From the course: Real Estate Deal Structuring: Introduction to the Waterfall Framework
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Wrapping up the waterfall model
From the course: Real Estate Deal Structuring: Introduction to the Waterfall Framework
Wrapping up the waterfall model
- [Instructor] Okay, now wrapping up the dive into the waterfall implementation, we talked about the catch-up earlier, so now it goes to the final split. And I'm going to go over how we calculate these final returns for each of the investors. So let's take a look at the calculation. So earlier, we had the, we were ending here with the catch-up, right. So after the catch-up here, because it didn't meet the catch-up, there was no more that was going to the 65/35 split between the investors, right. Here are all the investors, and then 35 percent to the managers. Well, there wasn't enough money, so then we don't really see anything here, right. So then, well, at the end what we do is we want to calculate everything that's going to every investor, right. So the way we do that is we first got to track, what are the investors getting for each of them based on their money, right. So this one is all of the amounts that have been paid to each of the investors. So for Alice, this is what she got…
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