Most people I know would have quit after seeing a waterfall in their basement.

I don't dont typically do waterfalls or such which greatly benefits the passive investor.  

Have you considered a tiered waterfall structure?

And have "skin in the game" and not take large upfront fees and large carried interest/waterfalls/etc...and not just close it successfully (which many people can do) but actually meet or exceed their projected returns and feel confident that they can do it???  

Complex formulas (e.g. waterfalls) create misaligned incentives between general partners and limited partners - Limited partners should share in outsized gains.   

In your example above, that would mean you skip the preferred return and go straight into the 70/30, 60/40, 50/50, etc. waterfall with the investors' portion of the split determined based on their ownership percentage. 

You should also hire a consultant to help market your track record, develop a fund model, handle investor relations, waterfall calculations, etc.

Hi @Harmony MatsonIf you're interested in learning more about real estate, I have a pdf that goes in depth about the laws, mortgages, important time value metric, development, commercial, single family, waterfall topics as well as reits and so much more. 

She wants to walk away without paying rent owed and a waterfall dating back to 2014 to present.

"Equity" comes in many forms based on the waterfall you set up in your deal.