Updated about 2 months ago on . Most recent reply
Syndication Distributions Questions
Investing as a syndication limited partner, when is capital returned. I know there are alot of variables(buy hold, vs value add, etc), but what is typical. Let's assume a buy an hold scenario that has stabilized. If there is a preferred return of 8% that is distributed that is a return on capital, correct? What if the property is a home run and there are funds available to pay out more. Is it distributed? And if so is it a return on capital or a return on capital? Any thoughts are appreciated about typical distribution scenarios.
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Capital is usually returned on an exit or refinance.
You are distributing funds as there is cash flow available. The pref of 8% does not dictate when you distribute to investors. It dictates who gets paid first. This is all return ON capital.