Peer 2 Peer Real Estate's Podcast

Thank you for tuning in on the special webinar about Real Estate Syndication.About Stephanie:Many people are interested in real estate investing, but they don’t have the time to be active, full-time landlords. Most people want monthly cash flow, tax advantages through depreciation, and the potential for financial freedom and early retirement. A big point of confusion is how passive investors are compensated in a real estate syndication.One of the most important ways investors are compensated in a syndication is through what is known as a preferred return.What is a Preferred Return?A preferred return in private real estate syndication investing is the minimum return an investor must receive before the investment sponsor can earn a performance fee.The preferred return is typically between 6% to 9% in real estate syndications, depending on the risk of the investment. You can think of this as an interest payment on your money as it accrues the same way, but it is not a guaranteed payment.How does Preferred Return