Leave some meat on the bone for the next guy* Syndication — typically 80-20 or 70-30 split* Keep things simple so it’s easy to follow for investors and it will encourage them to invest with you in the future — avoid preferred returns and waterfalls and things like that* Don’t be greedy.

Plus there's waterfalls, mountian trails, etc. for hiking, biking, etc.

Their lease payment would be about $200 more than my payment and I'd get a waterfall on the back of about 5%  ($10k on a $200k house) when they exercised at my higher option price.So, break-even finally at about 6 months, then 120% total COC if they exercise.

When the contractor went over to repair it he said the water came down like a waterfall.

For example, if the total deal came to 100k, and they put down 30k, they would have a 30% equity in the deal, but you could sweeten the pot with a waterfall, or net earnings bump by giving them 40-50% of net cashflow in the term sheet.If your letting someone come in and give 30% of a deal cash, then giving them 50% of equity (they are already winning by doing that), and 100% of cashflow till their capital as been redeemed, with likely a clawback clause, while you PM for free.

If so use the waterfall strategy...

I think it would be beneficial for you to create a waterfall based on performance. 

I would investigate a waterfall structure if the splits start off overwhelmingly in favor of your investors to help you participate in the upside of an excellent investment.Best of luck!

As a sponsor, you get the option to invest in another class of shares (class B) which will have slightly different rights but depending on your waterfall may yield a better IRR and equity multiplier.

If you can model in your sleep esp. waterfalls and valuation of the 4 food groups: multifamily, offices, retail and industrial, you can work for most investing groups/developers.