Hangar Talk June 2025: Cashflow, Capital, and Splits

What do “7% preferred return” and “70/30 split” actually mean for your investment? In this Hangar Talk episode, Tait Duryea breaks down how cashflow and waterfalls work in GP-LP real estate deals. Using relatable rental property examples, he explains preferred returns, equity multiples, liquidity events, capital account reductions, and the tax treatment of distributions. You’ll learn how GP–LP structures align incentives, when projections hold up (and when they don’t), and how refinancing can return your capital while keeping you in the deal. Show notes:(0:00) Intro(01:21) Year-one cashflow on $100K investment(02:29) Deals that pay monthly vs. development plays(03:53) Preferred return as first step in the waterfall(05:19) How accrued preferred return works(08:15) Liquidity events and return of capital(10:24) Capital accounts and preferred return calculation(13:40) When the preferred return disappears(14:02) Rewarding early investors in a deal(18:54) Do real-world results match projections?(20:29) How distributions are taxed before and after return of capital(26:25) DSTs, TICs, and 1031 exchange considerations(26:32) Why invest via Turbine Capital vs. directlyHelpful Links:StealthPoint Deal Room: https://turbinecap.investnext.com/portal/offerings/8265/This Hangar Talk discussed the StealthPoint investment, which is no longer open and accepting investors. You can still view the details in the deal room, but be sure you’re signed up for the Turbine Capital Investor Club to get first notice of new and upcoming Skunk Works offerings.Turbine Capital Calendar: https://www.addevent.com/calendar/Tj858910PIP Episode with Trevor Flor on 1031: https://podcasts.apple.com/us/podcast/passive-income-pilots/id1675913577?i=1000616864912 Cost Segregation Episodes on PIP:Episode #14 with Toby Mathis: https://podcasts.apple.com/us/podcast/passive-income-pilots/id1675913577?i=1000611466826Episode #32 with Yonah Weiss: https://podcasts.apple.com/us/podcast/passive-income-pilots/id1675913577?i=1000624538776Episode #85 with Erik Oliver: https://podcasts.apple.com/us/podcast/passive-income-pilots/id1675913577?i=1000677510087If you have any questions, please feel free to email [email protected] more about Turbine Capital: Website: https://www.turbinecap.comFacebook: https://www.facebook.com/turbinecapInstagram: https://instagram.com/turbinecapitalThe information discussed in this episode is for informational and educational purposes only and should not be considered investment, tax, or legal advice. Nothing discussed in this episode constitutes an offer to sell or a solicitation of an offer to buy any securities. Any opinions expressed are those of the participants at the time of recording and are subject to change without notice. Investments discussed may not be suitable for all investors and involve risk, including the potential loss of principal. Past performance is not indicative of future results. Prospective investors should review all applicable offering documents and consult with their own financial, tax, and legal advisors before making any investment decision.