Chris I have an opportunity for one in Hawaii(Big Island) Looking for a partner as I dont have the time to go it alone but have the Land. 500 Acres ocean view property with Waterfall.

In the waterfall model, each few additional percentage points in returns activates a new split.

You can also set up a waterfall structure in which you provide preferred return, then return of capital to investors, then by member % up to their unreturned contribution, and then a 60/10/30 split between members.  

For bank originated notes that have gone through the waterfall of hedge funds or private equity funds it could be missing collateral docs. 

It depends on how a deal is set up and what the waterfalls are. 

Some examples are we added more cans, upgraded fixtures (lighting and plumbing), quartz instead of granite tops, added 1.5 bathrooms, added 2 fire places, added a waterfall for the pool, upgraded from carpet to wood flooring everywhere, added the theater (theater alone was $17K), etc.

Equity waterfall and the preferred return hurdle would depend on the deal as well.

My partner and I are investing in RV parks and bringing investors into our next deal.We are analyzing the parks now using an 8.5% pref and a 65/35 waterfall.

The property sits in a semirural area in California on a hillside next to a waterfall and has some very exceptional views for the area. 

Yes you are close to a few things like Oconee State Park and the Stumphouse Tunnel and some waterfalls - but this is a very isolated place and in my opinion it would be a great getaway place - but I doubt this will make a great cash flow place.