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A developer puts in 5% equity and a fund puts in 95% of the equity for a development deal. Cash flow is to be distributed with the following order of priorities (e.g., "the waterfall"):
Preferred return is 10% pro rata to both parties.
The promote is 20% to the developer then the balance of proceeds pro rata.
The acquisition and development costs of a deal (occurring at time 0), are $1 million.
At the end of the first full calendar year the project is sold for $1.1 million.
What are the returns to the developer and the fund?
What if the project is sold for $3.0 million?
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The US Constitution, in Article 6, prohibits any religious test from being required to serve in any public office. The Texas Constitution requires that public servants acknowledge the existence of a Supreme Being.
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