm them down, telling them it's a warning and a step before court.

Now that I have had some time to calm down and get over my first lost deal (we declined to make an offer), I agree with all of you.

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.

everyone from "syndication" that says "democratizing access" is basically saying I would give the risk to you and the profit to me.First of all, if you can explain the waterfall offering.

Is there a waterfall structure after preferred return and if so what is it?