Episode 26: Understanding Equity Waterfalls – How Profits Are Split

February 23
18 mins

Episode Description

Welcome to Building Passive Income with CREI Collin

Confused about how profits are split in a real estate syndication? In this episode, CREI Collin breaks down equity waterfalls—the formula that determines who gets paid, when, and how much. Learn what a waterfall is, the most common structures, cumulative vs. non-cumulative preferred returns, and how to evaluate whether a waterfall is fair and investor-friendly.

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