Clarification on apartment syndication splits

[Stephanie Martinson]

Hi everyone,

I'm analyzing an apartment building, and while doing so, I got to thinking about a question that I had better clarify before going in to further discussion with passive investors...  

For my business plan, I'm thinking an 8% preferred return, and then I'm not 100% sure about the profit split, but since it's my first deal, I thought a 70/30 profit split would be fair.  

My question is this: is the profit split each year after the passive investors get their 8%, then we split the cash flow profit 70/30, and then again on the sale?  Or is the profit split ONLY on the sale of the property?  

Thank you for all your help!

Steph Martinson