What is a Preferred Return?

What is a Preferred Return?
The “Preferred Return” is a minimum threshold return that investors must receive before the General Partner can receive its share of the cashflow profits. The preferred return is usually expressed as a percentage return per year and is usually around 7% per year. This means that the investors must receive a 7% annual return on their contributed capital before the GP can receive their share of the profits.

real estate,investing,biggerpockets,brrrr,grant cardone,10x,multifmaily,passive income,