Structuring Real Estate Syndication Waterfalls: Priority, Not Guarantees
from Syndication Attorney Field Notes with Tilden Moschetti Hosted by Tilden Moschetti
In this episode of Syndication Attorney Field Notes, we look at how distribution waterfalls actually work in a real estate syndication. Sponsors often want to pitch the preferred return as guaranteed passive income to make the capital raise easier. Syndication attorney Tilden Moschetti explains why this assumption is legally problematic and how it can create misrepresentation issues. You will learn the anatomy of a clean three-tier waterfall, the critical difference between a preferred return and return of capital, and why overly complex IRR hurdles often create unnecessary administrative burdens for your accountant and your investors. Also see: Real Estate Syndication Waterfalls — https://www.moschettilaw.com/real-estate-syndication-waterfalls/ Note: This episode's audio is generated using AI voice cloning technology based on Tilden Moschetti's written work. Watch the video on YouTube: https://youtu.be/PDHahINB3yk
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Tilden Moschetti explains how distribution waterfalls actually work in a real estate syndication, detailing why preferred returns are a priority of payment, not a guaranteed yield.
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