Washington Business Attorneys & Lawyers
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Steven Stark
Sue Dunbar
Jake Siciliano
Richard Gora
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Baruch Gottesman
Brig Ricks
Sam Goldstein
David Dopsovic
Carl Anderson
Benjamin Snipes
Washington Business Lawyers
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A preferred return—simply called pref—describes the claim on profits given to preferred investors in a project. The preferred investors will be the first to receive returns up to a certain percentage, generally 8 to 10 percent. Once you reach this profit percentage, the excess profits are split among the rest of the investors as agreed upon in negotiations. This type of return is most commonly used in real estate investment.
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