Real estate fund splits

[Sean Clinnin]

Is it normal after the preferred interest rate is achieved and the  property is sold that the general partners split the end profit with the limited partners for at a 50/50 split?

[Aaron W.]

@Sean Clinnin This is common. Once the preferred return is achieved then a split of the remaining cash flow/profits between GPs and LPs is split. 50/50 split is also common. Other splits are 60/40 or 70/30. It all depends on the operator.