Cash Flow Waterfall Model
This model represents the traditional capital structure between the real estate parties, developer and investor.
The waterfall cash flow model is used for payment schemes where more senior creditrs receive both interest and principal payments, and lower tier creditors receive only interest payments. The waterfall structure is a typical real estate capital structure where the developer is usually the minority investor. The waterfall is really Internal Rate of Return (IRR) hurdles which determine how cash flows at each level are split.
The model is dynamic and amenable to deal variation.
Note: You are welcome to report any errors or any suggestion for improvement. I will earnestly consider all your valuable inputs
The waterfall cash flow model is used for payment schemes where more senior creditrs receive both interest and principal payments, and lower tier creditors receive only interest payments. The waterfall structure is a typical real estate capital structure where the developer is usually the minority investor. The waterfall is really Internal Rate of Return (IRR) hurdles which determine how cash flows at each level are split.
The model is dynamic and amenable to deal variation.
Note: You are welcome to report any errors or any suggestion for improvement. I will earnestly consider all your valuable inputs