b'8. Decide How You Will Split Money With InvestorsLiquidation PhaseIn the liquidation phase, you will follow the waterfall you have estab-lished for distributing cash the company generates from a capital transac-tion such as a refinance or sale of a company asset:First, you will ensure that all expenses of the company have been paid, including any amounts due institutional lenders; and any fees the syndicator is due. Second, you will pay back the original capital contributions to investors.Third, you will pay out any payments or returns owed to investors.Fourth, you will pay any management fees or distributions that may have been deferred.Fifth, you may split any remaining profits with investors, or keep the remaining cash for yourself, as directed by your specific invest-ment model. The order of distribution is not fixed and may be varied or far more complex than this, but generally, on a capital transaction your investors will want their money back before management takes its cut. The specific order in which distributable cash gets disbursed on a capital transaction will be described in the companys governing documents.RIGHTS TO DISTRIBUTIONS AND VOTING For real estate offerings, the passive investors may have some limited voting rights regarding major decisions affecting the investment, but the management team will make all major decisions regarding the property on behalf of investors. Most investors dont have the education, experi-ence, or time to understand the complexities involved in acquisition and management of investment real estate or a startup business. This is pre-cisely why they invested with you. For non-real estate offerings, certain investors may be passive, with limited voting rights, while others may be actively involved in making managerial decisions and running the com-pany. In a typical real estate syndication you may have separate classes of 85'