b'In each Waterfall scenario below, the table shows how this would look in numbers, using the following assumptions:Class A contributed $10MThe property generated $1M/year from cash flow ($5M total)The property generated $5M of additional distributable cash on sale (after paying all closing expenses, loans, and returning capital to investors).Adding this all together, the property generated a total return of $10M over 5 years; equaling an annualized cash on cash return of $2M/yearA $2M annualized return /$10M total capital contributions = a 20% overall annualized cash on cash return. The descriptions below show a 70/30 split. If the returns arent sufficient to entice investors (the target is mid to high teens); try changing the split and adjusting the numbers to a 75/25 split.Table Illustrating the Waterfall Models Described Below If you dont want to wade through the text explanations below, you can accessatablecomparingthethreewaterfallmodelsdescribedinthis chapter. The table illustrates how each model affects distributable cash for investors and the asset management team. To get your copy, please go to:https://RaiseCapitalForRealEstate.com/BookBonus. Straight Split Scenario Thewaterfallbelowreflectsa70/30splitinatwo-classcompany, otherwise known as a straight split.206'