We are considering having equity positions laid out as the first position for repayment, then the sweat equity as the waterfall position for any profits that exceed payback of principal and expected or acceptable rate of return(TBD).  

The impressive Chef's kitchen has premium ss appliances, shaker cabinets, large island with luxurious waterfall counters.

Preferred return, priority return (similar to preferred but not quite the same), waterfall (describes the structure of the priorities)

So the 1st floor sinks & shower heat up in 1 minute, the 2nd floor sinks and shower 1 - 2 minutes and the 3rd floor non-utilitarian but very pretty waterfall faucet 3 - 5 minutes (no pressure, very far from source). 

The numbers are awesome and I have a great performa with a waterfall that gives the investor an IRR of 16%.  

Each deal and sponsor is different and you want to read the offering prospectus/placement memorandum very carefully when it discusses management compensation, profit split (referred to as waterfall usually) etc.

I have seen several Excel Waterfall model that will calculate the distribution of cashflow on the web.

I try to spend the summers up there myself - it's just really special with great local bakeries/farms/foods, total relaxation with waterfalls and mountains and art/music festivals.Notes for all - You can easily check Airbnb to see what people are charging in any area and see their calendars to see how booked they are.  

The example in a waterfall structure (this can totally change for every pool), the manager takes 2% fee, lenders get 7% preferred on top of that, and they split anything over the 9% combined.

Of course they do stand on the curb or streetfront for a couple mins taking notes, pics..But do they actually add value for mature trees, orchards, artif waterfalls, ponds, fountains, etc?