b'Chapter 12The Perils of Drafting Your Own Offering Documents Whataretheperilsofdraftingyourownrealestatesyndication documents? Leaving Money on the Table A competent securities attorney will help you structure your offering in awaythatisfairtothemanagerandinvestors.Youmayoverlook opportunitiesformanagementcompensationviaacceptablefeesand/or distributionsifyoudonthavecompetentsecuritiesadvice.Heresan example of how many of issuers leave money on the table: 1.Do you offer a preferred return and then split whats left? 2.Do you offer a split, but make distributions in a way that gives 100% of the cash to investors until they achieve a hurdle rate (preferred return), but gives the management class the right to recoup an unpaid portion of the split later on from cash flow or a capital transaction (catchup)?Hint: It makes a small difference in income to investors if you pick option 2, but a huge difference to income of the asset management team (as ClassBmembers).Rookieassetmanagersoftenchooseoption1;but usually only do it one time before they come to understand the difference.99'