Market - Investment Offerings
Real Estate Investing
Example of Distribution Priorities
Waterfall Summary. Distribution priorities to members of LLC.
1. 8% annual, cumulative, but non-compounding, preferred return, paid quarterly.
2. Up to a full return of capital contributions.
3. Then 80% of the pro-rata portion of distributions based on percentage interests, up to a 14% IRR Tier 1 Hurdle Rate.
4. Then after Tier 1 Hurdle Rate is achieved, 60% of the pro-rata portion of distributions is based on percentage interests, up to an 18% IRR Tier 2 Hurdle Rate.
5. Then after Tier 2 Hurdle Rate is achieved, 50% of the pro-rata portion of distributions is based on percentage interests.
*This summary is incomplete. See the single LLC Agreement for a more detailed description of the waterfall structure.
Waterfall Summary. Distribution priorities to members of LLC.
1. 8% annual, cumulative, but non-compounding, preferred return, paid quarterly.
2. Up to a full return of capital contributions.
3. Then 80% of the pro-rata portion of distributions based on percentage interests, up to a 14% IRR Tier 1 Hurdle Rate.
4. Then after Tier 1 Hurdle Rate is achieved, 60% of the pro-rata portion of distributions is based on percentage interests, up to an 18% IRR Tier 2 Hurdle Rate.
5. Then after Tier 2 Hurdle Rate is achieved, 50% of the pro-rata portion of distributions is based on percentage interests.
*This summary is incomplete. See the single LLC Agreement for a more detailed description of the waterfall structure.