b'find out if your investors will like this model is to ask them if this model would work for them.Distribution Models That Are Dangerous for Asset Managers I have reviewed many offering documents drafted by other attorneys, and I commonly see several scenarios that I believe are dangerous for asset managers:1.The first is to pay arrearages in preferred returns before returning capital contributions. I always tell my clients, remove your liabilities first. You wont get sued for not making your preferred returns, but you will get sued if you dont return capital. Pay back capital contributions first, and then make up arrearages in preferred returns.2.The second is a model that some crowdfunding platforms and broker dealers tend to favor. This scenario requires that you pay back all of the investors capital contributions plus their preferred returns before the asset manager can collect any distributions at all. This means you could be operating a property for 5 or more years and trying to live off asset management fees, with no distributions to the management class until sale. In my opinion, this mis-aligns your interests with investors. You cant wait to sell the property so that you can earn distributions from the sale, but investors are happily enjoying their cash flow returns, all while the asset management team starves. You may eventually have to turn your attention to paying deals or get a job to survive, leaving their investment to suffer. Any waterfall that doesnt 218'