If the waterfall is used, then it will start at a lower split for the GP and then gradually increase based on the IRR achieved.

My concern as an investor in such a deal is that first you probably didn't underwrite correctly, and second that you structured the waterfall such that I receive all of the profits and once you figure that out you'll abandon the project and I'll have to take over and finish it.To avoid that perception, and potentially that reality, you should consider structuring your offering with terms closer to market and triple-check your underwriting to ensure that you are underwriting conservatively, with full awareness that conditions today are about as good as they'll ever get and when things get worse you can not only survive, but produce a result somewhere in the same universe as you projected.

@William Green very nice flip, very clean, nice waterfall island, clean pool and yard.

Carried Interest/Waterfall/Compensation Models5.

Some will have defeasance, some will have yield maint and others may have a waterfall schedule. 

I would like a river & perhaps a pond but preferably a waterfall on or adjacent to the land. 

So I believe one’s filter needs to be adjusted somewhat when evaluating things.I would encourage you to look closer to downtown Greenville.Downtown is what makes Greenville special.We live in North Main and are about a mile from downtown and love it.We walk downtown for the music, festivals and dining and the river, Falls Park, and the waterfall.

-On the payout waterfall you mention, lenders are paid first (yes), then his costs, then splitting profits... where are you repaid on the $ you put up for the purchase plus holding costs? 

Vet them out first and make sure you're comfortable, outline an agreement and a waterfall for the funds, and figure out how you're going to borrow if needed.

I sit on the local board for the UF school and Masters alum have said they learned quite a bit about putting deals together and that was useful at the UF program...structuring waterfalls, etc.