Real estate financing equity waterfall. Let's look at the equity waterfall for the common shareholders a little more closely. Here we have an acquisition funded by 60% debt and 40% equity. The GPs have invested 10% of the 400,000 and the LPs have funded 90%. The GPs have offered the LPs an 8% hurdle rate, which means that each investor group will share in the first 8% of yield according to their pro rata investment. The GPs will then take an additional 30% of the LP profits after the 8% has been achieved. This is a promoted interest. Graphically, the deal looks like this. The levered cash flows will flow to the GPs and LPs until they achieve an 8% return. Once that has been achieved, the remaining cash flows are profits to be shared. However, the GP has a 30% promoted interest so it will receive 10% of the remaining cash flows or profits, plus 30% of the 90% that the LP was supposed to receive. The LPs then receive 70% of the remaining cash flows. Our workout will demonstrate how this is calculated.