From the course: Real Estate Deal Structuring: Introduction to the Waterfall Framework
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What happens if the investment loses money?
From the course: Real Estate Deal Structuring: Introduction to the Waterfall Framework
What happens if the investment loses money?
- Now in all of the examples we just went over, we looked at what would happen for a successful investment when there's a lot of profits to distribute. So we saw how the profits distributed between what was the carried interest for Albert and the investors in all the different scenarios there. But now what happens if the investment loses money? What if Albert really screwed up and didn't do well and now the investment loses money for all the investors? Let's see how that plays out with waterfall framework.
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