b'Making Cash Distributions Distributions From Cash Flow Option1:Duringtheperiodofownershipofaproperty,atypical syndicate may offer investors a straight split of distributable cash between the investors and the asset manager, usually on a pari passu basis (by class), and then pro rata (within each class).Option 2: An alternative structure (and perhaps more common) is to offer a cumulative preferred return (typically 6% to 8%) to investors from cashflow.Preferredreturnsarecalculatedagainsttheamountofthe investors capital contributions, with any remaining distributable cash split between the management class and investors.Option 3: The real question is whether the management class should takeacatchupdistribution.Wellexploreall3oftheseoptionsinthis chapter.Distributions From a Capital Transaction When a capital transaction occurs, such as a refinance or sale, cash proceeds will be distributed in an order designed to pay back member capital contributions first, and then to make up arrearages in preferred returns, and finally splitting remaining cash between investors and management.Example Distribution Waterfalls In each scenario below, well do an Analysis that shows how this would look in numbers, using the following assumptions:205'