What do “7% preferred return” and “70/30 split” actually mean for your investment?

In this Hangar Talk episode, Tait Duryea breaks down how cashflow and waterfalls work in GP-LP real estate deals. Using relatable rental property examples, he explains preferred returns, equity multiples, liquidity events, capital account reductions, and the tax treatment of distributions. You’ll learn how GP–LP structures align incentives, when projections hold up (and when they don’t), and how refinancing can return your capital while keeping you in the deal.

Show notes:
(0:00) Intro
(01:21) Year-one cashflow on $100K investment
(02:29) Deals that pay monthly vs. development plays
(03:53) Preferred return as first step in the waterfall
(05:19) How accrued preferred return works
(08:15) Liquidity events and return of capital
(10:24) Capital accounts and preferred return calculation
(13:40) When the preferred return disappears
(14:02) Rewarding early investors in a deal
(18:54) Do real-world results match projections?
(20:29) How distributions are taxed before and after return of capital
(26:25) DSTs, TICs, and 1031 exchange considerations
(26:32) Why invest via Turbine Capital vs. directly

Helpful Links:

• StealthPoint Deal Room: https://turbinecap.investnext.com/portal/offerings/8265/
  
  This Hangar Talk discussed the StealthPoint investment, which is no longer open and accepting investors. You can still view the details in the deal room, but be sure you’re signed up for the Turbine Capital Investor Club to get first notice of new and upcoming Skunk Works offerings.
  
  
• Turbine Capital Calendar: https://www.addevent.com/calendar/Tj858910
• PIP Episode with Trevor Flor on 1031: https://podcasts.apple.com/us/podcast/passive-income-pilots/id1675913577?i=1000616864912
• Cost Segregation Episodes on PIP:
  • Episode #14 with Toby Mathis: https://podcasts.apple.com/us/podcast/passive-income-pilots/id1675913577?i=1000611466826
  • Episode #32 with Yonah Weiss: https://podcasts.apple.com/us/podcast/passive-income-pilots/id1675913577?i=1000624538776
  • Episode #85 with Erik Oliver: https://podcasts.apple.com/us/podcast/passive-income-pilots/id1675913577?i=1000677510087

If you have any questions, please feel free to email investors@turbinecap.com.

Learn more about Turbine Capital:

Website: https://www.turbinecap.com
Facebook: https://www.facebook.com/turbinecap
Instagram: https://instagram.com/turbinecapital