Preferred Return
I met with a developer yesterday and during our meeting he stated a 40% “preferred” return to partners. That got my attention, and although I do not want to talk numbers here, the point is that he is looking for a loan to fund his deal. This morning I read his detailed proposal and see that the 40% return is over a two year period. That sounds misleading and I’m wondering if anyone in the world of development would present proposals that way.