Understand the difference between the two, how they are compensated, and how they serve you during the due diligence process. 

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.

This includes monitoring the transaction, conveyancing, compensating my transaction coordinator, and dealing with both sides paperwork and timelines - not including negotiations. 

First, most investors and owners of real estate related businesses are in one or more of the following situations1- they’re unable to duplicate their expertise that drives the ROI and they are at their personal max capacity as to time2- they’re obtaining high ROI by use of excessive leverage 3 - they’re obtaining high ROI by taking excessive risk4- they hit correct timing in the correct market, and this is not necessarily repeatable with any probabilityIn order for an investment or business to scale, we need the ROI (on a risk adjusted basis) to be sufficient to cover a PREMIUM risk adjusted return to passive investors; all expenses of managing the assets and the business, and a significant return to the “sponsor” providing compensation to him making the work, risk and time worth while. 

Liquidated damages can compensate the owner for lost rental income or extended financing costs.

This is a way to ensure compensation.

An example would be when you receive compensation that you later split 50/50 with your partner.In this case, you need to file your own form 1099 showing payment from you as the payer to the actual recipient.

We are contractors with different expertise and want to figure out a way that is fair both to get compensated.

Most victims of this company are now broke or worse, they are looking at the fall out of signing in full recourse loans that have been foreclosed.

If she held the time for your property and couldn’t take on other jobs, it makes sense to compensate her for that.