b'Distributablecash,whengenerated,istypicallydisbursedtoall members of the syndicate by following a distribution waterfall, which explains the step-by-step process for paying members whenever cash that has been generated from cash flow or a capital transaction is distributed. Distributable cash cannot be guaranteed and may only be distributed when the property generates itanything else is a return of capital.Not all properties are suitable for syndication. They have to generate a sufficient cash on cash return to be able to pay investors an annualized return in the mid-to-high teens, and to pay the asset manager a sufficient share of distributable cash to make it worthwhile to take on the risk and do all the work necessary to operate the syndicate of fund.If the cash on cash return isnt sufficient to generate a cash flow return for investors within a couple of years of their investment; and an annualized returninatleastthemid-teensaftertheprojectedsale,withtheasset manager keeping 20-30% of the profits, the property is over-priced for a syndication model. Such property may be fine if someone wants to buy it ontheirown,butifthereisntenoughcashtosplitbetweentheasset managerandinvestors,andstillachieveyourtargetcashreturns,your choices are to offer a price that works, and if it cant be had, then walk away.Key Takeaways All of this and more is detailed in the following chapters.13'