I find this helps calm some of the anxiety that tenants may have about the property being sold.

I believe the sponsor still is on social media going about their day to day My Guess Chris is after all the blustering and threatening this calmed down and if litigation has started its in Ca so we can check back in about 18 months to 24 months from now to see what if anything happens..

Set clear, friendly expectations from the start, keep good documentation, and don’t hesitate to enforce your policies calmly.

Also, how are you structuring equity splits, preferred returns, and waterfall distributions to stay competitive while still making deals pencil out?

I recently responded to Chris’ post to give some clarification, but wanted to also drop a quick comment on yours as well since you seemed to also have a calm but reasonable response to the thread.

A tiered equity waterfall could be more beneficial, where profits are split 75/25 until investors achieve a 12-15% internal rate of return (IRR), after which the split shifts to 50/50.

It's pretty much fire season right now it seems.If that is his fear maybe you can calm them down.

Priority of Payments (Waterfall Structure): Clarifies how payments from rental or lease income are allocated among different debt obligations, helping investors evaluate the likelihood of returns.

With both these guests we had to explain to them what the issue was and calm them down because they were upset as if something at the property was defective when in reality no HVAC system can perform how they were asking it to perform.

Next, 10k in damage seems excessive for an emergency leak, since if the leak was in a wall, it would most likely result in most of the water falling into a basement (if there is a basement) or it would pool along the floor.