@Gino Barbaro I'm seeing a mix of pref structures (upside potential, waterfall, etc.), but the rates are usually around 10-12%. 

@Yuriy ShepelinYou're not providing enough details as to what type of asset you're investing in, what market, what is the strategy, how much work is involved on each partner side, how long is the holding period, what are the exits, and etc...Aside from that when evaluating a structure there are several factors you need to take into account:1) everything is negotiable2) your "designated driver" experience and personal "skin in the game" play a part in the structure3) the structure could be waterfall and/or combination of multiple things.

It's not unheard of for return of capital to be the next step in a waterfall after the preferred return hurdle is satisfied. 

The water was literally water-falling into the basement from outside.

Depending on the deal, a waterfall model might make sense to motivate the non equity partner to over deliver (and hence receive a large portion of the profits). 

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.

My concern with the Fund model is some GP/Syndicators split out the performance of assets individually, meaning that if say there are 5 assets and two are grossly underperforming, but the other three are performing than the GP collects on the waterfall structure anyway for the performing assets (says pref 8%) or a straight split, even though the aggregate performance of all the assets is overall underperforming if you follow me. 

Main floor we added engineered planks, new kitchen including quartz waterfall island. 2 nest thermostats, new carpet upstairs and new 4 piece master bath.

If your waterfall is calculated on IRR split tiers instead of an annual return, the order is moot because "return of" and "return on" are treated the same, without any distinction, simply by definition.If you look back at the total dollars distributed after the investment is all over, it really doesn't matter much whether return OF or return ON comes first--except that if return OF is first, preferred return is less because the balance on which the preferred return is calculated is reduced with every distribution.

I’ve attached an office acquisition, IRR-based waterfall model I built using the Argus AE cash flows I laid out to underwrite an active OM, as a work sample.2)Hi Ray,I'm a fellow Boston University alum (2005), reaching out to you in the effort to build up my Orange County CRE network.I've heard great things about XYZ, and I would truly appreciate the chance to learn about your experiences there and how you got to your current position as Senior Managing Director.I'm going to be in the Newport Beach area all next week, and I was wondering if you might have time for a quick coffee chat near your office?