Lot of new syndication recently is accepting more investors to avoid the debt cost, hence they increase the waterfall to be attractive as well.

I have read many different stories of offering a preferred return, waterfall return, etc.

We've really loved being close to everything: (covid aside) downtown with all the breweries and restaurants, just a few minutes away from hiking trails and a "secret" waterfall, 30 minutes to Seattle via fast ferry etc. 

In joint ventures, I typically allocate 75-80% of the returns to equity and the rest to the active manager(s).Here's our typical setup:- LLC ownership is determined by equity- The LLC operating agreement includes a waterfall such as:* First, return of capital* Second, 80% by ownership (pro rata) and 20% to managers

That said, I have many friends who are investors, restaurateurs, bar owners etc and have had great success in growing their restaurant, bar or investment portfolio by completing waterfall distribution models and attaining private lending. 

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.

Investors providing capital get the majority of the profit and (in most deals) get a pref or some kind of waterfall that puts passive investors first.

I mean for instance, are we seeing a waterfall from Nor.Cal. and a trickle from Florida or Chicago.Also, it seems like a lot of bigger downs for the (speculative) financing comes out of just a handful of states, NY, FLA, Calf, TX, etc... and when a loan goes down those LP's are taking a loss too.

I bought it in 94 for 27k and I have an offer on the table for 3 millon with a water fall... of course the fires did not hurt.. extreme need for what we have which is a property that is mixed use resi..and I have other larger parcels I optioned 10 years ago in Oregon ( crazy I know in the depths of the recession LOL) but looks but they will all be 10 to 20X returns.. but huge huge HUGE risk for sure.. on one we are in it over 1mil in cash... .and of course no revenue.. so for me its diversification.Performing notes for safe and steady.build new construction for nice hits and take adavantage of market.. we are building in Oregon and Charleston both uber hot.land plays in CA and Oregon.. and lastly moving to Vegas to get out of paying state income tax.. that savings alone for me personally will pay for my new home there.. so more of the same in 18 I listened to Bruce Norris opening remarks at Oakland in Oct.. and was pleased that I do basically exactly what he does and he is very top shelf investor made me feel like I was doing something right.

Calacatta quartz w/ waterfall in the kitchen (2 tone cabinets), GE Cafe appliances, hardwood floors, iPad station to control the new A/C we put in, SkyBell video doorbell.