How to Build a Real Estate Waterfall Model in Google Sheets (4-Tier GP/LP Split)

If you're a real estate syndicator or GP sponsor, you've probably struggled with waterfall distributions.

How do you split profits fairly between yourself and your LPs? What's the right promote structure?

Here's the exact 4-tier waterfall model I built for my own deals — and now you can use it too.

The 4 Tiers Are:

1. Preferred Return (8%) — LPs get first 8% annual return before GP gets anything
2. GP Catch-Up — GP gets 100% of distributions until they've received 20% of total pref
3. 70/30 Split — 70% to LPs, 30% to GP above the catch-up
4. 50/50 Split — Above 2x equity multiple, profits split equally

I've packaged this into a complete Google Sheets template with:

• Pre-filled formulas for all 4 tiers
• Scenario comparison (3 promote structures side-by-side)
• Per-investor IRR and equity multiple calc
• Sample data you can replace with your own deal numbers

Grab the full Real Estate Waterfall Model here: https://microtoolsb2b.gumroad.com/l/real-estate-waterfall-model

What promote structure do you use in your deals? Let me know in the comments.