I have wondered if converting a pool into an elaborate water feature such as a pond with a waterfall and some surrounding vegetation and rock features would be an alternative to the cost of complete dismantle/removal.

People don’t enjoy their vacation, they just take pictures of it to post on IG. or kills themselves taking selfies on top of cliffs or waterfalls.. 

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.

By collecting acquisition fees, management fees, points, and working themselves in to fee split as @David Thompson mentioned or waterfall structures following the preferred returns of their investors, they take a sizable piece of a very large pie. 

I generally like to make money AFTER my investors make money as is specified in the waterfall.

When looking at a capital stack the last juniors tend to get the highest return but generally are in the first wipeout position if something goes bad.These are setup as waterfall arrangements.

But that also means the waterfall structure limits upside for the investor too.

From a maintenance perspective, the newer investor may prefer to start with an SFR (or duplex) before "chasing waterfalls". 4.

If you have enough streams, eventually you will build a waterfall. 

Non-recourse debt is very hard to find right now so signing for the debt should drastically change the return structure for the GP if they are who is guaranteeing the debt.Cash flow waterfalls in general should go mainly to return capital to LPs first and be distributed to GPs when they beat what was promised.