Thinking about investing in real estate with business partners?
How do you determine a fair and equitable way to split the profits if each person is contributing different amounts of capital and/or labor?
What if one person is contributing much more money but zero labor?
How do the professional investors handle such situations?
They use the Waterfall Distribution Framework.
It's a the mostly widely used way of determining how to compensate different partners when there is different levels of capital and sweat equity contributions being made.
In this course, I'll show you what the frame work is, it's components, how it's used for investments, and show you exactly how it's applied by demonstrating it through two example case studies.
Kristen Barker - 5 Stars
“Clear and understandable. Excellent, useful excel templates. I appreciated the optional modules that clarified terms as well as more advanced information.”
Dan Heffley - 5 Stars
“Clear, concise, excellent pacing, with great examples, and numerous other resources.”
Noelima Salama - 5 Stars
“Good presentation and message transmission. Factors in those who already have the knowledge and those who don’t.”
Who is the The Waterfall Framework for?
• Real estate investors exploring investment partnerships
• Developers seeking to pitch investor partners
• Entrepreneurs seeking investors for cash oriented businesses (e.g. small businesses like restaurants)
So, you have a great investment opportunity
You grab your two best friends, get all excited, and then invest together.
In your haste to get started, you and your two partners decided to divide the equity evenly in thirds--it seemed the obvious and fair choice at the time.
Two months later, you're disagreeing over who's doing what, who's contributed what, and who deserves how much of the investment.
It's a total disaster.
Don't make this easily avoidable mistake!
Use the waterfall framework to structure your investments in real estate!
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Juan Campos - 5 Stars
“The resource materials are worth the course ALONE. On top of that, everything is explained clearly and with very good examples. You end up not only owning the knowledge, but also having the toolkit to act upon it.”
Guarav Bansal - 5 Stars
“Excellent course and explained in a very simple manner. Perfect use of text, side-video, traversing the excel workbooks, etc.
The excel workbooks are extremely helpful for understanding the concepts and for ready plug n play.
Thanks!”
