This is pretty common for what I am seeing in any LP or JV deal right now.JV Interest Preferred Equity, no recorded lien, no hard pay, no maturityInvestment Size $1 to 30 millionSponsor Capital 10% of total capitalizationTypical Waterfall Cash Flow:1.

I would echo comments by Chris Soignier and Trevor Ewen and add that you make sure you know how and when and how much the sponsor is paid and how the waterfalls to investors work.

In regards to option #1 you will most likely be paying a double digit interest rate and it will vary based on the deal and how much skin you have in the game.A third option would be a waterfall where you pay a guaranteed return rate and then split profits - example would be to provide a preferred return of 8% and then a profit split - I would suggest googling if you need more info on them as they can get complex with the math.

Its better themed and you have some good related activities like the zip line and some waterfalls that would make it more marketable.

And I am trying to come up with what I think is called a "waterfall" profit sharing schema.

You have different SEC exemptions, you can setup your waterfall in infinite ways, you can charge any fees you want, it can be a fund or a single asset syndication, it can be closed end, open ended, evergreen, etc.But ultimately, you need to convince people you meet you know what you are doing and will be a good steward of their hard earned money.  

So most waterfalls provide for payment of the preferred return first, followed by return of capital second, and then promote splits third.The calculation of ROI requires that you create a spreadsheet to track capital accounts. 

The splits, hurdles, waterfalls & so forth all depend on the deal and how the sponsor decides to structure it.

I staggered or laddered the balloons for waterfalls every few years.   

Nick Sidoti preaches that this is literally a "waterfall" of "quality tenants" coming your way.