MFREE 125 Trailer # 3 with Shams Merchant: Are You Making Your Deals Too Complicated for Investors to Say Yes?

you want to keep it simple because that's what investors are going to be able to understand

more quickly and if they can understand it, then they're going to want to invest. If they

can't understand it and if you can't explain it to them properly, then that's going to

deter them from investing in your deal. So what I've seen, even from the institutional funds,

they, even they tend to keep a simpler, wonderful model. Now, definitely the institutional funds

will have clawback provisions, will have IRR hurdles. You know, we can, we can start, you know,

really, you know, putting things in there and making it complicated and the institutional funds

will have some of that. But even then, like at some point they go, okay, it's getting over

complicated. Let's keep it simple, right? And so that's always a goal. Simplicity is the key

when it comes to waterfall models. Man, that's pretty cool, man. Yeah, I've seen some complicated

waterfall modeling, try to explain that to an investor and even when the operator

understand it to a fundamental level, right? A foundation level. If the investor can't

comprehend it, then the chances are they're going to say no.