Introduction to the Waterfall Framework
Partnering with others can make real estate investment more accessible—but tracking and distributing returns fairly requires the right framework. In this course, professional investor Symon He demystifies the waterfall distribution model, a widely used method for allocating investment returns among multiple partners. You'll learn how this model accounts for both capital contributions and sweat equity, ensuring that everyone is compensated proportionally for their role in the deal.
Through hands-on examples—including a restaurant startup, a rental property, and a parking garage—you’ll see how to apply waterfall structures in real-world scenarios using Excel-based tools. Symon also explores the dynamics of investing with friends, family, and business partners, and teaches you how to handle rental income, fix-and-flip profits, and potential losses within a clear, structured return model.
7 activities • 24 videos • duration: 1h 50m
Stanford MBA, Real Estate Expert, Financial Modeling Ninja
Hey, thank you for considering taking one of my courses. I am a real estate and business consultant based out of Los Angeles CA. I am the co-author of "Airbnb for Dummies", to be released May 2020. I currently help private real estate investors with their acquisitions and deal structuring and advise startup entrepreneurs on their business models and financial forecasts. Previously, I was head of marketing analytics at the Panda Restaurant Group after serving as a senior financial analyst supporting new store underwriting efforts. Before that, I was a global M&A manager for Ingram Micro, a Fortune 80 company. Prior to that, I worked on commercial real estate acquisitions at a private equity real estate fund, covering a wide range of asset classes across the western USA. I am also a cofounder of LearnBNB, a boutique consultancy and education blog specializing in the home-sharing economy. I received dual degrees in Computer Engineering (Magna Cum Laude) and Economics (Summa Cum Laude) from UC Irvine and an MBA from Stanford University.
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Good review of deal making and partnerships. I liked the approach to showing the analysis - more at a conceptual level first.
Straight forward and easy to follow along
Very interesting course. Symon is a great instructor. Ultimately you need to play with the models and apply them to your own projects to really maximize the learning but this course gives you much to think about.
Excellent information that is well presented.
