A common feature of a real estate equity waterfall, the preferred return or “pref” can be particularly tricky for investors who are not familiar with its permutations. Not all prefs are calculated in the same way. In this article, we explain the different types of prefs and walk you through several examples to distinguish these prefs from other frequently conflated topics such as the “preferred equity” or “pref equity” position in the capital stack.
Articles in this section
- What is a Real Estate Sponsor Promote?
- What are the Differences Between Direct and Indirect (REIT) Real Estate Investments?
- What is a Cap Rate?
- What is a Cash-on-Cash Return?
- How do I become a Sponsor on the CrowdStreet platform
- What is CrowdStreet's vetting / screening process for sponsors
- Where can I find sponsor track record & past performance information
- Who is allowed to invest through CrowdStreet?
- When and how are distributions dispersed?
- What is a Preferred Return?