Seller Rollover Distributions - Market Standards
I am trying to nail down the exact terms for seller rollover distributions and could use some advice on market standard. My questions for the group: - Are you calculating rollover distributions before or after debt service? After debt service involves the capital structure and would get push back by the seller? - What exact terms and waterfall mechanics are you using to satisfy the bank (minimum DSCR or liquidity) while keeping the rollover attractive to the seller? - How do you successfully communicate the "non-mandatory and subject to minimums" reality to the seller without killing the deal? Thanks in advance for any insights!