What is a Preferred Return? | The Basics of Multifamily Investing

Learn the breakdown of a preferred return and the safety it provides to investors. In this video we will simplify preferred return and what that means to your multifamily investment! In this video we show an example of a 7% preferred return with a 30% split to sponsors. With Jim’s investment of $100,000 Jim will receive a 7% preferred return each year or $7000 BEFORE the sponsors took a single dollar. A preferred return adds protection to multifamily investors and accountability to the sponsorship team- or in other words the people who put the deal together and manage your investment!