I'm considering putting together a couple of commercial syndications deals in the next months and have a couple questionsIs it customary for NNN / fully stabilized deals to have a waterfall structure and what kind of fees are typically levied? 

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.

Or, I can purchase lifelroof at almost $4 sq ft but I’d still want to purchase a waterproof barrier in case water falls through the planks.

Some use a simple model of X%-Y% split, some offer preferred returns, some offer a waterfall structure, some only take debt partners, etc.You need to sit with an excel file and decide what you need to make out of the deal and what your investors expect to get from the deal.In your example, $10K represents a 8% return of the 125K capital your investors provided.If the investors expect 6% you have 2% to decide how they split between you and your investors.

You can do a 70/30 split and collect a 2% acquisition fee and 2% management fee like a lot of companies do, you could add a water fall to that as well or you could try a 50/50 with no fees. 

I find your waterfall investment strategy very appealing and inspiring and is the path I plan to be marching down.I hope I'm not off on those rental projections.

Essentially this purchase has cannibalized a large amount of NPL assets which normally would waterfall down to the smaller note investor.

The best analogy is that it's always cheaper and easier to keep a canoe from going over the waterfall than it is to recover the canoe and its occupants once they're downstream.

@Anders Jax I have not seen that type of waterfall structure before.

I'm a little familiar with waterfall deals also, but not an expert in them.I wouldn't mind hearing some ideas/experience from others on this.