From the course: Real Estate Deal Structuring: Introduction to the Waterfall Framework
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Waterfall example summary
From the course: Real Estate Deal Structuring: Introduction to the Waterfall Framework
Waterfall example summary
- All right, welcome back. This is the summary of the waterfall comparisons. So go to the Summary worksheet here, the first worksheet on the left. And what you're going to see is four sets of summary results for each of the parties involved, where column D is for Albert and then E, Bobby, all the way through. So all of these are kind of their results, but here is their results based on the different waterfall. Now, we're going to start with the No Waterfall here. All right, we saw that with no waterfall, everybody's treated the same. Albert's money is treated the same as everybody else's money, and so the returns are exactly the same, okay. And in this case, notice the colors. The colors are done for per column to show in which case each of these investors or parties does the best. Okay, so we see that for the investors, they all do the best under the No Waterfall. And that makes sense because they don't have to give up any of the returns above and beyond what the project manager…
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